20 Tips for Implementing the Marketing of Your Fund

 TIP #1: Without an effective marketing infrastructure – marketing of the fund, group or individual level is virtually impossible. A few essentials:

• A business and marketing plan for the fund, groups, and individuals.
• Someone assigned to coordinate the marketing activities of the fund. In a large fund a marketing director and a team of marketing professionals are typically employed. Small Funds appoint a focal person such as the administrator or office manager.
• A Fund identity plan that is used consistently in all external communication collateral marketing materials such as letterhead, business cards, web sites, powerpoint presentations, brochures, newsletters, press releases, media kits, seminar handouts, etc. This plan should be developed to differentiate and reflect the image of the Fund.
• Quality collateral marketing materials.
• A content-driven web site. The web site should be database driven to facilitate easy updating.
• A contact database of clients/investors, referral sources, target and prospective clients, media sources, etc.
• Content such as articles, case studies, performance reports, that demonstrate the unique capabilities of the Fund.

TIP #2: Don’t copycat. Brand yourself. Look for ways to differentiate yourself and your Fund from your competitors. Become the only Fund that can do what you do. Create a five-year plan for goal accomplishment.

TIP #3: Launch a program to obtain client feedback on client needs, opportunities, and quality of Fund services. A follow-up/problem resolution system must be part of the program.

TIP #4: Create the culture and environment. Marketing and client service needs to be incorporated into the culture of the Fund. All staff should have a role in marketing. Over time a marketing mindset will emerge.

TIP #5: Provide marketing training/coaching staff.

TIP #6: Improve time management skills of everyone in the Fund.

TIP #7: Establish daily marketing goals and measure your personal marketing results on a daily basis. Analyze successes and failures.

TIP #8: Get out of the office. Visit a client’s place of business once a month.

TIP #9: Write an article every other month.

TIP #10: Take a client to lunch once a week.

TIP #11: Improve your communication skills with both clients and office teammates.

TIP #12: Prepare and submit press releases monthly to clients, prospective clients, and media.

TIP #13: Learn how to become “solutions orientated” and become a consultant to your clients as opposed to simply their asset manager. Think out-of-the-box and outside of typical frameworks in which you are comfortable.

TIP #14: Explore the feasibility of ancillary businesses.

TIP #15: Get your newsletter on track and on a consistent basis (at least quarterly).Send via e-mail.

TIP #16: Join trade associations and make contributions in the form of articles, speeches, conference attendance, etc.

TIP #17: Establish a marketing library to include general materials on marketing as well as specific publications related to your clients business.

TIP #18: Create a new client niche and market your unique experiences intensely. Strive to develop a national reputation in the niche.

TIP #19: Focus your marketing on no more than 2-3 key areas in which you can differentiate yourself.

TIP #20: Develop and practice the following leadership behaviours:

• Formulate and articulate a shared vision for the Fund.
• Lead the fight for constructive organizational change.
• Develop and foster an effective management team.
• Develop problem solving and multiple options thinking skills.
• Take intelligent risks.
• Make tough decisions.
• Establish both Fund goals and performance goals.
• Seek input from others.
• Coach and develop others.
• Confront and deal directly
• Hold everyone in the Fund accountable for actions and performance.

Many funds do not have the time or skills to necessary to implement these tips, we do, talk to us to see what we value we can bring to your fund.

Ken Carmody    kmc@finscoms.com

Ken Carmody

Fund distribution plays an enormous role in the success of an investment fund. But what often overlooked elements play an enormous role in successful fund distribution? The answer is fund marketing and fund communications. Strong marketing and communications strategies create strong distribution. Cut distribution open and it bleeds marketing and communications. Most asset managers refer to fund distribution as fund marketing but it’s vital to differentiate and understand each component.

Fund Marketing

Traditionally, fund prospectuses are seen as the main way to reach the investor by fund managers. And often oblige by sending out large, bland, monotonous and indigestible documents. On average, institutional investors receive 45 prospectuses a quarter and 10% receiving more than 100. Only 15% of these get passed the initial filtering stage. Less than 0.2% are actually successful in attaining investment. Pdf’s are being ripped from emails by many company firewalls and the hassle for the investor to have the pdf released becomes another boundary to penetration. Is it any wonder we are starting to hear slogans such as ‘Death to Pdf 2016!’ and ‘We are pdf deaf!’. In this post AIFMD world using ‘push’ marketing across global markets is an expensive way to attain very low penetration.

To overcome you must adapt. A dynamic fund marketing strategy will steer the fund toward reverse solicitation, inbound rather than push marketing. Spray and pray marketing is not effective. Those achieving the highest rates of penetration now rely on a strong brand and make the most of their marketing assets such as their website and reach prospects through video, webinars and social media. Many funds build a website on the premise that ‘my competitors have one so I got one’. The function of the website must be addressed. It can be a revenue generator, a communications tool, a value add to clients/investors. Asset managers are adopting social media as regulatory groups recognise it as suitable means to communicate. Social media can help create communities, promote without bombarding, become a thought leader or a subject authority.

Fund Communications

A fund is required to put out communications to stakeholders to satisfy fiduciary, regulatory and legal obligations. You don’t have to see this as an administrative drudge; a fund can use these obligations to strengthen your relationship with the investor and other parties. Change communications strategy regarding compliance to an open, transparent and well designed communication to investors. For example, with 54% of investors unhappy with the level of provided transparency compared to 78% of fund managers who believe they provide enough, create competitive advantage by addressing this clear disconnect. Speak the investors’ language, let them see how well the fund is being managed and see the relationship solidify. There is plenty of scope for this;

• NAV publication
• Meeting requirements in relation to Key Investor Information Documents (KIIDS) being provided to investors before they invest in a UCITS
• Publication of semi-annual and annual financial statements
• Shareholder notifications
• Notices for Shareholder General Meetings
• Key performance indicators such as investment performance versus benchmark

The fund’s message must be consistent across all mediums to avoid confusion and keep focus on the core message. The smart fund manager will deliver messages about updates and services through social media, the website, intranets, extranets. It is advisable to communicate regularly and stay in line with the investment philosophy and the strategy of the firm, this helps provide a ‘true to label’ comfort level for the client/investor.  At all times funds must ensure that their communications are fully compliant.

Fund Distribution

The asset manager’s distribution strategy should include fund marketing, fund communication, knowledge of distribution channels and regulation.

Knowledge of the distribution channels per targeted jurisdiction is of course vital for building an effective distribution strategy. Each market differs from the next in terms of public offering listing, regulated public distribution, private placement, local distribution networks, regulatory requirements and more. The distribution network is still viewed as complex and somewhat opaque. A fund should make sure to complete full due diligence on the distribution network and on would be distribution partners. It is essential that the transfer agent and distributor used have solid know-your-customer and anti-money laundering procedures. From there the fund needs to grow a strong relationship with the local distributors and agents on a business and operations level.

Complying with local regulatory requirements is an area that needs constant supervision as regulations are constantly changing. Asset managers working with fund lawyers will need to get to grips with regulatory requirements on local agents, eligibility, investor disclosure, registration and continued registration, and marketing.

An adept asset manager will be looking at what the future holds for the industry and will have the fund prepared. For the near future in the asset management sector we can see the following:

• An almost complete move from the traditional style of marketing to digital marketing. And the ‘Death of PDF’ in 2016.
• An even greater evolution of fund products to match investor demand
• The emergence of new distribution channels
• The wide use of video to engage prospects taking into account the IT savvy nature of the ‘next generation of investors’

In summary

Fund distribution is not complete without fund marketing and fund communication. These two components are often neglected and thus can result in the fund making a negative impression unbeknownst to the fund manager. In a congested sector, of over 25,000+ funds, investing in marketing and communication post AIFMD is critical. It is no coincidence that the most successful funds have strong brands and use communication strategy as a competitive advantage. Having a strong brand and identity helps strengthen the trust between investor and the fund. Strong communication strategy strengthens the relationship between the investor and the fund. Thus building a solid platform to increase the reach of fund distribution.

Ken Carmody   kmc@finscoms.com

Ken Carmody

It would be fair to say that in general there is a disconnect between an asset manager’s financial acumen and marketing prowess. Asset managers are beginning to realise that they are now more than ever deeper in the business of marketing than in the business of investing.

It is common place for asset managers to use complex financial jargon when presenting to investors. Vastly different to the type of language a fund manager would use day to day and lacking resonance from the investor’s point of view.

A relationship must be built between the asset manager and the investor before any capital is acquired. You are far more likely to build a relationship with an investor if you communicate in their language. You will be far more convincing if you present using the language and stories that you utilise daily rather than relying on tired industry rhetoric.

Strictly presenting figures on performance, portfolio diversification, portfolio risk management etc…will not engage the majority of investors. They’ve heard it all before, again, and again, and again. Of course these topics are important but the investor will not focus on them until he/she is engaged. Performance doesn’t matter if the investor has forgotten who you are as soon as you leave the room.

You need to detail the opportunity for the investor, show the investor how you will interact with them once they are clients, describe how your fund fits their portfolio, describe the journey you will take together and how transparent your processes are. Make the presentation edgy, visually striking and memorable. Put yourself in their seat, could you sit through one of your presentations? Are you just going through the motions?

Shouldn’t your marketing strategy be as sophisticated as your investment strategy?

If you are ready to re-evaluate your content and modernise your methods of fund communication, reach out to Finscoms for professional guidance.

Ken Carmody kmc@finscoms.com