Undifferentiated, uninformative, ill-defined – just some of the damning descriptions of asset managers’ values from a recent industry review.

The review by H Ideas looked at how the 500 highest-ranking asset managers translated their values into their core branding. It found only half of the companies analysed conveyed a value system. Geography and size counted for little.

The report, based on its Responsible Investment Brand index, came to the sobering conclusion that too many funds ‘end up with an ill-defined and undifferentiated persona’.

In fact, a quarter of fund groups shared a set of identical values. Word salads ranged from excellent, professional, responsible and collaborative to ‘acting with integrity… client-centric’.

The report said it was important that asset managers’ own values were articulated to help clients choose those most aligned with their own outlook.

Things can only get better

How can a group make its values actually mean something? The review offered the following recommendations: 

Stay focused

Some managers expressed no fewer than eight values, when four should be the maximum. Trying to be all things to all people risks masking the most important values.

One system only

Your values speak for who you are and can’t be presented disjointedly. Make sure they fit together and complement the firm’s overall character.

Be different

One of your values must be the ‘clear differentiator for your firm’: something you want your corporate personality and character to be known and recognised for in the industry.

Fit values to your target audience

You can define who your clients are – so choose values that will resonate with them.

Avoid the given

Avoid using truisms when choosing your values. Being professional or ethical is a given considering the amount of financial and societal responsibilities that the industry has. In other words, stating the obvious may have the opposite effect to what you hope for. 

Your values are part of something bigger

Think about your values and how they fit into the bigger picture of your brand and your business. Consider how they fit and align with your purpose and vision. Look at your communications both internal and external.

Values are not features

Your values are your set of beliefs – words such as ‘diversity’ and ‘inclusion’ are not values in their own right and at times can appear forced or are in fact compulsory because of regulation.

Pause and reflect

Don’t be tempted to use the first words that come to mind when identifying your values. Take time to think of the best way to express them. Use ‘challenge the status quo’ instead of ‘we are different’. Going for ‘we encourage independent thinking’ rather than ‘we believe in each other’ provides the clarity your clients need and makes you appear distinctive.

Futureproof your values

Once a value system is identified and embraced within the organisation, it barely changes over time and should serve as ‘a guiding North Star’. To futureproof your values, consider ‘contrasting [them] against your ambitions, your vision and required adjustment to strategy’. Question whether your value system will hold up against future challenges.

Action your values 

Include them in your recruitment process and as part of performance evaluation and business decisions. Make your values visible within your organisation and not just dormant in slides, documents, and websites.