Many wealth management professionals will be concerned about their own positions but ultimately it is their clients who matter. Aware of this, private banks and other advisors to high net worth clients are stepping up contacts with investors to guide them through the current market turmoil.

In a recent WealthBriefing online survey, 80 per cent of those polled agreed that at the present time wealth managers should be doing more to keep clients up to date with financial developments relating to their investments. 

A representative of HSBC Private Bank said: "In times like these, where there is significant financial uncertainty, the key is to maintain close client relationships - whether that be through face-to-face meetings, phone calls or email.  That is always the case, but particularly so in a climate such as this.”

While the asset management sector is increasing its communication with clients, retail banks have been criticised for maintaining a deafening silence in response to the current financial crisis.  Research by online reputation management specialists VCCP Search found that of the top ten retail banks in the

UK, only one has any direct reference to the global banking crisis on their home page.  

According to Paul Mead, managing director of VCCP Search: “Few of the banks and associated financial institutions have managed to use Search – the programme to ensure that a brand is highly ranked on the internet (usually the first page) – to reassure investors and depositors as to the safety of their money.”

Client communication can often be seen as a cliché within business, but it is crucial to wealth management, in times of both calm and volatility.  “The important thing is to have a regular programme of conversations with clients that is timely, personal and consistent. You might increase your dialogue a bit more when things are difficult,” said Jason Butler, a partner at Bloomsbury Financial Planning, an independent financial advisor in London focusing on high net worth clients.

Although regular face-to-face meetings are fundamental to asset management, advisors are using a variety of communication channels to report to clients.  Email is proving to be a particularly useful way to update investors on the ever-changing markets.

Simon Gibson, director of Atkinson Bolton Consulting, an IFA based in
Newmarket in

Suffolk, told WealthBriefing:“We already send out by email a monthly market commentary. In the last two weeks or so we’ve sent out a couple of 'extraordinary' emails to update people on what is going on.” 

Wealth management professionals also emphasised the value of telephone calls, as they allow clients to have an up-to-the-minute dialogue about their investments and concerns.

“Communication with clients should increase at a time like this.  Emails play a part, but telephone conversations are most important as they take place in real time.  Whilst regular meetings are an integral part of our business model, and so are a regular occurrence, telephone conversations are essential for timely feedback,” said David Miller, head of alternative investments at Cheviot Asset Management, the

UK wealth manager.

David Middleton, head of strategic marketing at Towry Law, an IFA, said: “We should be talking to clients in such uncertain times. “We are doing a lot of phoning and holding meetings and telling clients what is happening to their portfolio, including telling them any bad news.”

Unsurprisingly, clients are being far more active in seeking updates on their investments.  Mr Gibson said that Atkinson Bolton had experienced “five times the normal number of calls from clients about what is happening to their cash in the last two to three weeks.” Similarly, a large

US investment firm, which declined to be identified, told WealthBriefing that although there is always a high level of contact with investors, it was experiencing “a lot more incoming”.

With seismic changes occurring in the global money markets almost daily, it is inevitable that keeping clients up to date has become more of a challenge.  HSBC Private Bank confirmed that: “The current financial climate has definitely increased the workload of our client relationship managers."

Client reporting levels are likely to remain elevated in the short term.  Cheviot's Mr Miller said: “If you reflect back to periods of stress, such as that in 1987, the need for increased communications with clients extended to the end of the year and into the beginning of 1988. 

"There is a need for follow up, where clients’ objectives and attitudes towards risk are reassessed and plans are made for the future.  We can expect a high level of involvement and enquiry for three or four months after the market has bottomed.”

This point was echoed by David Scott, founder of Vestra, the new

UK wealth management firm that started up for business in late summer. He predicted that higher levels of client communication would continue “for at least another six months”.