Choosing the right investment manager is one of the most important financial decisions you can make. Whether you are investing for retirement, income, capital growth or future financial security, selecting a manager whose approach aligns with your goals is essential.
Before choosing an investment manager, it is important to understand your own objectives and attitude to risk. Consider questions such as:
What are you investing for?
What is your investment timeframe?
How much investment risk are you comfortable taking in pursuit of potential returns?
Once you have established your goals, the next step is evaluating potential investment managers. The following checklist highlights seven key areas to consider – both when selecting a new investment manager and when reviewing an existing one.
1. Investment performance
Performance is often the first factor investors consider, but it should always be assessed carefully and over an appropriate timeframe.
If you already work with an investment manager, ask yourself:
Has the portfolio delivered the returns you expected?
How has performance compared with the agreed benchmark or objective?
How has the portfolio performed relative to comparable peer groups?
Were returns achieved while taking the agreed level of investment risk?
Strong performance alone does not necessarily indicate effective management. It is equally important to understand how those returns were achieved and whether the investment approach remains consistent with your objectives.
2. Income generation
For many investors, generating a reliable level of income is a key objective.
If income is an important part of your strategy, consider whether the portfolio has produced the level of income originally agreed. Has the portfolio delivered too much, too little or broadly the expected amount?
An experienced investment manager should be able to balance income requirements with long-term investment growth and capital preservation.
3. Implementation of investment strategy
Your portfolio should be managed in line with the investment strategy and risk profile agreed at the outset.
Questions worth asking include:
Is the manager following the agreed investment policy?
Does the strategy still reflect your current objectives and circumstances?
Should alternative or complementary investment approaches now be considered?
Investment needs can evolve over time, so regular reviews are important to ensure your portfolio remains suitable.
4. Stability and quality of the team
The strength and stability of the investment team can play a significant role in long-term outcomes.
Consider whether:
Your investment manager is part of a well-established organisation
The investment team has a stable structure and low turnover
There is sufficient depth of expertise across the wider business
Consistency within a team can help support a disciplined and repeatable investment process.
5. Communication and client service
A strong client relationship should be built on transparency, trust and effective communication.
You should expect:
Clear and regular reporting
Transparent explanations of investment decisions and performance
Efficient administration and responsiveness
Open discussion about market conditions and portfolio positioning
An investment manager should be able to explain both successes and periods of weaker performance in a straightforward and understandable way.
6. Costs and transparency
Understanding the total cost of investment management is essential.
While annual management fees are important, investors should also consider additional charges such as:
Administration costs
Third-party fund fees
Broker commissions
VAT and other applicable expenses
Regulatory changes introduced under MiFID II have improved cost transparency across the investment industry by requiring firms to provide a clearer breakdown of charges. However, investors should still ensure they fully understand the total costs associated with their portfolio.
Your investment manager should be able to provide a clear summary of all charges incurred or expected.
7. Stewardship and corporate governance
Responsible investment and effective stewardship are increasingly important considerations for many investors.
You may wish to ask:
Are stewardship principles embedded within the investment process?
Does the manager engage with company management teams?
How does the manager exercise voting rights on behalf of clients?
How are environmental, social and governance (ESG) considerations assessed?
Can ethical or responsible investment preferences be accommodated?
Investment managers should be able to explain how governance factors may affect long-term shareholder returns and provide transparency around their stewardship activities and voting records.
Final thoughts
Researching and assessing an investment manager can take time, but it is an important part of building a long-term investment strategy that aligns with your financial goals and risk tolerance.
The right investment manager should encourage ongoing dialogue, regular portfolio reviews and transparent communication – helping you feel confident that your investments continue to reflect your objectives over time.
Important Information
The information on this webpage has been produced for educational purposes. Retail investors should not act or rely on any information contained on this webpage without seeking advice from a professional adviser.
This is not intended as a solicitation, or an offer to buy or sell any security. The information on which the material is based has been obtained in good faith, from sources that we believe to be reliable, but we have not independently verified such information and we make no representation or warranty, express or implied, as to its accuracy. All expressions of opinion are subject to change without notice. The information on this webpage should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information on this webpage when taking individual investment and/or strategic decisions.
Capital at risk. The value of your investments and any income derived from them can fall as well as rise and you may not get back the amount originally invested. Past performance is not a reliable indicator of future results and may not be repeated. Forecasts are not a reliable indicator of future performance.
Issued by Sarasin & Partners LLP, 50 George Street, London, W1U 7DY. Registered in England and Wales, No. OC329859. Authorised and regulated by the Financial Conduct Authority (FRN: 475111).
© 2026 Sarasin & Partners LLP. All rights reserved.
