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2014: A Year of Blogs (Part II)

We’re highlighting lessons from evaluating 1,500 blog posts in 2014. Part II builds from part I: get the basics right. Equally obvious and still ignored, the second best practice is get to the point quickly. Every potential reader begins by assessing the post’s potential value through the title and first sentence. If the topic is clear and pertinent, potential becomes realized and firms can build towards their blogging goal: build awareness. Putnam excels here with this post. The title pulls in FAs by addressing a typical concerns: downside due to sudden market changes. Then the post’s first sentence relates to a highly recent issue (mid-December volatility). The title along with the first sentence are strong and will draw many visitors to read the post completely.

 

putnam

2014: A Year of Blogs (Part I)

In 2014, we reviewed over 1,500 individual blog posts to create the Best Blogs of the Week. In reviewing that volume, we identified five best practices consistent across the best posts. These practices range from the obvious to the counter-intuitive. Before we delve into the best practices, we need to agree on asset managers’ broad goals for an in-house blog. Broadly, marketers reference driving brand loyalty and increasing awareness as the two most frequent blog goals. With that in mind, we highlight best practices supporting these two goals.

Best Practice I – Get the Basics Right

Everyone intends to get the basics right; yet many firms continue to ignore or simply struggle with them. The basics are:

  1. Indicate the author
  2. Use a modern design
  3. Provide limited and pertinent tags
  4. Ensure readability via mobile devices

Author

Each blog post must indicate the author’s name, provide a photo and allow the reader to see his/her other posts. BlackRock gets it right with the left-hand rail available in each post. Alpholio (right-hand side) provides no names.

BlackRockAlpholio

 

Modern Design

The blog must use large fonts, multiple high-quality graphics, and an engaging color palette (all easier said than done). Natixis uses bold, contrasting colors with large fonts and easy access to social media, while JPMorgan relies on a more conservative approach with small fonts, limited graphics, and a continuous stream-of-conscious look.

ngam jpm

Tagging

Tags are highly subjective. Some firms use no tags while others exceed 30+ (therefore categorizing posts into too many small groups). 10 is probably a good upper bound; AllianceBernstein sets a good example with 10 straightforward tags (We do come across “General” or “Markets” a bit too often.).

AB

Mobile Readability

Many FAs will use their phones and tablets to scroll through posts while idle (e.g., sitting in traffic), so ensuring clear readability and expandable graphics remain critical.

Digital Lesson from Robo-Advisors

Throughout 2014, we read much about the emerging robo-advisor industry and how it may be the disruptive technology to ‘revolutionize’ the traditional financial advice/guidance industry. Personally, I think revolution is probably a generation away, if at all. Regardless of the potential disruption, asset managers can improve their digital execution by learning from robo-advisors. To my eye, the best example is in tax-loss harvesting. Tax loss harvesting is a popular topic with financial advisors and many asset managers develop related FA support materials. Look at these blog posts from Russell, Vanguard, and BlackRock (best of the three).

Yet typical materials and blog posts rely on the user reading a lengthy, uninterrupted piece to better understand tax-loss harvesting. This Betterment implementation surpasses those by mingling text, video, graphics, and multiple sub-sections. Simply, Betterment presents a relatively dry and important topic in an engaging manner that asset managers could benefit from studying.

betterment

Best Blogs of the Week

Three quick-reading blog posts this week covering three, highly different topics

  • BlackRock – A post from a millennial that references Robo-Advisors!
  • OppenheimerPost with 6 current Q&As. Question 3 seems to receive a lot of attention in the financial news. This answers reads more clearly than most articles I’ve seen.
  • Russell – Really just a valuable (yet amateur-looking) chart for FAs to utilize with clients frustrated with overall portfolio yield.

 

It’s A Lot About the People

A few weeks back, Ignites ran a poll (subscription) on the desirability of marketing star portfolio managers to retail investors. 60% of respondents indicated that focusing on the star PM is an unfavorable strategy.

It’s an interesting question, and despite the fact that there is no absolute answer you can count me in the minority. I’m not advocating promotion of a singular star necessarily, but more aggressive marketing of the investment team in general. It’s a weird quirk that the presentation of a investment strategy so often places the people driving that strategy in the background. The investment philosophy and process of most active mutual funds, for example, is broad enough where two different PMs can make markedly different decisions, craft different portfolios, and deliver significantly different results. So isn’t the person driving that fund paramount?

There is already evidence of firms raising the profiles of investment staff. Oppenheimer and JPMorgan offer two examples. I’d argue that asset managers will (and should) continue to build more depth around people in marketing their products. Going further, I think a greater focus on people will emerge in the passive space; after all, passive strategies are still ultimately designed by human beings.

Sure, there are always risks associated to marketing individuals. They change jobs. They retire. Some have personal shortcomings. Some are less than photogenic. But the reality is that the individuals are largely what firms need prospective investors to buy, and so they need to be a big part of any product’s story.