Dean Wetton is the lead investment consultant and founder of Dean Wetton Advisory Limited. He is responsible for leading the selection of investment manager products.
Dean Wetton Advisory’s mission is to build wealth and reduce risk for clients by providing expert advice in pensions and investment management, supporting institutions of all sizes to understand risk, return and build governance capacity. An independent consultancy, it advises pension plans, charities and investment managers on investment strategy and manager selection issues with a strong emphasis on independent research.
How best to pitch
I strongly advise managers to listen carefully to the brief they are given and to the specific needs of the client. Talking straight and being totally honest is an essential part of the pitch and is the best way to win business.
How not to pitch
I do not like managers who are economical with the truth, or at worst, actually lie in a pitch. It is also unhelpful to speak badly about competitors – focus on your own products’ strengths.
Managers who have total belief in what they do. The best managers tend to offer one product with all their conviction and offer little variation. The kind of investment managers we invest in will be the ones that can say: ‘This is what we do, we eat our own cooking. If you want some, great; if not, there’s the door.’
Investment managers who deal in too much marketing waffle – we are unimpressed if their marketing spin bears little or no relation to the reality of what they actually do. We test this by analysing and decomposing the risks in the past performance and ensuring it corroborates the marketing story. Alarm bells ring when it does not add up.
It is essential my colleagues and I have a comprehensive understanding of all the products we recommend to our clients. This involves decomposing the risks and being able to explain to clients exactly how the product or process will work in different markets to achieve its risk return objectives.
What do you value most in a manager?
Relationship - 4
Past performance - 5
Reporting - 2
Size of firm - 1
Strength of process - 5