Asset managers have had to assure fund buyers over the soundness of their governance models during the pandemic to avoid worries over a repeat of high-profile fund blow-ups like Arch Cru and Keydata, says Fulcrum Asset Management partner and head of distribution Matthew Wright.
In the latest Portfolio Adviser video interview, Wight explains how from a client servicing perspective the past year has been the toughest of his 23 years in the industry.
He says winning new clients was “almost impossible” when the pandemic struck last year, because clients were more concerned about mitigating risk in existing portfolios than seeking new fund managers.
Wright says the challenge for asset managers as fund buyers have begun to look for new managers has been to stand out, not just in terms of performance but also in instilling trust and confidence in their internal governance.
“One of the biggest risks is people don’t want to invest their money with a manager who will then puff away, like the experience people had with Keydata and Arch Cru etc,” says Wright.
Wright says to improve its own levels of governance and client service, Fulcrum has a statement of controls report, which is a full audit from PwC that verifies an asset manager has all the relevant systems and controls in place.
Elsewhere, Wright talks of other ways of giving clients the “red carpet treatment”. He also discusses Fulcrum’s approach to ESG and how it seeks to differentiate itself in a saturated market, as well as the company’s plans for distribution.
Watch the video above for more.
