NEW YORK -- Money managers negotiating to sell their firms or making other such deals still aren't sharing that information with their clients, said some of the 240 participants at a recent strategy conference held by Investment Counseling.
"It's consistent with what we heard last year," said David Silvera, an IC senior consultant and member of the firm's strategic advisory group, said of discussions at the one-day event in New York.
"The strategies behind the deal are not well-articulated to the client and the client is lost in the shuffle. More consideration needs to be paid to keeping clients informed."
There are good reasons for money managers to remain silent about their plans, he said. They don't want news of deals to reach competitors before agreements are final, and clients might flee.
"Rationale for the deal should be shared with those whose assets are involved," Mr. Silvera said. "Are deals done with the interests of clients in mind? By getting the best deal, is the manager going to help clients?"