Fund managers must re-think client relationships
22 June 2009
Written by Sophie Baker
The investment management industry must employ a ‘back-to-basics’
approach when it comes to client relationships in order to rebuild trust
with investors, says KPMG.
A combination of improved communication and education, increased knowledge
sharing and a strengthening of corporate governance and risk management
transparency are recommendations made in KPMG’s report, Renewing
the promise: Time to mend relationships in investment management.
Better communication, KPMG said, holds the key to success in these relationships.
Financial intermediaries, client-facing advisors in particular, are seen
as being untrustworthy and lacking knowledge. 77 per cent of investors
said intermediaries were less trustworthy than politicians, and 58 per
cent of institutional investors believe these intermediaries should be
provided with better product training to help them regain client trust.
75 per cent of investment managers themselves agreed with this conclusion.
“At this time of market turbulence and broken trust, the investment
management industry should adapt and change to re-engage investors,”
commented Tom Brown, partner and EMA region of investment management at
KPMG in the UK.
“Open communication amongst all market participants is particularly
critical, and investment managers and intermediaries must forge collaborative,
knowledge-based partnerships, focused solely on the client. Only by implementing
a joined-up approach, supported by better corporate governance and risk
management, can the needs of the investor truly be met.”
The report was conducted across 29 countries and 288 senior executives
from the global fund and investment management community.
A full copy of the report is available here.
