Looking to Raise Assets? Structure Matters

By: Smabs Sputzer (1956-2017)

The seventh tip to maximizing your marketing and sales effort according to The Road to AUM: Driving Assets Under Management through Effective Marketing and Sales, is to understand that structure matters. Structure of firm and offering are critical elements to successful institutional asset gathering. Managers often think that ‘great performance’ will override these core elements. It will not. Regarding the firm, managers must have the right resource game plan, including having completed an internal infrastructure review and positioning exercise before defining their best foot forward. The second element of structure is the product offering itself. Respondents repeatedly reinforced the wealth of competitive information they have at their fingertips. They identified many manager marketing attempts as a “fool’s errand” for marketers when the pricing, structure or other related terms were off the mark. The wrong structure will not be overcome by gross outperformance, as the ultimate ‘performance’ for the investor is impacted directly by the structure itself combined with the specific needs of the institution.