So What? with Shannon Saccocia, Episode 2

Welcome to So What? with me, Shannon Saccocia, CIO Wealth at Neuberger.

In this series, I'm answering questions submitted directly from advisors about what's top of mind for you.

You bring the “What” that you're seeing with clients and I'll help you understand the “So What?” Let's take a look.

Our question this episode is:

“How should I discuss private markets with clients effectively?”

This question comes up if not every day, every week with the advisors that I speak to. There is so much in the news and around the industry right now in terms of the explosive growth of private markets and the opportunities and risks that may go along with investing there.

So what does this mean for investors?

First and foremost, it's necessary to educate, educate, educate.

Clients need to understand that private markets are just another stop along the continuum of equity and fixed income. Understand the underlying ecosystem, how returns are generated and the experience of investing in private companies. What does the timeline look like? What are the fees? What's the liquidity? But most importantly, clients need to understand how private market opportunities fit in with their overall portfolio.

How can they help them to meet their goals and align with the objectives that they have shared with their advisor in terms of how they want their wealth to be invested? Education, transparency, communication and alignment are the most important aspects in starting a conversation with clients about private markets.

Thanks for joining us for this episode of So What.

If you have a question you'd like answered, send it to ask-sowhat@nb.com.