When meeting with investment managers, asking good questions can help investors better understand the fund’s strategy, performance and risk management. By preparing a list of thoughtful questions ahead of time, investors can gain key insights into how their money is being managed. This allows for a more informed decision when selecting and monitoring investment managers.
Understanding the investment philosophy and process
Questions focused on the manager’s investment philosophy, strategy and decision-making process allow investors to assess if the approach aligns with their goals and risk tolerance. Specific areas to ask about could include the research methodology, portfolio construction rules, sell discipline, risk management, etc.
Evaluating past performance and future expectations
Looking at historical returns is important but investors should also inquire about performance attribution – what drove the results. Forward-looking questions around market outlook and portfolio positioning can indicate if managers are adapting to changing conditions.
Preparing thoughtful questions for investment managers empowers investors to make more informed decisions. Focusing the conversation on philosophy, process, performance and risk can reveal valuable insights.