Investment intelligence

FAnews spoke to Felix Ubogu, Head of Old Mutual Fairbairn Capital Investment Intelligence Unit, about his journey to the top and the state of the investment industry.

Investment intelligence is exactly what brokers and their clients need most in these volatile times. But where do advisors find easy-to-access, unbiased and useful investment information that is tailored to their needs, considering the information overload they are already facing?

The Old Mutual Fairbairn Capital Investment Intelligence Unit was established last year to provide ease of access to this type of useful information. "Our intention is to assist financial advisors who have a tough job in the current economic climate. Some clients have been spooked by the perceived erosion of wealth over the past several months. Emotions, fears and disappointments can easily cloud sound investment judgment. Financial advisors are left with the difficult task of advocating reason and emphasising the importance of long-term financial planning."

Intelligence, information, insight

Fairbairn Capital is Old Mutual's single premium investment offering, and the relevance of its name speaks to the origin of the group dating back more than 160 years. John Fairbairn was the driving spirit in bringing Old Mutual into existence.

The Investment Intelligence Unit was established in 2008 to perform a dual role. "The first is to vet the hundreds of available unit trust funds to identify the ones capable of delivering consistently good risk-adjusted returns, and hence assist customers in meeting their investment objectives," explains Felix.

"The second aspect of our work is to provide regular market and economic commentary and articles to our financial planners to help keep them and their customers up to speed with developments.

"When we began last year, we designed a desktop application called 'The Insighter'. This enables our financial planners to access up-to-date indicators, weekly podcasts by leading fund managers, regular articles and fund commentary at the click of a mouse. I believe our key differentiator is that we keep things really short and simple."

Hands-on

In addition, the Investment Intelligence Unit takes a hands-on approach to help investment professionals face the biggest challenge in these volatile times: convincing clients that this too shall pass.

This is achieved through pertinent and interesting client seminars. "A few weeks back I barely spent a day in the office, as it was one client seminar after another to help clients make sense of the current investment environment and caution against potentially imprudent investor behaviour."

As a hands-on kind of person, this is indeed the aspect of his work that Felix relishes most. "I most enjoy the regular interaction with advisors and clients I'm less happy sitting for long stretches behind a desk."

Outlook for the rest of 2009

Felix cautions, "There are still many uncertainties in the current environment. Governments and central banks have been bold in attempting to resolve the economic crisis and their efforts are likely to break our fall. Equity markets have certainly shown signs of life over the past few weeks. However, with organisations like the IMF, OECD and World Bank frequently revising their world growth predictions downwards, we shouldn't confuse glimmers of hope in financial markets with an immediate return to real economic prosperity, particularly as experienced in recent years.."

Rooted in Africa ...

Originally from West Africa, Felix has lived in South Africa for more than 13 years. His interest in investments was piqued when he was still a boy. "I developed an interest in investments at a young age when I started by saving the weekly wage I earned as a paperboy in a 32 day-call account. I discovered the other asset classes later on in life."

Felix graduated from UCT with majors in actuarial science and statistics. "Thereafter, I joined a small team of Old Mutual marketing actuaries based in Johannesburg and spent just over three years in a technical marketing role. I then joined Fairbairn Capital and started up the Investment Intelligence Unit."

Nothing is impossible!

Felix clearly believes in balance, and says that there are four aspects to his life: "my religion, my family and friends, my work and the gym!"

What motivates this remarkable man is the fact that he is surrounded by keen competitors, close to home. "I have intelligent and hardworking siblings, a mother currently completing her second Master's degree, a hardworking father and an astute girlfriend. So, when you ask what motivates me, I'll have to say: competition at the dinner table!

"My strength is that the word 'impossible' has no place in my vocabulary. I either achieve what I set out to do, or keep at it. In addition, my life philosophy is simply that there is nothing people are incapable of achieving if they only believe they can. Yesterday's impossibilities are today's realities."