Interesting lunch at New Street Grill

On July 9th, Martin Fox, Andrew Clare from Cass Business School and I met up with two executives from a major network to discuss a Cass investment proposition. It’s designed to mitigate “sequencing risk” for clients in drawdown and they launched a couple of funds some time ago to prove the concept. So far, so good.

The concept is “trend following” and can be applied across asset classes, indexes or (theoretically) individual securities. It was clear that the network execs got it immediately but the costs caused concerns; not least because the network believes strongly in the value added by active management whereas the Cass funds are 100% passive.

I have no idea how things might progress but I remain very interested in initiatives designed for divestment rather than investment.