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Finally, GIPS enables Nigerian #AssetManagement firms to compete for business on equal grounds with firms from countries with more developed standards. Only 15 of the top 100 global Asset Managers are not yet compliant. It's the gold standard in Investment Management.
If you're thinking of opening a mutual fund account or you're thinking of setting up an investment account, you should ask your #AssetManagement firm why they are not GIPS compliant. You should get a full picture of their past performance and a listing of ALL fees. Peace! ✌️ 
Tomorrow, I'll share a bit more information about doing due diligence on investment management firms. I'll point out some of the things to look out for. #AssetManagement
In yesterday's #thread, I said that the rising middle class or Nouveau Riche expect more from financial institutions than "business as usual". So, these institutions must step up.
I also mentioned that I would do a #thread on what you should look out for when considering an #AssetManagement firm or investment institution. So let me begin:
A basic standard for an #AssetManagement firm should be Global Investment Performance Standards (GIPS) compliance. What this means is, the firm provides historical records that clearly show their performance over years. They also state what their returns are net of fees.
GIPS is a measure of an #AssetManagement firm's willingness to adopt global standards of ethics and transparency, and indicates a culture of constant improvement and rigour.
Next, check the #AssetManagement firm's digital capacity. When you see @alat_ng subbing @PiggyBankNG, it tells you "digital" is a key component of today's service standards. If your investment institution doesn't provide efficient online services, you should be worried.
Online capacity ensures speed. Today's middle class is online real-time. More sales leads come from #socialmedia than billboards.
So, does your #AssetManagement firm respond promptly to timeline questions and DM requests? Do they return phone calls? Do they even have automated telephone services and a robust CRM? Do they reply your emails?
Today's marketing will be driven more by micro-infliencers and closed trusted networks, than by radio jingles. More sales go on in Whatsapp and Facebook Groups than during open air market storms!
Because finance is an arcane subject, #AssetManagers need referral marketing and influencers who can break down complex concepts.
More things to look out for...Check out the Board and Management of the #AssetManagement firm. Has anyone been part of a fraudulent company in the past? Are they corporate cowboys or responsible professionals with track record?
Does the #AssetManagement firm have a solid asset base? Also, if there's a temporary market shock, do they have enough reserves to absorb it?
Is the #AssetManagement firm regulated by relevant industry bodies? Do they have any form of insurance/assurance? Is there a Trusteeship system in place to ensure funds are received and spent appropriately?
Finally, are you satisfied with the way you are being treated and served? Does your account officer understand you and have time for you? What quality of care are you receiving? 2019 is the year to say no to bad behaviour. You have options.
These are just a few things to look out for when considering an #AssetManagement firm. I hope they are useful. I wish you well on your wealth creation journey!
