Investor Understanding and Trust Drives Asset Flows

Chestnut’s Investor Education Programs Drive Asset Flows

The data are clear: There is an unambiguous link between strong investor education programs that build investor trust, and the growth of asset management firms. The largest asset managers have invested the most in their investor education efforts over the last 10-15 years. Sales and marketing costs now make up nearly a quarter (24 percent) of the cost base, second only to the investment management function.1

These managers are now perceived as the most trusted by investors and have gained substantial market share. Our research shows trusted asset managers:

  • Raise over four times more capital than top investment performers
  • Are hired 3-12 months more quickly
  • Are retained 3-12 months longer
  • Have clients that are easier to up-sell and cross-sell

If you want to win big, performance alone won’t get you there. Outstanding investor education that builds investor trust is a critical tool for successful asset managers.

1) Source: Mckinsey and Company

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