The following post is courtesy of Diane Harrison who is principal and owner of Panegyric Marketing, a strategic marketing communications firm founded in 2002 specializing in alternative assets.
Fall traditionally brings the promise of new starts- for students entering a new grade, for everyone as the year enters a new season, and for the investment community in particular as managers assess how the year has gone to date, and what measures might benefit their clients and investors heading into the last quarter.
2025 started with a whirlwind of activity, political and economic, as the new administration brought dramatic changes to fiscal and governmental policy across the board. As the country digests these changes and adjusts to the rapid pace of future plans the adminisration promises, what actions can managers take to support their investors’ feeling of comfort that their long-term portfolio is on the right track?
First, taking time to do a status check on how the current allocation structure aligns with what the investor’s stated goals are, and communicating that to each. Similar to a health check up, a financial physical will provide clients with how their monies are performing on track, and what potential issues might need some attention. Has anything changed with their overall goals? Are investments growing on track, or are there any planned redemptions or contributions that may change the overall balance? Is a retirement from future employment earnings on the horizon? Managers who are proactive about bringing such issues to the table for the client’s consideration strengthen the trust and relationship bond in addition to being able to offer guidance on allocation adjustments to meet the updated planning goals.
Second, making a habit of providing a manager’s outlook on the direction of the markets for all clients gives each investor a better feel for how their investments are being cared for by the professionals. Quarterly outlooks are probably sufficient for most investment strategies, and not only provide that future outlook investors like, but also provide a longer-term context for how each manager interprets what is happening in the financial world and how well their unique strategy adapts to change. Such a body of quarterly outlooks can provide a status report on how well the manager anticipated and performed in the market over a period of months and years.
Third, establishing an annual investor feedback forum, often in this fall season, can be a valuable planning tool for both managers and clients alike. Financial committees make annual allocation decisions on behalf of their companies and entities in the crucial fourth quarter, and so do many individual investors. By asking for feedback from current investors on the practices and performance of the investment manager, positive and negative issues can be brought forth for action or consideration. Often, the internal team is so focused on operational and performance activities, they miss some communication or relationship-building efforts that are important to the clients, but less visible to the investment team. An annual gut-check on how things are going from the outside perspective can be eye-opening for some managers, but essential for long-term success.
So as August draws to a close and we all prepare for a new season, take some of these suggestions to heart and plan to end the year in a more informed place, armed with information and suggestions that your clients desire.
Leave a Reply