How can Asset Managers Build Assets Under Management by Connecting Strategies?

Asset managers are keen on growing their business, and it generally involves increasing their Assets Under Management. AUM is the total value of securities a financial advisor manages for its clients. Earlier, an AUM of $100 million was enough for success, but now even $1 billion is less. A higher AUM for a fund signifies higher investor participation, which puts due pressure on advisors to grow with targeted AUM reporting. The five steps mentioned below will help asset managers build AUM by connecting strategies.

  1. Bifurcating Clients Regardless of Profitability

One strategy is to segment the clients regardless of their profitability. Identifying profitable clients’ common traits will help segment clients who need more attention and time. Besides that, bifurcating the clients spotlights the advisors’ focus on most business development efforts. The best strategy is to combine profession, demographics, and assets rather than focusing on investments alone.

  1. Providing Appropriate Services 

The asset manager must complement their skillset and provide appropriate services according to their clients’ needs. The key is to adjust the services according to the clients’ current position and possible future evolution. Individuals with high net worth benefit significantly from sophisticated asset location, estate planning, and investment management strategies. Simultaneously, business owners require advanced solutions for retirement, insurance, and exit plans.

Whether an asset manager captures investment opportunities according to the client’s principles or specializes in serving targets, the key is to offer different AUM reporting services that can help rise above the competition.

  1. Streamlining Operations and Staffing

As an asset manager offers better services to profitable clients, they must examine their staffing model and ensure high responsiveness and low redundancy. It entails everything from adopting software, using tech tools, assigning duties, and retraining team members. Every member must have a distinct role according to their career goals and strengths. That way, they stay motivated and exceed expectations.

  1. Connecting With People to Win Referrals

Connecting with people of influence, such as attorneys, local accountants, etc., can become excellent sources of referrals. Therefore, it’s crucial to establish cordial relationships with such people. Instead of making a cold call and asking for a referral immediately, having a dialogue with them, explaining them who the asset manager is and what clients they serve would help. It’s also essential to ask them about their service model and business. Serious professionals often love to talk about their business. Flattering each other virtually ends up exchanging referrals, which is mutually beneficial for both parties.

  1. Adding Passionate Advisors to the Staff

Adding younger, driven, and passionate advisors to the staff is one of the fastest routes to building AUM. Apart from paying them, they might also demand a voice in their firm-wide decisions. However, the rewards are considerable. They may also bring their own influential people and clients and valuable perspectives to tweak services and operations for the best growth.

Connecting these strategies is highly successful in improving organic growth and getting new clients from multiple sources. Asset managers must follow paths based on their interests and skills and use a straightforward methodology to grow Assets Under Management exponentially.