Mellstock Case Study

A fund management company offers a range of funds which have great performance but is lacking in subscriptions volume. Investors simply aren’t listening to them and are going elsewhere. What’s going wrong?

This is a common story in fund management today – a crowded market place is hard to break into unless your marketing is not only sound and well-planned, but targeted to your chosen investor audience.

Before you can market your product, you need to establish your goals and objectives, evaluate your core values as a fund manager and fully understand your own business and why you do, what you do. If you don’t know your business, how will your investors know?

Just having a good investment strategy isn’t enough. You may know what you do, but do you know why you do it? What makes you and your company tick? What makes you and your colleagues stand out amongst dozens of other managers who are offering the same promises?

Too many businesses, in all industries suffer from a distinct lack of forethought in establishing what makes them worthy of customers’ attention and eventually earning the most crucial element in any relationship, namely, trust. Trust leads to them spending their money in a store or restaurant or investing money in your fund ideas.

Taking time to align your clients’ needs, perceptions of themselves with your proposition and your perceptions of yourselves, is a critical stage in the marketing process and should begin way before you open your doors to accept investor money.

In the above example, it is important to go back to basics. This manager needs to analyse why they work as fund managers, what makes them tick, why do they enjoy doing what they do? (Even, do they enjoy what they do?) What sets them apart from other managers? How can they align their proposition with their customers’ needs, desires and, critically, their aspirations? What lead can they take from the industry or even from businesses in other industries? Who do they admire and why?

Then, they would need to think deeply about the fund vehicle they have and if/how it needs to be modified to match their target market. Are they approaching the right target market?

Finally, create a marketing plan that starts at the heart of the proposition they offer, what resources they have available and what goals and objectives they see in the near, mid and far time horizon. Evaluate and project the fund’s personality and other abstract “soft attributes” into their proposition alongside the more tangible “hard attributes”. Soft could be the ability to communicate their feelings about investment markets (always a very personal thing), hard could be proven skills in their chosen investment markets and asset classes.

People invest with people they trust. Trust is built upon engagement and confidence-building. These are critical steps to building any investment business and creating the right environment for investors to feel right about investing with you. There are no short cuts. Asset classes and investment strategies can come in and go out of favour, but a trusted and admired investment brand must be built on more than a passing fad or bandwagon.

Understanding why you do what you do and how that matches and enhances investor expectations and satisfaction, is a crucial step in fund design and hence, fund marketing.

Contact Us

News & Insights