Key insights

• ⭐ Asset management sales influence commercial success of firms through sales, marketing, and relationship management training
• 💼 Asset managers target both normal investors and institutional investors
• 💰 Revenue is generated based on assets under management, and costs include salaries, marketing, research, and overheads
• 📈 Fund grows through increase in assets under management and wise investing
• 🔍 Attracting new assets to underperforming funds is challenging, but larger funds have more buying power and access to research
• ⚖️ Sales success is crucial, securing mandates, and enhancing fees while regulators impose restrictions on sales and marketing practices
• 📚 Sales skills courses involve industry practitioners and the success of asset management firms depends on effective communication by the sales and marketing team

Q&A

• How does learning and development influence the success of asset management firms?

  Sales skills courses at financial management firms involve industry practitioners from fund management, customer centricity, and strategic customer service. The success of asset management firms depends on the symbiosis between running a great fund and effective communication by the sales and marketing team. The influence of learning and development (L&D) is greater on the sales side than on the investment side of the business.

• Why is sales success crucial in the fund management industry?

  Sales success is crucial in the fund management industry as it can significantly impact the business by securing mandates and enhancing fees. However, regulators are imposing restrictions on sales and marketing practices, requiring them to be directly helpful to investment decisions.

• What are the challenges and advantages of fund size in asset management?

  It's challenging to attract new assets to an underperforming fund, but a larger fund offers more buying power, access to research, and lower trading costs. For example, the BlackRock fixed income Global opportunist fund saw a significant increase in size despite a drop in performance due to effective sales and marketing efforts.

• In what ways does a fund grow and make money?

  A fund grows and makes money through the increase in assets under management and fund performance. This growth can be achieved by investing wisely and attracting new investors. The success of a fund depends on both fund performance and sales, as they rely on each other. Investors often base their decisions on past performance, leading to a reliance on past performance for sales.

• How do asset managers generate revenue?

  Asset managers generate revenue based on assets under management, targeting both normal investors and institutional investors. The costs of running a fund include salaries, marketing, data feeds, research, and general business overheads. Typically, asset managers need at least 500 million dollars in their fund to cover costs and stay in business.

• What is the role of asset management sales in the commercial success of asset management firms?

  Asset management sales play a crucial role in influencing the commercial success of asset management firms through sales, marketing, and relationship management training. These efforts help the firms invest money for others and target investors such as big institutions, corporations, pension funds, and high net worth individuals.

• 00:00 The power of asset management sales lies in influencing the commercial success of asset management firms through sales, marketing, and relationship management training. Asset management firms invest money for others through various teams and target investors such as big institutions, corporations, pension funds, and high net worth individuals.
• 06:17 Asset managers target both normal investors and super-rich, generating revenue based on assets under management. Costs of running a fund include salaries, marketing, data feeds, research, and general business overheads. Asset managers need at least 500 million dollars in their fund to cover costs and stay in business.
• 12:15 The video explains how a fund grows and makes money through the increase in assets under management and fund performance. It emphasizes the two ways to grow the fund which are investing wisely and getting new investors. The success of a fund depends on both fund performance and sales, as they rely on each other.
• 18:10 It's challenging to attract new assets to an underperforming fund, but a larger fund offers more buying power, access to research, and lower trading costs. The BlackRock fixed income Global opportunist fund has seen a significant increase in size despite a drop in performance due to effective sales and marketing efforts.
• 23:34 Sales success is crucial in the fund management industry as it can have a significant impact on the business by securing mandates and enhancing fees. However, regulators are imposing restrictions on sales and marketing practices, requiring them to be directly helpful to investment decisions.
• 29:03 Sales skills courses at financial management firms involve industry practitioners from fund management, customer centricity, and strategic customer service. The success of asset management firms depends on the symbiosis between running a great fund and effective communication by the sales and marketing team. The influence of learning and development (L&D) is greater on the sales side than the investment side of the business.