by Jamie Hyndman, Mawer Investment Management
The ubiquitous indication of good that is most often found on food labels, “no artificial ingredients”, has come to represent something meaningful in the dizzying array of products that is now found on today’s supermarket shelves. Why is it that this resonates? Because it stands for something. It stands for that which is pure, time tested, and reliable.
And while honey, jam, and maple syrup are some of the more traditional products that receive this wholesome labeling, perhaps some investment management approaches could as well.
What would they look like? Well, first off, there would have to be a sound investment philosophy at the core of the approach. Next, the approach would need to have worked over a long period of time. Finally, the investment manager would of had to exhibit a consistent dedication to the approach and not sway from it in the face of the steady barrage of financial engineering ideas that have permeated our industry in recent decades.
More specifically, the manager would not have any derivatives in its portfolios. There would be no leverage. There would be no securities lending. There would be no complex product structures.
The end result would not be flashy. In fact, it would be downright boring. But it would be something that could be understood, trusted, and counted on to help us all achieve our financial goals.
Mawer Investment Management: no artificial ingredients.
Jamie Hyndman
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