As asset management firms grapple with margin pressure, rising geopolitical turmoil and intense competition for assets, it's critical that they maintain trusted relationships with investors and other key stakeholders. Financial services data from the 2024 Edelman Trust Barometer shows that trust in asset management is in the neutral category at 54 points globally, which tells us that fund managers are more trusted than fintech providers (52 points) and crypto firms (38 points) but less trusted than banks (66 points) and financial advisors (55 points).
We have written in the past about how communications teams can help drive sales, and we believe that distribution teams can use similar strategies to build trust and strengthen relationships with investors and financial intermediaries.
Below, we’ve outlined three ways to accomplish that goal:
Align sales teams with distribution channels and double down on relationship-building.
The asset management industry is moving towards a more strategic, data-driven, and resource-efficient approach to sales and distribution. Instead of focusing on geographic regions, asset managers are aligning their sales teams to reach specific distribution channels, such as financial advisors and retirement plan sponsors. That alignment enables distribution teams to cultivate stronger relationships and form a deeper appreciation for the challenges each investor group faces.
The rise of hybrid work has further reshaped the ways in which distribution teams operate. While virtual meetings have their place, nothing replaces the value of in-person meetings in building trust and cultivating relationships. We often recommend that our asset management clients participate in a few key conferences and events annually and invest time and marketing budgets to get the most value out of those events. A pre-event strategy, on-site presence, and post-event follow-up are critical components to success and it’s all IRL.
Equip the salesforce with timely content about the issues that matter most to investors.
Communications teams should equip distribution teams with owned content about timely economic shifts, market movements and other issues that are top of mind for investors. Distribution teams should then share this content via email newsletters and other communications channels.
Media coverage goes a long way to sell funds. We recently had an asset management client tell us that a media article we placed directly led to a quality lead from a large government pension fund. An investment consultant saw the media article, which was about a private credit fund, and texted the asset management firm’s CEO expressing interest in the fund. The client is currently in serious conversations with the asset owner about making the investment.
Target investors and financial intermediaries using digital and social tactics.
Asset managers can directly reach key audiences through digital and social tactics such as paid social geotargeting, and search engine optimization (SEO).
The Edelman Trust Barometer tells us that online search is the most trusted source for information about technology and new innovation, and social media is a close second. More than half (59%) of participants said that they get their information from an online search, while 51% get it from social media and 47% get it from national media.
Investors and financial intermediaries use similar tools to stay informed about markets and investments. A Putnam Investments survey found that 91% of financial advisors are active on LinkedIn. This provides a great avenue for marketing and sales executives at asset management firms to build inroads with advisors and other key audiences. LinkedIn also allows asset managers to utilize paid promotion to target advisors by job title, company and location.
These three strategies can go a long way to support AUM growth and help distribution teams generate quality leads based on trusted relationships with investors and financial intermediaries.
––Deidre Campbell, Managing Director (Deidre.Campbell@edelmansmithfield.com) & Nicole Hakimi, Executive Vice President (Nicole.Hakimi@edelmansmithfield.com)