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Anthony Torriani From Komfie Manalo, Opalesque Asia:
"Complexity scares investors," Anthony Torriani said that during the recent Opalesque Monaco Roundtable. "But also, trying to avoid a risk results in creating a new one."
Torriani, who is the founder and principal of Monaco Asset Management, a local independent wealth management firm, believes this is one of the major problems in private banking. People seek to avoid risks they know about by taking risks they do not understand, going into overly complex investments and ending up finding that the risks they invested in are a lot greater than they envisaged.
"In these times, a lot of investors, also professional investors, are often overwhelmed by all the risks that shout out to them," Michael Browne said. "If something has been on the front page of the FT, it is surely known about 27 times over, and so maybe it's time now to actually to reverse the process, making it more simple rather than more complex."
Browne, who is director at Martin Currie, a global equity institution based in Edinburgh, suggested we might be at the point where we need to go back to basics after having gone through a period of chronic over-engineering within all parts of the financial industry.
"Investors are just not doing anything at the moment," Marc de Kloe replied. "I believe most of our clients are putting money into savings accounts, and the lucky ones may make...................... To view our full article Click here
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