Monday morning briefing – September 23, 2019
A bitcoin yield fund for the high-net-worth. Private equity and venture capital outperforming public equities. Why international co-operation is needed to combat cybercrime. And much more in this week’s briefing.
Economic/industry news
The Fed reduced its central interest rate: Fed lowers interest rate by a quarter-point, and is open to the idea of more easing
Canadian inflation rate was 1.9% in August: Canadian inflation slows to 1.9% on lower gas, vegetable prices
The BoE held its Bank Rate steady at 0.75%: Bank of England holds rates, warns another Brexit delay could hurt economic growth
The BoJ kept its key interest rate at -0.10%: BOJ keeps policy steady, signals chance of easing in October
A look at how liquidity affects an ETF’s trading costs: Why liquidity matters in ETF cost minimization
Does the value of benchmark data justify the cost?: Fund managers seek more insight from benchmark data
News and notes (U.S.)
Hedge fund net exposure at highest level since 2018: Goldman: Hedge fund exposure to stock market at 15-month high
A conversation with Josh Harris on private markets: Apollo’s Josh Harris talks private markets at delivering alpha
PE and VC outperforming public equities: Private equity outperforms and captures institutional flows
Private equity net cash flow was over US$150 billion in 2018: Eight years in the black for private equity cash flows
Vanguard to launch Digital Advisor: Vanguard preparing to offer digital-only robo-advisor
Rockefeller Capital eyes Silicon Valley: Rockefeller Capital buys wealth firm for Silicon Valley rich
The Fed took action in money markets for first time in a decade: Fed intervenes in money markets for first time in 10 years
Looking for more customized target-date funds: Interest rising in active/passive hybrid strategies for TDFs
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 17 edition
News and notes (Canada)
Horizons launches the Horizons Growth TRI ETF Portfolio: Horizons ETFs expands lineup of portfolio ETFs
CI Investments launches ESG funds: CI introduces debut ESG funds
Combining mutual funds and ETFs could be beneficial: Mutual funds and ETFs in harmony
Canada ranks “below average” in fund costs, according to Morningstar: Canada rates poorly in Morningstar survey of mutual fund costs
Foreign investors moving out of Canadian securities: Foreign investors continue to divest Canadian securities
On the pulse – New frontiers in fintech
Five fintech trends to watch in 2020: Five trends shaping fintech into 2020
How to navigate through customers’ fear of open banking: Open banking scares customers, but they want what APIs can deliver
A look at Canadians’ comfort with AI: How Canadians feel about AI in financial services
We’re in the early innings of AI’s impact on the financial services industry: The beginning of the road for AI in finance, the best is yet to come
Building a branch as an advice centre: Transforming branches into advice centers: The long road ahead
How technology is impacting capital markets: Buyers’ brief: Fintech drives capital markets
Why international co-operation is needed to combat cybercrime: Cyber-crime best tackled by international co-operation
Arab Bank launches custody and brokerage services for digital assets: Leading Swiss private bank launches full suite of digital asset services
High-net-worth topics
Family offices incorporating ESG principles: Wealthy families pour fortunes into $31 trillion ESG opportunity
A bitcoin yield fund for the high-net-worth: Wealth manager launches world-first bitcoin yield fund
Polls & surveys – What financials are saying
38% of fund managers expect a recession over the next year (Bank of America Merrill Lynch): Recession fears among fund managers rise to highest level in a decade
Immigration wage gap impacting Canada’s economy (RBC): Immigrant wage gap costing Canada $50 billion a year in GDP: RBC study
Millennials are starting to save early (E*Trade): Young investors are doin’ it for the ‘Gram
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – September 16, 2019
Is there a major flaw with internal rate of return? The increasing use of alternative data. The top traits exhibited by leading advisors. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate fell to 1.7% in August: Cheaper gas puts a cap on consumer prices in August, but inflation appears to be rising, CPI shows
The ECB lowered its central interest rate to -0.50%: ECB cuts key rate for first time since 2016 as recession fears grow
OPEC should be closely monitoring demand, along with supply: Where does OPEC+ go from here?
Could there be changes to the U.S. capital gains tax?: Trump to revisit capital gains tax cut in White House Meeting
Will value investing bounce back?: Value investing’s heady days aren’t coming back, study says
Fixed income continues to attract significant ETF flows: Global ETF flows continue to favour fixed income in August: ETFGI
News and notes (U.S.)
A look at the hedge fund industry in August: State of the industry – August, 2019
The Eurekahedge Hedge Fund Index rose 0.31% in August: Hedge fund managers up 0.31 per cent in August
The increasing use of alternative data: Hedge funds plan to pour more money into alternative data
PE drawdown rates are still slow: Despite an active PE industry, drawdown rates have remained slow since 2012
Dry powder continues to rise: Alternative investment managers still building up dry powder
Is there a major flaw with internal rate of return?: The faulty metric at the center of private equity’s value proposition
Bitcoin ETFs could still be a bit away: SEC’s Clayton still troubled by potential manipulation of bitcoin prices
Directors and senior officers are selling shares: Insiders at US firms are selling shares at fastest pace since 2007
News and notes (Canada)
RBC launches five U.S. single-factor ETFs: RBC iShares expands lineup of factor ETFs
Stone Asset Management launches PTF: Stone Asset Management announces platform-traded fund
Why family businesses are important for the Canadian economy: Canada’s economy dependent on family businesses: report
Canadian pension assets grew 5% in the first quarter: Pension assets surged in Q1, StatsCan says
The Canada Pension Plan is opening an office in San Francisco: CPPIB opening San Francisco office, hiring head of VC funds
Canada’s first Pay Equity Commissioner announced: Canada now has a federal pay equity commissioner
On the pulse – New frontiers in fintech
Why banks should embrace and partner with fintech: Fintech and banks: collaboration or competition?
Using AI to fuel deposit growth: How banks and credit unions can grow deposits with AI
AI should complement the human process: Where the AI rubber hits the banking road
The need to enable open banking in Canada: Feds must act on open banking, senators say
How banks can attract Millennials: What millennials want from banks & credit unions
Small investment firms have cybersecurity deficiencies: Small firms less prepared for cyber risks: report
Morningstar launches Goal Bridge: Morningstar launches new goal-based advisor software
JPMorgan Chase helping small businesses with cash flow: JPMorgan Chase introduces same-day deposits for merchants
Issuing bonds through blockchain: Santander launches the first end-to-end blockchain bond
High-net-worth topics
The high-net-worth should stay invested in U.S. equities, according to Goldman: Goldman manager tells rich clients to put American stocks first
Canadian high-net-worth are focused on preserving their wealth: Canada’s wealthiest shifting focus toward future-proofing
TD launches new alternative fund for high-net-worth clients: TD Asset Management adds alternative fund
Polls & surveys – What financials are saying
60% of investors believe board diversity is important (ISS): Most investors support climate disclosure, board diversity, ISS finds
Expect slower growth for Canadians’ wealth (Investor Economics): Canadians’ wealth declines for first time since 2008
The top traits exhibited by leading advisors (Nationwide): 4 things successful advisors do differently: Nationwide
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
What Grissom and Caine can teach us about investment writing
Constant innovation has enabled the investment management industry to offer new and novel solutions designed to better serve the investing public. As more sophisticated solutions are introduced in the alternatives space, as well as in other product categories, the challenge of writing to these increasingly complex investment products becomes more pronounced.
While we should always strive to simplify our business communications, just opting to “dumb down” content may do investors a disservice. Is there a middle ground between simplicity and substance? The answer might lie with an old but influential television show.
CSI: Communicating Substance to Investors
It’s been just over three years since the last new episode of the hit CSI television franchise aired, but the footprint of this 16-year-long cultural touchstone is still present. Not only are the various CSI shows still being aired in syndication, they have continued to shape the public’s perception of law enforcement.
While the franchise has been criticized for taking artistic liberties with the real nature of police work and forensic investigation, CSI was never shy about using technical, highly scientific insider jargon.
That’s significant when you consider the CSI shows have been watched by millions, and that forensic science is no less an esoteric subject than yield curves or hedge funds.
Yet these shows, despite their complexities, spawned a generation of laypeople who could proudly discuss contusions, exit wounds and DNA sampling.
So, what can we learn from the exploits of Gil Grissom and Horatio Caine? From an investment communications perspective, we might take away the following:
1. Complexity doesn’t have to be scary; in fact, by its very nature can be compelling for readers.
2. Don’t be afraid of using complex terms, but also add in enough additional information so the reader can follow along, while also feeling educated and empowered by new knowledge.
3. Keep a “CSI toolkit” handy, meaning a spreadsheet of commonly used insider terms relevant to your investment mandate(s), plus their working definitions, for the benefit of investors. This toolkit can be used by you and your team in a variety of investment communications
The best practices for investment commentaries are always evolving. See what ext. can do to help you slay all your investment communications.
For more information on how ext. can help you improve your investment content, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – September 9, 2019
Helping smaller clients with their financial planning needs. Private equity firms are taking an interest in physician practices. Four phases of a successful digital transformation. It’s time to listen to the lesser known managers. And much more in this week’s briefing.
Economic/industry news
The BoC held its central interest rate steady at 1.75%: Bank of Canada balks at joining global rate-cutting trend
The Canadian unemployment rate was unchanged at 5.7% in August: Canada sees jobs surge in August with 81K new positions
The U.S. unemployment rate was 3.7% in August: U.S. creates just 130,000 news jobs in August, keeping Fed on track to cut rates
Manufacturing states suffering from trade uncertainty: Trump’s trade war inflicts pain on manufacturing states
What happens if the global consumer stops spending?: Trade-war damage piles weight of global economy onto consumers
Assets under management fell for the world’s largest pension funds in 2018: World’s largest pension funds’ AUM decreased in 2018
Fund costs will impact Morningstar’s analyst ratings: How Morningstar’s new ratings reality will affect funds, ETFs
BlackRock’s outlook for the Canadian economy in the fourth quarter: Outlook for final quarter of 2019
News and notes (U.S.)
Time to listen to the lesser known managers: With Sohn Conference bets, pay attention to the no-name managers
PE firms are taking an interest in physician practices: Why are PE firms hot for physician practices?
How the biggest VCs are investing: Breaking down early- and late-stage deals for the top 20 US VC investors (datagraphic)
Why 401(k) sponsors must understand mutual fund fee structures: Fiduciary responsibility and mutual fund fees
ACI to launch five active ETFs: American Century to launch five active equity ETFs under new Avantis banner
Investing in an NBA team: NBA considers vehicle to bring new investors to soaring team values
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 3 edition
News and notes (Canada)
Dynamic launches the Dynamic Credit Absolute Return II Fund: Dynamic Funds launches fourth liquid alternative offering
Waratah launches the Waratah Alternative Equity Income Fund: Waratah Capital launches liquid alternative mutual fund
FP Portfolios launches new ETF: Firm launches ETF alternative to structured products
Canadian ETF assets rose to $186 billion in August: Canadian ETF inflows hit $2.7B in August
Banking leaders are set to adapt to the changing financial landscape: Big bank CEOs talk lower rates, living in ‘unprecedented times’
First-time homebuyers believe new incentive plan may be helpful: First-time homebuyers optimistic about new government incentive: poll
On the pulse – New frontiers in fintech
A look at how fintech is changing the financial services industry: 5 ways fintech is reshaping the financial services industry
Three best practices to help banks become leaders in personalization: How banks and credit unions can take the lead in personalization
Four phases of a successful digital transformation: We just haven’t got a clue what to do!
How AI can help back-office functions: The future of finance is powered by artificial intelligence
Understanding the ethics of AI: Filtering the ethics of AI
A look at five industries being transformed by AI: AI predictions: how AI is transforming five key industries
Helping smaller clients with their financial planning needs: Bringing financial planning to the masses
Plans for a crypto fund-of-funds for institutional investors: Hedge fund manager plans $1bn crypto fund
High-net-worth topics
The high-net-worth are looking for more than just strong investment performance: For HNW clients, digital convenience is no substitute for a personal connection
Managing the high-net-worth’s digital wealth: What you need to know about managing clients’ digital wealth
Polls & surveys – What financials are saying
Canadian productivity hurt by financial stress (Canadian Payroll Association): 43% of Canadians say financial stress is hurting work productivity: Study
Institutional investors not yet fully adopting ESG (CoreData): Institutional investors yet to fully embrace ESG, says new research
Client expectations are the top challenge for wealth and asset management firms (RBC): Client demands overtake regulation as the top challenge for firms
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – August 26, 2019
What’s impacting value investing? Why is 5G important to businesses? Why are CRM2 disclosures still confusing investors? Which cities have the most ultra-high-net-worth individuals? These and many more questions are answered in this week’s briefing.
Economic/industry news
Canadian inflation rate at 2.0% in July: Inflation holds steady at 2%, tempering case for rate cut
U.S. manufacturing contracts in August: Manufacturing sector contracts for the first time in nearly a decade
The Fed wasn’t unanimous in its decision to cut rates: Fed officials divided over July rate cut, minutes reveal
A look at what may be impacting value investing: Grantham Mayo: What’s gone wrong with value investing?
Interest in asset management jobs high: More people than ever want to be in asset management, CFA data shows
It’s not only about the shareholders: Top U.S. CEOs rethink the meaning of shareholder value
News and notes (U.S.)
Hedge fund assets growing, despite redemptions: Hedge funds still seeing outflows, but performance boosts AUM
Hedge funds don’t believe that the U.S. economy is headed for a recession: Hedge funds aren’t betting on a recession, Goldman data show
The stronger the conviction, the stronger the return: For short bets, higher conviction = higher returns
Using social media to research alternative firms: PE and hedge funds are targets of social media sleuthing, suggest survey
The orthopedic space garnering a lot of attention from PE: This joint is jumping: PE firms knee-deep in orthopedic space
Unicorn exits in the U.S. may set a record in 2019: Unicorn exits are booming in 2019. Will it last?
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: August 20 edition
News and notes (Canada)
Investors still don’t fully understand what they are paying for: Report finds investors still confused by CRM2 disclosures
Goldman Sachs invests in Canadian alternatives firm: Goldman Sachs unit invests in Toronto-based Slate Asset Management
The Ontario Teachers’ Pension Plan surpassed $200 billion in assets: Ontario Teachers’ Pension Plan returns 6.3% in H1
IIROC plain language rulebook to be instituted next year: New IIROC rulebook approved for June 2020
On the pulse – New frontiers in fintech
A look at how banks can benefit from adopting AI: AI advantages in banking grow, adding pressure for broad adoption
A culture change is needed to fully leverage new technology: AI is not a technology change but a cultural one
How retailers are benefitting from fintech: 5 ways retailers are adapting to fintech revolution
Helping baby boomers retire: Fintechs need to help baby boomers boom
How fintechs can stay relevant: The longevity of challenger banks
How banks may evolve to help clients in their daily lives: The bank of the future will have data vaults and money vaults
A look at why 5G will be so important: What 5G really means for your business
Visa launches new security services to protect banks and merchants: Visa launches security suite
Revolut to focus on the business banking sector with expense management tool: Revolut targets business banking market
JPMorgan Chase to discontinue Chase Pay: Chase Pay app shut down
High-net-worth topics
The next generation may move their assets to other firms: Trillions in HNW assets up for grabs in years ahead
These are the cities with the most ultra-high-net-worth individuals: Where the ultra-wealthy live in the United States
The high-net-worth are using 529 plans to reduce income and estate taxes: How high earners are maximizing this unique tax loophole for education funding
401(k) millionaires rose in the second quarter: The number of 401(k) millionaires hits an all-time high
Polls & surveys – What financials are saying
Canadians need assistance on how to use the TFSA (RBC): Many Canadians unsure how to use TFSAs to build wealth: RBC poll
Majority of U.S. economists expect a recession (National Association for Business Economics): Almost three-quarters of American economists expect a recession by end of 2021
Advisors benefit from outsourcing investment management (AssetMark): How outsourcing investment management can benefit advisors: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – August/September
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- Canada will announce its inflation rate for July on August 21. In June, Canada’s inflation rate fell to 2%, partly as a result of a decline in gasoline prices and a slowdown in shelter as well as clothing and footwear. Despite the slowdown in June, the inflation rate has crept higher in 2019, largely in response to higher food prices
- Canada’s gross domestic product (“GDP”) growth rate for the second quarter will be announced on August 30. In the first quarter, Canadian GDP grew 0.4% annualized, a slight improvement from 0.3% in the last quarter of 2018. GDP growth was led by consumer spending in the first quarter. However, real estate investment fell for a fifth consecutive quarter. Markets are hopeful that the Canadian consumer remained strong in the second quarter, while recent positive real estate news contributes, rather than impedes, economic growth
- The Bank of Canada (“BoC”) will announce its interest rate decision on September 4. The BoC’s benchmark overnight interest rate currently stands at 1.75%. At its most recent meeting in July, the BoC stated that the current level of its central interest rate is “appropriate.” However, the BoC does see some weakness in the Canadian and global economies as a result of continued trade tensions. The BoC will closely monitor how trade disputes are impacting the Canadian economy before any future interest rate decisions
- Also on September 4, the U.S. balance of trade for July will be announced. The U.S. trade deficit narrowed slightly from US$55.5 billion to US$55.2 billion in June, partly as a result of a reduction in imports. The trade deficit with China also narrowed. Given persistent trade tensions with China, markets will carefully monitor the results from this announcement
- On September 12, the European Central Bank (“ECB”) will announce its interest rate decision. At is last meeting on July 25, the ECB held its central interest rate steady at 0.00%. The ECB gave a more cautious tone, citing concerns about the slowing global economy. Furthermore, the ECB expects its rates to remain steady or even lower until at least the first half of 2020, hoping to push inflation up towards its target. The ECB is prepared to take measures to provide the European economy with more monetary stimulus, if needed
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Going deeper with your content
If you’ve been blogging and sharing content for a few years, you’ve probably reached the point at one time or another where you’ve run out of ideas or lost interest in your topic.
It happens.
Don’t fret. A little analytics and creativity will not only get you flush with ideas once again, but these ideas will be exactly what your readers want.
Identify your top posts
Google Analytics is your friend. While you can request anecdotal evidence from the field, it’s best not to rely solely on hearsay. Data is what you want, so seek it out.
Log on to your Analytics account. Your goal today is to find your 30 most-viewed posts since you first started blogging. Found them? Good.
These are the posts – better to think of them as themes – that you’ll focus your content efforts on for the next year. Feels good to have some direction, doesn’t it?
Go deep, creatively
Now that you know your top 30 posts, it’s time to sharpen your focus on the top 10.
How can you add depth to these topics? Write down everything you can think of, from the ideas that need a little more explaining to anything on the periphery of this theme that could add value.
While refreshing content is a good start (even your tried-and-true content may not be as evergreen as you think), we’re talking about supporting content, educational content, engaging content, inspiring content, content that looks good, content that gets people thinking, content that builds your authority, and the list goes on.
“We’re talking about supporting content, educational content, engaging content, inspiring content, content that looks good, content that gets people thinking, content that builds your authority, and the list goes on.”
Think infographics, surveys, whitepapers, more blog posts, newsletter articles, brochures, microsites and social campaigns. These are the tactics you’ll use to go deeper on your chosen themes.
Once you’ve worked through your top 10, start on your remaining 20.
Three quick examples
Let’s say your top three posts are “Saving for a comfortable retirement,” “What do I do with an inheritance?” and “Rethinking investing for Millennials.”
“Saving for a comfortable retirement” could benefit from a calculator that helps explain the power of compounding over the long term.
“What do I do with an inheritance?” might reach a bigger audience if it was backed up with stat … or, better yet, a handful of stats found in a great looking infographic.
“Rethinking investing for Millennials” may need an infographic too, but it would also benefit from a series of supporting blog posts that tackle (and provide solutions to) the financial challenges that younger people face every day.
Repeat the process
Let’s look a year into the future. You’ve added depth to your top 30 posts. Now identify your top posts once again but, this time, focus on your top 20. Explore ways that you can go even deeper on these themes.
Why are you doing this? You’re expanding your content and you’re refining your content. As time goes on, you’ll see that your focus is narrowing – and this is a good thing. This razor sharp focus is on themes that your readers want.
“You’re expanding your content and you’re refining your content. As time goes on, you’ll see that your focus is narrowing – and this is a good thing.”
Stop casting a wide net. Instead, go deeper on your top posts (and themes!) with creative solutions. Your readers will appreciate the knowledge you’re sharing.
Never run out of ideas again. Contact us today at 1.844.243.1830 or info@ext-marketing.com and we’ll help you explore your content options.
Top 10 marketing musts for hedge funds
You’re busy. But that doesn’t mean you can skip marketing – it’s just too important if you’re serious about raising assets.
Emerging and established managers tend to ask us the same questions. What are the right marketing steps I have to take? How can my brand truly represent who I am and what I do? Do I really need a website? When you work with ext., we can help you find the answers you need.
Here are 10 important things that you can do to ensure your fund is launched and/or operating on a solid marketing foundation:
- Design a pitchbook that works for your style of presenting – can you wing it or will you read from a page?
- Be yourself, not what you think allocators want you to be
- Learn how to tell your story
- Know your unique value proposition – be able to say it out loud
- Your pitchbook is essential – make sure it looks incredible and says the right things
- Know your audience – allocators, family offices, HNW investors, etc. all want to hear different things
- Always follow up and stay positive – not every meeting will go well and that’s okay
- It’s your business and your story – but it makes sense to bring in external marketing expertise to ensure your vision and your message are aligned
- Get out and market when things are going well – don’t wait until you’re facing adversity
- Understand that marketing is a profit center (not just an expense) – invest in marketing and it will drive sales
We know you’re busy and that’s why we kept this post short. If you’re too busy to implement these marketing best practices and truly set yourself apart, call us. We can help.
Contact us today at 1.844.243.1830 or info@ext-marketing.com to implement a solid marketing strategy and set your fund apart.
Upcoming macroeconomic events – July/August 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- The European Central Bank (“ECB”) will announce its interest rate decision on July 25. The ECB held its benchmark refinancing rate at 0.00% at its most recent meeting in June, citing concerns about weak inflation and slower global economic growth. At that meeting, the ECB indicated it would not be raising its central interest rate until the second half of 2020 at the earliest. Since then, trade uncertainty, Brexit risks and weakness in the European economy has the ECB considering further stimulus to the European economy, if warranted
- On July 26, the U.S. will announce its advanced estimate of second quarter gross domestic product (“GDP”) growth. In the second quarter, GDP growth was 3.1%, an improvement over the 2.2% in the fourth quarter of 2018. U.S. GDP may remain relatively strong as personal spending and exports appear robust, which may offset some weakness in business investment
- The U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision on July 31. On June 19, the Fed kept the target range for its federal funds rate steady at 2.25% to 2.50%. The Fed took a more cautious tone and hinted at a possible rate cut as a result of trade tensions with China and a slowdown in global economic growth. Investors are expecting an interest rate reduction at this meeting
- Canada’s balance of trade for June will be announced on August 2. Surprisingly, Canada’s trade balance turned positive in May, seeing a surplus of $760 million. This came despite slowing global economic growth and continued trade uncertainty. How trade restrictions from China and slowing demand for some commodities affected Canada’s trade balance will be closely watched by investors
- On August 9, Canada’s unemployment rate for June will be announced. The unemployment rate rose to 5.5% in June, slightly above the 40-year low of 5.4% reached in May. The unemployment rate rose as employment decreased by 2,000. The Canadian economy has seen a large increase in jobs being added throughout 2019, and is looking for a rebound from the decline in June
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – June 24, 2019
Can the Fed Chairman be replaced? How geopolitical risks impact emerging markets. Facebook is planning a new cryptocurrency. Advisors are preparing for a possible recession. Plus much more news in this week’s briefing.
Economic/industry news
The Fed holds steady, raises expectations of rate cut: Fed holds rates steady, but opens the door for a rate cut in the future
The Bank of England kept its Bank Rate steady at 0.75%: BOE warns on global economic outlook as it holds rates steady
The inflation rate in Canada rises to 2.4% in May: Canadian ‘inflation is back’ as rate rises most since October
Can Fed Chairman Powell be replaced?: Trump believes he has the authority to replace Powell at Fed
The impact of geopolitical risk on emerging markets investments: Geopolitical tensions high on investors’ list when examining emerging markets
News and notes (U.S.)
Hedge funds fell 0.71% in May: Eurekahedge Hedge Fund Index down 0.71 per cent in May
Hedge fund redemptions were US$9.4 billion in April: Hedge fund redemptions slow in April
Paulson & Co. to exit London: John Paulson’s hedge fund scales back operations
Goldman Sachs increasing its PE presence: Goldman Sachs looks to become the next private equity giant
The use of subscription credit facilities rising: Private capital funds increasingly turning to subscription credit facilities
How IPOs backed by PE and VC have fared in 2019: Here’s how much VC- and PE-backed IPOs have raised in 2019
Will the SEC open up hedge funds and PE funds to retail investors?: Hedge funds for all: SEC ponders letting in the not-so-rich
U.S. retirement assets rebounded in the first quarter: Retirement assets recover from fourth-quarter swoon
News and notes (Canada)
First Asset launches the CI First Asset High Interest Savings ETF: First Asset launches high-interest savings ETF
SSQ launches Smart Beta Plus Portfolios: SSQ delivers Canadian first with turnkey portfolio products
Sun Life launches SLC Management: Here comes a new $160 billion asset manager
Manulife partners with Mahindra and Mahindra of India: Manulife enters joint venture in market of more than 1 billion people
Stifel Financial purchases GMP Capital’s capital markets business: Deal throws shackles off ambitious Richardson GMP
The Trans Mountain pipeline expansion gets approved, again: Trans Mountain expansion gets second green light from Ottawa
On the pulse – New frontiers in fintech
A look at AI in the financial services industry: What the age of AI means for Wall Street
Four trends that will lead to more innovation in fintech: 4 trends that will rewire the inner workings of the fintech industry
A look at the growth of point-of-sale financing: POS finance growth is threat and opportunity for banking providers
Fintech having a positive effect on consumers: Fintech boom has consumers reaping the benefits
Some key financial marketing trends that you need to know: 6 financial marketing takeaways from the 2019 Internet Trends Report
Looking at the impact of GDPR on AI: GDPR – How does it impact AI?
A look at the industries that could be transformed by blockchain: Banking is only the beginning: 55 big industries blockchain could transform
Blockchain company Ripple to invest in MoneyGram: Ripple buys stake in MoneyGram
Facebook to enter cryptocurrency space: Facebook plans its own currency for 2-billion-plus users
High-net-worth topics
A look at how to better serve the wealthy: How advisors can improve service for affluent clients
A digital experience in wealth management is important to the wealthy: Wealth managers and high-net-worth clients embrace digitization
Polls & surveys – What financials are saying
Over half of fund managers believe trade is the top risk to the market (BoAML): Bears are everywhere, Merrill investor poll finds
Advisors are preparing their business for a possible recession (Schwab): Advisors are bearish on markets, bullish on their own growth
Many millennial self-directed investors may move their business to another platform (J.D. Power): Millennials less satisfied with self-directed investing: report
Impact investors are meeting their financial goals (Global Impact Investing Network): Survey: 91% of impact investors happy with performance
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Wednesday morning briefing – June 19, 2019
A look at the hedge fund industry in May. How investors can survive the trade wars. Use of fintech services on the rise. High-net-worth investors are looking to forests. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate fell to 1.8% in May: US consumer prices barely rise; underlying inflation muted
How alternative investments can help retirement portfolios: The case for alternatives in retirement portfolios
Preparing for modern monetary theory: Don’t dismiss modern monetary theory, research affiliates warns
The outlook for the euro and pound given Brexit uncertainty: How is Brexit affecting currencies?
The importance of international diversification: Diversification means investing overseas too
News and notes (U.S.)
A look at the hedge fund industry in May: State of the industry – May, 2019
The Barclay Hedge Fund Index fell 1.47% in May: Hedge funds’ four-month run in the black ends in May with 1.47 per cent fall
A look at the growth of GP stakes fundraising: GP stakes fundraising is starting to boom
Blackstone raises US$4.5 billion for its second energy fund: Blackstone raises $4.5 billion for energy fund
How investors can survive the trade wars: Trade wars and tariff-mania: An investor survival guide
BlackRock focuses on launching thematic ETFs: BlackRock looks to 5 ‘megatrends’ to expand its ETF business
Legg Mason to make its strategies available to retail investors in Mexico: Legg Mason to offer funds to Mexican retail investors
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: June 11 edition
News and notes (Canada)
BMO launches a health care banking program: BMO launches program aimed at healthcare professionals
Evolve launches the Evolve Global Materials & Mining Enhanced Yield Index ETF: New global materials and mining ETF launched
Canada had a net outflow of foreign investment in April: Foreign investment in Canadian securities declined in April: StatsCan
Market value of trusteed pension assets fell 1.3% in the fourth quarter of 2018: Market value of trusteed pension assets declined in Q4 2018: StatsCan
On the pulse – New frontiers in fintech
Use of fintech services on the rise: Consumer use of fintechs for banking services skyrockets
Uber entering the fintech space: Uber is making a fintech push with a New York hiring spree
Why traditional banks need to prioritize a digital transformation: The logic of digital change
Use of digital wallets expected to grow by 2024: Half of world’s population to use digital wallets by 2024
How to combat financial crime: Joining the fight against financial crime
What you need to know about Gen Z: 15 things banks & credit unions must know before targeting Gen Z
Visa enters the cross-border, business-to-business transaction market: Visa enters the $125 trillion global money transfer market with new blockchain product
HSBC partners with Canadian firm to enhance AI use: HSBC ramps up artificial intelligence efforts with Element AI partnership
Shoppers Drug Mart to use blockchain technology to monitor quality of medical cannabis: Shoppers to use blockchain technology to track medical cannabis quality
High-net-worth topics
The high-net-worth are investing in forests: Wealthy families are adding forests to their portfolios
Luxury watch prices are increasing: Time is money: How luxury watch collectors show off their precious investments
Polls & surveys – What financials are saying
58% of institutional investors are utilizing smart beta strategies (FTSE Russel): More than half of institutional investors using smart beta strategies: survey
The ability to express empathy is important for financial advisors (STEP Canada): Do you really know how to express empathy to clients?
There is a retirement savings gap around world (WEF): Retirees risk running out of money a decade before death
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – June 10, 2019
Banks can make privacy a competitive advantage. High-net-worth investors are looking for private equity. The difficulties facing fintech firms as they cross borders. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate was steady at 3.6% in May: Jobs report: U.S. economy adds disappointing 75,000 jobs in May, unemployment rate holds at 3.6%
Canadian unemployment rate fell to its lowest level since 1976: Canada added 27,700 jobs in May; unemployment rate hit record low
ECB holds rate steady, pushes out possible rate increase: Euro rises as ECB pushes back rate hike deadline; raises inflation forecast
Would the Fed be willing to cut rates?: Powell hints Fed will cut rates if needed over trade wars
What the next recession could look like: Gauging the next recession’s severity
The benefits of farmland in a pension portfolio: A look at the role of farmland in pension portfolios
Sustainalytics launches ESG screening product: Sustainalytics launches new ESG screening tool and engagement service
News and notes (U.S.)
Who can replace a legend?: The race to replace Larry Fink
What to look for in an outsourced trading partner: Key considerations when choosing an outsourced trading partner
Regrets about going public: Apollo founder ‘absolutely’ regrets taking the firm public
A look at the next CIOs: II’s most wanted allocators: First team
The largest PE firms have been able to diversify across asset types: A new era of scale in the private capital markets
Fidelity reduces fees on target-date funds: Fidelity cuts target-date mutual fund fees as price war spreads
The SEC passed the Regulation Best Interest proposal: SEC passes regulation best interest by 3-1 vote
Household wealth in the U.S. up, growth rate of debt slowed: U.S. first-quarter household wealth hits record as stocks surge
News and notes (Canada)
Fidelity launches ESG funds: Fidelity launches 3 funds aimed at positive change
May was the best month in 2019 for ETF inflows: Canadian ETF inflows in May are the year’s strongest so far
The Canadian ETF industry still has a lot of room to grow: Why Canada’s ETF industry hasn’t peaked yet
An in-depth look at the Canadian mutual fund industry: Mutual Fund Guide 2019
Looking at the compliance challenges facing investments: OSC to launch new advisory committee
Protection of vulnerable investors a top priority of IIROC: IIROC sets strategy through 2022
On the pulse – New frontiers in fintech
Regulators and fintech firms need to coordinate efforts to create a better environment for innovation: BankThink Fintechs, regulators need more common ground
Making money in mobile banking using big data: Data can move mobile banking from ‘convenient’ to ‘monetized’
The difficulties facing fintech firms as they cross borders: 3 challenges of scaling a fintech company across borders
Creighton University introduces a degree in fintech: Creighton University among the first to create a fintech degree
The opportunity and risks of deploying AI: The potentials and pitfalls of applying AI in the financial industry
The U.K. has seen a rise in mobile banking, less use of cash: Rise in mobile banking and contactless as consumers take pick ‘n’ mix approach to payments
Banks can make privacy a competitive advantage: Why now is the ideal time for banking brands to assert their privacy role
Banks’ adoption of open banking will take time and trust: Mastercard’s Wadsworth: Banks need time to fit into open banking future
Why tech talent should consider banking: The war for (banking tech) talent
High-net-worth topics
How to advise people who come into sudden wealth: Advising ‘Jeopardy!’ champ Holzhauer on his $2.5 million payday
The high-net-worth rank trust as the number one requirement in an advisor: Satisfaction and loyalty just the start for high-net-worth clients
The high-net-worth are looking for private equity: Russ Prince: Wealthy investors want more private equity
Polls & surveys – What financials are saying
Asset managers are looking at creating ESG products (Cerulli): More than half of asset managers considering ESG products, Cerulli says
Some doctors are worried about unexpected expenses (MD Management): Is your doctor client worried about finances?
Combining human advice with robo may become the best approach (IFIC): Hybrid distribution channels set to rise: IFIC
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – June/July 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- The U.S. will announce its final first quarter gross domestic product (“GDP”) growth rate on June 27. In its second estimate, GDP growth was revised down to 3.1%, from an initial estimate of 3.2%. Fixed investment and private inventories were revised lower, while exports was revised higher. Despite the downward revision, economic growth was still strong and an improvement over the fourth quarter of 2018
- On July 3, the U.S. will announce its balance of trade for May. In April, the U.S. trade deficit narrowed to US$50.8B, versus US$51.9B in March. With fresh new tariffs imposed on China, along with retaliatory tariffs from China, this will be an important reading to determine what type of impact these actions are having on U.S. trade results
- The Canadian unemployment rate for June will be announced on July 5. In May, the unemployment rate was 5.4%, an improvement from the 5.7% in April. This is the lowest rate since 1976. The labour market has been particularly robust, adding jobs and seeing wage gains. Despite weakness in other parts of the economy, labour continues to be a strong spot, which bodes well for the overall health of the economy
- The Bank of Canada (“BoC”) will announce its interest rate decision on July 10. At its last meeting in May, the BoC held its benchmark overnight interest rate steady at 1.75%. The BoC will closely monitor economic data to determine whether or not further rate increases are needed. In its statement, the BoC noted that it will closely monitor consumer spending, the price of oil and developments in global trade. Of particular interest is the BoC’s belief that the recent economic slowdown was temporary
- On July 15, China will announce its GDP growth rate for the second quarter. The Chinese economy expanded 6.4%, annualized, in the first quarter of 2019. Personal spending contributed to growth, partly as a result of the government’s stimulus measures. However, China is deeply embroiled in a trade war with the U.S. and what impact further tariffs by the U.S. government will have on Chinese exports is yet to be seen
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Dig deep to build your hedge fund’s value proposition
There are a vast number of hedge funds hitting the scene every year – 735 were launched in 20171 – with a total of US$3.6 trillion in AUM by the hedge fund industry overall.2 That’s a lot of funds vying for investors’ attention.
To elevate your hedge fund above the fray and pique more interest from investors, you should start with a compelling, well-thought-out value proposition. A value proposition summarizes what makes your offering unique and why it’s well-positioned to deliver performance for investors. It can form the foundation for all your sales and marketing efforts, including your pitchbook and website.
Value propositions can take on many forms and vary in length, but an ideal structure consists of a powerful headline, sub-head and bullet points of all the factors that separate you from the pack. It should take on a tone and use language that resonates with your audience and, above all, be easy to understand.
Understanding your edge may take some soul searching
Figuring out the most compelling competitive advantages of your hedge fund isn’t a quick process. It requires profound self assessment and, perhaps, wider feedback from your team and partners. While these distinguishing factors may not seem apparent at first, if you dig deep enough, you may be surprised with what you find. Here are some avenues you may not have fully explored yet:
- Exceptional leadership. Your management core’s pedigree, pioneering ideas, accomplishments or shared work experience with other leaders may demonstrate a sound foundation and unique formula for success
- Productive culture. A collaborative environment, rigorous debate, uniquely structured team meetings or other distinct cultural traits may help to generate great investment ideas and attract investors
- Proven or potential success. A strong track record of performance immediately elevates your hedge fund above others. If you’re growing, you can still differentiate yourself by calling out past accomplishments that highlight the fund’s potential
- Distinct opportunity. The particular sectors/subsectors, regions, special situations, etc. your hedge fund is focused on – and how you capture this potential – may point to enhanced opportunity
- Special parts of your process. It may seem pretty standard from your vantage point, but your research methodology, proprietary technology, selection criteria or other tactics you integrate are compelling – and may directly delineate you from the rest
Contact us at 1.844.243.1830 or info@ext-marketing.com today if you would like to explore and communicate your hedge fund’s distinct qualities through a persuasive value proposition.
Sources:
1 Hedge Fund Research, Inc., HFR Market Microstructure Report, March 2018.
2 Hedge Fund Research, Inc., HFR Global Hedge Fund Industry Report, Q2 2017.
Monday morning briefing – June 3, 2019
A look at fintech’s progress in the small business market, the private equity market during the first quarter and why almost 50% of current students aren’t prepared to manage money. And much more in this week’s briefing.
Economic/industry news
The BoC holds its benchmark overnight interest rate steady: BoC holds rate, says numbers suggest slowdown was temporary
Global trade tensions are a major concern for the BoC: Trade war escalation ‘major preoccupation’ for Bank of Canada: top official
U.S. GDP revised to 3.1% in the first quarter: U.S. economic growth in the first quarter revised down slightly to 3.1 percent
The Canadian economy grew 0.4% (annualized) in the first quarter: First-quarter stall masks underlying strength in Canada’s economy
Low-volatility ETFs gain traction as markets become more volatile: Billions flow into low-vol and “buffer” ETFs as markets swing
A look at the difference between risk and volatility: The difference between investment risk and volatility
Mohamed El-Erian to become president of Queens’ College: Allianz’s El-Erian to head college at Cambridge University
News and notes (U.S.)
Hedge fund managers recorded a positive month in April: Hedge funds recorded fourth positive month of the year in April
Hedge funds and corporate social responsibility in action: How hedge funds use corporate social responsibility considerations
New Jersey pension to cut its exposure to hedge funds: N.J. Pension to cut hedge fund exposure 50% amid high fees
Bridgewater and Lyxor to partner on a UCITS fund: Ray Dalio’s Bridgewater is working with Lyxor on an alternative fund
A look at the PE market during the first quarter: 12 charts on US PE trends in 1Q
Dynasty Financial Partners launches M&A platform: Dynasty launches new M&A platform Dynasty Connect
Morningstar to purchase DBRS: Morningstar to buy Canadian debt-rating agency
Brookfield to invest in residential projects in Brooklyn and the Bronx: Brookfield seeks $1 billion for fund aimed at poor areas
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: May 28 edition
News and notes (Canada)
Purpose Financial purchases CreditGenie: Purpose acquires Toronto tech firm
Sharing data to reduce regulatory burdens for IIROC firms: IIROC and FINTRAC boost information sharing
Looking to bring a digital assets market to retail investors: Firms seek OSC approval on regulated market for crypto trading
Canadians aren’t financially prepared to retire: Canadians aren’t ready to retire?
VC investment had a 48% increase in the first quarter over the same period last year: Canadian VC investment boomed in Q1, while PE fizzled: report
On the pulse – New frontiers in fintech
Fintech has gone global: Fintech used to be a local game. Today it can be global
The impact of fintech on consumer loans: Fintech continues to disrupt consumer lending
Incorporating artificial intelligence into fintech: Everyday fintech use cases for A.I.
How to maximize the banking innovation lab: Time to ‘disrupt’ wrong thinking about banking innovation labs?
A look at fintech’s progress in the small business market: Fintech’s biggest new market is small business financing … but is it worth it?
Global regulator looking at key issues surrounding cryptoassets: IOSCO launches consultation on cryptoassets regulation
Robo-advice assets could grow to over US$1 trillion in five years: Robo AUM could reach US$1.26 trillion by 2023: report
High-net-worth topics
The wealthy may not want to pay more in taxes: Do wealthy clients want to pay more taxes?
The wealthy are moving to Florida: Florida wins big as wealthy leave northern states
Polls & surveys – What financials are saying
Canadian institutional investors may increase their allocation to alternative strategies (CIBC): Institutional investors adding alternatives, report says
Canadian CEOs are less optimistic than global CEOs about the Canadian economy (KPMG): Canadian CEOs’ confidence in the economy drops: report
Not enough Canadians have disability insurance (RBC): Half of Canadians have no disability insurance: survey
Almost 50% of current students aren’t prepared to manage money (AIG): Gen Z establishing bad financial habits, new research shows
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 27, 2019
Socially responsible investing by hedge funds on the rise. Using branches to help with a bank’s digital strategy. Institutional investors prepared for a market downturn. And much more in this week’s briefing.
Economic/industry news
The Japanese economy expanded 0.5% in the first quarter of 2019: Japan’s Q1 GDP: The details are worrisome
Will we see an interest rate cut by the Fed?: David Rosenberg says U.S. will cut rates by end of summer
Assets in passive and active U.S. equity funds at US$4.3 trillion each: Passive fund assets draw even with active incumbents in U.S.
U.S. ETF that pays investors will put pressure on fund fees: Fund fees face added pressure with first U.S. fund that pays investors
There were US$45.94 billion of net inflows into global ETFs in April: Global ETF assets reached US$5.57 trillion last month
News and notes (U.S.)
Asian, emerging markets and event driven hedge funds attracting assets: Event driven, Asia, emerging markets hedge funds are big asset winners in April and YTD
Socially responsible investing by hedge funds on the rise: Hedge funds start to figure out socially responsible investing
Appaloosa LP to convert to a family office: David Tepper’s hedge fund days are coming to a close (one day)
PE exits declined in the first quarter of 2019: Exit activity nosedives for PE firms in 1Q
Investors concerned about the return potential from private markets: Private equity loses luster
Possible changes expected to the tax treatment of carried interest profits: Mnuchin says no plan to change carried interest tax treatment
Vanguard launches first actively managed ESG fund: Vanguard’s first actively managed ESG fund now open for investment
News and notes (Canada)
Allianz Group invests $100 million in Wealthsimple: Allianz makes ‘landmark’ investment in Wealthsimple
Purpose launches options ETF: Purpose launches new options ETF
Canadian mutual funds experienced $1.0 billion of outflows in April: ETF sales trump mutual funds in April
Canadian debt levels continue to rise: CMHC says Canadian debt levels hit record highs at end of last year
Canadian executives expect strong revenue growth this year: Economic optimism underpins strong M&A market
On the pulse – New frontiers in fintech
Using branches to help with a bank’s digital strategy: Don’t abandon branches to favor digital banking channels
Outages causing problems for open banking: Open banking revolution on hold as banks fail to prioritise fixing outages
Banks spending heavily in digital transformation to ward off the threat from fintech firms:Banks waking up to fintech threat throw billions into digital
How artificial intelligence can help banks: How AI will supercharge bank and credit union innovation
The top 20 countries in AI readiness: UK near top of AI index
Attracting the Gen Z client: Are you focused on the right customer?
Trade AI Engine will provide a better experience for trade processing: Standard Chartered rolls out Trade AI Engine
Revolut launches group feature for its vault account: Revolut launches Group Vaults as an alternative to joint accounts
HSBC opens artificial intelligence lab: HSBC opens global data lab in Toronto
High-net-worth topics
What wealthy clients want from an advisor: How advisors can stand out to wealthy clients
A look at philanthropy from the CEO of the Center for Effective Philanthropy: What Wall Street gets wrong about giving
Cash holdings on the rise for the ultra-wealthy: A group of superrich investors, spooked by China and potential ‘black swans,’ raises cash to levels not seen in years
Polls & surveys – What financials are saying
Institutional investors prepared for a market downturn (Wilshire): Institutional investors think they’re ready for the next downturn
Approximately 50% of investment managers are using alternative data (IHS Markit): Half of investment managers use alternative data: report
Investment professionals bullish on U.S. equity markets (SPDR): Investors still confident in mid-2019, but risk tolerance dips
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Four quick tips for creating great client personas
We recently updated our client personas. Not that the old ones were bad, they just weren’t entirely accurate. Some vital concepts were missing. The personas weren’t … well … alive enough for us.
We don’t think we’re the only ones in the financial services industry who’ve dealt (or are dealing) with this issue. Firms across our industry are uncovering more and more meaningful insights about their clients and prospects.
In a sentence, our industry is changing and our clients are changing. If you haven’t revisited your client personas recently, we think now is the time. Changes demand it.
“Our industry is changing and our clients are changing. If you haven’t revisited your personas recently, we think now is the time.”
During our persona exercises, these tips helped guide our work. We believe they’ll apply to your work as well.
1. Hear “straight from the horse’s mouth”
Interview actual clients and prospects. You’ll be amazed at all the little things you pick up. These subtle details are often very important.
2. Create more than one … but not too many
It’d be easy to say that three is the perfect number. But two or four might be just right. Maybe one really is all you need. Just make sure you’ve clearly identified your primary targets. And in the age of micro-targeting, don’t be afraid to go a little deeper too, if your audience warrants.
3. Think hard about needs
What drives your persona to do what they do? Try and dig as deep as you can into their psyche. What makes them tick? Starbucks or Dunkin’ Donuts? Hopefully, you solve one or more of their needs and challenges. If you don’t, they may not be an ideal client/prospect.
4. Always include info about content
Try to uncover where your persona finds the content they need … and what format they like it in. Your content team will be forever grateful if they can tailor their work to the right audience.
“Your content team will be forever grateful if they can tailor their work to the right audience.”
Bonus: Create a persona for your firm
Who are you? What are you all about? You might surprise yourself and find that all these honest answers reveal something you didn’t know was there.
There’s more to say, but we think this is a good start to get you thinking about whether your personas are as robust and up to date as they need to be.
Creating personas can take a lot of time. But what we have found, and what we know you’ll find as well, is that the up-front investment always pays off.
Let us help you segment your client base, create your firm’s personas and strengthen your brand. Contact us at 1.844.243.1830 or info@ext-marketing.com.
Hedge funds need great websites to connect with investors
We’re well into a promising new era of hedge fund marketing that began when the SEC ended an 80-year-old ban in 2013 that prevented private funds from broadly advertising their services.
Hedge funds used to be limited in how they promoted themselves online. But if you’re running a hedge fund or in the process of launching one, you now have the internet at your disposal to better communicate your message and connect with investors.
If you think your current digital strategy and your hedge fund’s website design could use some work, or if you’re on the fence about having a website at all, here are some important points to consider.
Build credibility and trust
If you’re focused on institutional investors, allocators or other well-informed groups, they’re no doubt researching funds online before meeting with you. In fact, 61% of B2B customers start their analysis with a general web search and 56% start directly on specific company websites.1
Having a professional website is your opportunity to immediately express who and what is behind your fund and, in turn, build a level of trust that’s essential with sophisticated audiences.
Be noticed and stay above the fray
If your peers have tapped into the power of search engine optimization (“SEO”), then you need a well-constructed site that can be found too.
This can mean the difference between being noticed or buried by a host of other competing fund messages. Case in point, 75% of users don’t bother clicking the second page of search results, so staying above the fray with a compelling, searchable site is critical.2
Enhance your brand and sales efforts
Hedge fund branding remains a pivotal part of the industry. Aside from pitches, a great website may be the most important way to tell your story. A well-designed website will help you distinguish your value proposition, team expertise and the strength of your investment process. It will set you up for better conversations with investors and help you explain the benefits of your fund.
Simply be there for investors
Simply being accessible and making it easy to contact you with questions and concerns is important. Having a website that highlights key team members and their contact information provides transparency and legitimacy.
If you’re looking to distinguish your hedge fund, build trust or capture more attention with a strong website, we can help. Contact us at 1.844.243.1830 or info@ext-marketing.com.
1 Demandbase, Demand Gen Report’s 7th Annual B2B Buyer’s Survey, 2017
2 ImFORZA, 8 SEO Stats That Are Hard to Ignore
Tuesday morning briefing – April 23, 2019
Hedge funds can’t ignore the widespread adoption of ESG principles. Family offices becoming the preferred model for high-net-worth advisors. How organizations can optimize their use of data. And much more in this week’s briefing.
Economic/industry news
The inflation rate in Canada rose to 1.9% in March: Inflation rises 1.9% on higher fresh vegetable prices, mortgage costs
China’s economy expanded 6.4%, annualized, in the first quarter: China’s economy had a steady start to 2019
Business sentiment is falling: BoC survey finds negative level of Canadian business sentiment
Institutional investors believe that equities are reaching their peak: More than half of institutional investors think equities peaking
Plan Sponsors are using less-conservative default investment options: How default investment funds are becoming smarter
The shift from the AUM pricing model: 5 truths about the pricing revolution in wealth management
What you need to know about a fund’s performance history: How important is a fund’s performance history?
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 1.06% in March: Eurekahedge Hedge Fund Index up 1.06 per cent in March
Hedge funds off to a strong start in 2019: Hedge funds had their best first quarter in 13 years to start 2019
Hedge funds can’t ignore the widespread adoption of ESG principles: Hedge funds ponder the ethics of shorting unethical companies
Secondary buyout deals growing: The median size of US secondary buyouts has nearly doubled since 2015
VCs showing interest in the “mystical services market”: Why are venture capitalists pouring billions into astrology?
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 16 edition
Will New Jersey institute a fiduciary rule for financial advisors?: New Jersey moves to impose fiduciary rule on brokers
Ensuring ETF names stay true to their objective and strategy: SEC cracks down on ETF names that could be misleading investors
News and notes (Canada)
BMO looking to expand its alternatives business globally: BMO’s Asset Management arm eyes alts expansion
Ninepoint purchases LOGiQ Global Partners: Ninepoint Partners acquires institutional advisory business
Agora Dealer Services launches wealth management platform for independent advisors: New digital platform for independent advisors
Advisors taking interest in the RI designation: RI designation gaining momentum among advisors
On the pulse – New frontiers in fintech
Canadians are concerned about privacy issues in open banking: Accenture survey reveals consumer hesitancy toward open banking
There’s plenty of opportunity for traditional banks to take advantage of the weaknesses in direct banks: Direct banks may be good, but they’re not unbeatable
A look at the benefits of contactless payments: The benefits of a cashless society
The European Commission provides ethical guidelines on testing new AI systems: European AI guidelines give hesitant developers green light
A look at a few developments in the AI space: 5 artificial intelligence developments to watch
How insurtech is catering to the younger generation: How insurtechs are shaking up a trillion dollar industry
Challenger banks must be able to respond to customer problems: Leaving customers digitally high and dry … big mistake
How organizations can optimize their use of data: The three considerations of data: standardize data, data strategy and data culture
Mastercard purchases POS financing company: Mastercard moves into POS financing with Vyze acquisition
Fintech firm merges with Difference Capital: Digital disruptor Mogo announces merger for accelerated growth
High-net-worth topics
Family offices becoming the preferred model for high-net-worth advisors: For high-net-worth clients, it’s not about the brand name, it’s about the experience
The impact of holding digital assets in trust: Digital assets in Bermuda
Advisors must get to know, and understand, the children of high-net-worth clients: What you need to know about the children of your wealthy clients
Polls & surveys – What financials are saying
Customer satisfaction with investment firms declined in 2018 (J.D. Power): Canadians’ satisfaction with investment firms drops
58% of millennials in the U.S. are saving for retirement (LendEDU): Most millennials are saving for retirement, prefer human advice: study
Many Americans don’t know about social investing (Newton): New survey finds most Americans unaware of ESG investing
Only 10% of Canadians are very comfortable with self-directed investing (TD): TD survey finds Canadians aren’t comfortable with self-directed investing
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Are passive ETFs passé?
While passive exchange-traded funds (“ETFs”) represent a significant majority of the capital flowing into the US$3.4 trillion global ETF industry, actively managed and strategic beta (rules-based) ETFs could be poised to quickly gain ground on their passive peers.
Actively managed and strategic beta ETFs are among the most popular types of strategies being launched by ETF providers. However, this news isn’t all bad for passive ETFs.
A rising tide is lifting all boats
The 2018 calendar year was rough on many investors, and the volatility that defined the period negatively impacted the ETF market. In fact, global inflows decreased by approximately 20% year-over-year from 2017.
Still, 2018’s US$516.1 billion in investor inflows was a significant amount, and this was the second-best year on record for inflows into the industry.1 So, even if passive ETFs’ market share actually declined, in absolute terms, interest in passive ETFs appeared to still be healthy.
The relationship between the different ETF strategies is … complicated
The shift into active and strategic beta ETFs is hardly the first time the relatively young ETF industry has undergone significant change.
Current trading volumes reflect an ETF market dominated by large professional investors, quantitative strategies and institutional investors. This is a far cry from the industry’s early days, when it was dominated by smaller, individual investors.2
In concert with the continued growth of the industry, and of active and strategic beta ETFs in particular, this shift could suggest increased investor sophistication and a greater investor comfort in using ETFs as part of more nuanced portfolio strategies.
Such strategies often involve combining active and passive investments to work in concert – for example, the “core-and-explore” investment strategy often begins with passive investments as the “core” by default.
This could help establish passive ETFs as important strategic components of a given portfolio, in addition to the benefits of their relatively low costs.
Changes in the ETF market occur quickly and often, which makes finding the correct positioning for your investment solutions essential. Contact us today at 1.844.243.1830 or info@ext-marketing.com to learn how we can help you better market your solutions in this ever-changing investment landscape.
Sources:
1 Chris Flood, “ETF growth sputters after markets’ ‘rocky ride’ in 2018,” Financial Times, January 11, 2019.
2 Ted Seides, “The Death of Passive Management?” Institutional Investor, September 9, 2018.