The answer to this question depends on whom you ask.
If you ask fund managers and business development teams, you’ll hear that it’s all about the performance. Marketing teams are drawn into this too, which leads to a never-ending stream of good news about a fund’s performance, whilst any bad news is hidden away.
But this is very short-sighted, as constant good news actually does little to attract AuM.
How do I know this? Because I study all the data we collect from the financial sector, along with the experiences of over 450 ProFundCom users. This has taught me the funds that are best at attracting and retaining AuM do some or all of the following:
• They share regular updates through thought-leading articles. These are largely shared through websites, emails and webinars – with very little activity through social media. The frequency and depth of analysis has no co-relation the the fund performance.
• They keep a consistent message and tone, which always explains the causes and processes in regards fund performance – whether it’s good, bad or average
• They do not simply scream about how good the product or team is. Instead, they share information that people actually find useful
This approach to marketing produces the type of content people want to read, which serves to build the respect and trust that drives investment decisions. This approach also gives you hugely valuable readership statistics for your marketing team to analyse.
Analysing who has read what and when allows you to spot the following:
• Prospects who are ready to invest
• Prospects that have been dormant but are showing interest once again
• Investors who are not engaging with your communications
• Cross-selling opportunities with existing investors
So, when you’re thinking about how to market your fund, don’t just churn out self-congratulatory messages when things are going well. Remember to credit your investors, and potential investors, with some intelligence by sharing useful, honest and relevant information with them.
Ultimately, this will lead to you raising and preserving more AuM.