Robert Seidenschwann
Tell us about your role and your team.
Bank of Sharjah was established in 1973 as the first commercial bank in Sharjah and has a presence in Sharjah, Abu Dhabi, Al Ain and Dubai. I am working as an investment specialist in the private banking wealth management department, which was established in 2012. The department manages international multi-asset, equity and fixed income portfolios. By heading the department’s investment committee, my focus is on defining the investment strategy as well as identifying the corresponding investment solutions.
How many fund houses do you work with and how many funds are on your product shelf? What new strategies have you selected this year?
For our discretionary portfolios, we follow an open-architecture approach, which allows the portfolio manager to select the most suitable investment solution based on the investment strategy. Therefore, we have a variety of options available that were used this year as the investment strategy saw some shifts between asset classes as well as within asset classes – for example, shifts in the equity sector and theme allocation or shifts in the duration preferences on the fixed income side. If the market environment creates opportunities that fit our investment strategy, our portfolio managers will look at new strategies.
What gaps are you looking to close in 2023? Are any of your products at risk of being removed? If so, in which area?
As mentioned, we feel comfortable with our solutions but will be active if opportunities arise that fit our investment strategy. There will be certainly some opportunities on the fixed income side as well as in specific areas of the equity side.
Which sectors have been most popular with your clients this year?
At the beginning of the year, investments in the information technology and the communications services sector were popular, despite rising yields and the underperformance of the communications services sector in the last quarter of 2021. Then the focus shifted to the energy sector. While this sector is still in favour, currently financials and cyclicals are gaining attraction. We are also seeing clients shifting from equity to fixed income investments as the yields have lifted quite a lot from their lows.
Sum up your investment philosophy in a few words.
We are our clients’ partner in progress, hence we aim to protect our client’s wealth and achieve a sustainable performance for them. We follow a disciplined investment approach, where the core part is a multi-layer allocation process.
In the first step, we select the asset classes that fit the strategy and assign each one an allocation taking into consideration their outlook for the medium term as well as their interaction together in a portfolio in different scenarios. In the second step, we implement our tactical views for the short to medium term as well as more granular decisions – for example, regarding the weighting of sectors. In the last step, we decide on the investment itself. For all the steps, we follow a disciplined approach to avoid emotional biases. However, experienced portfolio managers and specialists are involved and take the final decision.
From your perspective, what are the most important traits in a manager?
When selecting an investment manager, we perform due diligence on the asset management company as well as on the specific investment strategy and the responsible portfolio manager(s). It is important, that a solid investment process is implemented and a proven track record is existing. Furthermore, the experience and skills of the portfolio manager(s) are key, especially for active investments.
What is your biggest concern in the current market situation?
The world currently is facing a variety of challenging situations, be it higher interest rates or a weaker economic outlook, to name a few. They bring uncertainty and volatility to the financial markets, but also create opportunities. It is important to focus on the opportunities by simultaneously considering the risks. My biggest concern would be that a crisis emerges from somewhere that no-one has on their radar.
What is the most useful career tip you have received?
Always think actively in solutions.
Who are you supporting at the World Cup?
Germany.