Service is often overlooked by advisers when they select a third-party investment manager.
Typically, performance, cost, investment process and track record take precedence. While these factors are undoubtedly important, an adviser’s due diligence process and ongoing monitoring should take into account the quality of communication and engagement from a DFM.
Regardless of whether markets are buoyant or stagnant, there is much to be said for a DFM which proactively communicates with its customers. Ultimately, this makes your job easier and can improve your relationship with the underlying client.
Cornelian Asset Managers represents one DFM which places service and communication at the heart of its proposition. The company provides advisers with the following:
» Detailed monthly reports for each fund, available from working day five
» Monthly market commentary and house view
» Ad-hoc trading updates via email as soon as fund changes are made
» Quarterly interactive investment webinar
» Dedicated adviser support team to answer queries
» Local business development managers across the UK
The post-MiFID II world
The quality of reporting that is provided by a DFM can make or break a relationship with an adviser – and this represents an area where Cornelian has dedicated a significant amount of time and resource. Their reporting is more akin to what you would expect for a bespoke portfolio.
For example, they have carefully considered the implications of MiFID II and reshaped their model portfolio service to deliver the following:
» Quarterly reporting – A full suite of MiFID II compliant reporting is delivered on a quarterly basis. Cornelian also share monthly Investment Management Reports.
» 10% drop reporting – To reduce the reporting burden on advisers, Cornelian will inform both the adviser and client in the event that the portfolio value falls by 10 per cent or more since the date of the last investment report. This will be followed by a further communication with commentary on the fall in value.
» Annual tax reports – Cornelian supply advisers with annual tax packs.
» Online valuations, 24×7 – ClientZone, Cornelian’s online valuation service, is available 24 hours a day, giving advisers full access to electronic reports.
They also run quarterly webinars, which they publish on their website. You can catch the latest webinar here.
As volatility takes hold in markets, service and communication are likely to become all the more important for advisers who are searching for the perfect DFM. They may just find that these two factors make all the difference.