The impact of COVID-19 on investment teams
How did the COVID-19 pandemic impact investment teams? Were investment teams prepared to deal with a pandemic? What are the short-term implications for operational activities and investment strategy? What are the lasting implications for the investment management industry?
In May 2020, the Right Lane team were fortunate to spend some time with eleven CIOs, representing over $600 billion in funds under management. Whilst the report was commissioned for Right Lane clients, we are pleased to share some themes of the responses.
The COVID-19 pandemic created immense challenges for investment teams. While most were able to adapt and respond quickly, there is uncertainty among CIOs about the enduring longer-term changes the pandemic may trigger.
Some CIOs were clearly troubled by the heightened level of uncertainty, specifically regarding the depth and duration of the crisis, the shape of the eventual recovery, the long-term impacts on hitherto attractive assets and the unpredictability of public policy.
COVID-19 has placed further pressure on an already complex investment environment and its reverberations may lead to enduring change in where, how and when Australian CIOs invest superannuants’ savings.