According to CaseyQuirk by Deloitte, new investment products account for 62% of net new flows for the asset management industry.

In their recent study, “New Arrows for the Quiver: Product Development for a New Active and Beta World,” CaseyQuirk projects that “Investors worldwide will fund a $4 trillion transition to new active strategies” in coming years as they embrace outcome-oriented and cash-flow-oriented strategies to meet their objectives.

Old-fashioned benchmark-hugging strategies will remain under pressure from rising rates, rising inflation, policy changes, and income needs from an expanding generation of retirees. The recent battering of the classic 60/40 stock/bond portfolio illustrates the shift.

As advisors and investors search for new solutions, they will find their way to the websites of asset managers with robust and innovative products that meet investor needs. The best websites will help sponsors capture their share of investor flows.

An Overview of Topic #5: Product

Every successful asset manager website educates visitors on the “5 P's.” In this article, we will highlight topic #5 of the “5 P's”: Product.

How to Get a Piece of a $4 Trillion Pie

With $4 trillion at stake, asset managers must get their product development and communications right. A new investment strategy without solid communications to support the sales effort risks being left behind.

Moreover, in our “digital first” era, solid communications must be web-based. Asset managers and their distribution teams must achieve not only digital transformation but web mastery. 

Meeting Investor Communication Preferences

The most effective product education occurs across multiple media. Investors have widely varied preferences on how they wish to receive information:

• Some investors prefer a short video.
• Other investors may want an in-depth white paper. 
• Others may prefer audio for their morning drive or workout.

Some investors may use all the media types as they progress through their product education, which frequently begins on an asset manager’s website.

The investor and product communications menu can be extensive:

Asset managers must prioritize and sequence what works best for their product and what is feasible based on the resources available

Start With the Advisor Deck

In our experience, the most productive place to start in the communications development process is the advisor deck. Building the deck compels the asset manager to develop and hone their narrative and discover the best way to tell the investment story.

At GK3 Capital, we recently collaborated with a specialist fund sponsor to develop the decks for two innovative media funds.

The first fund offered access to private equity opportunities in the media & entertainment industry. Working with the manager, we developed a narrative on the powerful global forces driving growth in the industry, and how to access private investment opportunities within the industry.

The second fund offered access to credit opportunities in film and television production. A worldwide “battle for content” from streaming platforms is fueling the need the production financing. State and government tax credit programs and pre-sales to global media companies mean that media financing can benefit from solid credit support and collateral. The benefits to investors include potential double-digit yields with credit protection. Taking the time to develop this deck provided a narrative foundation for the manager’s entire communications program.

Less Promotion, More Solution

Product content should follow the same guiding philosophy applicable to all of the 5 P's. The most effective content is about solving investor needs, not promoting the product or manager.

Putting it All Together

Some products and their communications can be highly focused. Others may be multi-faceted.

At GK3 we are creating an entire digital distribution platform from scratch for an innovative high-yield structured credit strategy by a top-performing manager, offering potential double-digit yields in a tax-sheltered insurance structure.

The product launch is a major educational endeavor, encompassing new materials on private placement life insurance, tax-favored insurance-dedicated funds, and the underlying credit strategy using collateralized loan obligations (CLOs).

The multi-channel launch utilizes email and online advertising to drive website traffic. Materials include:

• A new educational eBook on private placement life insurance,
• A downloadable two-page flyer introducing the insurance-dedicated fund universe to advisors, and 
• A blog campaign to provide plain-English answers to the most frequent questions about CLOs.

Managers who create web-based content programs that clearly communicate the strengths and benefits of their offering can help their sales teams win the competition for investor assets.

The 5 P's and Beyond

Asset manager websites are more important than ever for building and maintaining relationships with investors and advisors. To compete and thrive, boutique and specialty asset managers must create an online experience that highlights their unique value.

Allocators and analysts seek to evaluate every fund and asset manager across five key dimensions:

The 5 P's:

1. 1. 1. People 
   2. 2. Process
   3. 3. Price
   4. 4. Performance
   5. 5. Product

Thus, every asset manager must include a rich selection of content on the websites covering the 5 P's.

Next Steps

If you haven’t already, be sure to read the other blogs in this 5-part series on the critical topics for every asset manager website: 

• The 5 Most Important Topics for Every Asset Manager’s Website - Topic #1: People
• The 5 Most Important Topics for Every Asset Manager’s Website - Topic #2: Process
• The 5 Most Important Topics for Every Asset Manager’s Website - Topic #3: Price
• The 5 Most Important Topics for Every Asset Manager’s Website - Topic #4: Performance

To learn more about how to master web-based sales and marketing in asset management, watch our video series or download our eBook on Digital Distribution.