How to build positive investor relations

Mar 19, 2021

Sustaining positive investor relations is crucial for building and maintaining a fund's credibility; after all, without investors, there is no fund. Mark Richardson and Roisin O’Friel outlines their top tips on how to manage investor relations effectively.

A key aspect for anyone engaging in fund management is managing investor relations. From fund entry to fund exit, it is integral to maintain a strong relationship with your investors. After all, investors are the lifeblood of any investment fund. Maintaining positive relations with the investor base builds credibility and strengthens a fund’s reputation within the marketplace.

Here are some top tips about how to build positive investor relations.

Transparency from the outset

It is important to clarify what an investment product offers and, equally, what it does not offer. This enables an investor to make an informed investment decision, ensuring that all parties are on the same page from the beginning. This also builds trust.

Acting in best interest

The simplest way to attain positive feedback is to act in an investor’s best interest, ensuring that each investment decision is made with their benefit in mind. Needless to say, gold stars are granted for positive investor returns.

Proactive communication

Be proactive instead of reactive. This asks for clear and timely communication. Keeping investors informed on the fund’s investments through transparent communication ensures a continual dialogue, which is integral to building trust.

Enabling feedback

Strong relationships are built around two-way dialogues. Create a point of contact and act on the feedback received. Being contactable and responsive to clients is key to ensuring mutual understanding.

Safeguarding data

Keeping up-to-date records and protecting these records is a cornerstone for maintaining trust. In the digital age, now more than ever, entities should ensure they have the resources to safeguard client information.

Building and maintaining positive investor relations is not a once-off exercise; it is a continual process. To manage investor relations effectively is to place transparency at the forefront of fund processes and stakeholder communications.

In doing so, you make an investment in the fund’s market credibility – which is perhaps the most valuable investment of all.

Mark Richardson is Director of EIIS Fund Management in Baker Tilly. Roisin O'Friel is an Associate in EIIS Fund Management in Baker Tilly.