Hype

Investment Management is a product, and the rules and techniques for selling it are no different from those that shift washing machines.


Aren't we protected by regulation?

The regulator has rules for the advertising and promotion of financial products. These are well-intentioned and often effective. They also make the jobs of those gentlemen whose job it is to shift the product more challenging.

However the aforesaid gentlemen still have many weapons.

Names

The use of the word "bank" in your business name is illegal, unless you are one. But there are many other words that exude financial skill and probity that even your local estate agent could probably use if he had a mind: "Global", "Trust", "Value", "Fenchurch Street", "Mutual".

Best of all is a name like "Lazards" or "Rothschild". The latter are real names of distinguished banking families and are therefore spoken for. But beware of other names with the right associations that nevertheless started life in the marketing department.

Hyped Headlines

Headlines mean nothing. Treat them for what they are: 'Welcome' mats (Welcome to my product).

Find the small print. It is where the bodies are buried.

Resist headlines in the form of a question: (Do you want to double your money in five years?).


The word "guaranteed"
Read Guaranteed.

Impressive Historical Performance

It's a chimera. Read Pick On Performance?

Star Managers

Maybe. Read Star Managers