Investment funds do not spontaneously generate their own growth, attracting new investors with ease and retaining existing ones with convenience.
They do not distinguish themselves from tens of thousands of — or hundreds of thousands of — alternatives by performance alone, as if the hard work of expressing a fund’s strengths is something anyone can do; thereby making the technical general, and the complex simple, by issuing nothing more than an email or a publishing post on social media; as if the sophisticated courtship between a fund manager and a journalist or analyst, the long back-and-forth of meetings and interviews, and question-and-answer sessions, can yield to the exchange of pleasantries — and the consumption of drinks — at a bar; as if marketing and communications, the very resources responsible for increasing a fund’s return on investment (ROI), can — literally — be put on ice, contained within those diluted cocktails on the rocks.
These are the mistakes fund managers make.
First, there are fund managers who remain silent.
They wrongly believe that, by some digital form of osmosis, word will spread at the speed of the electron; signaling investors in Manhattan and Miami — and Toronto and Tokyo — to buy this or that fund right now.
Secondly, fund managers may know how to invest other people’s money — but they often do not know how to invest in expanding their own respective funds.
Only by hiring an investor relations (IR) expert — only by having a professional who is fluent in the language of crafting relevant news and overseeing crisis management — can a fund protect itself from rumors and innuendo; only by maintaining an ongoing conversation with the powers that be — only by talking about and on behalf of the issues that matter to investors — can a fund manager focus on his or her job, while I do mine with dedication and discretion.
That path is the way forward.