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(July-2003) Not in the business of selling comfort
John Nolan may have ended his full-time involvement with JANA Investment Advisers, having spent nearly 17 years building the business into Australia’s largest asset consultant, but in the minds of most people, it is impossible to separate his influence from JANA’s ongoing success.
Nolan provides the best descriptor of the approach which has made JANA so successful — “We have never been in the business of selling comfort”.
And this, indeed, was something which was recognised by a nominator who noted that JANA and Nolan had taken “a characteristically independent view of investment markets — and its asset allocation advice reflected these views”.
Another nominator said: “In my view, he’s the most individually influential asset consultant in the history of Australian superannuation. His determination in taking a position significantly contrary to the majority of the industry and the success of his approach in a difficult investment environment in the last couple of years is changing the way that superannuation funds manage their investment portfolios.”
Nolan pragmatically describes the JANA approach as being one of “never particularly worrying about what the competition is doing”.
This was an approach that saw JANA zero in property in the early 1990s before favouring infrastructure investments in the mid-1990s.
“There is no magic to this,” says Nolan. “It is the product of hard work, good research and a willingness to back your judgement.”
He adds that backing judgements which might not be consistent with market views can sometimes mean supporting a fund manager who is struggling but in whom one has confidence while recommending the sacking of another who is out-performing but in whom one has no confidence.
It is a testimony to Nolan’s presence in the superannuation industry that his name seems to be inseparable with that of JANA — the company which he founded in September 1987 and which initially just involved himself and a personal assistant.
These days JANA is arguably Auatralia’s largest asset consultant in terms of funds under advice.
Nolan says he takes pride in the fact that despite having ended his full-time involvement with JANA, it is still achieving outstanding results for clients. He attributes this to the quality and stability of the JANA team led by the managing director, Ken Marshman.
At present, Nolan has a part time research role with JANA and spends most of his working time as an executive of Warakirri Asset Management. He also chairs industry fund REST’s investment committee.
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