What to look for in an investment manager

many high net worth individuals, keeping and growing their wealth is an important preoccupation. But some would rather entrust their money to an institution or an investment manager to accomplish this needful task. Choosing who to trust, however, can be challenging.

Despite the abundance of qualified investment managers offering financial advice and advocating sophisticated investment strategies, the question remains: How can you identify a good investment manager? Here are 5 things you should look out for in an investment manager: • Character and competence

Character and competence correspond to trust, respect, proficiency and credibility. With both high competence and a strong character, these traits make managers the centers of influence – the key people who can help effect change. Investment managers who embody these traits help clients feel more relaxed, knowing they can be trusted and are capable of successfully managing investment portfolios.

According to Sheila Tan, Bank of the Philippine Islands Asset Management and Trust Corp. (BPI AMTC) president, “good investment managers must possess two things – competency and character. They must go through various trainings and certifications to establish their technical expertise. They must undergo continuing education and strive to keep abreast of current developments.” • Client-orientedness Prior to onboarding, clients should first be assured by their investment managers that their financial situation, experiences, risk appetite, needs and target are fully understood. Collecting this information enables portfolio managers to propose solutions suitable for the specific needs and circumstances of clients.

“We make sure that our investment managers possess the right qualities and mindset. They must put our clients’ interests above their own,” Tan said. • Credibility and reputation

Reputation has grown in importance especially since investors are also doing more to learn about managing assets. The strong reputation of a portfolio manager not only shows his credibility but complements his other capabilities and the advanced services his company may have. These competencies are evidenced by a portfolio manager’s track record and consistent performance across economic cycles, assuring investors and helping clients feel secure.

Wealth managers for high net worth investors should provide the best asset and fund management, while upholding ethical and professional standards in managing assets. • Unquestionable integrity

Leading with integrity is a quality that requires honesty, consistency in character, and fairness in actions. Investment managers who prioritize their client’s needs over their self-interest demonstrate unquestionable integrity that speaks of the reputation of his company. “Investment managers are held to the highest standards of professionalism and thus must have unquestionable integrity. Prudence is an essential virtue to have. They must always act for the benefit and in the best interests of clients and adhere to all the requirements set forth by regulations and internal policies,” Tan said.

• Industry expertise Investment managers should provide clients with domestic and international investment alternatives, and regularly give updates on products and services to take advantage of emerging investment opportunities.

“We are firm believers that the growth of the asset management industry rests on the increased financial knowledge of Filipino investors, and this is why we strive to continuously enhance our investor education programs, and products and wealth management solutions,” Tan said.