Beyond the Collateral

January 23, 2008

Does Active Management Matter Anymore?

When it comes to mutual funds, you certainly wouldn’t think so. That’s especially true given the dearth of support and ‘case-building’ coming from asset managers in recent years.

Maybe the end of Bill Miller’s stupendous 10+ year market beating run signals that even those of us in the know don’t believe that PMs can legitimately add value. Maybe we believe that the great money managers have left mutual funds behind in favor of hedge funds and managed money. Or maybe professional management seems like an old story—one more comfortable in the late 80s and early 90s when the mutual fund business was a growth story rather than a mature one.

That said, it seems to me that the risk and volatility in the markets today represents a perfect opportunity for active managers to demonstrate their ability to add alpha. And for marketers to once again remind investors of the benefits of professional management

Who’s with me? Let’s dust off the active management sales support…otherwise much of what we sell and the rich margins that come with it will go POOF!

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October 24, 2007

Can Financial Marketers Really Learn From Nike?

At first glace, the article on page one of today’s The Wall Street Journal entitled “Nike Hires Influencers” seems to hold little for financial marketers. But there are three important object lessons that translate to investment product development. First is the notion of building products for the end user. I don’t think we spend enough time researching and understanding investor needs. Instead, we defer that responsibility to the financial intermediary. Investment management marketing needs to return to a time when the “manufacturer” knew the investor better. Second, with differentiation rated the number one business problem in our most recent study with FRC, I think the idea of injecting more creativity and consumer focus into our product offerings has merit. Whether American Century’s LiveStrong Portfolios ever turn out to be a critical sales success, they do represent a fresh twist on a commodity product. Finally, the idea of identifying “influencers” really resonated with me. When we are segmenting and researching the needs of financial intermediaries, maybe gaining a better understanding of the role that these FAs play in their offices can provide some fresh insights to direct new marketing and product initiatives.

What do you think?

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October 15, 2007

We Want Your Input

We believe marketing can, and will, make a larger strategic impact in the financial service industry. However, that role will not be automatically handed over to us. We must take the initiative and pickup the reins of leadership. To that end, by sharing ideas and thoughts we can all benefit from each other’s knowledge and experience. So, join the discussion and share your opinions.

In your opinion, what are the key marketing challenges facing the financial service industry today? And, how do you think we can overcome them?

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