Whatever your take on the outlook for the market, who you invest with is more important than ever. So, what should you be looking for in those you are letting manage your investments?
Transparency has never been more important. With all the technology at our fingertips today, it is getting easier for money managers to provide better insight into what is happening with investments, much faster than before.
Not every fund manager likes to do this, because they are doing a lot of juggling to keep things afloat behind the scenes. Those who are willing to open the books, and not just pay out dividends, but provide insight into assets, cash flow, and liquidity can give you clarity and confidence in your investments.
In times like these, few step up and provide more frequent monthly reporting. Look for those that do.
Accessibility and customer service will tell you everything about a company.
Sadly, the majority of companies and institutions seem to be using technology to distance themselves further, and to strip back customer service, rather than using it to become more available, as they should.
Online dashboards and chatbots can be useful. Yet, technology can also be used to improve operational efficiency and enable more rapid human customer service as well.
Even better if you can get through to someone who not only shows they care, but can actually answer your questions, and resolve issues and concerns as well. This may be rare, but it is fast becoming a major differentiator between the successful and the dinosaurs.
Those hiding under their desks, dodging phone calls, and hiding behind phone systems and bots that send you in circles should be a major red flag right now.
Past performance can be one of the best predictors of future performance. Though in reality statistics on returns on many indexes, funds of funds, and stocks are so convoluted that they through times like these before. They’ve personally experienced the full cycle a few times. They aren’t going to faint at the first indication of a rotation. They know what’s coming, and the big picture.
Perhaps most importantly, it is that they have perseverance. They don’t just quit when things get challenging. They may have to make adjustments and tweaks. Yet, they have the grit to tough out the tougher times and are looking for opportunities and ways to meet the challenges, not somewhere to hide from them.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.