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A Picture is Worth 978 Words

Posted by Mike McLaughlin on Oct 14, 2011, in Thoughts , tagged with , ,

Two weeks ago we did a presentation for a client on infographics – what they are, how they can be used, the process for creating them, and some strong examples from asset management. With that discussion fresh in my mind, I read Richard Thaler’s article from last Saturday’s New York Times.

Thaler, whose work I really admire, writes about how the government, companies, and individuals are paralyzed by the current financial climate and holding off on investments they should make now. In other words, those that control the purse strings have become proverbial deer-in-the-headlights.

It’s a solid argument, and Thaler takes 978 words to make it. As I finished the article, I immediately thought of an interactive infographic from John Hancock Funds’ Web site.

This shows the beauty of even a simple infographic. Though Hancock’s message differs from Thaler’s – the focus is on people’s willingness to invest in securities based on recent market performance – they tell a similar story with a visual and 10% of the word count.

The natural communication approach for most asset managers involves charts and tables surrounded by paragraphs of text. This example shows that better options are out there.

Vanguard Making Use of Old Content

Posted by Mike McLaughlin on Oct 12, 2011, in Thoughts , tagged with , , ,

This is outstanding:

Vanguard references an article it first published in 2009.

The reason? Vanguard re-used a solid piece of content it initially produced almost two years ago.

In the constant battle to create more and more new content, firms too often forget that they’ve produced tons of great material in the past. Most of it is buried, never to see the light of day. Often this is because firms simply don’t have good organizational memory on what they’ve previously created.

But there is definitely ongoing value in certain less-than-new pieces. It’s good for clients and easy for the firm. Nice job here by Vanguard.

Alternative Products and the Importance of a Hook

Posted by Mike McLaughlin on Oct 11, 2011, in Thoughts , tagged with ,

Take a look at the overview of alternative funds from AQR:

Then, go one step further and look at the initial presentation of the investment approach for the Managed Futures Strategy Fund:

We all know marketing alternative vehicles is difficult. The diversity of strategies, and the still-limited knowledge of many advisors and investors will continue to be significant roadblocks.

But the AQR example also highlights an important issue: initial presentations of alternative vehicles often lack a hook. There is no element that specifically calls out why I should delve into the complexities of this fund.

I don’t really watch a lot of cooking shows, but I’ve seen enough to know that the show almost always begins with a preview of the fully-prepared dish. That’s the hook. That’s why you’ll stick around for 30 minutes and invest your time in the details of the ingredients and process.

People’s lack of familiarity with alts means they’ll need to invest extra time to understand them. This reality gives elevated importance to the initial hook, and alternative providers need to focus more on putting their best foot forward.

Best Blogs of the Week

Posted by Anu Heda on Oct 11, 2011, in Best Blogs of the Week , tagged with , , ,

Apologies for the one-day delay. The tremendous weekend weather (in New York) took precedence over this blog.  Though we’re not tracking precisely, the volume of industry blogs is increasing.  More firms are blogging and the firms with established blogs are increasing frequency. Both are encouraging.  This week’s best include three different topics – all highly relevant for advisors fielding calls.

  1. BlackRock – This post shares a few fresh perspectives on gold.  From previous research engagements, I know advisors sometimes get “benchmarked” against gold.  While totally unfair, you can hear an investor saying “why don’t I just invest in gold?”
  2. Russell – This post provides a succinct job of heading off conversations that compare the US economy with Japan’s economy and aging population.
  3. Vanguard – This post provides a succinct job of comparing current economic situations in the US and China.

Best Blogs of the Week

Posted by Anu Heda on Oct 03, 2011, in Best Blogs of the Week , tagged with ,

This week’s best blogs have two different takes on the potential for a double-dip recession.  Not only is the topic very timely, but BlackRock and Russell set up the blog posts in FA-friendly manners.  So as advisors read these blogs, they could easily incorporate the ideas into discussions with their clients.  The third is from a newcomer – NYLIM.  It’s not really a blog post but the Q&A format is interesting and the 3-question format is similar to a blog.

  1. BlackRock – This post shares what to do if a double-dip is imminent.
  2. Russell – This post points out the opinion of numerous managers on a double-dip.
  3. NYLIM – This Q&A discusses high-yield in a succinct, informative manner.