Artis Mežis from CBL Asset Management is our Fund Selector of the Month

Artis Mežis, Portfolio Manager at CBL Asset Management, is our Fund Selector of the Month:

"From a young age, I’ve been passionate about sports and competition. During primary school, I tried my hand at various sports like football and basketball. For nearly ten years, I trained in athletics, specifically javelin throwing, which not only helped me in shaping my personality, but also allowed me to travel to neighboring countries. The passion against the sport is still there, as I enjoy playing baseball with friends, cycling, or going for a run after a long day in the office.

Work obviously occupies most of my day, but in my free time, I prioritize spending it with my family. I also like reading; and more often than not, the literature is related to finance. While I haven’t traveled extensively yet, I do appreciate exploring new places. Recently, I’ve also set my sights on taking up golf more actively.

My career journey began with within risk department, where I was risk analyst for our investment product. Over time, I transitioned to roles as an equity analyst and then bond analyst. Currently, I serve as the Portfolio Manager for one of our pension plans and our mutual bond funds".

When and how did you start your career in the financial sector?

During my university days, around 2009, I embarked on my financial journey with an internship at one of Latvia’s largest banks back then. After completing my postgraduate studies in the UK, I returned home and joined the CBL Asset Management team in early 2012.

Taking a brief look at your working life, what would you highlight about your professional career?

It’s challenging to pinpoint a single standout aspect of my career. I consider myself fortunate to engage in activities I love every day. The anticipation of something new keeps me enthusiastic as I head to work each morning.

What aspects do you consider most important when selecting a fund for a portfolio?

As a team, we prioritize several critical factors when evaluating funds, namely, we look at the market efficiency of the respective segments where that particular fund invests/ the likelihood for the fund to outperform the segment. We also look at the historical performance – a track record of at least three years (preferably five or more) against a suitable benchmark is essential. Among other things, this helps us gauge consistency and reliability. Moreover, we also consider the fund’s size, as it should fall within an optimal range—not too small and not too large.

What is the current allocation of your model portfolios?

Our consensus view for the first half of the year has been cautiously neutral, leaning slightly towards quality, with balanced portfolios having allocated about two-thirds to fixed income segments and one-third to equities.

What mistakes are most frequently made in fund selection?

After making an investment, one common mistake we’ve observed is failing to promptly detect style drift. Although it doesn’t occur frequently, when it does, the consequences can be painful.

What assets do you think will perform better in 2024?

Despite some bumps along the way, incoming data aligns with my expectations of gradual growth moderation and cooling inflation—albeit slower than anticipated. This supports increasing equity exposure and, despite tight credit spreads, selectively adding credit positions. However, surprises may still arise, contributing to overall volatility and potential opportunities for strategic ‘buy-on-dips’ moves.

When you have free time, what do you like to do?

During my free time, I cherish moments with friends and family—whether it’s hosting board game marathons, enjoying movie nights, or embarking on countryside treks. I also find solace in watching TV series and tackling some home projects, which helps clear my mind.

What role do you think regulation plays or should play in driving Socially Responsible Investment?

I think regulation already plays rather important role in promoting Socially Responsible Investment, for example, with corporate ESG disclosure regulations or encouraging institutional investors to actively engage with companies they invest in, by exercising their voting rights and advocating for responsible practices. That being said, I think we are still in the early stages, and there is much to be done in the area of SRI.