Are you getting fewer meetings with investors than you’d like? Consider this: your fact sheet is failing you. (Yes, we’re talking about that 1 page tear sheet that you barely give a second thought.) Before you reject the idea, remember that your fact sheet is the first piece in your collateral suite and it’s got an incredibly important job.
The job of your fact sheet is to get a prospect to want more.
Most Portfolio Managers think that investors care about performance and stats so they turn their fact sheet into a firehose of data. And we mean a ton of data. They pack in performance graphs and tables, MPT stats, annualized returns, monthly returns, and more.
When they fill their fact sheets with that much data, that means over half the page will be… yep, you guessed it… disclosures. *insert us sighing*
The other problem with too much data on a fact sheet is that investors care about qualitative info as much as, if not more than, quantitative info. Check out this study from CAIA. Spoiler: Investors said qualitative is as important, if not more important, than quantitative. If you miss the qualitative, you miss the opportunity to be memorable.
Plus, what if you are a brand new firm and don’t have loads of data? Now you have a fact sheet full of data but the data is blank? Zeros? Let’s not do that. Let’s go from zero to hero.
Don’t get us wrong; there’s a place for numbers, but your leading marketing collateral is your most valuable real estate. It’s the curb appeal; it should feature the most powerful parts of your story:
- Why does your strategy exist? What problem does it solve?
- Who is your strategy for?
- How can it be used in a portfolio?
- Who are the people behind the strategy? Where were they before?
There will be plenty of time for data, but not if you lose the deal before you even start.
How should you lay out your fact sheet?
Let's get tactical up in here.
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Do you have a powerful qualitative story? Is the Portfolio Manager a breakaway from a well-known firm? Are they well-known in the industry? If so, focus your fact sheet on storytelling. |
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Do you have a powerful quantitative story? 3+ year track record? Beating benchmarks and peers? Are your MPT stats strong? If so, add in quantitative info. |
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Is there a powerful quantitative story or long track record AND a powerful qualitative story? If so, make your fact sheet a hybrid. |
Is the timeline an important part of your story? Are you an Institutional Manager launching mutual funds for the first time? A breakaway manager with a strong history? If so, perhaps include a timeline on your fact sheet.
Is your investment process uniquely differentiated? Does the story arc include something unique about the investment process? If so, maybe include a process section.
Are the firm values a differentiator? Is the firm employee-owned? Be sure to call out what makes you unique in the main content.
Is the strategy capacity constrained? If so, add to your key facts.
Does the strategy solve an important problem that investors face? Is there a market dynamic that investors should be aware of? If so, include the strategy in your content.
What to include on your fact sheet
Every fact sheet should include:
- Logo
- Name of strategy / fund
- “As of” date
- Contact info and website
- Strategy summary
- Portfolio managers / team (include photos!)
- Investment objective: 1 - 2 sentences from your DDQ
- The role your fund plays in a portfolio
- Fund (or) strategy facts / overview table
- Data such as risk / reward metrics or portfolio statistics
- Portfolio characteristics - either a strategy overview or simple bullets
- Portfolio data: Top 10 holdings, sector allocation, portfolio allocation (depending on product)
- Disclosures
It’s incredibly important that you weave in authentic, memorable stories. Investment boutiques who tell stories demonstrate more success finding their true fans because stories put a face, a heart, and a soul on your brand. People do business with people; they don’t do business with statistics. Weave in your:
- Tagline or brand story: who you help, what problem you solve, how you solve it
- Backstory: why you’re the right guide for your prospects
- Job story: why you designed the strategy, the unique job it does for your clients
Remember that your fact sheet is the trailer to the movie of you.
Make us want to watch the rest.
Make it so good we grab the popcorn… and you score a meeting.
