e-fundresearch: Which benchmark do you adhere to?
Malingamba: The benchmark is the MSCI Japan (Local TR).
e-fundresearch: Are you also responsible for other funds at the moment?
Malingamba: I’m heading the BSI Equity Funds unit.
e-fundresearch: What is the total volume that you manage in all your funds?
Malingamba: BSI Multinippon has 10.1 bil JPY under management. BSI Equity fund’s unit has 570 mio EUR assets under management.
e-fundresearch: Regarding the performance: which performance did you achieve since the beginning of the year and in the years 2003-2008? Absolutely and relatively to the relevant benchmark?
Malingamba: As of end of August the fund performed -10.84% compared to the benchmark performance of -11.14% for an out-performance of 0.30%.
2003: Multinippon (MN) +26.53%; Benchmark (BM) +22.96%; Outperformance 3.57%
2004: MN +14.82%; BM +10.87%; Outperformance 3.95%
2005: MN +44.73%; BM +44.70%; Outperformance of 0.03%
2006: MN 1.95%; BM +7.35%; Underperformance of 5.40%
2007: MN -16.16%; BM -10.13%; Underperformance 6.03%
2008: MN -39.62%; BM -42.48%; Outperformance 2.86%
2009: MN +21.75%; BM +9.26%; Outperformance 12.46%
During the period 2003-2008 Multinippon went up by 8.53% and the benchmark +9.46%, underperforming by 0.93%.
e-fundresearch: How content are you with your own performance in the last years and this year?
Malingamba: I’m particularly happy because I proved that I can add value as well as on positive as on negative returning years.
e-fundresearch: How are you able to deliver added value for your investors with your performance?
Malingamba: I was able to anticipate the major market turning points. Second, but not less important, managing a fund implies discipline especially in terms of market analysis, stock picking, market timing, stop-loss rule.
e-fundresearch: How long have you been a fund manager already?
Malingamba: I have more than 20 years of experience in managing funds.
e-fundresearch: What were your biggest successes and your biggest disappointments in your career as fund manager?
Malingamba: I think that my biggest success is by far the ability to deliver consistent performance for the investors. I also have to admit that try to perform during long bear market periods can be quite frustrating. Nevertheless in a bear market you can learn a lot more as how companies, analyst and investors behave.
e-fundresearch: What kind of capital market situation do we have at the moment? How do you act in this environment?
Malingamba: Politics, fiscal and monetary policy are the key variables after the 2007-2008 crisis. Generally speaking equity markets are now in a tricky situation. Everybody is now paying attention to the real outcome after the huge efforts to spur economic growth and to stop the des-inflationary process. Greed and fear is really splitting the investors’ community. I’m expecting further volatility and uncertainity. Therefore I prefer to reduce the risk in my portfolio.
e-fundresarch: What are the special challenges in this environment?
Malingamba: Competitive currency devaluation and protectionism.
e-fundresearch: What objectives do you have till the end of the year and in the mid term for the upcoming 3 to 5 years?
Malingamba: Continue to deliver excellent performance.
e-fundresearch: Do you model yourself on someone? Any ideals?
Malingamba: I like people and professionals that can stimulate my way of thinking...those profiles are usually outliers, people that feel themselves uneasy with the consensus or the general view.
e-fundresearch: What motivates you in your job?
Malingamba: Curiosity and still the desire to learn more.
e-fundresearch: What else do you want to achieve or do you have any further aims as a fund manager?
Malingamba: I think that we should be able to really appreciate the job done by an active fund manager.
e-fundresearch: What other profession would you have taken interest in, apart from becoming a fund manager?
Malingamba: Teaching sport and coaching young sport talents.
e-fundresearch: Thank you for the interview!