About a fortnight back, an article from New York Times, "why I am leaving Goldman Sachs" went viral on social networking sites creating quite a furor in the field of investment banking/asset management world over. When I read that article, I could relate to the anguish expressed by Mr. Greg Smith. I have never worked with Goldman Sachs or have done any business with the group but in my experience of more than a decade in the field of investments, I have sometimes paid price due to greedy and callous attitude of people and shockingly unprofessional/unethical work culture of portfolio/asset management companies.
A few months back, I got a call from my former relationship manager. He wanted to meet and discuss "better investment options" with me. The call was a surprise and instantly put myself on "alert" mode as I was already introduced to the new relationship manager assigned for my portfolio in a meeting and was informed that his predecessor (the person who called me) had left the organization.
A few months back, I got a call from my former relationship manager. He wanted to meet and discuss "better investment options" with me. The call was a surprise and instantly put myself on "alert" mode as I was already introduced to the new relationship manager assigned for my portfolio in a meeting and was informed that his predecessor (the person who called me) had left the organization.
There was no iota of guilt or shame in approach of former relationship manager and he went on bragging about how he planned to poach HNI clients and take their business to the new company he had joined. I cringed at his complete disregard for the seriousness of the fact that he had breached trust and he still had access to sensitive information of a client's investments that he was technically not entitled to! I Panicked and immediately approached my portfolio management company. I was given assurance by the top brass that my money and information about my investment was in safe hands.
Do I still trust this organization? I trust the organization for its accuracy of research on various investment instruments but when it comes to service and trusting the people working for it, the answer is not as simple as yes or no. The experience mentioned above is a rare occurrence. However, it does reflect on work ethics or the complete lack of it on personal, professional and organizational level. Fortunately, regulations covering investor protection are becoming imminent with time and there is much more transparency now. But there are many areas that still need to be looked into.
There is tremendous competition and pressure created by the burgeoning investment markets but people working in this industry are not always experienced, knowledgeable or competent enough to meet demands of the job. Sadly, they are also not always trained for good communication hence they often fail to understand customer's profile and investment requirements. Can you imagine the frustration of wasting hours of time and energy for the product that is not suitable for your investment profile? But these "power point tigers"(my hubby nicknamed them long back) chase you, hound you and you wonder if all those checks of obscene amount of fees that you pay to create and manage wealth is really worth it!
As a customer, what would make me happy will not be invitations to events at five star deluxe hotel, expensive gifts on New Year or festivals or VIP treatment. I will be a content customer when my investment profile is understood and respected by my portfolio management company and the people assigned for my work. I respect them when they suggest various investment options based on substantial research and don't sell me products only for the higher incentives involved. As a customer; I expect my portfolio management team to be aware and updated about changes in policies/government rules that might have impact on my investments if any and educate me on the same.
The fundamental problem I feel is with the attitude of people and culture of the companies involved with investment industry. There is difference in wealth creation and making "fast bucks". The business of wealth creation is about savvy asset allocation, prudent decisions and creating mutually beneficial relationship between a customer and portfolio management company. Sidelining customer's interest to achieve targets is a professional harakiri.
As an investor, I refuse to be taken for granted or give in to any unprofessional methods. It is time portfolio management companies got real and recognized the fact that each customer is an important key to their success and not just a "platinum trash" that can be easily manipulated for the sake of their own advantage. If the customer does not find value in portfolio management service, there is no scope for them to grow. Period!
Do I still trust this organization? I trust the organization for its accuracy of research on various investment instruments but when it comes to service and trusting the people working for it, the answer is not as simple as yes or no. The experience mentioned above is a rare occurrence. However, it does reflect on work ethics or the complete lack of it on personal, professional and organizational level. Fortunately, regulations covering investor protection are becoming imminent with time and there is much more transparency now. But there are many areas that still need to be looked into.
There is tremendous competition and pressure created by the burgeoning investment markets but people working in this industry are not always experienced, knowledgeable or competent enough to meet demands of the job. Sadly, they are also not always trained for good communication hence they often fail to understand customer's profile and investment requirements. Can you imagine the frustration of wasting hours of time and energy for the product that is not suitable for your investment profile? But these "power point tigers"(my hubby nicknamed them long back) chase you, hound you and you wonder if all those checks of obscene amount of fees that you pay to create and manage wealth is really worth it!
As a customer, what would make me happy will not be invitations to events at five star deluxe hotel, expensive gifts on New Year or festivals or VIP treatment. I will be a content customer when my investment profile is understood and respected by my portfolio management company and the people assigned for my work. I respect them when they suggest various investment options based on substantial research and don't sell me products only for the higher incentives involved. As a customer; I expect my portfolio management team to be aware and updated about changes in policies/government rules that might have impact on my investments if any and educate me on the same.
The fundamental problem I feel is with the attitude of people and culture of the companies involved with investment industry. There is difference in wealth creation and making "fast bucks". The business of wealth creation is about savvy asset allocation, prudent decisions and creating mutually beneficial relationship between a customer and portfolio management company. Sidelining customer's interest to achieve targets is a professional harakiri.
As an investor, I refuse to be taken for granted or give in to any unprofessional methods. It is time portfolio management companies got real and recognized the fact that each customer is an important key to their success and not just a "platinum trash" that can be easily manipulated for the sake of their own advantage. If the customer does not find value in portfolio management service, there is no scope for them to grow. Period!
