David Townsend from Value Partners is our Sales Manager of the Month

Mr. David Townsend is Managing Director, EMEA Business of Value Partners. He is responsible for leading and growing Value Partners' business across the Europe, the Middle East and Africa (EMEA) region. As part of this duty, he leads the strategy to grow Value Partners' institutional business and also take responsibility for the Group's coverage of wholesale distribution partners based in the region.

Mr. Townsend has extensive experience in the investment management and financial industry. Most recently, he was advising Alderwood Capital LLP as the Head of Investor Relations. Before joining Alderwood Capital, he served as Head of EMEA Institutional at First Eagle Investment Management, in charge of the firm’s London office. Prior to that, he served as Managing Director, Head of EMEA and Global Consultant Relations at Martin Currie Investment Management. He was also Head of UK Institutional Sales at AXA Investment Managers UK and at Framlington Investment Management. He started his career at Fidelity.

David Townsend holds a Bachelor’s of Arts in Modern European Studies from Nottingham Polytechnic, and a Master's of Arts in Near and Middle East Area Studies from the School of Oriental and African Studies, University of London.

What made you decide to go into the financial sector? Did you have any other vocations? How were your first steps in the sector?

Serendipity led me to the financial sector, as after studying International Relations and Middle East Politics at University, I’d originally planned to join the British Foreign Office. However, I took a job at Fidelity and 30+ years later haven’t yet looked back!  Initially I joined Fidelity’s retail client service team in the UK looking after HNW clients, was then transferred to the Retail Marketing team to develop products and services, before finally moving to a pure business development role covering the Middle East and Africa.

What does a typical workday look like for you? What do you enjoy the most about your job?

Busy!  My day typically starts with any necessary engagements with my colleagues in our Hong Kong HQ and then quickly moves to a focus on clients and prospects. The things I enjoy the most about my job are engaging with clients and prospects, working to provide appropriate solutions to their needs and challenges, and the strategic planning required to successfully build a sustainable business.

In your opinion, what are the key drivers for successful fund distribution? How do you approach building and maintaining relationships with clients?

I think there are four key drivers for successful fund distribution: 

• Know your products, markets, and clients.
• Listen to your clients.
• Be strategic and plan ahead, so that you are ahead of the flow.
• Maintain humility and integrity in your relationships, at all times.

I approach building and maintaining client relationships with enthusiasm, openness, patience, humility and integrity, so that over time you naturally become a trusted partner.

Could you highlight any topic on which investors should focus for the long term?

The opportunity represented by China, as the worlds second largest economy, is a topic that investors need to pay considerably more attention to - despite some of the challenging headlines.

How do you stay informed about market trends and changes in the asset management industry?

I maintain an open and curious mind. I have an established and growing network of trusted clients and peers whom I engage with regularly, and endeavour to learn something new from every engagement.  With my broad experience across multiple markets and client types, I spend time considering the experiences within and the read across from these different markets and actors, so as to try and identify what represents a ‘long term trend’ rather than a ‘short term fad’! 

What is your advice to investors, how should they position their portfolios with the current environment?

I would counsel equity investors to remember that the statement “this time it’s different” tends to be a precursor to disappointment; FOMO typically leads to sub-optimal outcomes; and that longer term it pays to re-cycle some of your returns, especially when they’ve been concentrated, in to asset classes and markets where the fundamentals and valuations provide you with good upside, as well as downside protection e.g. small cap, value, and/or China. Dare to be different!

What is the most exciting thing you have seen in the markets since you started working in the financial sector? And the biggest challenge you had to face?

The most wonderful thing about our industry is its continuous evolution and innovation, so it’s ultimately difficult to identify a single most exciting thing. But what I would say is that the biggest opportunities tend to follow the biggest challenges, so it's always important to use your time wisely when times are tough to prepare for the future!  I think the single biggest challenge I’ve personally had to face in the past 30+ years is the fallout from a poor governance decision in a business I worked for. But my advice, is to roll your sleeves up, tackle the problem head on, and build back – ultimately, if it doesn’t kill you, it will make you stronger and wiser!

What do you see as the biggest challenges and opportunities in the asset management industry today, and how would you address them as a Sales Manager?

I think one of the largest and most worrying challenges, for the industry and consumers alike, are the high barriers to entry for new asset management boutiques to come to market, which long term I fear will stifle competition and lead to poorer outcomes. One of the largest opportunities is the move towards the democratisation of private assets, but investors do need to recognise that the illiquidity premium is precisely that.

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

Spending time with my family, travelling, beekeeping, and tending to my small flock of rare Dorset Horn sheep.