Investor communication

Investor communication

Every crash is different but the outcome for investors is much the same each time. What can boards do to ensure that their communication with investors is seen to be satisfactory when the fund starts falling apart?

If a fund does come off the rails it is obviously helpful if there are already well-established channels of communication between its board and the investors. But that is often not the case. The NED has hosted a number of events for investors on fund governance over the years. It is common to hear complaints at these occasions of a lack of communication from the board.

For example, investors often say that there is nowhere near enough consultation with them on proposed changes to funds – be it changes to the board, alteration to share class provisions or changes on what expenses can be charged to the fund and so forth. Too often, investors say that they are told that they have to accept the changes that the manager intends to implement or leave the fund.
To read more on this see the February issue of The NED.

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