Fixed Income Managers: Defining your edge

“What makes you different/special/unique; what is your ‘edge’?” A simple question that can be so difficult to answer for so many fixed income managers. No doubt you have smart people making effective decisions, maybe drawing on the intense work of smart analysts located around the globe all working together in a collaborative environment, but I’m afraid that this doesn’t make you “different”. And while any investment manager is truly only an expert on one manager (themselves) you can’t really define your unique edge to clients without considering some market context.

A few things to keep in mind as you consider how to answer this question:

• Investment returns will get you to the table but the answer to this question ultimately gets you hired.

  • A clear message makes it much easier for a client/consultant to understand how you will fit within their investment program.

• Focus on yourself but consider your competitors.

  • Take stock of what key competitors say about themselves to ensure you aren’t saying the same thing about yourself.

• Whatever the answer, back it up with proof.

  • This isn’t an aspiration, it’s core to what you will deliver to the relationship. Evidence tells the story for you.

• While this can be process/philosophy-related it doesn’t have to be.

  • Especially true in instances where, to the outsider, a process might sound similar to many peers. Service/non-investment alpha can be a significant differentiator.

• The easiest responses tend to be the least valuable.

  • As internally attractive as maintaining business flexibility can seem, such an answer puts the work back on the client, taking you out of the running.

I’m not going to lie: this is no easy task. Over my 30 year career I’ve had some wins, some losses and some draws when it comes to bringing out my firm’s “edge” on a given product. Wins came from objectively pushing (or being pushed), losses came from pushback and draws came when through exhausted compromise. But the wins were the ones that led to increased activity.

Lastly, and most importantly, exercise conviction in articulating your ‘edge’. Make it something that comes through in every aspect of your messaging: introductions, new business & due diligence presentations, RFPs, client materials straight through to thought leadership and social media. Doing so will set you apart from the majority of your competitors and get you hired.