Communication During Volatile Times

As we prepare to close the first quarter of 2019, I think we can all take a breather from the fourth quarter of 2018.  We mentioned in our blog post, Investment Performance in Volatile Markets, that several articles have been written on market volatility and we anticipate seeing more articles in the coming months. In the blog, we also shared details on active management and how it is performing compared to passive, but for this blog, I want to focus on the “how” and “what” committees and plan sponsors should be communicating during market swings.

Plan sponsors can find themselves in a unique position when deciding the best approach to communicate to participants.  Plans both large and small have a solid mix of people with different demographics, attitudes toward the market, stage of career, investment knowledge, and risk tolerance.  Addressing all of these factors and many more can be a challenge. 

A three-step approach can be useful when drafting these communications.

  1. Know your audience – As a committee, take stock of all the calls, emails, and visits you’ve received from participants about market volatility. If the volume is high, it may warrant messaging, and if you have received little to none, then it may be best to hold off.

Also, develop a message that can be general enough to your entire audience and not too in-depth or participant specific to where you may cross the line of providing investment advice.  Lean on your service providers and the investment professionals to aid in advice.

  1. Use Service Providers  While the tone and style of your communication should match others shared by your organization, you should be sure to glean best practices and advice from your service providers. Legal counsel, recordkeepers, and plan consultants can be helpful in brainstorming, drafting, and communicating this type of message.
  1. Focus on your Plan  As a plan sponsor, it is your responsibility to let your participants know there is a retirement plan committee overseeing the investments, and that the committee has done the proper due diligence to provide a well-suited and diversified set of options. If you have a target date series, highlight it! If you have advisors available on site, share those details! Dramatic financial headlines may catch the participants’ attention, but with facts and resources about your specific plan details, you can aid in overcoming fears. 

The only certainty in the world of investing is that over time markets will experience a series of ups and downs. Helping participants to understand the best way to deal with market fluctuations is key. Remind them to be patient, remember your investment goals, and stay focused on the long term.


Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.   Investments involve risk and, unless otherwise stated, are not guaranteed.  Multnomah Group does not provide legal or tax advice. Any views expressed herein are those of the author(s) and not necessarily those of Multnomah Group or Multnomah Group’s clients.

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