Asset Management Marketing: Overcoming a Competitive Market

Today's asset management industry doesn’t make it easy for funds to stand out. That’s because stellar performance and low fees—once key differentiators—are no longer enough. Modern investors demand a deeper, more personalized experience that speaks to their evolving needs and values.

Morningstar experts break down asset management marketing and how to stay competitive in a crowded market.

Now, it’s more important than ever for asset managers to make smart choices, keep up with trends, and show their value.

Here are key ways the industry is evolving.

Investors today are inundated with choices, making it challenging for any firm to stand out. More importantly, clients are seeking a deeper understanding of their options and a clear articulation of how your firm aligns with their evolving needs and goals.

Morningstar data highlights significant shifts in investor preferences, such as:

• Sustainable investing: There’s a growing demand for socially and environmentally responsible investment strategies.
• Personalization: Solutions need to be tailored to investors’ specific financial goals.
• Investing strategies: Investors are increasingly choosing passive funds over active funds.
• Confidence: Given the plethora of options, investor confidence in their choices is paramount. In fact, our Morningstar analysts find that confidence is a common reason for why investors want to change their holdings in trendy assets.

Mere access to data is no longer noteworthy—investors and advisors can now easily compare different strategies, explore various asset classes, and tailor portfolios to meet their performance goals and risk tolerance. To showcase your value, you need unique insights and data that highlight how you can personalize your services for clients.

A well-crafted client journey is integral to a comprehensive asset management marketing strategy. This distinctive experience encompasses all interactions a client has with your firm, from initial awareness to intent to engagement.

In other words, asset managers must utilize a suite of comprehensive solutions designed to support every stage of the client journey. By building a seamless and engaging experience, you can better ensure that clients not only choose your firm but also remain loyal advocates.

These five steps can help you create an effective client journey:

Understanding your existing client journey is the first step toward improvement. Conduct a thorough audit to find strengths and weaknesses.

Key questions to consider include:

• Why did clients who left last year choose to leave? Analyzing exit interviews or feedback can provide insights into potential service gaps or unmet expectations.
• What is the average duration of client retention? Identifying patterns in client retention can reveal how long clients typically stay with your firm and at what point they might start looking elsewhere.
• What services are competitors offering that you’re not? Benchmarking against competitors can help you identify missing services or features that could enhance your value proposition.

Strategic positioning is essential before refining your client journey. Analyze how your funds compare to peers in terms of historical returns, fee structures, and overall ratings. This foundational data will help you define and communicate your funds’ unique positions in the market.

Understanding your positioning also involves:

• Identifying your core strengths: Determine what your firm excels at and what sets your offerings apart from competitors.
• Knowing market trends: Stay updated with industry trends and ensure your products meet the current demands of the market.
• Highlighting selling propositions: Clearly communicate the distinct benefits your firm offers—whether it’s innovative investment strategies, superior client service, or a strong track record of performance.

Generating awareness and interest in your investment offerings requires a robust content strategy. Your client journey audit will reveal how clients currently interact with your firm and where you can enhance engagement. From there, you can utilize data and insights to craft a narrative that resonates with investors.

Examples of effective content include:

• Factsheets and custom reports: Detailed reports on fund composition, historical returns, and fee structures. These documents should be visually appealing and easy to understand, providing essential at-a-glance information.
• How-to guides: Informative guides that highlight the benefits of your products. This content helps demystify complex investment concepts and demonstrate how your products can meet clients’ specific needs.
• Webinars: Interactive sessions addressing specific investor concerns and showcasing your expertise. Webinars provide an excellent platform for thought leadership and may engage a wide audience, strengthening authority.

Once investors are aware of your funds, the next step is to build trust and confidence. Investors need to feel assured in the long-term viability of their investments and see an alignment with their preferences. Social proof, such as independent ratings and reviews, help you show—rather than tell—that your funds can meet and exceed market expectations.

For example, Morningstar Essentials provides asset managers with an unlimited use and distribution license to a variety of Morningstar ratings and visualizations such as Morningstar Ratings, Style Box, Portfolio Risk Score, and more.

Ratings and visualizations can instill investor confidence by showcasing:

• Independent reviews and testimonials: Positive feedback from current clients may reassure potential investors of your firm’s credibility and performance.
• Third-party ratings and accolades: Independent recognition of your funds’ performance and management can serve as a powerful endorsement.

Together, utilizing comprehensive systems enables the creation of materials like well-designed content while essential data tools provide the ratings and visualizations needed to build trust.

The journey doesn’t stop once your firm has new investors. Maintaining investor satisfaction and turning them into advocates involves continuous engagement.

Consider the following factors to sustain investor satisfaction:

• Web experience: Ensure your website is user-friendly and informative, allowing investors to easily navigate and learn about your offerings. Give clients a reason to come back by making the website interactive, using its features and content to differentiate your brand. This can include offering integrated research and AI tools—the more clients engage with your site, the better they’ll be able to recall your offerings and form positive associations.
• Customer service: Provide seamless and efficient customer support to address any issues or questions investors may have. Timely and helpful responses can build strong relationships and trust.
• Ongoing content: Regularly produce insightful thought leadership and educational content to keep investors engaged and informed—market analysis, investment tips, and updates on your fund’s performance are all good options.

The asset management industry is constantly evolving. Along with understanding the latest insights, it’s crucial to stay ahead of trends for long-term success.

Here are some key industry trends to watch:

Environmental, social, and governance (ESG) investing is gaining momentum. Investors are increasingly looking for socially responsible investment options. Asset management firms that incorporate ESG principles into their offerings can attract a growing segment of conscious investors, helping them understand the benefits and risks of ESG investing.

Personalized investment solutions tailored to individual client needs and preferences are becoming more popular. Advanced data analytics and AI enable firms to offer customized investment strategies and recommendations.

For instance, asset managers can conduct investment research faster than ever with Mo—our AI chatbot powered by Morningstar Intelligence Engine. Mo is designed to quickly surface and summarize our independent insights and then generate actionable, verifiable insights.

Digital transformation is reshaping the asset management industry. Firms that embrace digital tools and technologies, such as AI, may enhance client experiences and operational efficiency.

Content marketing will continue to play a significant role. Firms that consistently produce high-quality, insightful content will strengthen their position as industry leaders. Interactive and multimedia content, such as videos and podcasts, will become more prevalent.

Engaging clients through multiple touchpoints and channels will be crucial. Virtual events, webinars, and online communities provide opportunities for meaningful interactions with clients.

Effective asset management marketing is essential for attracting and retaining clients in a competitive industry. From building a unique client journey to creating valuable content to leveraging cutting-edge technology, asset management firms can position themselves for success. Staying ahead of industry trends and addressing challenges proactively will also help ensure long-term growth and profitability.

At Morningstar, we understand the complexities of asset management marketing. With Morningstar’s Solutions for Marketers, you can elevate your brand by showcasing your value, driving effective engagement and creating great reports with ease. Request a consultation today.