Category Archives: Pitchbooks
Separately Management Accounts (SMAs) are on a roll. Traditionally designed to target the wealthiest individuals and families, defined benefit plans and endowments, they’ve often been treated as a niche product or a way for managers of mutual funds to manage multimillion-dollar portfolios directly.
But that’s changing. According to research from Cerulli, assets held in SMAs grew by 34% year-over-year from the first quarter of 2020 to the first quarter of 2021 and now command a 16% share of the $9 trillion held in managed accounts. Cerulli’s research also indicated that advisors planned to boost their usage of SMAs by 19% in 2022 while reducing the use of mutual funds by 12%.
The conversation about investment marketing and sales alignment began over a decade ago. After ten years, less than 50% of organizations surveyed said they aligned appropriately to achieve the financial results for which they are accountable.
The resistance persists because achieving the synergies between marketing and sales is not viewed as transformational. It does not get the top-down executive support it requires. Nor does it get the governance structure that major transformation initiatives require to succeed.
There was a point in time when alignment between the two organizations made perfect sense. In today’s digital world where buyers prefer digital self-service (Figure 1) and remote human engagement, it is no longer the right way to think about the relationship between marketing and sales.
Asset management firms that don’t automate the investment data processes pay the price every quarter in the form of time-consuming manual work, as well as the risk of human errors. The costs – including the opportunity costs – add up significantly over time. At a recent webinar, we explored how asset managers can get off the quarter-end hamster wheel forever and achieve long-term ROI through effective data automation. Below are some highlights from the conversation.
The shift from active to passive investing continues to drive significant change for investment management sales and marketing. In this article, investment marketing consultants Sandra Powers Murphy and Donna DiMaria explain what marketers can do to help their firms grow AUM in today’s challenging environment.
According to DiMaria, operational efficiency in sales and marketing has become imperative, and asset managers are taking note.
“Firms are looking to be more efficient, doing more with fewer resources both in terms of bodies and budget. And that is leading to consolidation, outsourcing, and automation. The status quo isn’t working anymore so, in a way, the market is recreating itself,” she said.