The current situation has significantly affected the activity among investors and hence asset managers. It is understandable that most institutional investors who are not obliged to trade sit on their hands. We believe that many are waiting for the right moment to step into the markets, but for this to happen, there will most likely have to be solid signs that the virus is contained, that the economies are beginning to turn back and/or that we see valuations so low that they can justify buying risky assets.
We can register that search activities are subdued and new mandates are on hold as investors are trying to understand the developments in the financial markets and the performance of their managers. Having said that, experience shows that the replacement activity after large shifts in the markets is very high, as many investors will be disappointed with managers that did not fit the recent market conditions, simply performed badly and/or failed to live up to decent communication standards.
Generally, periods like these lend themselves to contemplation and formulation of new plans and strategies, and we encourage you to spend time on gauging more overall trends and possibilities