Using ESG to differentiate your asset management brand

Asset and fund managers have traditionally relied on performance to attract investors. However, with so many investment strategies and vehicles crowding the market, simply delivering good returns may no longer be enough.

ESG is a prime territory to set you apart and create a distinct positioning that appeals to specific investor groups. Its importance to investment decision-making continues to grow with investors flocking to ESG-themed funds.

Know thy competitors

Many funds struggle with creating an effective ESG strategy. Simply talking about being environmentally aware or community-minded won’t cut it. A single website page highlighting your ESG aspirations will likely come across as greenwashing. These days, you need to demonstrate genuine depth and insight.

Understanding the landscape is essential. Closely analyse what your competitors are doing and whether there’s real substance to their ESG commitment beyond the glossy website claims.

Discover also what the market is currently looking for in terms of fresh thinking and content – from avoiding sectors such as polluting chemicals, armaments or gambling to actively focusing on say education, social inclusion or recycling. Then see which ESG themes best align with your strengths and capabilities.

Communicate your good deeds

Keep your focus narrow and concentrate on delivering credible and measurable results. Having done the hard work, you can now look at best communicating these initiatives to your key investor groups to create greater engagement.

Can you incorporate your ESG commitment into your overall brand identity and narrative and thereby enhance it? As an asset manager, should you be deploying advertising and communication campaigns to highlight the positive impact your ESG policies are making?

Creating a strong ESG proposition supported by proof points is valuable. Some firms that led the way in embracing ESG, have failed to evolve and been eclipsed by newcomers with a more compelling ESG story. Staying tuned to the latest developments will help keep your narrative fresh and relevant and enrich your investor materials and fund reports. And of course, ESG should always be seen as a means to enhance long-term, risk-adjusted returns.

You could also aim to become a credible voice in this space, educating staff, clients and wider audiences about ESG issues. Integrating ESG throughout your operations and culture will enhance brand credibility and attract like-minded investors.

Need help in crafting your ESG narrative, then weaving it into your investor materials? We’d love to have an introductory chat.