Questions to ask fund managers

In this two part series Pathfinder provides a framework for analysing fund businesses and the investments they offer.

Why should advisers care? 

Financial advisers have an obligation to provide a solution that is suitable for the client’s needs.  When managed funds are part of that solution the adviser must understand the thinking and process of the fund manager.  The adviser must take responsibility for what is recommended – that duty cannot be outsourced.

A second reason for understanding funds is that it helps advisers build a deeper client relationship.  A client is likely to place greater trust in an adviser who can demonstrate a deep understanding of product solutions.  You cannot be an expert if you don’t know how the fund works.