Investment lessons from the Rugby World Cup
It depends on a lot more than having the best players in your team: player selection, game strategy and team dynamics all play a role in the eventual outcome, says Adriaan Pask, chief investment officer of PSG Wealth.
* 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, says Pask. It is easy to appreciate the uncertainty involved and that a single match can change the outcome of the entire tournament.
Despite this, Pask says 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 (for example, there is a backline, a forwards and a defence coach), says Pask.
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, he says.
* 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, says Pask.
* Appreciate the importance of different skill sets. Once the game strategy has been bedded down, you need to pick the players for your team, says Pask. As multi-managers, we focus on selecting skilled managers that have proven track records to deliver on the fund’s mandate. 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.
* 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 you have the experts on your side, helping you achieve the best possible outcomes, says Pask.