Yet, the current lack of good faith is no reason to go sulking in a corner, but an opportunity for the financial industry to prove itself a trustworthy partner not only in good, but particularly in bad times.
One of the key experiences in my 20 year career in the financial industry were the years 1995 to 2001. I was responsible for a pension fund’s investment strategy and in the bull markets of those days, it was next to impossible to lose money. As we all know, that is no longer the case.
OVER THE LAST FOUR YEARS, it was extremely difficult to generate profits promised in a world that ceased to exist. Generating returns will remain difficult and guarantees are hardly a viable solution as they are not only expensive, but also unduly restrictive to the fund manager’s investment approach.