Here’s why an investment firm needs to consider implementing a public relations program when launching a mutual fund.
If you are like most fund executives, you cringe at the cost of hiring a PR pro or bringing on an outside firm who will scour the financial news media in search of opportunities for regular and consistent coverage for your firm.
If it’s your first foray into a PR campaign, it’s a good idea to set expectations for all involved. You may be wondering what components make up the program? How much time and resources will it require? When can we expect to see results?
If you’re a sports fan, particularly the NFL, then you might recognize the line "They were who we thought they were" from Dennis Green who was coaching the Arizona Cardinals at the time. He said this famous line at a press conference after being defeated by the Chicago Bears in a disappointing fashion. If you are not familiar, watch the video for the rated-PG rant at the 30 second mark.
I am often reminded of the line when speaking with mutual fund managers and marketers when talking about their funds that have had some recent bumps and bruises in their performance.
Often times, it’s because a conservative manager can’t keep up when everything is going up or an aggressive manager underperforms even more than the market.
They often attribute sizable outflows to their poor relative performance and ask me for tips on how to deal with the situation. My answer is often a question, “Do your investors know that you are being who they thought you were?"
There is never a bad time to design and commit to a PR plan. Good intentions quickly fade as day-to-day responsibilities consume our time.