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| Marilyn Dale |
About 40 mutual fund firms participated in one of two
roundtable sessions facilitated by Quasar Distributor president Jim Schoenike and
SunStar Strategic SVP and partner Dan Sondhelm at the US Bancorp Fund Services client conference. I was privileged to be a fly
on the wall as they discussed marketing challenges and potential strategies to
encourage asset growth. It seemed that regardless of where a fund is in its
life cycle, most distribution challenges are universal.
Attracting “sticky assets” Hot money exits as quickly as it comes in -- fast and furious and is the bane of fund managers. Buying performance is a zero sum game for investors as well. Solution? “It’s on us to sell a broader story,” was the consensus. Firms need to be proactive and build relationships with advisors and retail investors. One firm voiced a fear that perhaps most sticky money is simply the result of investors/advisors not paying attention – so a random, reactive call during a period of underperformance (vs. regular relationship building and selling on process) might actually result in losing assets.
Others cautioned, “be realistic, explain that to truly benefit, an investor needs to commit long-term.” Another firm added a redemption fee to discourage market timers.
To be successful requires your performance be competitive. What most of us know and believe based on our own personal experiences with all walks of salespeople and products is that “People do business with people they like and see. It’s all about the relationship.”
Knowing your customers So, are you paying attention? Do you know which advisors rely on home office decision makers – and have you leveraged those individuals? Getting on select lists can be a home run. Data about fund customers, (i.e. advisors), is often available from your back office provider – for example US Bank. An added benefit is a feed directly into your CRM that allows you to identify new investments. The consensus was that “Nearly all the major platforms have portals to download” – daily if you like- information about new investments. But, “it can require a significant commitment of time.” US Bank offers MARS, and other services, like Celera, might also aggregate data for your firm.
But, seriously folks, don’t bother to sign up for these services unless you’re also willing to do something with the data once you get it. It can aid decision making – who should I commit to sponsor, when I’m traveling, who should I visit? If you see big dollar commitments, cross sell other funds and engage advisors in conversations based on activity.
Marketing your brand “Brand image is not just for the big guys” mentioned Dan. The market needs to understand your brand – that is who you are and what you stand for. There was agreement that a small firm can have an advantage over a large firm that might just be a supermarket of mediocrity. Dan suggested we all think about this: “If I left the room – what are the two or three things I want you to say about me?”
Training your dog Perhaps the most memorable quote of the sessions came from a seasoned wholesaler. He offered that when you work with a wholesaler, particularly an outside firm, you need to commit time and effort to “train your dog.” Your representative must be engrained in the firm. Be sure he/she represents the exact same values your firm embraces. Like training a dog, the more time you spend with the wholesaler upfront and on an ongoing basis, the better the long term results.
Being consistent If you put people in field, commit to keeping them there. Help customers focus by telling and retelling your story, consistently, across your website, collateral material and news coverage. Think about how to get the right kind of content to the right audiences. Target white papers and webinars to advisors, investor education to retail shareholders and news coverage to prospects of all kinds. Think strategically. A one shot “white paper” has little staying power; a series may establish you as a thought leader. Sending an email to an advisor is a shot in the dark, but embarking on a multi-year campaign positions you as a resource. And follow up, follow up, follow through.
Managing your reputation Dan also challenged the groups: “What comes up if you Google your firm? Don’t know? Try it.” Your digital reputation is key, particularly if you are trying to attract younger advisors and shareholders. Look at the age of the references that come up. Can you find ways to improve it? Some ideas might be: SEO for your website, media mentions, and providing relevant content to aggregators – you might want to pursue a strategy to improve your relevance.
Attracting “sticky assets” Hot money exits as quickly as it comes in -- fast and furious and is the bane of fund managers. Buying performance is a zero sum game for investors as well. Solution? “It’s on us to sell a broader story,” was the consensus. Firms need to be proactive and build relationships with advisors and retail investors. One firm voiced a fear that perhaps most sticky money is simply the result of investors/advisors not paying attention – so a random, reactive call during a period of underperformance (vs. regular relationship building and selling on process) might actually result in losing assets.
Others cautioned, “be realistic, explain that to truly benefit, an investor needs to commit long-term.” Another firm added a redemption fee to discourage market timers.
To be successful requires your performance be competitive. What most of us know and believe based on our own personal experiences with all walks of salespeople and products is that “People do business with people they like and see. It’s all about the relationship.”
Knowing your customers So, are you paying attention? Do you know which advisors rely on home office decision makers – and have you leveraged those individuals? Getting on select lists can be a home run. Data about fund customers, (i.e. advisors), is often available from your back office provider – for example US Bank. An added benefit is a feed directly into your CRM that allows you to identify new investments. The consensus was that “Nearly all the major platforms have portals to download” – daily if you like- information about new investments. But, “it can require a significant commitment of time.” US Bank offers MARS, and other services, like Celera, might also aggregate data for your firm.
But, seriously folks, don’t bother to sign up for these services unless you’re also willing to do something with the data once you get it. It can aid decision making – who should I commit to sponsor, when I’m traveling, who should I visit? If you see big dollar commitments, cross sell other funds and engage advisors in conversations based on activity.
Marketing your brand “Brand image is not just for the big guys” mentioned Dan. The market needs to understand your brand – that is who you are and what you stand for. There was agreement that a small firm can have an advantage over a large firm that might just be a supermarket of mediocrity. Dan suggested we all think about this: “If I left the room – what are the two or three things I want you to say about me?”
Training your dog Perhaps the most memorable quote of the sessions came from a seasoned wholesaler. He offered that when you work with a wholesaler, particularly an outside firm, you need to commit time and effort to “train your dog.” Your representative must be engrained in the firm. Be sure he/she represents the exact same values your firm embraces. Like training a dog, the more time you spend with the wholesaler upfront and on an ongoing basis, the better the long term results.
Being consistent If you put people in field, commit to keeping them there. Help customers focus by telling and retelling your story, consistently, across your website, collateral material and news coverage. Think about how to get the right kind of content to the right audiences. Target white papers and webinars to advisors, investor education to retail shareholders and news coverage to prospects of all kinds. Think strategically. A one shot “white paper” has little staying power; a series may establish you as a thought leader. Sending an email to an advisor is a shot in the dark, but embarking on a multi-year campaign positions you as a resource. And follow up, follow up, follow through.
Managing your reputation Dan also challenged the groups: “What comes up if you Google your firm? Don’t know? Try it.” Your digital reputation is key, particularly if you are trying to attract younger advisors and shareholders. Look at the age of the references that come up. Can you find ways to improve it? Some ideas might be: SEO for your website, media mentions, and providing relevant content to aggregators – you might want to pursue a strategy to improve your relevance.
Coping with
compliance Insurmountable, no, of course not. Helpful, absolutely.
Cumbersome…at times. But, everyone nodded to the fact that mutual funds are
sold, not bought, so having good materials is not an option and is a great tool
in getting your name out. Some funds are dabbling in Linked In, others are
exploring social media, still others are using Goggle ad words for leads. It’s
important to rely on partners who know the ropes.
Getting the biggest
bang for your buck Jim cautioned that a selling agreement is only a piece of
paper – outreach is not an option. So, what do you do first? Are outside
wholesalers worth the money, or are you paying them to represent other funds?
Which platforms do you target? Does an SMA platform agreement get more traction
if you also offer a fund? The answers engender more questions. First, who is –
or who do you want – to be your customer. If you have a sales team, have you
equipped them with a unique, distinguishing story? When you send emails or
publish papers, are you directing responders to a landing page where you
capture user information?
Targeting advisors Jim also shared that Quasar has added advisor logins to some
of the fund websites it offers. This provides you the opportunity to know who
is using your site as a resource. Also consider e-mail programs, and collect
respondents so you can follow up.
Good and Plenty There are plenty of good ideas that surfaced in these
Roundtable Discussions, but the key takeaway is “stick to it.” Good luck!
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