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Resilience is about more than just weathering the storm; it’s about harnessing market challenges to amplify success. In a world shaped by unpredictable events—a tumultuous US election, a global pandemic, wars, and fluctuating interest rates—the ability to adapt and thrive is paramount. How do we navigate this constant sea of change? The answer lies in active management.
Active management as a cornerstone of resilience
Active management is the cornerstone of our approach to resilience. Our clients at Amplify entrust us with their financial well-being, and they expect returns that outperform benchmarks, regardless of market conditions. It’s a commitment we take seriously.
Active management involves making not only strategic, but also tactical decisions about stock selection and asset allocation, constantly adapting to market dynamics. This hands-on approach ensures that portfolios are optimally positioned to deliver consistent returns, even in the face of market turmoil. Think of it as navigating around the storm clouds, not just bracing for impact.
Let’s rewind five years to August 2019. Imagine I told you then about the rollercoaster ride ahead: the US elections, the events of January 6th, a global pandemic, wars in Ukraine and the Middle East, unprecedented interest rate cycle. You’d likely be hesitant to stay invested. Yet, despite these tumultuous events, local equities delivered about 11-12% per year, cash yielded around 6% per year, and global equities achieved approximately 12% in dollars (16% in rands). This underscores the power of resilience and staying invested, even amidst uncertainty.
Transparency builds trust
Transparency is crucial to building trust, especially when it comes to complexity and constant change. We believe in open communication and provide our clients with complete clarity on our investment processes, including our partnerships with boutique asset managers and our fee structure. There are no black boxes here; we want our clients to fully understand where their money is invested, empowering them to make informed decisions with confidence. This aligns with our commitment to active management and building resilience beyond just financial metrics. We recognise the human element in finance and believe that transparency helps us create stronger client relationships and better outcomes.
Equip an adviser, empower a client
We believe in empowering our advisory network. By providing advisors with the knowledge and tools to understand and articulate the intricacies of various financial products, especially hedge funds, we enable them to confidently guide their clients. This emphasis on education and open communication ensures that clients can weather financial storms with a clear understanding of their investments.
The power of hedge funds
Interest in hedge funds is growing rapidly, but it’s important to understand their complexities. We advocate for a comprehensive educational approach, empowering advisers to make informed decisions about incorporating hedge funds into their clients’ portfolios.
Hedge funds offer a powerful tool for diversifying risk and enhancing returns. By blending hedge funds with traditional long-only portfolios, advisers can create a more resilient investment strategy that captures upside potential while mitigating downside risk. It’s about finding the right balance, the sweet spot where different investment approaches work together.
Building beyond financial resilience
