MiFID II headache? Take these.

MiFID II headache? Take these.

Funds, Marketing, The View

BirdMobile-1 MiFID II headache? Take these.

A Finscoms Director said to me the other day,

“Chairman, the hugely frustrating reality is that not many players, particularly funds, in the impacted industry will realize how well placed we are to help them be MiFID II compliant and indeed strengthen their offering.“

“So get out there and tell them what you can do to ease their pain and stress” says I.

EUFlag1080 MiFID II headache? Take these.
samuel-beckett-bridge MiFID II headache? Take these.

We fundamentally believe that Finscoms can be an important part of the solution.

We fundamentally believe that Finscoms can be an important part of the solution. Indeed this could perhaps be a Eureka moment for a fund, who together with fund lawyers represent our key client base, must now list under ‘’key appointments’’ in ıt’s prospectus various parties such as auditor, legal, investment manager etc. With MiFID II would it not be advantageous for funds to include under said key appointments ‘’communications’’ and/or ‘’marketing’’ listing a firm, such as Finscoms, as the specialist in this area just as for audit, legal etc? Or to include as a NED someone with requisite industry marketing and communications skills to navigate the MiFID II world. We believe that the fund will benefit from demonstrating to an investor, current or prospective, that they have clearly understood the importance of marketing and communications in their strategy. That’s what Finscoms does, that’s what Finscoms can offer.

MiFID II/MiFIR/MAD/PRIIPS:

All these new regulations are creating a new level playing field for all actors in the investment products value chain, from the value creator to the client, including the processing and market. The objective is clear: a better protection of the investor. All firms will be ready (or should…..some major ones seem to be in a difficult situation with regard to achieving compliance as of Jan 3, 2018). Processes, risks, information, communication etc have been framed by the different regulation levels, their local implementation and interpretation by control authorities.

TMFinsBlog MiFID II headache? Take these.

This new level playing field brought about by these regulations will create more comparability with a number of elements and the communication of technical characteristics will be ‘’standardised’’.

January 2018

But what will be the real challenge in early 2018? In only 3 months the question will be: how to do business in this new environment? How will a firm differentiate from it’s competitors? To be or not to be, that is the question!

From a business perspective, the benefit of this new regulation is that it will bring the spotlight on THE key element, that’s to say the strategy of each player, fund managers, private bankers etc etc. The newly adapted and adopted strategy will be communicated, internally and externally, with the express objective of differentiating the offering from the competition. The highly visible components of the strategy–product offer, brand and image, sales methodology, innovation–will be key to the success of each market participant.

Communication Requirements

Among other pressing requirements, fund managers, of all sizes, will be obliged to improve and enhance their communication with their target audience. This brings enormous challenges particularly for the smaller market participants. And fund management is a very, very competitive industry. Happily, and at very affordable cost, Finscoms can, based on significant experience and expertise in the fund management industry, including fund lawyers, with which we wish to cooperate to the benefit of clients, and not compete, help professionals to define their all important communication and marketing strategy……and even better to implement same! Problem solved! Well, perhaps not quite but a great leap in the right direction, I would venture….

Looking at the link between the communication imposed by regulation and the newly adapted and adopted strategy ( 3 months to go and lots to do–not to put anyone under pressure!), data can be used to illustrate compliance with the new regulation but, depending on the firm’s strategy, a fund manager can also demonstrate and highlight that they are ‘’best of breed’’. This can be a risky path to tread for those that may not be totally compliant, including with the spirit of the new regulation but for those that are it can be used to give confidence to their clients that they have nothing to fear in terms of their fund manager having everything in hand and everything in place in terms of their protection.

Who Pays?

It would be wrong not to emphasize the increasingly competitive marketplace that is the fund management industry. Fees are under pressure and costs are mounting, as we all are well aware and probably would prefer not to be reminded. It appears that some fund managers were looking to have their clients bear the additional costs whereas others have come to the conclusion that they should bear, and indeed need to bear, the costs if they are to remain competitive. Some, who want the client to bear the cost, will be able to pull it off but they will need, I think it’s safe to say, an excellent communication strategy in order to explain to, and convince, their clients of their value added compared to their industry peers.

Wallstreet500 MiFID II headache? Take these.

Once again Finscoms can come to the fund managers aid by providing a broader view of what’s happening in the industry and seek to identify and implement efficient and effective communications and marketing approaches for strategies selected…And please do remember that a fund cannot simply add marketing to it’s offering; it has to be communications and marketing that has to be MiFID II compliant. As you will see from the Finscoms website, communications and marketing for funds were our specialisation long before MiFID came along…

In summary, as MiFID II draws ever nearer, Funds and other industry participants will inevitably be getting more and more concerned about becoming MiFID II compliant. Finscoms proven USP is that we can, based on significant experience of the fund management industry and a clear understanding of the regulatory environment, provide thoughtful input and valuable contribution to the formulation of an effective and efficient communications and marketing MiFID II solution/service at a very affordable cost particularly when compared to the cost of getting it wrong. I hope this missive will be helpful to those working their way towards MiFID II compliance.

We would be very happy to converse with anyone who would like to talk more about how Finscoms can help…

Thank you.

The View, Finscoms

arm@finscoms.com

Now the hard part begins (i.e. raising the money)!

Now the hard part begins (i.e. raising the money)!

Funds, The View

BirdMobile-1 Now the hard part begins (i.e. raising the money)!

‘’We’re​ ​out​ ​raising​ ​money​ ​at​ ​this​ ​time’’…..Often​ ​that​ ​is​ ​said​ ​with​ ​a​ ​slight​ ​hesitation​ ​in​ ​the voice,​ ​internal​ ​trepidation,​ ​questioning​ ​look​ ​and​ ​frequently​ ​with​ ​little​ ​clue​ ​as​ ​to​ ​where​ ​it’s all​ ​going​ ​to​ ​end​ ​up!​

​

Capital1080 Now the hard part begins (i.e. raising the money)!
samuel-beckett-bridge Now the hard part begins (i.e. raising the money)!

Putting​ ​together​ ​a​ ​fund​ ​nowadays​ ​is​ ​a​ ​time consuming​ ​and​ ​costly​ ​exercise.​

Less​ ​often​ ​the​ ​statement​ ​about​ ​fund​ ​raising​ ​is​ ​said​ ​in​ ​a​ ​confident tone,​ ​full​ ​of​ ​conviction​ ​and​ ​a​ ​ready,​ ​willing​ ​and​ ​able​ ​attitude​ ​to​ ​launching​ ​into​ ​a compelling​ ​sales​ ​pitch.​ ​It’s​ ​to​ ​enable​ ​people​ ​looking​ ​to​ ​be​ ​part​ ​of​ ​the​ ​latter​ ​group​ ​that​ ​Finscoms supports Funds and Projects to ​spread​ ​the​ ​good​ ​word​ ​about​ ​a​ ​distribution alternative​ ​in​ ​particular​ ​for​ ​the​ ​investment​ ​funds​ ​community.

​A preparer​ ​of​ ​the​ ​investor​ ​presentation​ ​and marketing​ ​materials,​ a ​roadshow​ ​leader,​ a ​principal​ ​and​ ​indeed​ ​​recipient’s​ ​of​ ​the​ ​pitch all benefit with telling and presenting an effective story, the create all important first impressions in the digital age. ​​We have all​ ​seen​ ​good​ ​and​ ​not​ ​so​ ​good presentations,​ ​well​ ​prepared​ ​briefs,​ ​back​ ​of​ ​the​ ​envelope​ ​stories,​ ​unbelievable​ ​claims, unconvincing​ ​sales​ ​points,​ ​disorganised​ ​marketing​ ​materials,​ ​uncompelling​ ​headlines etc​ ​etc.​ ​Enough​ ​on​ ​occasion​ ​to​ ​make​ ​you​ ​want​ ​to​ ​weep!

But​ ​this​ ​is​ ​often​ ​not​ ​the​ ​fault​ ​of​ ​the​ ​issuer!​ ​Putting​ ​together​ ​a​ ​fund​ ​nowadays​ ​is​ ​a​ ​time consuming​ ​and​ ​costly​ ​exercise.​ ​Once​ ​the​ ​fund​ ​structure​ ​and​ ​required​ ​legal​ ​documents are​ ​in​ ​place​ ​the​ ​financial​ ​cupboard​ ​is​ ​often​ ​rather​ ​bare​ ​and​ ​there​ ​is​ ​little​ ​in​ ​the​ ​way​ ​of financial​ ​resources​ ​available​ ​to​ ​ensure​ ​that​ ​marketing,​ ​distribution​ ​and​ ​communications are​ ​optimised.​ ​However,​ ​the​ ​fact​ ​is​ ​that​ ​a​ ​lot​ ​of​ ​effort​ ​and​ ​angst​ ​has​ ​gone​ ​into​ ​getting into​ ​fund​ ​raising​ ​mode​ ​and​ ​it​ ​is​ ​now​ ​that​ ​you​ ​need​ ​all​ ​the​ ​help​ ​you​ ​can​ ​get​ ​to​ ​ensure​ ​that the​ ​bacon​ ​is​ ​brought​ ​home.​ ​You​ ​have​ ​put​ ​months​ ​into​ ​getting​ ​this​ ​show​ ​on​ ​the​ ​road​ ​and you​ ​want​ ​to​ ​see​ ​the​ ​appropriate​ ​results​ ​for​ ​your​ ​efforts!​ ​You​ ​are​ ​in​ ​a​ ​highly​ ​competitive marketplace​ ​with​ ​hundreds​ ​of​ ​funds​ ​on​ ​offer​ ​at​ ​any​ ​one​ ​time.​ ​You​ ​have​ ​to​ ​somehow​ ​get the​ ​attention​ ​of​ ​a​ ​decision​ ​maker​ ​who​ ​can​ ​be​ ​brought​ ​to​ ​the​ ​conclusion​ ​that​ ​your​ ​fund justifies​ ​an​ ​allocation…..It’s​ ​a​ ​huge​ ​jump​ ​from​ ​documents​ ​in​ ​hand​ ​to​ ​money​ ​in​ ​the​ ​bank.

​​It’s​ ​now​ ​time​ ​for​ ​a​ ​focus​ ​on​ ​the communication,​ ​marketing​ ​and​ ​distribution​ ​of​ ​your​ ​fund. There are many firms​ and expensive third party marketeers ​who​ ​have​ ​looked​ ​to​ ​sell​ ​​their​ ​services​ ​in​ ​this​ ​arena​ ​but​ ​it​ ​is​ ​only​ ​when​ ​I​ ​made contact​ ​with​ ​Edward​ ​Simpson,​ ​the​ ​man​ ​behind​ ​Finscoms,​ ​that​ ​I​ ​discovered​ ​that​ ​the ideal​ ​combination​ ​does​ ​exist,​ ​that​ ​it’s​ ​clearly​ ​been​ ​shown​ ​to​ ​work​, with most cases providing instant returns/deliverables ​and​ ​most​ ​importantly that​ ​it​ ​is​ ​indeed​ ​affordable.​ ​If​ ​you,​ ​as​ ​Finscoms​ ​believes,​ ​can​ ​increase​ ​the​ ​likelihood​ ​of raising​ ​money​ ​by​ ​50%​ ​by​ ​allowing​ ​them​ ​to​ ​partner​ ​with​ ​you​ ​in​ ​this​ ​important​ ​fund​ ​raising phase​ ​and​ ​even​ ​before​ ​in​ ​terms​ ​of​ ​preparing​ ​to​ ​hit​ ​the​ ​fund​ ​raising​ ​road,​ ​I​ ​would​ ​venture that​ ​it’s​ ​well​ ​worth​ ​considering.

 

If​ ​you​ ​would​ ​like​ ​to​ ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ ​raising please​ ​do​ ​make​ ​contact​ ​with​ us.

The View, Finscoms

mkt@finscoms.com

Prediction for end of year fund performance?

Prediction for end of year fund performance?

The View

BirdMobile-1 Prediction for end of year fund performance?

We are at the halfway mark for 2017, how funds communicate and market their fund performance is of real importance, be they a closed fund or an open fund investors require 6 month progress report, is the fund on track, what strategies have been used by the fund, is the fund and its team showing a return? At Finscoms we have designed a marketing & distribution toolbox for funds both closed and open, to enable the fund to communicate, and market the fund to its target audience/existing investors.

performance1080 Prediction for end of year fund performance?
samuel-beckett-bridge Prediction for end of year fund performance?

At Finscoms we have designed a marketing & distribution toolbox for funds.​

Loyalty marketing and communications to a closed fund is often overlooked, through a content marketing strategy you can keep those already invested in a closed fund up to date with the fund performance and strategy, thus strengthening the relationship between the fund and its investors. Using social media for example, or a private/closed network, a fund communicates the fund performance at little or no cost, producing some significant marketing and communication tangibles. Is your existing communications strategy truly maximising the opportunity within the traditional and digital environs? Don’t have a communications or marketing strategy? Don’t have the time? We have the experience and time to act on your fund’s behalf to ensure the fund achieves its strategic objectives.

Marketing and communications for a fund at launch, or an open fund is a different set of marketing and communication strategies. Clearly the fund is limited in what in can show with its fund performance, but it can and should be marketing itself and thus distributing to its target audience, the next generation of investors are all using their smart phones to research the next fund that matches their investment strategies. You need to be seen, boost your visibility, in the right areas. You don’t want to be viewed as a pushy fund under pressure, or a non-performing fund. Show the Unique Selling Points of a fund, show your target audience your passion for the fund.

EMDS3 Prediction for end of year fund performance?

We work with funds through marketing and communications and ultimately distribution strategies, from redesign of your KiiD, prospectus, factsheet, to ensuring you have the right content and position the fund performance to investors when they land on your site, to building a website for the fund, to converting your prospectus from a black & white 120 page document to a video fund prospectus – 55% of the content on the internet is video, how prepared are you?

Some funds don’t necessarily agree with marketing, communications and have not experienced distribution deliverables other than high retainers. Its time to change the mindset, a fund has to be able to show it is comfortable in a digital environ, as it is in a traditional and conservative environ. First impressions count, those funds that are top of the pile, are there because they invest in marketing, communications and thus distribution. Contact us with no obligation to learn how a small investment into marketing, & communications can provide instant returns on your distribution strategy for open funds and for closed funds how to build and grow the relationships with existing investors.

EDWARD SIMPSON

emds@finscoms.com

Are SEO campaigns worth the effort?

Are SEO campaigns worth the effort?

The View

BirdMobile-1 Are SEO campaigns worth the effort?

Almost every business now has a website, but the similarities stop there… The quality and success of company websites is as varied as the companies themselves.

So will an SEO campaign actually help your business? The first thing you have to do is answer these questions:

  • What is the function of your website?
  • Is it to convert new clients?
  • Is it to service your existing clients?
  • Is it to create enquiries?
Search1080 Are SEO campaigns worth the effort?
samuel-beckett-bridge Are SEO campaigns worth the effort?

So will an SEO campaign actually help your business? ​

If you cannot answer these questions, SEO is definitely not for you. Until you understand that core function of your website, it is impossible to optimise it effectively. But if you know what the core function of your website is, and the design is perfect, you may still not be ready for the next step…

Is the text written in such a way that it truly engages with the visitor whilst fulfilling its SEO role also? Remember, the content on your site is crucial for your site to perform well in SEO rankings, yet it also has to be engaging enough to keep the visitor on your site. So the task becomes more complex. Visitors to your website are savvy, and from the moment they land on your page they must be engaged.

Within the Offshore centres over 80% – yes 80% – of the websites are brochurial, and two dimensional. They are not even an effective communications tool, and have little or no value add to the recipient. However, a well designed site with a function, can achieve so much through SEO.

EMDS3 Are SEO campaigns worth the effort?

​​Your website visitors have come seeking business intelligence and if the information isn’t both easy to access and engaging, they will simply keep on searching the web until they find a provider that can give them the answers they are require, in a way they enjoy.

Finscoms specialise in creating engaging content that will not only optimise your website for search engines, but also fulfil the desires of your visitor that will engage and inform them and most crucially, create inbound enquiries. So you may not actually require an SEO campaign at all. Indeed, you may not even need to redesign your website. But what you must have, is engaging informative content that gives your visitor the information they require quickly.

Get in contact with us for a commitment free discussion on how to make your website the most effective business development tool in your company.

EDWARD SIMPSON

emds@finscoms.com

INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?

INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?

The View

BirdMobile-1 INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?

Investors today are under pressure to find the next fund with a yield of say 7% that matches their investment strategy.​

Palm1080-1 INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?
samuel-beckett-bridge INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?

Clearly the design of marketing materials plays a vital role.​

With evidence based investing, investors expect to see say the fund performance presented in their language, not from the funds perspective, the number of say poorly written and presented prospectus’ and/or fund data does not lead to engagement from the investor, at best a cursory glance then onto the next. Cleary the design of marketing materials plays a vital role in the route to the investor, get this right with all the evidence clear to see, the investor will be interested to learn more. Here at Finscoms we identify what the investor expects to see, in their language, and redesign a fund’s marketing materials to not only stand out from the masses, but to be of a conversional language to the investors who are under pressure to find the next fund.

​​Statistics speak for themselves, this is the language of an investor, what returns are there for the investor, whats in it for the investor, are often over looked. By presenting the evidence, and statistics you make a compelling argument to catch the eye of the investor. In addition many investors today are making a commitment using electronic methods to invest directly in a fund, are funds prepared for this?

EMDS3 INVESTORS ARE ON THE MONEY, ARE FUNDS PREPARED?

Investors are more and more comfortable using search engines, fund databases such as Fundsquare etc, to research about a fund, to find out more about a fund, and the opportunities that the fund offers. First impressions count, a fund must show that it is comfortable working in a digital environ as it is in a traditional environ. An investment into a website shows for example that the fund knows how to operate in a digital environ, investors like this, but a website is so much more.

A website should be a central platform for a fund to market and communicate to its target audience, why then do funds either don’t have a website (and thus missing out), and if they do, it tends to be poorly constructed, with likewise poorly written content. A well constructed website, with ‘smart’ content clearly engages the investor and gets the phone ringing with inbound enquiries. A website is one of many affordable digital assets (social media, video marketing, search engine optimisation, private networks, webinars, to name but a few) a fund can invest in, the rewards are clear to be seen, its no coincidence that the top 10% of funds that are successful with raising capital, have invested wisely in the digital environ.

At Finscoms we are experts in implementing effective digital marketing and distribution alternative solutions to funds, with immediate return on investment, contact us with no obligation to find out more, we would like to hear your side of this hot topic.

EDWARD SIMPSON

emds@finscoms.com

Investor relations and due diligence

Investor relations and due diligence

The View

BirdMobile-1 Investor relations and due diligence

Investor relations are continually evolving and one such facet is the new developments in the due diligence process that funds now face. Traditionally a fund would feel that it had covered all bases by providing a one-page summary of performance; a pitchbook (usually a PowerPoint presentation) that describes the firm, its investment strategy, principals, performance and terms of the investment; offering memorandum; subscription documents; and a due diligence questionnaire (DDQ). Investors have become more IT savvy and now funds can expect to be quizzed on technology infrastructure and IT security. How you respond can either build a strong investor relationship or create doubt and concern.​

InvestorRelations1080 Investor relations and due diligence
samuel-beckett-bridge Investor relations and due diligence

Funds need to be prepared to face a wide range of technology based questions.

4 or 5 years ago an asset manager would not expect to be answering questions about the fund’s technology infrastructure or IT security. But today many funds provide DDQ dedicated to providing information regarding their whole IT operations and provide annual reports to clients also. Investors expect world class operations across all aspects of a fund’s business. They have a greater understanding of technology and therefore ask more probing questions and 25% of investors will not invest if they discover IT deficiencies.

Funds need to be prepared to face a wide range of technology based questions. How does your fund stand up to these IT questions that you will face sooner or later?

  1. At what frequency are security audits of the fund’s IT infrastructure performed and what specific tests are run?
  2. Does the fund handle IT in-house or outsource to a third party?
  3. Who drives the IT strategy and how often is it evaluated?
  4. How is the current environment set up?
  5. Has there been any issues in the last 12 months?
  6. Does the fund have a formal documented IT security policy?
KMCWeb Investor relations and due diligence

Showcasing a fund’s technology infrastructure can also be a way of standing out from the crowd. Highlighting your operational prowess may give you an advantage over your less up to date peers in raising capital.

Investors are enquiring about network and communications infrastructure.

  1. How do employees access systems?
  2. How are electronic communications o third parties controlled?
  3. How does the fund communicate internally and externally?
  4. What are the access control protocols?
  5. Are there logs kept of who accessed systems and when they accessed?
  6. How do you safeguard this environment?
  7. Is there disaster recovery systems in place?

Investors want to see that the fund is being led in a thoughtful manner. The new investor expects high operational calibre across the board, they want stability and security. IT deficiency can prevent capital allocations. The due diligence process is evolving, with Finscoms you will always be prepared.

KEN CARMODY

kmc@finscoms.com