How did your company handle Black Monday?
Written by Vanessa Vrdoljak on September 14, 2015.
A day like China’s Black Monday will always make the hearts of those of us working in the financial industry sink. Breaking bad news about their investments to clients is one of the least attractive aspects of working as a financial adviser. When that news involves billions of dollars being wiped off stock markets worldwide, it is likely that a difficult conversation has to be had with almost every client.
How did your company handle the crisis? Can you honestly say that they assumed responsibility and dealt with it in the best possible way both in the lead up to Black Monday and afterwards? Did you have the information you required at your fingertips to reassure clients in the face of such volatility?
Infinity consultants could answer both questions with a resounding yes. Our clients benefitted from proactive management and a swift response both before and after the crash.
It helps that we have an exclusive relationship in Asia with some of the best investment managers in the business at Tilney Bestinvest. While many investors were distracted monitoring the situation in Greece and Europe, TBI’s dedicated eight-strong research team were spotting signs that there was trouble brewing in China and feeding a constant stream of information to the investment managers over the course of July and August. As early as 8th July Infinity emailed all of our clients TBI’s summary of the situation which rang alarm bells about China, giving them the opportunity to reflect on their portfolios and potentially readjust them if desired.
On Tuesday 18th August, a full six days before shares tanked, TBI’s Chief Investment Officer, Gareth Lewis, took the decision to reduce equity exposure in China on the Growth MAP Fund by 1%, with commensurate reductions on all other MAP funds. Further reductions were made the following day as the situation worsened.
With China’s crash having a domino effect on markets across the world, it was impossible to completely protect investors from the fallout, but we believe that as a result of the information distributed in advance by Infinity and the preemptive asset reallocation by TBI our clients fared better than most.
We strongly believe that we have a duty to keep our clients informed, whatever the investment news, and are committed to doing this. Rather than burying our heads in the sand, just two days after Black Monday, Infinity emailed all clients with another TBI update on the situation. Our clients appreciate being kept well informed and are reassured by the fact that we take our responsibilities towards their investments very seriously.
Likewise, in times like these when stock markets are unpredictable, our consultants appreciate working for a company which genuinely puts the client first, protecting their capital long-term by actively managing their portfolios, responding swiftly to market volatility and keeping them informed every step of the way. They can feel confident in the advice they give, knowing that the investment team behind them are as well informed as they possibly can be.
If you are working in the financial industry but feel you are not receiving the support and back-up you need, why not get in touch to see how you could become part of our professional and client-focused team.