The power of thought leadership in asset management
Our colleagues at NMG Consulting have been hard at work delivering our first global asset management study, conducting over 1,600 interviews in 14 countries, obtaining detailed insights and views from key institutional investors, gatekeepers, and financial advisors. The study has produced a swathe of insights, some of which are covered in our Insights Report from phase 1 (US, Germany, UK).
Over the coming weeks we will explore a number of key study findings, and today we will focus on insights specific to marketing and thought leadership. Although it’s absolutely one of the most resource-intensive activities in a marketeer’s kit bag, today’s first chart shows us that thought leadership is the single most important factor that underpins improvement of buyers’ understanding and perception of external asset managers – i.e. it’s the most value-adding activity marketing can undertake.
- Client-focussed: demonstrating that managers understand institutional businesses and their investment priorities and challenges
- Investment-led: supporting asset management buyers in understanding emerging investment themes and concepts
- Manager-focussed: facilitating effective communication between portfolio managers and asset management buyers
Not all buyers want the same type of thought leadership. Asset management buyers with more complex liabilities (e.g. pension funds) placed greatest emphasis on client thought leadership. However, investment focused organisations (such as endowments) placed most emphasis on investment led thought leadership and portfolio manager communications.Managers seeking to develop their thought leadership capability and positioning should consider end-client preferences, and tailor their thought leadership appropriately. In particular, institutional investors indicated that thought leadership provides sales teams an ability to open doors and create strategic partnerships.
In retail, thought leadership is important but so are seminars, training and the product documentation, as shown in today’s second chart, below. Campaigns and conferences remain important to demonstrate commitment to the market and deliver the value proposition to large retail adviser communities who still influence a significant percentage of fund flow.
Importance of different marketing factors, gatekeeper versus client facing adviser
So, thought leadership is important and has real potential to move the dial. But, like all high-value activities, thought leadership is difficult. It’s resource intensive, and it requires commitment from across the organisation. We understand – acutely – the challenge of generating regular thought leadership content. But we have also seen how powerful it can be.
Marketing needs to take the lead here. Our study shows what many marketeers already know – that marketing is an important component of influencing buyers of asset management – even institutions. However, it requires more than fund fact sheets. It needs a significant level of thought and commitment to get the right messages to the market.