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Evolution of a Crisis Response—Part 4: The Perspective Shifts

02 April 2020   |  

This is part 4 in a series discussing Artisan Partners’ response to the COVID-19 outbreak. Read part 1 here, part 2 here and part 3 here.

Leading a large organization during a global crisis gives you a front-row seat to clients’ and shareholders’ evolving thought processes and concerns. We started receiving questions from our clients in early March. At first, their focus was primarily on our business continuity plan—whether we have a formal plan and structure in place to allow us to continue business as usual and whether we were prepared to deploy it should circumstances warrant. Clients asked questions like: Could our employees work from home if necessary? Would our systems and existing technology support a remote workforce? As discussed in prior posts, business continuity planning has long been part of our normal operations, so we were pleased to readily answer these early questions in the affirmative. 

Over the ensuing weeks, the questions’ tenor shifted a few times. Within a week, the focus was no longer on whether we could support a remote workforce, but whether we already were. And if not, why not? Amid a pandemic, this is an understandable train of thought. At the most basic, human level, we’re all in this together and need to do our part to mitigate the crisis’s reach and long-term impacts. From that perspective, it wasn’t surprising to see questions proceed from can we do our part to are we doing our part. 

The next shift was to questions about how long we could sustain our remote working arrangements. Were we working with our vendors and business partners to ensure their own continuity and ability to provide necessary services for an extended period? As to how long we can operate the way we currently are, the answer is basically indefinitely—barring, of course, some drastic and unforeseen change. As I discussed in the second and third posts of this series, we have been pleased thus far with our ability to respond rapidly and flexibly and believe we have the tools in place to operate effectively given the current reality. Given that reality will likely continue shifting, we are regularly evaluating our current status and are prepared to pivot as necessary.

Finally, the most recent shift in client questions: Are we currently able to invest new money on our clients’ behalves? A multi-faceted question aimed at not only market liquidity considerations, but also our firm’s ongoing viability and ability to provide the requisite services to implement portfolios, maintain and manage them, etc. From our standpoint, naturally, this is an encouraging evolution as it speaks to the faith and trust our clients have in us as a valued partner.

I think there are a few interesting observations about this month-long (and probably ongoing) evolution. First, the remarkable consistency of the questions across our client and prospect base. Of the dozens of questionnaires we received in March, the majority were similar in tone and scope. In my view, this consistency speaks to the level of responsibility and care many clients are taking to faithfully steward capital during a particularly challenging market period.

Second, the fact that clients are asking about our ability to put more capital to work has made me proud of our associates and the firm’s track record of doing well and doing right by our clients and partners. Amid an uncertain and historically volatile period, there is probably no greater compliment to an asset manager than receiving requests from clients to manage additional assets on their behalves.

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