FOX Asset Management (FOX) is a specialist Investment Consulting group that primarily services client's in the Australian Funds Management Industry including: Institutional, Professional or Wholesale investors.
For Wholesale clients, please also visit FOX Wealth Management (www.foxwealth.com.au)
The main source of "value add" that FOX provides their client's is a "hands-on" tailored approach to their investment challenges, product strategy and/or business needs.
The Global Financial Crisis (GFC) and the Sovereign Debt concerns have taught investors many lessons regarding volatility, correlation, liquidity, transparency and the concentration of investment risk. In order to learn from this experience, the manufacturers of investment products, the Investment/Fund Managers, have had to challenge their thinking on how the GFC lessons can be ingrained into their current product mix so that investors can gain a greater confidence in their ability to manage money throughout periods of economic uncertainty.
One of the primary reasons for the change in investor behavior has been the lack of control of both the underlying concentration of risk (transparency in terms of asset allocation) and more importantly, the liquidity of their investments. Basically, investors wanted the ability to shift away from their current Risk Profile and associated Strategic Asset Allocation (SAA), towards a more defensive mix of assets. The problem is their current Strategic Asset Allocation guidelines and Dealer Group Approved Product Lists make this activity a very time consuming exercise.
In response, many investors have switched to Self Managed environments (such as SMSF structures) in order to take control of the issues that "keep them awake at night" however, in the majority of cases, they do not necessarily have the investment knowledge to effectively manage their money post the GFC. Fund Managers are better equipped to to manage the investment risk however, they need to address what is the best way for them to achieve a better outcome for both, their own business models (in terms of FUM) and the clients investment concerns and objectives (in terms of returns and capital preservation).
This is where the expertise of a third party, such as FOX, can typically help in gaining an understanding of the business requirements and provide options for the distribution functions of the Fund Managers to consider, in relation to their underlying strategy, capabilities or product mediums.
Some of the consulting assignments that FOX has been involved with for clients includes the following:
- Alternative Assets: Managed Futures, Hedge Funds and Infrastructure Assets;
- Direct and Listed Retail and Commercial Property;
- Commodity Investment: Shares and Futures;
- Structured Debt Funds;
- Emerging Markets and Frontier Markets (Asia);
- Private Equity: General and Limited Partnerships; and
- Corporate Advisory.
Other assignments have also included:
- Data transformation projects involving performance and attribution of front-office trading systems;
- Model portfolio structuring across the broad spectrum of Risk Profiles including, Alternatives (growth and defensive);
- Tailored asset class solutions involving style blending, core/satellite approach, ETF usage in models and direct share (concentrated alpha) exposures; and
- Capital preservation and downside risk management techniques.