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How Our Flexible Investment Approach Benefits Clients
No single investment category is right for all time. Instead, categories often trade leadership. In this video, Executive Vice President of Portfolio Management, Bill Glaser, explains how Fisher Asset Management, LLC (“FAM”) takes advantage of these regular leadership rotations.
Based on historical analysis of category leadership, FAM determines which countries, sectors and investment styles might perform best in the future given its economic forecast. As a global money manager, this ability allows FAM to identify countries that might perform well given their current economic and political climates. While many investors tend to invest mostly—or even solely—in their home country’s securities, FAM believes global investing is an ideal way to increase diversification, spread out risk and take advantage of opportunities around the world. FAM's top-down investing approach differs from many investment managers who simply aim to pick hot stocks. FAM is not trying to find “needle in the haystack” stocks. Instead, FAM aims to find the “haystacks with the most needles” and then determine which securities are the best fit in a diversified client portfolio.
Transcript
Fundamentally, we don't believe that any one category or style of the market is inherently better than another. So what we look to do is rotate the portfolio and invest in categories that we believe on a forward looking basis will do best. And a lot of that is predicated to our belief on where we're at in the market cycle. So we look to utilize that, that flexibility, but also do so on a global basis looking for global opportunities. The process is also top down in nature in the sense that unlike many managers in the industry, which tend to be more bottom up oriented, they tend to be the stock pickers. They're trying to find that best stock out there, the best performing stock. That's not what we're doing at Fisher Investments. And in fact, if Fisher Investments, we're not trying to find that needle in the haystack, but we're trying to find the haystacks with the most needles. And we feel like if we can do that and we can identify the categories of the market that we think will do best, well, that goes a long way in maximizing the likelihood that that we then get our stock selection part of the process correct.
Fisher Investments Australasia Pty Ltd, an Australian company (ABN 86 159 670 667) licensed in Australia (AFSL 433312) to provide services to wholesale clients only, uses the trade mark Fisher Investments® and, in New Zealand, operates as an overseas company (NZBN 9429052507656) using the trading name Fisher Investments New Zealand to provide services to wholesale investors only. Fisher Investments Australasia Pty Ltd outsources portfolio management to its parent company, Fisher Asset Management, LLC (AR 001292046), which is established in the US and regulated by the US Securities and Exchange Commission. Investing in equities and other financial products involves the risk of loss. Past performance is not indicative of future performance.
This information constitutes the general views of Fisher Investments Australasia Pty Ltd as of the date of this document and does not relate to a particular financial product. These views do not take into account individual financial situations, needs or objectives and should not be regarded as personal investment advice. No assurances are made we will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast or other forward looking statement made herein. Forecasts are based on current expectations and beliefs involving risks, uncertainties, assumptions, and judgments that are difficult to accurately predict and may prove inaccurate. Forecasts and any past performance information are not an indicator of future performance and should not be relied upon. Actual outcomes may be materially different. There can be no assurances that investment returns from a particular strategy or allocation will exceed returns from another strategy or allocation. Individual financial products, including fixed interest products and derivatives, and investing in different markets, carry unique risks. Any references to a particular tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
