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National and International Events: Fund Boutiques, Skittish Deer,

and Hairstylists

By Markus Hill, Independent Asset Management Consultant

(Published only in German, www.finanzen.net)

“More hunter than game” or “to see and to be seen” –these statements often reflect the more or

less derogative verdicts of critics at national and international conferences. Frequently, one of the

arguments presented is that the “concentration of investors” at many events is too small. Another

claim is that both active and passive participants simply utilize these venues for self-marketing:

they seek contact with personnel consultants and competitors. These are the less constructive

aspects of this critique. What is typically forgotten though are that these events have existed for

years and, despite prophecies of doom, provide benefits for participants. The following

discussion point seems noteworthy: What advantages do national and international gatherings of

the asset management industry offer? What can and what can’t one expect from these formats?

Selection: National and International Events

Examples of large-scale conferences within German-speaking countries are, among others, the

Fund Congresses in Mannheim and Vienna or the Fund Congress in Switzerland. Interesting from

an international point of view is also the FundForum International in Monaco (ICBI). Event types

overseas offer even more interesting formats. Terrapinn, Financial News, Marcus Evans, and

others are among the well-known providers for this. All providers, even those in Germany, can be

characterized based on quality, scale, and market penetration. Among a group of experts, the

reputation can be perceived quite differently as well. In addition, one can identify a large number

of national and international providers, including “in-house events” of asset management firms

and consultants. IPE, for instance, is an example of a cross-country approach that is sometimes

locally known as IPE Institutional Investment. This is merely a small sample selection and is by

no means comprehensive in its nature; but, it does show how seemingly “unnecessary” formats

continue to thrive.

Conference Objectives

Similar to scientific and academic conferences, many national and international conferences

simply set out to disseminate knowledge within a particular industry. In addition to media,

internet, and the likes, these sorts of events can certainly generate an exchange of ideas,

discussion, and knowledge. However, over the years, different objectives have started to emerge

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so that new foci—even combinations of such—become possible: conferences to gain leads for the

sale of investment companies. Other objectives could be the maintenance of brand awareness and

customer retention.

Differences in Expectations: “Professional Visitor” versus Sales

Visiting events such as the Fundscongress or the FundForum International, one may be able to

draw a first conclusion as to why misplaced expectations can lead to hardly justifiable, negative

judgments. If an event organization widely announces that its goal is to bring together national

and international industry, it is not too surprising that primarily industry representatives attend the

meeting. Any plus of investors’ shares should clearly be seen as an added value to the event.

Examples: At a national event, industry primarily meets industry. At an international event

(FundForum International) similar structures exist, but what stands out is that over the past years,

more and more investors attend the event. Every participant and sponsor must decide for himself

or herself what constitutes the optimal mixture of providers and investors. I can only speculate

here, but that one or another critic of this sort of event was not aware of this matter in the

beginning.

Fund Boutiques: The Added Value of International Events for Providers and

Investors

When one examines, for example, the settings of an international event (“Monaco”), it stands out

that interesting individuals or groups from Germany who wish to participate often come with a

certain degree of market significance. If firms have departments or divisions for international

business development, interest in participation is more likely. (The personal experience of the

author addressing numerous domestic fund selectors regarding panel discussions in foreign

countries seems to underline this issue.) Companies such as Union Investment, DWS, and Deka

observe these events and show their interest.

Companies like Universal Investment in Germany (private label fund launches and sales) and

other investment companies such as Hauck & Aufhäuser or IP Concept could discover, in terms

of content, a large network of asset management providers and asset managers who promise

interesting subject-matter discussions. These specialized investment companies would, in turn,

offer foreign asset managers added value in regard to market entry in Germany—administration

or direct sales support. As an alternative to the classical concept of placement agent, the

discussion of market processing strategies certainly seems appropriate. Many providers, even in

Germany, are not aware of the potential that Europe or “the globe” can offer; for each excellent

niche player, opportunity exists—and not just on a national level. In light of border-crossing

sales, good times have come for providers and fund initiators.

Excursion: Optimizing Potentials and Similarities: Asset Management

Companies, Consulates, and Economic Chambers

The primary goal of conferences or symposiums is the exchange of ideas within the industry, and

ideally, this includes the chance to make business connections. Yet, this depends on the actual

number of investors at the event. The typical event structure often reflects the settings found at

events organized by consulates or economic chambers: they bring people together through a

common topic. These institutions also want to foster business connections, but know the format’s

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limitations due to resources. In the end, one can lead a horse to water, but one can’t make it drink.

Focused approaches to establish contact typically occur through classic sales activities or through

bringing suitable providers in.

Outlook

There are interesting national and international event formats that are credible. Obviously, many

asset management companies evaluate the efficiency of event sponsorship. In addition to

conferences, this also holds true for special event formats (road shows, investor conferences).

However, what seems really important is that there is no “best conference” format; the productive

competition among event organizers promises positive change. Valuable though is the clear

positioning of the individual formats: industry meets industry, industry meets investor, or a

combination of both. A good event should positively contrast from the sort of event about which

critics sometimes rightfully say: This event is only about a hairdresser who wants to sell a haircut

to another hairdresser!

PS:

http://de.slideshare.net/MarkusHill/fund-forummonacopanelinputideas10062013

http://de.slideshare.net/MarkusHill/asset-managementconferencesmorehunterthangame27052013

Feedback, additional thoughts, experience or any kind of dialogue on such context is most welcome; please

contact info@markus-hill.com or Mary Daute (Asst. Manager). Phone: + 49 17 66 33 66 094

Markus Hill

Markus Hill (MSc in Economics) is an independent asset management consultant based in Frankfurt, Germany

Professional experience includes SEB Bank and Credit Suisse Asset Management. In addition, he worked as head of

sales and PR for a German fund boutique. Since 2005 he specialized in the management of mandates, sales,

marketing, and PR (consulting, "introducing"). Markus is also involved in selecting themes in the specialist areas of

target funds with a multi-management aspect, fund boutiques and mutual funds for institutional investors (product

scouting, fund selection). Furthermore he is actively engaged in cooperation with the market-leading Private Label

Funds/Master KAG in Germany (Universal-Investment) promoting the idea of independent asset management and

was the Co-Initiator of the first all-German Consultant survey in 2005 and the first "UCITS-survey" in 2003. Market

entry into Germany, behavior of fund selectors and fund providers in German asset management industry are often

discussed by him, e.g. in his asset-management-publication MH-Focus. Through many articles, columns and

presentations (national and international) he has become a highly recognized expert in the German asset management

industry. "Industry multiplier" is a term often used by journalists and clients to describe his style and personality.

(Markus Hill/ MH Services assigned in the role of Media Partner for: UCITS Alternatives Conference in

Zürich, September 2011)

Markus Hill MH Services

email: info@markus-hill.com

website: www.markus-hill.com

phone: 0049 (0) 69 280 714 mobile: 0049 (0) 163 4616 179