• Adriaan Pask, Chief Investment Officer, PSG Wealth

Taking some investment lessons from the Rugby World Cup

While each country participating in the Rugby World Cup dreams of winning the trophy, becoming the champion is not that simple. It depends on a lot more than just having the best players in your team: player selection, game strategy, and team dynamics all play a role in the eventual outcome.

It’s not about picking the previous winner

No-one would think predicting the winner of the Rugby World Cup is as simple as looking at the previous tournament’s winners. It is easy to appreciate the uncertainty involved and that a single match can change the outcome of the entire tournament. Despite this, investors often base their investment decisions on selecting last year’s winners, rather than following a well-thought through and robust investment strategy.

The support of a team of specialists

A successful rugby squad has a team of specialists supporting them. In addition to the head coach, there are several specialists who each focus on helping players hone the skills suited to their position (e.g. there is a backline, a forwards and a defence coach). When it comes to investments, you can think of a Chief Investment Officer as a Head Coach, supported by a team of skilled professionals who consider the bigger picture when it comes to investments. At PSG Wealth, for example, our team of research analysts spend hours performing detailed research and due diligences on funds and managers, providing insights that help us deliver better solutions to our clients.

Each game requires a tailored approach

Rugby fundis will tell you every game requires its own strategy depending on the opposition and the type of game you’re likely to play on the day. Similarly, you need a tailored investment approach depending on your unique circumstances and needs. The PSG Wealth solutions are a range of expertly managed funds, each suited to a different investment horizon and risk appetite and aiming to achieve a different investment outcome.

Appreciate the importance of different skill sets

Once the game strategy has been bedded down, you need to pick the players for your team. As multi-managers, we focus on selecting skilled managers that have proven track records to deliver on the fund’s mandate. As experts in fund selection, we understand that it is not just about each individual player’s abilities, but also about how they perform together as a team. Different managers have different investment styles, and they tend to perform differently during different market cycles. By combining different managers, our funds can rely on different strengths at different times, equipping us to deliver consistent, above-average returns over the performance periods appropriate to each fund.

When you’re heading into an important game, you want the experts on your side

The winning combination lies in selecting the right players suited to the game strategy and supported by the right coach and support team. This is not a simple task, so you want to be confident knowing that you have the experts on your side, helping you achieve the best possible outcomes. The PSG Wealth solutions are developed specifically to support the PSG Wealth investment process and philosophy, helping to deliver a winning a combination when it comes to your long-term investment goals.