How to hire the right financial PR firm: 7 critical questions for asset managers to ask

Key takeaways:

• Choosing a financial PR firm can be a significant investment in both time and money.
• Asking these questions can help you select a partner with experience working with firms like yours.
• Make sure the firms you are considering can demonstrate industry experience.

What matters most when selecting a financial PR firm?

It's not awards. As tempting as it may be to use award-winning work to substitute for the due diligence of thoughtful agency review, we'd urge you not to. Ultimately, you and your firm will be better served by digging deeper into how a firm approaches an assignment, the strategy, creativity and resources it has to offer. Don't underestimate the experience required to understand the complex products, nuanced strategies and specialized language of the investment industry.

The Lowe Group has worked with asset managers, wealth managers/RIAs, fintech, private investment firms and industry service providers, and have come to understand the essential skills necessary to meet these firms’ unique expectations.

With more than 20 years in this niche, we’ve given extensive thought to what is needed to find the right client/agency fit, and we’ve seen requirements evolve. We recommend using these seven questions when screening a financial PR partner:

1. How deep is the agency’s experience with firms like yours? Many firms say they serve the “financial services” industry. But a firm with true investment industry experience will have a large concentration in or may serve only firms in the investment space.
   
   
   Dig deeper and take a look at the associates. Have any of them worked in the industry at an asset manager or wealth advisory firm? Ask for a list of relevant clients. Do you recognize the firms? Also, will the agency be able to get its arms around your overall as well as your distribution strategy? Does it understand the difference between institutional relationships vs. intermediary distribution vs. direct to retail investors? Can it build a communications strategy that will help drive business?
2. How strong are the agency’s relationships with the media that count? Successful PR efforts revolve around getting your experts in front of the right audiences.
   
   
   If you primarily serve institutional investors, then you need to be focused on the Wall Street Journal or Pensions & Investments. Advisors? Barron’s, Financial Planning or other industry trade publications. High net worth individuals? Penta, Financial Times or the New York Times. Ask the agency which media they would target, and confirm that their team has delivered results in the media that matter to you.
3. How familiar and comfortable is the agency in working with compliance concerns? Understanding the complex regulatory environment your firm faces is a prerequisite. Reputation and trust are critical for firms in the heavily regulated investment industry. Understanding the FINRA, SEC, Department of Labor and other rules regulating industry sales and communications practices is critical to making sure your intended outreach plan will make it past your compliance team and steer clear of regulatory trouble.
4. How familiar is the agency with complex product lines? Gone are the days when asset managers offered mutual funds and a few separately managed accounts. As represented in their expanding website menus, investment firms offer a range of investment products and strategies (mutual funds, closed-end funds, ETFs, SMAs, model portfolios, private credit, interval funds, collective investment trusts, annuities, retirement services, etc.) targeted to an array of customer segments.
   
   
   Beyond the wrapper, actively managed products are increasing complex. Even veteran PR pros or writers may struggle to describe a closed-end convertible bond fund or a hedged equity strategy.
   
   
   Would you be comfortable putting the agency’s professionals in front of your leadership or investment professionals? Will they be able to speak your language and understand the nuance behind what makes your strategy compelling? Are they able to draft a news release or thought leadership content that accurately reflects what you do—and get it right the first time?
5. How well does the agency understand the synergy between PR and digital marketing—and how the two work together to assure your brand’s visibility? If it's been a few years since you last initiated a search for a PR partner, take some time to understand the new considerations that drive your firm's visibility online.
   
   
   Your PR strategies work in conjunction with your firm's digital marketing efforts as awareness of your brand today is a function of how your brand performs in organic and AI search results. (For more, see our recent post The specific considerations for investment brands in AI search.)
   
   
   The best PR partner for you today will be well versed in facilitating the collaboration, which involves leveraging all PR outcomes, amplifying them on the website, in email and via social—and attributing them to the source for more holistic measurement.
6. How important will your business be to the agency? Is your firm a small fish compared to the agency’s other clients? Will they prioritize your business? Or, will you be wowed by an agency leader who sells you on hiring the agency, and then hands your firm off to a junior associate who may have only a few years of experience?

   We’ve seen firms pay up for big agencies, never see the person who pitched their business, and find that their work was not a high priority for the agency.

7. Do you need a New York-based agency? With most financial media based in New York, some firms believe that to be effective, their PR agency needs to be based in New York. While we don’t believe this has ever been true, it is increasingly less true post-pandemic with more journalists working remotely some or even all of the time.

   If it’s important to you or executive management, understand you will likely pay a premium for your decision.

Signing on with a PR partner can be a critical step to amplifying awareness of your brand, people and strategies. The investment you’re making goes beyond the stated fee, you’re committing the time and energy of your staff whose collaboration will be essential for a successful PR strategy. It is a significant decision, and asking the right questions can improve the likelihood that you find the right partner.

Schedule a free consultation with me to explore your PR needs.