Branding and Asset Management: Research Findings

Who We Asked We partnered with the Institutional Investor Institute to get a 360 degree view of the role of branding in the asset management industry.

desantisbreindel.com

The 6 BIG Findings The Four BIG Findings

/ How Effective are You in Differentiating Your Firm in the Marketplace? 1

77%

18%

77%

You believe you do a good job of differentiating yourselves in the marketplace…

How strongly do you agree or disagree w following statement: “In general, my firm is effective at communicating our differentiated value proposition?” (1 = strongly agree, 5 = strongly disagree)

N=66


…but consultants and investors aren’t so convinced.

Do you agree or disagree with the below statement? “In general, asset management firms are effective at communicating a differentiated value proposition.”

N=40 N=39


Investors and consultants want a clearer idea of what sets you apart. Breaking through industry noise to differentiate your value proposition is imperative – and challenging.

/ What Are the Key Drivers of the Asset Managers Brand? 2

Performance and stability are key drivers for all audiences.

To Investors and Consultants: Please rate the importance of the following criteria in selecting an asset management firm. (1=not important, 5=critically important) To Asset Managers: How strongly would you agree that the following elements shape your firm’s brand? (1= strongly disagree, 5 = strongly agree)

ASSET MANAGERS (n=66)

INVESTMENT CONSULTANTS (n=39)

INSTITUTIONAL INVESTORS (n=40)

Reputation of firm Performance track record Investment process

Performance track record Continuity and stability of team *Continuity and stability of team

Continuity and stability of team Investment process *Performance track record

Single investment approach Consistency of investment thesis *Risk management

Risk management Risk management Reputation of firm

*tied


But investment process plays a bigger role in selection than you may realize.

To Investors and Consultants: Please rate the importance of the following criteria in selecting an asset management firm. (1=not important, 5=critically important) To Asset Managers: How strongly would you agree that the following elements shape your firm’s brand? (1= strongly disagree, 5 = strongly agree)




Reputation of firm Performance track record Investment process

Performance track record Continuity and stability of team *Continuity and stability of team

Continuity and stability of team Investment process *Performance track record

Single investment approach Consistency of investment thesis *Risk management

Risk management Risk management Reputation of firm

*tied


Consultants and investors are looking for transparency above all else, followed closely by thought leadership and analytical qualities…

To Investors and Consultants: When evaluating or recommending an Asset Management firm, which qualities are most important? Please choose three. To Asset Managers: Which words or phrases best define your firm? Please choose three.




Responsive/attentive Transparent Transparent

Strong legacy Thought leader Thought leader

Transparent Analytical Analytical

Innovative Responsive/attentive Responsive/attentive

Analytical Innovative Innovative

Thought leader Strong legacy Cautious

Cautious Flexible Strong legacy

Flexible Cautious Flexible


…but asset managers tend to emphasize responsiveness and legacy.

To Investors and Consultants: When evaluating or recommending an Asset Management firm, which qualities are most important? Please choose three.

To Asset Managers: Which words or phrases best define your firm? Please choose three.




Responsive/attentive Transparent Transparent

Strong legacy Thought leader Thought leader

Transparent Analytical Analytical

Innovative Responsive/attentive Responsive/attentive

Analytical Innovative Innovative

Thought leader Strong legacy Cautious

Cautious Flexible Strong legacy

Flexible Cautious Flexible


Do Asset Managers Have a Brand Gap?


Rather than asking investors to look in the rearview mirror by talking legacy and reputation, asset managers should demonstrate a future focus. Position transparency, process and thought leadership as reasons to believe in future performance.

/ Which Matters More: Size or Depth? 3

Does Size of the Firm Matter? Yes and No.

74%

18%

8%

Other = 8% depends on asset class For equities, prefer boutique

52% 43%

5%

63% 26%

11%


To Asset Managers: Which best describes the firm with whom Investors would prefer to work? To Investors & Consultants: Which would you prefer to work with or recommend?

And in a match up bench strength vs. star power, bench strength wins overwhelmingly.

To Asset Managers: Which best describes the firm with whom Investors would prefer to work? To Investors & Consultants: Which would you prefer to work with or recommend?


Other = 27% depends on asset class, firm/strategy, well implemented consistent thesis, deep talent among small team

Bigger isn’t always better. Asset managers need to identify the preferences of their target investors and communicate the advantages of their AUM size. A focus on bench strength needs to complement, if not supplant, a reliance on star power.

/ What Are the Most Effective Channels for Connecting with Key Audiences? 4

Blogs

Online/Digital Ads

Press

Print Advertising

Social Media

Firm Website

Sponsored Private Events

Thought Leadership

Trusted 3rd Parties (i.e. consultants)

Industry Events

Word of Mouth

Asset Managers Consultants Investors 1 3 5

Word of mouth rules. To Investors and Consultants: Which channels are most effective for acquiring info about AMs? To Asset Managers: How effective are channels for sharing info about your firm?


Blogs

Online/Digital Ads

Press

Print Advertising

Social Media

Firm Website


Thought Leadership


Industry Events

Word of Mouth


Investors seek in-person contact more then asset managers may realize. To Investors and Consultants: Which channels are most effective for acquiring info about AMs? To Asset Managers: How effective are channels for sharing info about your firm?


Blogs

Online/Digital Ads

Press

Print Advertising

Social Media

Firm Website


Thought Leadership


Industry Events

Word of Mouth


Asset managers may over emphasize the influence of their websites. To Investors and Consultants: Which channels are most effective for acquiring info about AMs? To Asset Managers: How effective are channels for sharing info about your firm?


Investors and consultants want in-person connections. This may be the best way to influence word of mouth. Though it may not be the most influential channel, every prospective client will visit your website before meeting you – so your digital footprint needs to support your overall message.

Determine if your brand is working.

•  Investors and consultants want a reason to believe o What makes you different … and better?

•  There’s no single brand or message o Find out how you can stand out

•  Talk to your clients and prospects o  Is your message getting through? o  Is it the right message?


Focus on what matters.

•  Live by performance, die by performance. Build a brand around the future, not the past.

•  Find a way to communicate your process that makes it easy to understand and differentiates you from others.

•  Test your value proposition o  Make sure it resonates with your most important audiences


Synchronize your marketing.

•  In our connected world, the conversation never ends o  Everything must work together, from your website to presentations

to your events. •  Make sure your brand and messages offer prospects

the opportunity to acquire the knowledge they need, when they need it, at the touchpoints where they most want it.


Questions? Get in touch.

Julie Brodsky

Managing Director 917.210.0242

[email protected]

Branding and Asset Management: Research Findings

Marketing

Transcript of Branding and Asset Management: Research Findings