On the ground, in the know

Why face-to-face manager research matters – and what we learned on our latest trip. At ANZ Investments, we believe that great partnerships are built on more than just numbers. They’re built on trust, shared values, and a deep understanding of how our investment managers think, act, and evolve. That’s why two of our team members – Paul Gregory, who leads our external partnerships team, and Mitch McNae, who is focussed on the investment and responsible investment aspects of selecting and monitoring external investment managers – recently travelled to the UK and US to meet with both existing and prospective managers.

Over 12 days, they visited four cities, held 18 meetings, and spoke with nearly 100 people across investment, research, trading, and operations teams. It was a whirlwind – but a valuable one.

In a world where virtual meetings are the norm, you might wonder: why go to all this effort?

The answer is simple. There’s no substitute for being there. Sitting in on a manager’s morning meeting, watching how investment decisions are debated, and observing team dynamics in real time gives us insights we just can’t get with a video conference call. We see how decisions are made, how feedback is handled, and whether the culture matches the pitch.

As Paul puts it, “You can’t stay in presentation mode for a full day. Eventually, the polish slips – and that’s when you see the real culture.”

It also shows potential managers that we’re not a light-touch client. If we’re willing to travel halfway around the world to spend time with them, they know we’re serious about our expectations – not just during selection, but throughout the ongoing relationship.

And there’s another benefit. Spending a full day in a manager’s office gives us time to explore what else they do – other strategies, partnerships, or innovations that might not come up in a formal pitch. That kind of insight can lead to broader strategic opportunities down the track.

Before we even book flights, we have a very clear idea of what we want a manager to do – the role they’ll play in our portfolios, the level of risk they’ll take, the return we expect, and the strategy and skills needed to deliver it. That focus shapes who we meet and what we need to see.

Whether we’re reviewing an existing manager or considering a new one, we follow a consistent, disciplined process – grounded in our investment beliefs and supported by tools like our manager scorecard.

We shortlist potential new managers based on performance, philosophy, and fit. We look at their long-term track records, ask them to complete detailed questionnaires and assess how their style might complement our existing line-up. We also evaluate the inherent risk of the manager’s strategy, alongside cost considerations. 

Once we’ve narrowed down the field, that’s when we go on-site, to validate what we’ve seen on paper, and to get a real sense of how they operate.

• New opportunities: We conducted on-site due diligence with four potential managers who invest in emerging markets – a future space we’re exploring. We also met with prospective managers for the active management of corporate bonds.
• Existing relationships: We met with six of our current managers, including BlackRock, PIMCO, and Franklin, to check in on performance, team dynamics, and strategic direction.

Beyond the formal meetings, the trip offered a front-row seat to some of the big trends shaping investment management today:

• AI (Artificial Intelligence) is changing the game: A common theme across several managers was the increasing use of AI to streamline research and decision-making. From centralising meetings notes to identifying investment trends, AI is helping managers work smarter and faster.
• Quant meets fundamental: More managers are blending data-driven techniques with traditional stock-picking. One firm even has its quant team studying how their fundamental colleagues think – and trying to model it.
• ESG is evolving: We had some fascinating conversations about ESG-related derivatives – financial instruments designed to align with responsible investment goals. While still in their early stages, demand is growing. As the market matures, we expect these tools to become more accessible and cost effective.
• Journalists as analysts: Another of our existing managers, Vontobel, employs investigative journalists to dig into companies. Their work led to a decision to exit a major holding, before a high-profile controversy hit the headlines.

This trip reinforced one of our core investment beliefs: that strong partnerships drive better outcomes. Whether it’s spending a day in a manager’s office to understand their culture, or continuing to evolve our manager line-up to reflect new opportunities, we’re committed to doing the work – and asking the hard questions.

As Paul says, “This level of intensity doesn’t stop after due diligence. It continues through monitoring too.”

That’s what it means to be a steward of your investment. And that’s why we’ll keep showing up – in person, on the ground, and in the know.