Experts from Butterfield Bank told a seminar that the key to investment management was good communication.
Keeping clients up-to-date and constructing portfolios that are conservatively focused and well thought out is the best way to avoid ‘surprises’, something that most investors are happy to avoid.
According to Michael Neff, Head of Group Asset Management at Butterfield, this is a key factor and should be applied to all elements of portfolio management.
“Clear communication is important. Getting to know your clients and their appetite for risk is critical to constructing a portfolio that suits them and makes the most of market conditions.
“It is also vital that this is an ongoing commitment. Portfolios are living, breathing things and must be constantly monitored and discussed with clients to ensure they are still invested in the right areas,” he said.
In the current market, according to Mr Neff, there was still a great deal of caution as investors wait to see what will happen with the global economy.
“Despite this, people are still looking for good returns, and these are primarily being provided in the public equity markets, and in particular, investing into global companies which benefit from sustainable growth in emerging market economies.
“Our strategy here is to stick to areas investors are comfortable with, again to avoid any surprises. What we might do is invest in a global industrials company that has great exposure to emerging markets thanks to its success in the infrastructure space, but remains a stable, developed market proposition, something very beneficial to investors with concerns for wealth protection as well as making good returns.”
Mr Neff noted that this was one of the many benefits of globalisation for investors.
Head of European Asset Management Richard Saunders reiterated that communication was the key to meeting client objectives.
“Every aspect of our investment offering; from asset allocation through to the implementation strategy is tailored to the bespoke requirements of the client, reflecting the fact that every client has their own unique set of circumstances. In our experience, the key throughout all of this is to always keep the lines of communication firmly open” he said.
Around 30 wealth professionals attended the breakfast briefing on Wednesday 28 March at the OGH.