Looking to Raise Assets? Understand What Risk Means to Institutions

By: Augie Malson

The fifth 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 what risk means to institutions. The two risks that respondents discussed repeatedly for which managers should remain focused are: (1) firm viability and the risk of the firm and/or strategy failing to survive its growth years; (2) opportunity costs: the risks of what other investments were missed by allocating to this strategy. Managers can best overcome these risks by having a diligent, detailed and cost-effective business plan that is well articulated throughout the process, and by effectively communicating their “fit” into an existing and diversified portfolio.