Righting the Ship (Part 4)

How can investors secure these rights?

The way to get what you deserve is through communication. And investors should have reports, statements, and regular contact that’s clear and complete, and that tells them what’s going on.

It starts with the statement—that humble mailing that can run for pages and pages of incomprehensible jargon. Because everyone want’s something slightly different, it tends to be a “kitchen sink” document that goes to everyone and satisfies no one. Instead, it’s complicated and confusing. But communication doesn’t work if it is just a one-way proposition.

Investors need to ask for statements and reports that make sense—and that state clearly what’s happened with their money, what decisions have been made, what fees have been paid, and how it’s invested. A “black box” may be appropriate in physics or engineering, but it has no place in money management. If investors don’t understand what’s being said, they have a right to ask questions and be given answers.

Any time people work with your money, you should be told what they’re doing. If an advisor won’t be clear, find someone who will be.

Douglas R. Tengdin, CFA

Chief Investment Officer

By | 2013-06-27T10:08:26+00:00 June 27th, 2013|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
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