Tips on Finding Your Asset Manager Match

What are the things I should do when searching for the best asset manager? 

1. Gather knowledge of the company 
2. Preparation of basic questions 
3. Set a list of criteria 

Asset management companies consist of a set of investment specialists and fund managers responsible for ensuring you know where you are invested and growing the money you dedicate to certain investment vehicles. They help you make informed decisions so that you can protect your assets and build a fund that will help you reach your financial goals. With all the available asset management companies in the Philippines, the question remains, what exactly should you be considering when scouting for the best asset manager match? 

In this article, we discussed 5 of the most important things you should be looking at when choosing the best asset management company. From the easy part of gathering knowledge and learning about what the company does to the nitty-gritty part of preparing a criterion.   

Gather knowledge of the company 

Just like purchasing any other product or service, you as a buyer would perform research. Either through reviews available on the item you are looking into buying to advertisements and social media information ready for viewing online – research is necessary to learn about a company. The same goes especially for when you are investing in mutual funds, bonds, or stocks. The more you know about an asset management company, the more comfortable you will get in investing with them. 

Preparation of basic questions 

Create a list of questions you would like to ask Investment Specialists to make sure you are touching upon the important things or questions you have in mind. No matter how simple your questions are, being prepared for the day the discovery call comes should help you in getting to know your investment specialist or asset manager.  

Some of the questions you can ask are: 

1. What investment benchmarks do you use? 
2. Will we have a monthly or quarterly catch-up to discuss investment matters? 
3. How best can I get in contact with you? 
4. What is your investment philosophy? 

Set a list of criteria 

Establishing criteria will help you in choosing the best asset management to work with in growing your money through investments. Here is a sample list of items you can watch out for when scouting for a company:    

Investment methodology 

Philosophies, styles and processes will vary according to the asset manager, and you may have specific preferences. One important factor to consider is the volatility of the portfolio, and what the maximum drawdown has been during periods of market stress. 

Liquidity 

This is a measure of how quickly investments can be sold for cash. It’s important to specify any liquidity restrictions to begin with.  It’s important to know that as a client, you can hold enough funds in cash, so you don’t need to withdraw from the portfolio at inopportune times.    

Performance 

Past performance is not indicative of future performance, but it can point to the effectiveness of a firm’s processes and decision-making, so you should at least know how the company is doing currently.   

Reporting 

You should expect to be in regular contact with the investment manager, who may also communicate the firm’s investment views. You should receive a comprehensive portfolio valuation at least once a quarter. Consider whether digital reporting is important to you.  

Fees 

Typically, the higher the value of a portfolio, the lower the management fee as a percentage of portfolio value, and vice versa.  It’s important to have a clear understanding of the total fee you will pay, and whether the investment manager applies a cap, as this can make a big difference to net returns. 

Additional services 

Some investment managers provide extra services to clients such as checking the accuracy of periodical payments.  

Research, study the market and invest with the best asset manager in the Philippines 

Searching for the best asset manager is tedious due to the many options available and the little knowledge most people have. By speaking with investment specialists or fund managers, you will be able to pinpoint the best option you have. It is important to get to know the company first before putting in your money for investment. Regardless of whether you are investing in mutual funds, real estate, or other forms of investment, being equipped with knowledge should provide you with a better understanding of to whom you are entrusting your hard-earned money.