Managers should keep you in the loop, informing you of changes when they take place or when they spot a stock that violates their investment discipline. Let them know you expect this. Doing so makes it less necessary for you to be on the telephone with the manager on an almost daily basis.
To sum up, the main keys to selecting and evaluating money managers are:
1. Choose the most suitable professionals for each client;
2. Understand their investment approaches;
3. Recognize the roles each will play in the clients' portfolios;
4. Maintain regular communication with them.
The Manager As Ally
Managers can be a great resource to you for your marketing and business development plans, too. They often have expertise in such fields as foundations, hospitals and Taft-Hartley funds and can guide you in how to best approach them.
They also help educate your clients. During client conference calls or speaking at one of your upcoming seminars, they can explain such things as why they are taking certain actions in the portfolio, and how they see the investment scene shaping up in the coming weeks, months and years.
A good manager can be a strong ally for you-another reason to choose carefully. Clearly, a well-constructed portfolio with top managers doing the stock and bond picking can enhance your image with clients and could lead to more business.