Investors have more investment opportunities than ever before. They are not bound to a single fund family for the rest of their lives. Investors may jump ship if problems with investor relations, fund administration, accounting or reporting arise. Stability is important for investors. Controls, synergies and collaborations must be prioritized by fund sponsors to give investors the assurance they need. By concentrating on investor relations, fund management makes a strong business investment in the stability of the fund. By not taking the time to prioritize excellence in investor-facing activities fund management puts a lot on the line: money, reputation and future business.
At Phoenix American, we encounter investment funds frustrated by investor relations providers who make a variety of errors, omissions and miscalculations on an ongoing basis. By the time these errors have permanently soured the fund sponsor’s relationship with the investor relations provider, fund management has been irritated and distracted, investor and advisor confidence in the fund’s stability has been shaken and fund management has had to embark on the difficult and time-consuming process of converting asset and investor data to the systems of a new service provider.