There are three vital things to consider in promoting an investment fund, according to Max Hilton, Director of Peregrine USA, who recently spoke to 250 investors and managers at Marcum LLP, a leading accounting and advisory firm serving alternative investment firms.
Investors certainly crave performance, but they also demand transparency and consistent manager communication
Investors certainly crave performance, but they also demand transparency and consistent manager communication, Hilton said. He added that even with top performance a manager needs to communicate effectively to stand out from peers who may also be posting strong investment returns.
Hilton focused on three things that managers need to get right.
The first step to marketing a fund in a persuasive and accessible way is via a thorough messaging process designed to extract and identify a firm’s DNA and ‘edge’. This then provides a platform and a structure for communicating with, and attracting, investors. Hilton argued that funds need to focus on the three Ps: pedigree, process, and presentation.
Funds need to focus on the three Ps: pedigree, process, and presentation.
The result is a memorable and distinctive corporate narrative translated through all marketing material and packaged into a thought leadership series. Brands build advocacy with investors through strong messaging and use performance as a corroborator rather than the sole USP.
Getting attention for a brand requires the right distribution. Here the focus is on using the key marketing channels: website, direct email, private and third-party events, targeted press and the relevant digital outlets. Creating digital assets (Google+, LinkedIn, Facebook, Twitter) provides powerful distribution channels. Hilton urged funds to view their Google presence as an evolving online ‘corporate brochure’ since every modern-day investor begins by Googling a firm’s name.
Using digital assets and populating them with thought leadership not only attracts visitors but allows a fund to better understand its investor audience.
The third element in successful fund marketing is measuring outcomes. Audience engagement, Hilton noted, can be measured with analytics and proprietary lead generation software. Using digital assets and populating them with thought leadership not only attracts visitors but allows a fund to better understand its investor audience. Digital engagement and posting educational content can push up a firm’s name in Google’s search rankings. With a concerted, proactive campaign a fund manager can own its Google page 1 presence and take control of its brand story.
Fund managers who do all three things well will build a sustainable advantage with investors. Marketing funds successfully will help strong investment performance deliver tangible business rewards for both new and established fund firms over time.