Newspaper article THE JOURNAL RECORD

Investor Urged to Have Discipline, Know Risks

Newspaper article THE JOURNAL RECORD

Investor Urged to Have Discipline, Know Risks

Article excerpt


By Nancy Raiden Titus Investors who choose risk-free investments should not berate themselves for not getting risky returns, an investment manager expert told Oklahoma City professionals Thursday.

``Many people focus on hitting the home run. You don't have to hit a home run to get ahead,'' said J.D. Field, vice president of the Frank Russell Investment Management Co. of Tacoma, Wash.

The key is for investors to know the type of risk they are willing to take and to have the discipline to stay with it.

Field was in Oklahoma City participating in a seminar presented by the Trust Co. of Oklahoma, located at 6307 Waterford Blvd., Suite 100. The seminar, geared to professionals, focused on asset allocation and asset classification.

Field said a professional from another city had a 10-year return on his investment of about 1.2 percent because he could never stick with a plan.

``He was always on a plane with someone hearing about another way to invest his money. He could have had a 10 or 11 percent return if he had forgotten about it and not done anything else. It makes you just want to cry.''

The Russell firm pioneered the investment manager search process, a system that utilizes mathematical and other models to match money managers with investment programs. It has been providing this type of service for the nation's largest pension funds for the past 22 years, Field said.

``We invented the money manager consultation business. There was little data to recognize who the good managers were.''

The company has utilized mathematical models developed by Bill Sharp, the California economist who won a recent Nobel prize.

Field said the company has several studies which show that past performance is not an accurate predictor of future performance. The company uses a three-legged approach to match the styles of money managers with asset pools: about a third deals with past performance, a third with the manager's people involvement and the final third with the processes used. …

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