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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.​

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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

How to use LinkedIn to increase your digital reach

How to use LinkedIn to increase your digital reach

The View

BirdMobile-1 How to use LinkedIn to increase your digital reach

Have you been tasked with the job of building your Fund’s LinkedIn presence? Whilst it may seem a little daunting at first (especially if you’re not familiar with the site), you will soon find it very beneficial and even enjoyable to use. Here we’ve shared some of the ways you can utilise LinkedIn to increase your digital reach.​

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samuel-beckett-bridge How to use LinkedIn to increase your digital reach

Don’t treat it like Facebook or Twitter.​

Don’t treat it like Facebook or Twitter

Before you get started on using LinkedIn to increase the digital reach of your fund, it’s important to bear in mind that it’s not your average social media site. Whereas people expect to be marketed to on sites like Facebook and Twitter, LinkedIn users do not have the same expectations. In fact hard selling and overt marketing is frowned upon. Instead you need to take a more tactful approach to increasing your digital reach on LinkedIn. It’s all about building meaningful connections and presenting your fund as an industry leader via your profile and participation in groups.

Create a strong company profile

Your LinkedIn profile needs to be fully branded so that viewers instantly recognise it as belonging to your business. Make sure to use official company logos as your imagery and keep the tone of the content consistent with that of your website.

Remember it’s not enough to simply build a profile on LinkedIn for your fund. In order to increase your digital reach and help people find it, you need to update it on a regular basis and appear active.

Offer compelling content

As we mentioned before, LinkedIn is not the place for gimmicky sales pitches or spam links to your website. Instead it is a place for highly compelling content. You can either post directly on LinkedIn; using the blogging tools or you can link to content you have created on your website or an external blog. Either way, it’s important to deliver thought provoking content that educates and informs your audience. It should be the type of content that highlights your fund as an industry leader.

Post great content directly to LinkedIn and it may have the potential to go viral. LinkedIn are always on the look out for good content and if yours ticks the boxes, they will increase its visibility and send more readers your way.

EMDS3 How to use LinkedIn to increase your digital reach

Make it personal

As well as creating a LinkedIn company profile for your law firm, it is recommended that you get as many employees at the firm as possible to create their own profiles. This will help clients put a face to a name and see that your firm is far more than just a website.

Join groups and participate

Joining groups and actively participating in discussions is a great way to increase the digital reach of your fund. Make sure you join groups within your niche and spend time getting a feel for the discussions before you participate. Use LinkedIn groups wisely and you may end up finding a number of new investors there.

Use sponsored updates

Like many other social media platforms, LinkedIn allows firms to advertise their content on a pay per click basis. So if you are looking to give your content a boost and target it at potential clients, this may be something you want to consider. Sponsored updates will feature on individuals’ LinkedIn feeds and stand a higher chance of being read. Just make sure your content is worthy of their time or you’ll be wasting your money.

So if you haven’t already, now’s the time to sign up to LinkedIn, create a strong profile and start making those all-important connections that will increase the digital reach of your company.

Please contact us if you have any questions about using LinkedIn for Marketing.

EDWARD SIMPSON

emds@finscoms.com

How do you differentiate your fund?

How do you differentiate your fund?

Funds, The View

BirdMobile-1 How do you differentiate your fund?

What is it that truly makes your fund different to 95% of other funds? Can you describe it in 2 to 3 sentences? It may be a combination of a few different variables. But it must be something that you won’t see on other funds marketing decks. Something that makes you stand out in the mind of investors in an important way.

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samuel-beckett-bridge How do you differentiate your fund?

Finscoms can help you define and promote your USP helping you to stand out in a busy place.

All fund marketing material starts to look the same after awhile. Most funds base their pitches around diversified funds, diversified portfolios, capital appreciation goals, performance, protecting the portfolio.

Of course these are all very important and need to be communicated but they are not unique. And this helps to explain the difficulty in raising capital, if all funds look relatively the same who will be chosen? If all funds are pitching the same selling points then investors will look for other criteria and generally be swayed by the larger fund or the fund with the best brand.

In an overly congested market, defining and promoting your unique selling proposition(USP) is the difference between success and failure. Usually the USP is created from any of the components, below, or a combination of these components.

Team

Your team can be a USP. You can showcase their pedigree or their high levels of experience in the industry or history of successfully raising capital. Your fund may have hired an industry star, he/she should be showcased.

KMCWeb How do you differentiate your fund?

“Your team can be a USP.”

Process

Promote your processes if they are consistent and sophisticated. A USP could be based around the transparency fostered by your fund, it could be based around the fact that your methods are not easily copied or you provide greater liquidity than the competition.

Knowledge and Insight advantage

Your USP could be built around a strong advisory board that may be diverse and well known providing your fund with regulatory insight and other industry intellectual knowledge.

Finscoms can help you define and promote your USP helping you to stand out in a busy place.

KEN CARMODY

kmc@finscoms.com

Are Investors Listening to You?

Are Investors Listening to You?

The View

BirdMobile-1 Are Investors Listening to You?

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

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Reach out to Finscoms for professional guidance.

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 with colleagues 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. You need to make an impression. 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?

KMCWeb Are Investors Listening to You?

“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

Distributing a Fund Successfully

Distributing a Fund Successfully

Funds, The View

BirdMobile-1 Distributing a Fund Successfully

Fund distribution plays an enormous role in the success of an investment fund. The asset manager’s distribution strategy should include fund marketing, fund communication, knowledge of distribution channels and regulation, and the construction of tools to measure the distribution risk.

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samuel-beckett-bridge Distributing a Fund Successfully

The top funds are proactive and well prepared.

This is certainly not an easy task for the fund, the asset manager must cope to provide optimal distribution for today but must keep one eye on what is coming down the pipeline. The top funds are proactive and well prepared.

Understanding the full scope of distribution

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.

Understanding each jurisdiction’s distribution channels

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.

Understanding your distribution partners

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. From there the fund needs to grow a strong relationship with the local distributors and agents on a business and operations level.

KMCWeb Distributing a Fund Successfully

Understanding the regulatory environment

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.

Understanding future challenges

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 2017.
  • 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’

An awful lot for the asset manager to contend with and this is why so many look to outsource the majority of these tasks to Finscoms thus freeing up time and providing comfort that operations will run smoothly and cost effectively.

KEN CARMODY

kmc@finscoms.com