“My belief is that communication is the best way to create strong relationships.” – Jada Pinkett Smith
The alternative asset management sector is evolving beyond family offices and HNWIs into the realm of the direct retail investor. We consider how a manager should begin to develop an alternative asset retail investor communication strategy.
There are sign that the trend to alternatives is driven in many cases by retail investors’ tactical asset allocation preferences rather than strategic diversification. Such an approach is unlikely to deliver sustainable out-performance to most investors.
However investment managers have the opportunity to engage directly with retail investors when they are willing to share their insight on what can be a daunting subject.
Through educating investors about the diversification benefits, investment opportunities, market risks and liquidity constraints, managers can build direct relationships with investors.