By Paul Resnik, Co-founder and Director of FinaMetrica

It's difficult to trust someone who delivers negative surprises. What we see in the successful branding of cars and clothing for instance, is a consistency of client experience. Be it premium or utilitarian, purchasers mix and match based on their needs and perspectives; e.g. “I need a premium car because I have five children to chaperone around but 'Marks and Sparks’ will be fine for my underwear”.

In both cases I am likely to be a happy customer if my expectations have been met. My trust in the brand's promise is maintained or weakened by my expectations compared to my experiences. If I am happy, I am more likely to buy again.

It's much more difficult to develop and hold trust in investment management than in consumables because the differentiating quality of the investment experience may be revealed in only one part of the investment cycle, sometimes several years ahead.

However another method of differentiation that can bring greater profits to investment managers and advisers is to better frame investment expectations. Consequently, investment managers and advisers need not rely on increased sales for more profit, as the reduction of investment surprises will likely low...Read More