Asset managers missing the mark

The best managers produce two things:

1. Exceptional investment performance
2. A thorough and consistent client due diligence communication experience

The need to produce exceptional performance is clear. Without performance, a manager has little to offer. On the other hand, without establishing and executing robust processes and policies, it is not clear how managers will be able to deliver performance in the future.

The ability of an asset manager to communicate to analysts in a consistent and well thought out manner often indicates as much about the health of critical internal workings of the manager as it does about their commitment to great client experience.

Detail in communication can show the extent to which an asset manager has developed and consistently understands the nuances of their own business and processes across the company. The best managers say and do consistently. As such, it is an indicator of managers’ potential to deliver ongoing performance.

It also aligns the manager’s view and interest with those of its clients. Clear and thorough detailed information flow demonstrates a manager’s reliability as a good partner. It makes it easier for manager research analysts to do business with managers. It makes their responsibility for ongoing monitoring and meeting both internal and external obligations easier. Providing exceptional due diligence information flow is becoming standard practice.

Roland Meerdter - Co-founder at Door