What is the most important question to ask a PMS manager before investing?
Published 19 September 2026
Most PMS presentations focus on historical returns and the manager’s successes. What should I ask to understand the downside before I invest?
Ask the manager or adviser: “When is this PMS likely to underperform?”
You should understand in what market cycle the strategy may underperform, how long that underperformance can last and how deep it can be.
You should also understand the concentration in the portfolio and the cost implications.
Then ask yourself whether you can emotionally and financially stay invested through that difficult period.
If you cannot handle the strategy’s underperformance, you may end up exiting during exactly the wrong phase.
Understanding when a strategy fails can be more useful than knowing how well it performed in the past.
“One question that you must ask the manager or the advisor is when you think this PMS is likely to underperform.”
“If you can’t handle or be through that underperformance period, then you are likely to lose substantially.”
This is not personalized investment advice. Your portfolio size, goals, liabilities and risk tolerance may be different, so assess your own situation and discuss it with your financial advisor.
You should understand in what market cycle the strategy may underperform, how long that underperformance can last and how deep it can be.
You should also understand the concentration in the portfolio and the cost implications.
Then ask yourself whether you can emotionally and financially stay invested through that difficult period.
If you cannot handle the strategy’s underperformance, you may end up exiting during exactly the wrong phase.
Understanding when a strategy fails can be more useful than knowing how well it performed in the past.
“One question that you must ask the manager or the advisor is when you think this PMS is likely to underperform.”
“If you can’t handle or be through that underperformance period, then you are likely to lose substantially.”
This is not personalized investment advice. Your portfolio size, goals, liabilities and risk tolerance may be different, so assess your own situation and discuss it with your financial advisor.