Insights

Anton Murray - Latest News

April 2018

Posted by Anton Murray Consulting on . Posted in 2018, Newsletters

The financial services industry is one driven by effective decision making: which trade to make, who to hire, where to invest. Most of us consider ourselves sensible, logical people capable of making informed decisions that drive growth and progression at work and on a more personal level. However most of us also splurge on clothes we don’t need, buy junk food and get frustrated at colleagues and family members. The culprit of these outbursts and moments of mental fog is most commonly decision fatigue. No matter how rational a person is, no one can make decision after decision without paying a price.

When our brains are tired, similar to our bodies, we subconsciously look for short cuts when making decisions. The two shortcuts most commonly taken are to act recklessly; making a decision without weighing up the options. The second is the easiest and, in business, sometimes the most detrimental: do nothing. When we feel incapable of making an informed decision we avoid risk, often causing a number of problems in the long run, yet reducing mental strain in the short term.

To avoid these shortcuts and make sure that our mental energy is devoted to effective decision making, we need to reduce the energy we exert on small, menial decisions. Mark Zuckerberg, Barack Obama and Ray Dalio have all publicly stated that wearing the same thing every day, or at least reducing their options to one or two things, is a simple way to overcome one fairly inconsequential decision that can drain their energy.

While a grey t-shirt and khaki pants everyday might not be your style, there are other ways to beat decision fatigue in your daily life.

1. Track your decisions

To understand which parts of your life are decision-heavy and might be draining your mental energy, spend a week, or even just a day, tracking your decisions. Consider this a self-diagnostic.

2. Understand which decisions are crucial

Not all decisions can be eradicated. Figure out which decisions need to be made and are the most consequential, and which ones can become routine.

3. Design a morning routine

We make a lot of low impact decisions in the morning: what to eat for breakfast, what to wear, how to get to work etc. Design and implement an effective routine to get you going without draining your mental energy.

4. Where possible, reduce options

Cut out the stuff from your wardrobe you never wear, make a list of your favourite meals and pick from that smaller, curated list.

5. Set objectives before bed

Figure out what it is that you specifically need to achieve the next day so you can get straight on to making decisions.

 

So if you notice the high-performing trader on your floor is always wearing the same black t-shirt, it might be a smart strategy to reduce decision fatigue.

New Executive Chair at AMP

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

AMP chair Catherine Brenner and group general counsel Brian Salter will exit the company just one week after the immediate resignation of CEO Craig Meller. The pair will leave the company, with interim CEO Mike Wilkins now announced as executive chair. A statement from the firm also stated that a review by external counsel including King & Wood Mallesons has found the board did not act inappropriately in relation to an independent review questioned by the royal commission.

A search for a permanent CEO and chair is currently underway. Mr Salter’s outstanding deferred remuneration will be forfeited as a result of the AMP board exercising its discretion, said the company in a statement. “The board has received advice from Philip Crutchfield QC, Tamieka Spencer Bruce of Counsel, and Tim Bednall of King & Wood Mallesons in relation to certain issues raised in the royal commission concerning the preparation of the Clayton Utz report on AMP’s fee for no service issue,” said AMP.

The rest of this article can be found at investordaily.com.au.

Moelis makes key distribution hires

Posted by Anton Murray Consulting on . Posted in Funds Management News, News

InvestorDaily

Moelis Australia has announced changes to its asset management distribution team, with three new recruits joining the financial services firm. Speaking to InvestorDaily, Moelis Australia Head of Asset Management Andrew Martin confirmed the recruitment of Lee Hayes, Adam Mackie and Amanda Lambert. Lee Hayes has joined the firm as executive director of distribution for the asset management division. He joins from Macquarie where he was co-head of distribution for the Macquarie Specialist Investments business.

Moelis has also hired two vice-presidents of distribution, with Amanda Lambert joining from NAB Wealth where she was a Victorian state manager, and former Fidelity business development manager Adam Mackie also joining the team. “We bolstered our Australian Distribution Team in April with the appointment of Lee Hayes, Adam Mackie and Amanda Lambert who together bring a host of experience and knowledge across the asset management landscape,” Mr Martin said. “The appointments reflect increasing demand for our products and  reinforce Moelis Australia’s growth strategy in asset management.”

This article can be found at investordaily.com.au.

 

Future Fund grows to $141bn

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

In its quarterly portfolio update, the Future Fund has revealed it grew to $140.8 billion in the first three months of 2018 (up from $138.9 billion as at 31 December 2017). The Future Fund has also increased its risk appetite, reducing its cash holding to 14.8 per cent (down from 16.4 per cent at the end of 2017). Private equity was the main beneficiary (up to 12.8 per cent from 12.1 per cent), largely reflected in a new strategy focussed on Australian venture capital with existing manager Greenspring Associates.

Developed market equities also got a boost, up to 19.5 per cent of the portfolio (compared with 18.6 per cent as at 31 December). Future Fund chief executive David Neal said the fund has “modestly increased risk” in light of the “positive shorter-term economic outlook”. “The Fund’s overall risk profile sits around the middle of our expected range. This positioning reflects a balance between our perspectives on the near term outlook and the medium to longer-term risks that remain,” Mr Neal said.

The rest of this article can be found at investordaily.com.au.

‘Mature’ market cycle is biggest risk: Fidelity

Posted by Anton Murray Consulting on . Posted in Market Commentary, News

InvestorDaily

Chemical weapon attacks in Syria, trade wars with China and nuclear tensions on the Korean peninsula may seem important to investors, but they are something of a red herring, says Fidelity. Instead, the focus should be on the maturing global economic cycle and the extended market cycle across equity and bond indices, says Fidelity International chief investment officer for equities Paras Anand. “On one level, this explains the recent period of market volatility but this is arguably misleading as it demonstrates, in my view, a misunderstanding of what has driven returns over the past few years,” Mr Anand said.

“If you accept that excessively loose monetary policy has largely supported asset prices across the board, then your biggest fear should not be an economic slowdown driven in part by rising geopolitical tensions or a tit for tat trade war between the US and China. “It is, in fact, a buoyant economy (and a rate of price inflation) which continues to outperform the expectations embedded in the bond market in particular which should be of concern,” he said. Investors should take a more “benign” view of geopolitics, he said – but that should not make people “enthusiastic buyers” of equities.

The rest of this article can be found at investordaily.com.au.