I’ve been asked a few times to write about my experiences as a fund manager. That’s flattering. Most of the responses I’ve given have been market-related – how did we cope during the great financial crisis? What was our strategy when bond yields started to move to zero?

There have been plenty of crises to talk about. I have been doing this for a long time and black swans swim past with alarming regularity.

The more I thought about my time as a manager, the more it struck me that I took many of my experiences for granted. And I think that’s probably true of my colleagues too.

I’ve been fortunate enough to work with and for some great people in companies where we were well looked after. I’ve been fortunate to receive a lot of domestic and European recognition for my work. I’ve been fortunate enough to travel extensively, not often at the back of the plane. I do realise this is not always the case and many in the fund management industry find times tough.

So when we find ourselves in a position of good fortune, it’s worth taking time to reflect, celebrate and avoid taking our world for granted.

Fund manager complacency covers a broad spectrum – I’ll leave aside remuneration! We often find ourselves staying in the best of hotels (expenses paid), being invited to award ceremonies (occasionally winning) – and, oh yes, being paid to look after someone else’s money.

Perhaps one of the biggest things we take for granted is the markets – the bull species in particular. What’s our standard industry line? It’s always better, in the long run, to stay fully invested. Isn’t that a bit complacent?

Wined and dined

I wouldn’t claim my fund management life has always been a bed of roses. There have been tough times too. Retrospectives tend to focus on the highlights (or lowlights) and forget that for much of the time it’s dull and mundane – even if you have responsibilities for tens of billions of dollars, for clients and staff.

There have been some extraordinary moments among all the ennui. I wonder if I’ve appreciated those enough. Those who follow me on social media will know about the trips to Monaco, Milan, Zurich and the rest and attending the odd sporting event as a guest. I don’t often mention the grey, 5am mornings, standing on windswept platforms waiting for yet another delayed train to London, Leeds or Lancaster.

I’ve been to places and done things that many can only dream about. OK, it’s for work. But whether with sales folk or clients, I’ve generally liked the company I’ve kept.

I only wish I’d accepted more invitations than I did.

Recognition and awards

The world of fund management is awash with awards. Over the years I and my teams have been fortunate enough to pick up a few.

Celebrating success is not something that ever came easy to me. I was always aware of the old adage that pride comes before a fall. Once you are number one, it’s only a matter of time before that changes.

And when you hit the top spot, you attract a lot of attention. Clearly, that can be good for business. However, another industry adage is ‘don’t buy the number one fund’ – after all, remember past performance is no guide to the future.

That attention can be a double-edged sword. Head-hunters and competitors were much more likely to take an interest in my staff after we’d won something. On occasion, awards did lead to more business, but often the revenue benefits were offset by the extra I had to pay my team.

I won my first industry award in the late 1990s. Indeed, Citywire named me UK corporate bond manager of the year as long ago as 2005. There is a temptation to think such success and recognition will be ever-present.

With hindsight, I’d have made more of the successes and accepted the compliments. I’d certainly have encouraged those who worked for me to enjoy the moment to the full. Even in my earlier years, I could be a grumpy old man.

It’s easy to take wins for granted. A message to my younger self: don’t be afraid to enjoy the moment.

Hold clients close

One of the most obvious things we take for granted is our portfolio of clients. I’ve written previously about how fund managers are often remote from those whose money we manage, and even discouraged from engaging. Indeed, most of those whom we consider clients are themselves ‘just’ intermediaries.

Yet often we expect that once a client is in a fund and is onboarded, they will stay with us forever. We forget that the world changes. There are many valid reasons for redeeming, but often when it does happen it is unexpected, causing much soul-searching and board-level discussion.

Clients face cashflow and asset allocation needs and have hundreds if not thousands of competitor asset management firms chasing their money. Why do we take it for granted that they will always be there?

Value them. This means so much more than buying them dinner or sending your latest monthly report. Understand they almost always have a choice about where to put their money. Understand it is often much easier to retain a client than to seek new ones. But if the client leaves, then accept it with good grace. You never know, as markets change and as competitor performance dips, you might soon be pitching to them again.

Markets always rally

Market direction and fund performance often go hand in hand. It should, for most single-asset, long-only, open-ended funds. Most fund managers have a style bias – ask any decent fund selector. OK, so there are times when a bit of genuine alpha can offset fund and market beta, although that happens less so in strongly trending – dare I say manipulated – markets.

Until recently, we were in a broad asset bull market for over a decade. That led to complacency. Almost everyone took for granted positive returns and the most difficult client conversations were about relative not absolute performance.

Back in the pre-quantitative easing days, when markets trended less, optimal strategies came and went. Being successful over the long or even medium term often had to come at the expense of chasing shorter-term trends. In a world where money was free and excess risk-taking reaped rewards, that was less the case.

A decade is a long time, and memories tend to be short. The recent market setback seems to have come as a shock. Top-performing, higher-beta funds are suddenly in the lower reaches of sector relative performance. Who was positioned for that? We grew complacent. We took the good times, the stable markets and, dare I say, positive beta, for granted.

Signs of slowing inflation, at least outside the UK, suggest that some G7 central banks may not fully ‘normalise’ interest rates. I think that’s a mistake. However, if money remains too cheaply priced, it could create conditions for a renewed asset price bubble. Will we grow complacent again? Quite possibly.

It is easy to take the good times for granted. We shouldn’t. If given the opportunity, don’t be afraid to celebrate success. Don’t forget we are among the fortunate ones. Fund management can be a tough gig. Success can be fleeting. Enjoy the moment, as and when it’s your turn.