When your trusted asset manager is taken over: What now?

By Rob Agnew, Partner and Head of Private Capital at Isio

It’s natural to feel unsettled when your trusted asset manager is merged or acquired. You chose them for their dedication to your mission, sophistication, and the promise of bespoke service. But when the institution changes, the relationship you once relied on may no longer serve your needs. Here’s how to respond thoughtfully and protect your charity’s assets. 

Beware: The comfort trap

Familiarity can breed inertia. Longstanding associations, loyalty to relationship managers, and the reassurance of a well-known name often discourage change. But comfort isn’t the same as quality.

After a takeover, you may notice subtle shifts:

• Advice that feels less tailored and more product-driven
• A decline in service quality or personal engagement
• Turnover of the key people who know your organisation best
• A sense that your objectives are no longer central

These are signs that your relationship may be drifting from what was originally promised.

Recognising the red flags

Ask yourself:

• Are investment recommendations shaped more by the organisation’s agenda than your goals?

• Has the service you expect to receive become more ‘cookie cutter’ in look and feel?

• Is the organisation or fund stepping-back on its sustainability commitments?

• Does the performance benchmark give me the right parameters to truly assess my manager?

• Are you made to feel that your individual requirements burdensome or difficult to accommodate – perhaps in relation to size of your assets?

If so, it’s time to reassess. It doesn’t necessarily have to signal the end of your relationship – but armed with a thorough and objective analysis you can demonstrate you have discharged your governance responsibilities appropriately. 

Don’t assume glossy events and a polished brand will guarantee a genuine continuation of the service you have been accustomed to.  Just as your manager is evolving it’s time to re-set the agenda for how your relationship will also evolve.

Evaluate and prepare

Re-assessing and possibly ending a relationship with a long-term advisor can feel daunting… but it doesn’t have to be disruptive. Start by:

• Understanding how the market has changed – It might have been a long time since you took a deep dive on what’s out there.  Not only are there new types of provider but also new approaches to achieving risk adjusted returns and aligning with your mission.
• Refresh your investment policy – Over time it’s possible for an IP to evolve to resemble the product you are invested in.  That means you have imported your manager’s policy rather than working out what your organisation truly needs to be successful.
• Understand what may be holding you back – Sometimes lack of investment confidence or past experience of a difficult transition can create internal barriers to change.  It does not have to be that way!
• Get started now – Things are unlikely to deteriorate sharply in the immediate aftermath of a takeover… but if you put the building blocks in place you will be primed and ready if you do encounter trouble ahead.Preparation ensures continuity and protects your portfolio.

Preparation ensures continuity and protects your portfolio.

Seek true specialists

In times of transition, the distinction between generalists and specialists matters more than ever.

A true investment specialist will:

• Construct and manage portfolios aligned with your evolving needs
• Offer independent advice free from institutional bias
• Provide access to sophisticated strategies and deep expertise

This kind of partnership is essential in a world where managing investments is increasingly complex.

Final thought

When your asset manager changes hands, don’t let inertia or prestige keep you tethered.

Ask whether the new institution is still delivering bespoke advice and excellent value. If not, it may be time to look around.