When it comes to money, good relationships are just as equally important as knowledge. You wouldn’t ask an untrustworthy colleague to run your business in your absence, so why would you hand your finances over to an asset manager that does not have your best interest at heart?
With that said, it’s not as simple as just hiring a friendly face or staying with an outlet just for the sake of it or because you feel comfortable; you’ve always been with them and feel it’s too much of a struggle to make the change. It’s time to change that mindset! As an investor, you ought to be sure that you have the optimal investment setup. You want to find someone who you truly can trust, have the insight in to that they are doing the ultimate job for you and your capital, and that your investments are safe. But where to start?
If you already have an asset manager there are a few red flags to look out for. Is your asset manager or bank working based purely on an interest in your money, urging you to buy stocks or other assets that don’t fit with your portfolio or worse, your ethical standards? Are they making decisions that blatantly contradict your plan for growth and development? Do you have an ever-growing list of funds and stocks that you’re struggling to keep on top of? These are sure signs that you might not be getting the best service. Here are a few more mistakes to avoid when working with an asset manager.
Not finding the right manager
You spend a lot of your time researching different asset managers and banks to approach but finding a manager who is the perfect fit for you and your aims can be a tricky business. But don’t fret! There are a lot of companies out there that can help. They will ask the questions; Do you trust that your asset manager always have your best interests at heart? Do you have complete insight into which fees you’re paying and for what? Do you have the full overview of your investments, their return, risk and costs? With that information, you’ll find the necessary building blocks and combine these in a way that is entirely unique to your investment setup.
Having a bad relationship with your manager
Customer service is everything when it comes to financial management, and you should be able to talk to your asset manager with confidence. If you don’t totally trust what they’re doing on your behalf, then it’s never going to work. You want to know for certain that they are on-hand to offer support and guidance to make the most of your funds and investments.
Not asking enough questions
Although you’re trusting your asset manager to take control of funds and make profitable investments, that doesn’t mean you shouldn’t be involved in the process. It’s important to ask questions along the way to understand how your money is being invested, and a good asset manager will take time aside for you at any point of the day to talk through any major decisions with you personally.
Wondering why your manager has purchased certain stocks? Ask for their reasoning and challenge whether it aligns with your long-term goals. Results should be equal for every investor, and everyone deserves to know what their hard-earned money is used for and that can only be done by evaluating the performance of their asset managers or bank.
Assuming reports you receive are too complicated to fathom
The truth is that many people don’t get access to simple information on the progress of their portfolios. Whereas a lengthy report might look impressive, not all investors have the time to sift through pages upon pages of data to get an idea of how their assets are performing. Ask your advisor or bank to give you consistent overviews of all investments and make sure to get up-to-date statistics on your portfolios to then compare them to your own benchmarks for success.
Being afraid to change managers
After spending time researching companies and finding a suitable asset manager, you could be forgiven for giving them the benefit of the doubt when things don’t quite go to plan. You feel comfortable and have a busy schedule already so why adding extra work to your already-swamped days by making the changes? Having this mindset can be dangerous, you wouldn’t keep an employee in your company just for the sake of it right? Or because you are too comfortable? No, of course you wouldn’t. Make that leap and start looking for a new asset manager today if you are dissatisfied.
If you’ve experienced any of the problems we’ve mentioned here then it could be time to move on. You are paying for your asset manager to do the ultimate job after all, and deserve to be 100% happy with the service you receive.