The SEAMIx index measures, for the first time, the brand identity and visibility of Swiss independent fund managers based on their publicly available data. Its analysis reveals a sector that remains relatively unstructured in these areas. Jean-François Hirschel and Markus Kramer break down the key findings here and highlight the scope for improvement available to independent fund managers.
What is the rationale behind the creation of the SEAMIx index?
In Switzerland, the independent asset management sector is undergoing a major transformation. Regulation is tending to standardise processes, whilst technology is making certain services commonplace, thereby reducing their ability to set firms apart. In this context, identity and brand become strategic levers for expressing a firm’s uniqueness and standing out to its clients. They also play a key role in growth, as the recruitment of talent, the integration of teams or mergers between firms require genuine cultural alignment. SEAMIx was born out of this observation. The index offers an objective analysis of the identity and brand of Swiss independent asset managers, drawing on the experience gained from our other brand and identity indices, such as SPBix for private banks.
What specific criteria did you use to construct your rankings?
SEAMIx is based exclusively on publicly available data. We therefore put ourselves in the shoes of a client, candidate or partner who is discovering the company from the outside. Each company is assessed against around thirty parameters, scored from 0 to 5, using a standardised scoring grid for all. The total score combines brand identity, which accounts for 60 per cent, and brand activation, which accounts for 40 per cent.
We begin by assessing brand identity. Does the company clearly articulate its purpose, values and positioning? And are these elements distinctive, consistent and easy to remember?
We then measure activation. Is this identity actually visible in the market? Is it expressed consistently, championed by senior management and communicated through the media and various touchpoints?
You distinguish between two dimensions: Identity and Activation. What exactly differentiates these two aspects?
Identity is the heart of the company: its culture, its beliefs and what makes it fundamentally unique. Activation is the way in which this identity becomes visible and perceptible to its audiences. In other words, identity is who you are, and activation is how others perceive you. It can also be thought of as a musical score and its performance. Identity is the written music; activation is the way it is played and heard.
A significant proportion of the asset managers assessed do not articulate any aspect of their identity – neither their purpose, nor their values, nor their positioning. How do you explain such shortcomings?
Let’s start with the figures. Only 28 per cent of the asset management firms assessed state a purpose. This is significantly lower than in Swiss private banking, where around half do so. And 55 of the asset managers analysed – a quarter of the sample – do not articulate any element of their identity. They have no purpose, no values and no positioning.
This can be explained primarily by the sector’s history. For a long time, personal relationships, recommendations and references were more than enough to grow the business. Branding was therefore less strategic than it is today. But the landscape is changing with the consolidation of the sector, the arrival of a new generation of clients who are more attentive to their partners’ values, increased competition, and the commoditisation of certain services I have just mentioned. Furthermore, in recent years, asset managers have mainly had to focus their resources on regulatory and technological challenges. Yet confusion remains rife. Many firms are perfectly capable of presenting their business, but struggle to highlight what sets them apart. This is precisely where positioning and identity take on a strategic dimension.
How does the communication strategy of independent asset managers fundamentally differ from that of private banks?
Independent asset managers have two very strong structural advantages: their independence and, often, a deeply entrepreneurial culture. These characteristics should be much more prominent in their communications, particularly through the direct involvement of senior managers, founders or owners in expressing and promoting the brand.
Private banks, for their part, were confronted earlier with standardisation driven by regulation and have already made progress in these areas. As the SPBIx index indicates, half of them already articulate a purpose. This gap is not a disadvantage for independent firms. On the contrary, it gives them the opportunity to define and assert their positioning much more quickly. An independent wealth manager can take a clear stance within a few weeks. In a private bank, the same process generally involves several levels of approval and can take several months.
What distinguishes a ‘Leader’ asset manager from a ‘Superficial’ asset manager, who communicates a great deal but says very little?
A ‘Superficial’ manager communicates a great deal, but without a clear message or any real point of differentiation. This is the largest group in the index, comprising 91 firms, or 41 per cent of the sample. In this ‘Superficial’ category, the most striking example has an activation score of 4.60 out of 5, but an identity score of zero. The website is comprehensive, the LinkedIn page is active, the executives are visible, and there is a presence in the print media. Yet there is nothing to help one understand what truly sets the company apart. The resources are there, as is the audience, but the communication fails to create distinctive value for the brand.
Conversely, a ‘Leader’ knows how to formulate a clear, distinctive and relevant identity for the customer base it has chosen to target, and then bring this to life in its communications. The brand then becomes a genuine driver of growth. Only 31 managers have managed to achieve this, representing 14 per cent of the sample.
In what specific areas should independent managers strengthen their communication in future?
The priority is differentiation. Every business is unique in terms of its history, culture, values and the people who drive it. It is this uniqueness that must be identified and expressed. Simply presenting oneself as independent, ethical or transparent is not enough. Half of the companies that publish their values cite independence. These are now expected characteristics, not distinguishing features.
The second priority is editorial visibility. 62 per cent of the sector receives no real press coverage, in a landscape comprising a dozen publications. And none of this is a question of size or budget: between the largest firms and the boutique firms, the average identity score varies by just 0.16 points out of five. If all players are saying the same thing, why would a client choose one fund manager over another? Or why wouldn’t they simply prefer to download an app onto their smartphone?