This is a move that has been widely welcomed, being seen as a way to simplify the complex topics of pensions and savings. Some will say this is something that should have been implemented long ago, but now it is here, hopefully millions can better prepare for their retirement. But this news also speaks to a broad requirement, and one that asset managers should heed. In our recent 2019 ESG Media Audit, financial journalists cited the use of jargon by managers was one of their biggest issues with the existing content they currently produce.

Perhaps within such a competitive market, there is such a desperate need for managers to express their expertise that ultimately this needlessly over-complicates their communications around more complex topics and leads in some cases to content becoming unreadable…

The famous Leonardo Da Vinci quote, “simplicity is the ultimate sophistication” could not be truer.

This shouldn’t stop managers from trying to be interesting and creative with their content, but it is a reminder not to take 1000 words to say something that can be said in 100. It also isn’t a call for managers to avoid the more complicated topics surrounding the financial sector, indeed it is the very opposite. If you can write clearly and concisely about a complicated topic or asset class, to the extent that someone who was unfamiliar with the subject matter now has a better understanding, you are truly succeeding at communications.

That said, the task itself is becoming more complicated.

With the proliferation of more complex asset classes within the mainstream investment sector over recent years and with volumes of content being produced increasing, managers are now challenged with breaking down complicated topics in a very succinct manner if they are to have any chance of getting through to their end-user.

More than ever there is a need for asset management firms, and in fact all financial services companies, to do all they can to ensure that their clients are as educated as possible.