The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:When Numbers Ain't Enough Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, March 20, 2014

When Numbers Ain't Enough

News summary by MFWire's editors

Don't you hate it when investors go beyond the numbers?

MarketWatch's Chuck Jaffe examines the quandary faced by one investor in her 60s who owns a fund that generated annualized returns of 30% for the past five years, and was advised by her financial advisor to sell the fund because it wasn't the "right fund" for her.

Instead the financial advisor advised another fund that also generated 30% annualized returns over the same five years, but had other characteristics that were better for her.

Scandalous! Irresponsible! Communism! You might declare.

Or it could be a sign that the investing world has evolved beyond, far beyond, plain numbers.

Read Jaffe's column to learn more about the specific points as they related to the case of the 60-something investor, but in general, funds are now getting vetted for all sorts of things beyond performance, like kinds of risk, consistency, yada, yada.

The important point for you fundsters is that your marketing strategies, which you've undoubtedly evolved at least somewhat, will need to continue to evolve.

Things like solutions, and client-focused products, value adds, and so much talking and engaging of the public.

You need to move beyond baseball scores with your funds to value propositions and rationales about your funds that you never had to address before.

Some may call these propositions "schticks," "mumbo jumbo," or worse, but at the end of the day, when an investor or advisor asks "Why should I buy your fund?" you're going to have to do a lot more talking than you did in the past.

How are you going to answer them? 

Edited by: Ning Zhou

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use