Questions to Ask an Investment Advisor Before They are Hired aka ”The Interview”

At times it becomes necessary to end a relationship with one investment manager and begin a relationship with a new firm. When such a change has been decided upon, it is best practice to not rush to the next investment manager that promises good returns, low fees, and excellent client service. Instead, a thoughtful investor will take the time to solicit proposals from several investment managers who have a good reputation and standing within the investment community.

 

This “manager search” will include the following steps:
  • Identify candidate managers.
  • Contact candidate managers to determine if they are willing to participate in a formal Request for Proposal process.
  • Deliver a data collection packet to the candidate managers (link to sample).
  • Collect candidates’ investment responses/proposals.
  • Evaluate similarities and differences between the candidates’ responses.
  • Evaluate whether the candidates’ responses are in harmony with the client’s own investment objectives and principles. (In most cases clients have not taken the time to define these unique financial objectives and investment principles. It is really important that these be defined because they will serve as the foundation of the engagement with the new investment manager.)
  • Deliver to the selected candidate(s) the client’s Investment Objectives, Principles and Procedures document, and coordinate relationship and asset transition.

[button link=”http://info.anodosadvisors.com/investment-manager-rfp-tp” newwindow=”yes”] Download Sample RFP Questions[/button]

At Anodos, we help our clients answer the question, “Is my investment advisor doing a good job?” Many of our clients are individual trustees, business managers, ERISA trustees and endowment board members who are obligated to independently monitor the activities of the agents to whom investment duties have been delegated. What makes us unique is this is all we do. We don’t manage money, sell insurance, or accept referral fees. We don’t have a horse in the race.

Josh Yager

Josh Yager

Josh is Managing Partner at Anodos Advisors and a licensed attorney. Josh is a recognized content expert on the issues of fiduciary duties relating to the management and oversight of trust assets.

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