When asset managers come under fire, there is only one relevant question for them: how do I maintain trust? Their crisis communication should revolve entirely around that.
“When I really think about what asset managers actually own, I come up with chairs, computers, and trust. That’s basically it, right? So it should be logical that they do everything they can to preserve that trust.”
Following reports about the alleged misleading of investors by Dutch asset managers Auréus and SemmieWealth, Investment Officer asked two experienced reputation specialists how companies under pressure should communicate during a crisis.
The opening quote is from Charles Huijskens, counsel at Huijskens Sassen Communications. He has more than forty years of media experience. Jhorna Erkens, managing director of Bex with nearly thirty years of experience in public relations, also said trust is decisive: “It always comes down to maintaining trust. Whether it is a data breach, a looming bankruptcy, or a medical error in a hospital: with everything you say or write about it, you have to ask yourself whether it contributes to that trust.”
“Actions matter more than words”
Jhorna Erkens, Bex
In practical terms, that leads to several recommendations. Be transparent and show that you are in control of the situation, said Erkens. Transparency should reinforce trust, not undermine it. “Saying too little is counterproductive, but maximum transparency is often impossible as well. You are frequently bound by privacy rules, professional confidentiality, and legal frameworks.” Most importantly, your communication has to align with your behavior: “Actions matter more than words.”
Huijskens said the concept of transparency is often misused. “Information that only reaches an investor after they have asked for it, or worse, after it has already received publicity, cannot be considered transparency. Transparency should be offered proactively, and I would not be hesitant about that. Everything has to come out at once. Acknowledge the mistakes you made and show how you intervened.”
“Eventually, all the bad news will come out anyway”
Charles Huijskens, Huijskens Sassen Communications
Otherwise, an even more damaging drip-feed scenario can emerge. “Eventually, all the bad news will come out anyway, but instead of coming out all at once, it comes out piece by piece. As a result, the affair drags on, and that can become very damaging.”
With that in mind, Erkens added that it is also better not to let too much time pass between internal information sharing and external communication. In terms of substance, there should be no difference between the messages. “You tell one story, with the difference that internally you supplement it with the right instructions for your people. After all, you need them to do the right things that contribute to the desired trust.”
And the tone of “the story”? “Maybe I am repeating myself,” said Erkens, “but above all, the tone has to inspire trust. Honestly explain what went wrong, communicate what you are doing to resolve the situation, and show empathy and understanding for people’s concerns. Be realistic. In a crisis situation, you often have to act and communicate under pressure, while at the same time still figuring out exactly what is happening. That is why you should think in scenarios, so you are not later surprised by new information and developments. If in the beginning you say it is not a big deal and later it turns out otherwise, that approach will inevitably backfire.”
Communication surrounding Capiva Plus Fund
Investment Officer asked Auréus and SemmieWealth how communication with clients and other stakeholders had been handled regarding the Capiva Plus Fund. Auréus responded: “We do not comment on our communications with clients or the considerations involved. That said, we are being as transparent as possible under the circumstances.” SemmieWealth replied that it could not prioritize answering the question: “At the moment, our focus remains on the ongoing proceedings related to this incident. Perhaps we can revisit the matter at a later stage. For now, it is too early to comment further. Our priority remains the day-to-day operation of the business.”