Why long-term performance isn’t enough in volatile markets

Fund performance remains essential but in today’s market, it’s no longer sufficient. As volatility stretches on and confidence wavers, fund selectors are no longer relying on performance track records alone to inform their decisions. They want a more complete picture. One that includes transparency, consistent communication and a manager’s ability to lead with clarity when conditions are unpredictable.

To understand what selectors value most during volatile periods, we asked nearly 1,000 UK-based fund selectors the following question: “During periods of market volatility, which of the following is most important to you when assessing a fund manager? Please tick your top two.” The results offer a revealing insight into what matters now.

Performance still tops the list – but not its own

Just under 72% of respondents chose ‘long-term performance track record’ as one of their top two considerations. That makes it the most selected factor by some distance. Fund selectors still want to see that a manager has delivered over time. But the remaining results show that performance is just one part of a broader trust equation.

In fact, nearly half of all selectors – 43.3% – ranked ‘transparency about holdings and strategy’ as one of their two most important factors. And 30.9% selected ‘clear, consistent communication’. These answers don’t compete with performance – they complement it. Together, they tell us that selectors are increasingly looking for managers who not only deliver results but explain them clearly and regularly.

The new evidence standards for fund managers

Selectors are under pressure too. They’re fielding more questions from clients, facing tighter due diligence requirements and having to defend decisions in real time. That means they’re prioritising managers who make their job easier. A strong track record still opens the door but to stay on the list, managers must communicate clearly and prove their thinking.

The days of relying solely on backward-looking numbers are over. Selectors want to see that a manager understands current market conditions, can explain how the portfolio is positioned and provides enough context to make confident allocation decisions. If that explanation is missing, even top-performing funds risk being sidelined.

Weak communication, weaker positioning

Only 12.3% of selectors ranked ‘strength of brand or reputation’ in their top two. And just 11.4% chose ‘third-party endorsements or ratings. That tells us something important: fund selectors are looking beyond logos and league tables. They are judging managers based on how they behave when the market is tough, not how they look when things are going well.

Managers who reduce communication in volatile periods do so at their peril. Silence, especially when performance is hard to interpret, creates uncertainty. Selectors told us elsewhere in our survey that they actively downgrade managers who disappear during difficult quarters. It’s not enough to perform well – you have to show up and explain what you’re doing.

How to compete when performance isn’t your edge

Not every manager will be at the top of the performance table every quarter. But any manager can lead with clarity. Start by ensuring your fund’s data is complete, up to date and accessible. Subscribed fund factsheets on Trustnet give selectors everything they need to assess your strategy, without distractions or missing data.

Next, commit to regular, concise insight content. Short commentaries, published in the right places, can give selectors the reassurance and rationale they need to keep you in consideration. On Trustnet, this content appears alongside your fund data, making it part of the research process not a separate sales push.

Finally, align your message across platforms. Make sure your website, factsheets and commentaries tell the same story. When selectors see consistency in your messaging, they’re more likely to believe in the consistency of your process.

It’s time to go beyond the numbers

Performance will always matter. But when markets are uncertain and scrutiny is high, it’s what surrounds the numbers that makes the difference. Transparency. Communication. Consistency. These are the new benchmarks for selector trust.

Trustnet helps managers meet those expectations – clearly, credibly and in the exact context where fund selectors are making decisions. If your performance is strong, we help you prove it. And if your performance is under pressure, we help you maintain trust while you navigate through.

Because in volatile markets, trust is what turns performance into preference. And that trust is built, not claimed.

Want to see the full research and all the insights from UK fund selectors? Download the full whitepaper “Brand Certainty in Uncertain Markets” now.