High quality content sparks investor confidence and helps managers build credibility. New research now proves there is an inherent connection between robust thought leadership and institutional investors’ investment decisions. CoreData Research establishes the link between the content investors consume and its impact on their engagement with the asset managers producing it.

It is a well-known fact that CIOs and other investment decision-makers are time poor. Therefore, the content they choose to engage with is not simply for marketing value, but rather they access insights which factor into their decision-making process.

Almost half of institutional investors in our study say quality thought leadership offers clarity on complex macroeconomic trends (49%) and sheds light on emerging topics (47%), helping them stay ahead of the curve.

A similar percentage (48%) also say this type of content challenges their current thinking in relation to strategic asset allocation and portfolio construction. Quality thought leadership has also made investors identify a potential risk or opportunity.

One CIO interviewed in the study says: “Thought leadership is step one to more sustainable, long-term alpha.”

This shows thought leadership is not just a marketing exercise to help showcase an asset manager’s brand but is fast becoming part of the manager selection process.

Content validates managers’ expertise

Our research identifies the influence that high quality content has on investors’ actions. An overwhelming majority (82%) acknowledge strong thought leadership drives engagement with asset managers – either by inspiring them to read more content from that firm (64%) or leading them to engage with them in another way (49%).

Compelling thought leadership not only boosts awareness among investors but also builds credibility before the manager makes any form of pitch. For example, one CoreData Research client told a story of how the primary research his firm conducted served as a conversation starter for a committee member when meeting a new prospect. The prospect ended handing down a large mandate, significantly boosting a newly-launched fund.

Almost half (49%) say thought leadership helps validate a manager’s expertise and 23% say it placed a brand they’d never heard of on their radar. This shows how a strong content strategy can support managers in their go-to-market efforts by giving additional credence to their skill and knowledge of their chosen markets.

Thought leadership keeps brands in play

The study confirms that thought leadership has a role to play in the way mandates are handed down by institutional investors and although it’s not a deciding factor, it has the power to decide who gets a meeting. One CIO interviewed in this study acknowledges: “Thought leadership rarely clinches a deal but helps keep brands on the shortlist.”

The final choice of manager depends on their fit with investor portfolio needs – if there is no alignment then no amount of quality content can make that match happen. However, smart thought leadership can make a difference if two managers are neck and neck and both align with the investor on many criteria.

Strong content demonstrates a manager’s priorities; it keeps their existing and potential clients squarely in the frame through relevant, timely pieces which resonate with their intended audience. Adding the element of primary research further lends the manager a more authoritative and credible voice in the market.

This all culminates in a better standing among investors.

Thought leadership may not be enough to sway a decision but it has the power to keep managers on the shortlist, and that’s half the battle. It’s no longer optional, it’s the price of entry.

Next steps

What constitutes high quality thought-leadership? Our panel of investors shared what they consider good value content. In our next article, we will reveal the primary qualities investors say define true thought leadership. If you want a sneak peek you’re welcome to contact me directly on [email protected]