The primary factor holding these fund firms back from growing assets seems to be a “build it and they will come” mentality.
Sadly, NO, they won’t.
Because no one has ever heard of them, so they sit there year after year with little AUM wondering why their assets aren’t growing or the fund is not meeting its full potential in assets. Not to mention, in a sea of not so great funds, investors would welcome undiscovered funds with a long-term track record of success as people struggle to save for retirement in the current market environment.
To make matters worse, the largest firms “consume” approximately 80% of all flows. The remaining 600+ mutual fund firms have to compete for the remaining 20%, quite an uphill battle. It’s daunting for small firms to go head-to-head against large firms stocked a multitude of internal and external wholesalers. That’s why smaller firms are turning to strategies to help them stand out from the crowd.
Content marketing by way of “thought leadership” has been one way that asset managers are marketing themselves and distributing their content through a variety of channels with the goal of capturing interest from advisors, investors and gatekeepers. According to a study published in The Cerulli Edge – Global Edition, in 2015, 78% of small and mid-sized asset managers increased their marketing budgets towards this end.
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