{"id":5316,"date":"2025-06-02T07:53:14","date_gmt":"2025-06-02T07:53:14","guid":{"rendered":"http:\/\/fundwriting.co.uk\/?p=5316"},"modified":"2026-01-25T21:06:53","modified_gmt":"2026-01-25T21:06:53","slug":"forget-the-fudge-give-it-to-investors-straight-when-funds-perform-poorly","status":"publish","type":"post","link":"https:\/\/fundwriting.co.uk\/index.php\/forget-the-fudge-give-it-to-investors-straight-when-funds-perform-poorly\/","title":{"rendered":"Forget the fudge: give it to investors straight when funds perform poorly"},"content":{"rendered":"\n
\"\"
Effective communication with institutional investors could be the difference between retaining and losing clients. (Image by rawpixel<\/a> from Pixabay<\/a>.)<\/figcaption><\/figure>\n\n\n\n

Institutional investors want to hear from fund managers more when their funds are performing poorly, according to a new study from CoreData Research<\/a>. <\/p>\n\n\n\n

No surprise there. Now for the tricky part. <\/p>\n\n\n\n

Asset managers\u2019 ability \u201cto communicate effectively and regularly with institutional investors\u201d could be the difference between retaining and losing clients, says Craig Phillips, head of CoreData Research International. <\/p>\n\n\n\n

“Tell the truth. Perhaps you think you do. But is it the unvarnished truth?”<\/strong><\/p><\/blockquote>\n\n\n\n

Regular communication is easy to organise. But how can you ensure that communication with your institutional (and retail) clients is effective when your fund is performing poorly?<\/p>\n\n\n\n

May we suggest that you follow two simple guidelines? Both are maxims that your grandparents probably taught you but that often get forgotten in business. <\/p>\n\n\n\n

First, tell the truth. Perhaps you think you do. But is it\nthe unvarnished truth? Our fund performed poorly last month.<\/em> Or is it a\nfudgy half-admission? The fund has seen strong headwinds. Performance was\nimpacted by negative allocation effects.<\/em> <\/p>\n\n\n\n

“Fund managers write about ‘the fund’ as if it were an alien being that had landed on their desk from outer space.” <\/strong><\/p><\/blockquote>\n\n\n\n

Second, take responsibility for your fund. Own it. <\/p>\n\n\n\n

Often, fund managers write about \u201cthe fund\u201d as if it were an alien being that had landed on their desk from outer space. They do that even when it\u2019s doing well. When it\u2019s doing badly, they push the dreadful creature away from them. Aargh! Nothing to do with me.<\/em><\/p>\n\n\n\n

No one expects a fund to perform brilliantly every quarter, but they do expect to understand why it has performed poorly. You know why; it\u2019s your fund. <\/p>\n\n\n\n

So, give it to them straight. Tell your investors what happened and why in clear and simple terms. Be honest. And be personal. Talk about our fund, our performance<\/em>. <\/p>\n\n\n\n

They are sure to thank you. And they might stick with you as\nwell. <\/p>\n","protected":false},"excerpt":{"rendered":"

Institutional investors want to hear from fund managers more when their funds are performing poorly, according to a new study from CoreData Research. No surprise there. Now for the tricky part. Asset managers\u2019 ability \u201cto communicate effectively and regularly with institutional investors\u201d could be the difference between retaining and losing clients, says Craig Phillips, head … <\/p>\n

Continue reading “Forget the fudge: give it to investors straight when funds perform poorly”<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[198,192,196,202,204,200],"class_list":["post-5316","post","type-post","status-publish","format-standard","hentry","category-blog","tag-clients","tag-communication","tag-investors","tag-performance","tag-responsibility","tag-truth"],"_links":{"self":[{"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/5316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=5316"}],"version-history":[{"count":15,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/5316\/revisions"}],"predecessor-version":[{"id":5348,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/5316\/revisions\/5348"}],"wp:attachment":[{"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=5316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=5316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundwriting.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=5316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}