The Russian invasion of Ukraine has sent shockwaves throughout the world, not least in financial markets. However, the direct human cost will be far greater than any dent made in a high-net-worth’s investment portfolio.
Unsurprisingly, oil prices surged and the stock market plunged on news of the Russian invasion. This prompted a lot of reaction from the wealth and investment management industry.
This is the norm whenever major news breaks. However, this time it felt different. Commenting on the Russian invasion cannot be compared to a General Election result or the Budget, for example.
Of course, protecting capital and making money is the raison d’être of the industry.
It is in uncertain times that portfolio managers really prove their value. Protecting clients’ assets and finding opportunities in tough times is part of what sets firms apart from those that do not manage this.
Therefore, it is logical for firms to want to reassure clients and remind them of their capabilities. For some, this will also involve communicating with the media.
However, perhaps the way in which this message is communicated is very important and should be considered carefully.
I was surprised and, in some cases, uncomfortable with some of the press releases that landed in my inbox yesterday.
I must preface this by saying I am a member of the so-called “snowflake” generation, so some may say I am being overly sensitive.
Some were simply sensationalist and lacking tact. For example, one subject line began “With World War III just around the corner…”. During such an uncertain time, this form of scaremongering feels unnecessary.
Others really did not sit well with me at all.
Numerous releases were suggesting there is a “huge opportunity” in Russian stocks, appearing to actively encourage investment into Russia.
Regardless of the morality surrounding this tactic, it may also be a poor decision financially. With severe financial sanctions being imposed on Russia, the liquidity of these stocks may be significantly impacted.
It is also worth remembering that many clients, colleagues and friends will be directly affected by the conflict. Being sensitive, supportive and offering assistance to these individuals must surely remain a priority.
Making money may be the industry’s purpose, but people are at its core. Now, more than ever, this should be at the forefront of all our minds.
