Brand Awareness Comes Up Short Next To Fund Performance As Sales Factor To European Retail Funds

The primary sales factor for European retail fund managers is not brand awareness, a new Bank of New York study found, it is actual fund performance. The study, "The Battle for Sales Brand v Performance," analyzed the largest 100 European

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The primary sales factor for European retail fund managers is not brand awareness, a new Bank of New York study found, it is actual fund performance.

The study, “The Battle for Sales – Brand v Performance,” analyzed the largest 100 European retail fund managers as valued by 2005 assets under management.

The study focused on brand perceptions of third party distributors across 11 European countries, and also found that short term performance has a greater impact on sales than longer term results, meaning the most recent fund performance is considered by investors to be more relevant than long-term historic performance in determining the attractiveness of a fund.

The study also determined that brand strength does not appear to driving retail sales, no matter how large a firm’s marketing budget is, and there is not a correlation between brand strength and actual investment performance, though some third party distributors perceive such a link.

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