In this post, I will walk you through a strategy to help you reach £10 million in managed assets in under two years.
This will create a sustainable asset management business that can scale up and grow.
We will be looking at the following concepts throughout this post:
- Why £10 million is such an important figure for your business
- How to sustain yourself while building up to £10 million AUM
- Specific strategies for locating and attracting potential clients
This article will help you to grow your professional asset management business. We will walk through some strategies that I used to build my own managed account programme.
Everything revolves around you establishing and maintaining a verified track record of performance.
Building a credible business without this is impossible. If you don’t have a track record of your own then finding a successful trader to work with is an option.
This allows you to continue building your business around their track record. You can either continue building on this or generate your own track record alongside it.
Over time you can transition your business into the promotion of your own trading.
Working with other traders reduces your control of your client’s investment experience. It’s also your reputation on the line if things go wrong.
These are all things to consider when building your business from the ground up.
Two Worlds Of Asset Management
Institutional money managers tend to operate inside large investment banks or hedge funds. As they succeed they will then launch their own asset management business.
This makes it easier to raise capital and find investors. They usually have existing relationships with clients.
But, when taking this route, the rules are different.
In 2009, BNP Paribas conducted a research study on hedge funds. It found that 90% of new investment went to the top 5% of established funds.
This means that 80% of asset managers are managing less than £200 million. This may sound like a lot but managers at this level enjoy very high salaries and have huge start-up costs.
In 2018, a London based recruitment consultant conducted a study of trading salaries.
It found that an experienced trader in the City can expect to take home almost £400,000 per year in salary alone.
Research conducted by Grant Thornton in 2017 showed that the initial cost of a hedge fund was £200,000.
Other costs can include regulation, office space and capital adequacy. These increase the financial burden even further.
Institutional fund managers need these things because their clients expect it. They also need to sustain their standard of living because of simple human nature.
An institutional trader launching with under £100 million has an 80% chance of failing. Above that figure and the chances of success jump.
My own experience was very different to all this. I began as a retail FX trader and built my business, over time.
Launching As A Non-institutional Start-up
It started with managing client accounts and evolved into a hedge fund. This allowed me to scale the business and I didn’t need a huge salary to sustain myself.
If you’re in the same position then this guide is going to be your playbook. It will help you find clients and grow your business from scratch.
In our world, the magic number is £10 million rather than £100 million and you need to get there as soon as possible.
A non-institutional, start-up trader doesn’t have the weighty expectations of large investors.
For example, there is no need to operate from an expensive office in the City. Most of your business happens online instead.
There is also no need to get direct regulation, which is very expensive. It is possible to receive regulatory hosting from one of the many industry providers.
You can avoid the costly, well-known fund administration companies that dominate the industry.
Working will smaller firms can help you to save up to 90% on the costs of your asset management business.
By operating as a start-up you will save a huge amount of money. By saving money you will need a much lower AUM figure to sustain yourself.
All of this will increase your chances of surviving past your first year and building a successful money management business.
It is also important to note that a hedge fund structure is much better overall. It is more transparent and easier to fully audit.
If you can afford to set up a fund in the first instance then this is definitely the way to go. It will be much easier to raise capital in the long run.
Starting From Absolute Zero
I also want to include a brief section in this guide for anyone that is starting from absolute zero.
This means that you have a track record on a very small personal account but no clients invested with you.
You have no income and all your profits are re-invested to compound your account growth.
It can seem like an impossible mountain to climb but there is hope. There are also a few strategies that you can use to give your business a boost.
At such a low level the primary goal is to grow your account and solidify your income. At this point, it is a case of doing whatever it takes.
Sometimes this means getting a job on the weekends. There are also many ways of generating extra income from your trading.
For example, there are sites and apps that allow you to sign up and sell your trading signals to their audience. They are regulated and all you need to do is trade.
When I was starting out I had a blog and offered free education and analysis of the markets. This showed people that I knew what I was talking about.
Once they trusted me they then wanted to buy personal coaching sessions with me. This grew into a multi-million-pound education business in its own right.
These extra income streams sustained me while I built my initial AUM. You should look for as many extra income streams as you can.
Regulated trade copying apps can be a great starting point for finding clients. As your reputation grows you can then evolve it into a managed account programme.
Importance Of £10 Million
It is likely that you already have a base of clients and some kind of structure in place. The most important point to bear in mind is that until you reach £10 million you’re not safe.
Even basic running costs are still in the tens of thousands each year. This is especially true if you operate a fund based structure.
Even if you cover those costs, you still need money to expand things like marketing and research.
To find more clients you will need things like websites and marketing strategies. No matter which stage of the cycle you’re in you will have costs to bear.
We can illustrate why this is with some basic numbers. Having millions under management sounds like the recipe for success. But think again.
Imagine you have £1 million under management and return 15% over the course of a year. And let’s say you only charge a performance fee of 20% of the profits you make.
This means that you would generate a cash value of £150,000 during the year. 20% of this figure is £30,000.
Paying the costs out of the fund would eat away most of the profit, leaving you with no return for the year.
If you decided to pay the costs out of your 20% performance fee then you would have to add more money from your pocket.
Neither of these scenarios leaves you with enough to eat or cover basic living costs.
This simple maths is why so many start-up funds close down within the first twelve months. When we change the AUM to £10 million the numbers start to look a lot healthier.
This allows you to cover all the running costs, and pay yourself a salary while still showing a great return.
Building To £10 Million AUM
Unless you have personal contacts with great wealth then growing your AUM will take time.
At the very least you will need a 12 month verified track record. You will also need a structure for your business.
This could be a hedge fund or even a basic managed account programme. Of course, you will need regulatory coverage in the country that you trade from.
This is the absolute baseline for building a credible money management business.
Once you have these things in place then you will have two main points of focus. You will need to maintain your trading performance and increase your track record.
You will also need to find new investors and grow your AUM to the point where your business is sustainable.
£10 million is the magic number for start-up managers launching their first business.
Whether you’re planning your first business or trying to grow an existing one we will look at some tips and tricks.
After you build a credible structure your next goal is to craft the perfect investor pitch. At some point, you will need to convince an investor to open an account.
To help you get started I will walk you through the exact pitch I used to build my first managed account programme.
After they confirmed their interest I would invite clients onto an online call. They need to see your screen and hear your voice.
On the call I would show them my own trading account. They would see the balance and I would also walk them through my most recent trades, win or lose.
My Perfect Client Pitch
I would explain that I take each trade on my own account first. This means that I make and lose money with them at every step.
I would also explain that the smallest investment relates to the balance of my own account. Each client must risk at least the same amount as me.
This allows the client to see that you’re invested in their success. There is nothing worse than a fund manager with little or no skin in the game.
Once that was clear I would then walk through the trades. I would explain why I took them and how I managed them.
At this stage, I would hold nothing back. I went as deep as I could because this would show my competence.
When a client believes that you’re competent it makes it much easier for them to trust you. When you have their trust then they will almost always invest.
This pitch helped me to raise millions of dollars for my first managed account programme. If you keep the principles in mind you will do well with a similar approach.
Whatever your core pitch is you will need to have full confidence in it. When you believe in it then this will come across to the client too.
The one very important thing to note is that clients will want to invest based on how much you’re already managing.
If you only have £1000 in your trading account then you won’t find investors willing to risk much more.
Growing AUM To The First £1 Million
The game at this level is all about compounding the total assets you have under management. When you reach fifty clients with £1000 invested you can then tell new clients that your AUM is £50,000.
This allows you to demand a larger initial investment from each client. As a general rule, you can demand each client invest a percentage of the total you have under management.
While running my managed accounts I insisted on each client investing at least 20% of the total AUM.
As my account balance grew past £25,000 I then switched to requiring each investors balance to match mine.
At this level, you will encounter some difficult individuals as clients. Some will act in an unprofessional manner and make your daily trading hard work.
You will likely experience clients questioning your trades almost in real time. This is the downside of managing individual accounts.
You will encounter dreamers claiming to have connections and massive capital to introduce.
Pretty much 99% of the time they are trying to get you to trade their small account for free. It can be difficult at first but it’s best to demand some form of proof from them of their connections.
The goal is to use these clients as a stepping stone to bigger AUM and a better quality client. The higher the minimum investment amount the higher quality the client will be.
The main point is that even if you are starting from absolute zero there is always a way to start growing your AUM.
Basing your minimum investment size on total AUM will shorten the time it takes to hit £1 million.
Working Your Way To £10 Million
Having millions under management doesn’t even guarantee you a reliable salary. This is why you need to leverage your track record to generate as many income streams as you can.
When growing my managed accounts I had several sources of income and a very busy schedule.
For example, I signed up to an online platform and sold my trading signals. People paid me a fixed monthly amount to follow my trades.
I didn’t do this under my own name, of course, because that could have damaged my main money management business. Why would a client invest when they could pay $100 per month?
I also offered training and sold it to other traders wanting to learn. The key to this was having a personal blog where I posted free content.
The content helped traders understand the markets. I would interpret big news events and share my long-term forecasts.
I created a system where I traded all week and then worked in the evenings and weekends on extra incomes.
The whole point was to generate a stable income while increasing my track record. After this, everything is about growing your AUM to that magic £10 million number.
Taking a sustainable approach like this will give you a far higher chance of success. Trying to live off your savings or on credit is stressful and a mistake.
Success will come but it is impossible to say exactly how long it will take. You need to set yourself up so that even if it takes forever you can still sustain your business.
Investment Databases Explained
One of the very first tools I used to grow my AUM was an investment database called Barclay Hedge. It’s a website that tracks traders across a broad range of asset classes and fund structures.
Professional investors pay to access the top performing managers and their contact details.
This is a direct link between you and potential capital. There are many such databases online and you should immediately sign up to as many as you can.
You should be on several major sites so that investors can find you.
You will need to update your performance statistics on a regular basis but over time it is worth the effort. After registering on a database you should contact the company and ask for a promotion.
They will usually allow you to promote your track record to their community. This can lead to new investors joining your programme.
There will be a fee to pay but it is always worth testing each opportunity.
By working on this channel you will open up a pathway for investors to find you. Some of my best connections and opportunities came via investment databases.
Search online for hedge fund database and start signing up to the most popular ones that display. Always request evidence of the value of their list before you pay for any premium promotions.
This is basic level track record promotion and something that doesn’t cost you anything to set up. This is also just the beginning of the work involved in raising capital.
Regulated investment managers worry about being compliant in their marketing and promotion.
One mistake followed by a complaint from an angry client can be terminal for your start-up fund. This is very important to bear in mind but at the same time marketing is also the key to growth.
Regulatory restrictions ensure that the client has the correct understanding of your product.
This means being upfront and honest about how the investment works and what the risks are. You must also avoid over-hyping the possible upside.
Avoid posting anything about your track record or trading performance publicly. This will help you to avert regulatory headaches.
Instead, focus on educating people about the markets and your particular trading approach.
The old saying goes that people buy from people and this is as true in the world of investing as any other.
Give value before asking for anything in return and they will be eager to reciprocate. They will also trust you a lot more if you have already given them tangible help.
The biggest thing you can give to an investor is education and guidance. Many investors fall victim to fraudulent traders every year.
You can educate them on what to look for and how to tell the difference between a fraud and the real deal.
You can also educate them in how to understand the markets. When I was working in London I was amazed at how many professionals didn’t understand how investing worked.
I met financial advisors that had no idea about interest rates and their impact on currency prices.
Operate Your Own Platform
Educating people about the markets will show them that you understand those markets. If you understand them then it makes sense for you to be the one to manage their money.
Your education can explore risk events, terminology or even how you manage trades. Forecasts for various currencies can also be effective.
The main principle is not content for the sake of it. If you have nothing that will interest and educate people it is better not to say anything.
As a profitable trader, you’ll have valuable insights into how the markets operate.
To broadcast your insightful information you will need a platform. This can be something as simple as a social media channel, such as a twitter feed.
The secret to reaching £10 million in AUM is to build as many marketing channels as possible.
Each channel is a unique pathway for people to find you and then follow you. These people will become your biggest fans and your main investors.
With this in mind, it is worth signing up to every major social media channel. Another tip is to make the content on each one unique.
Something that will make a great tweet might be a complete waste of time on something like Instagram. Find the purpose of each channel and build your message around that.
Never post content unless you believe it will open people’s eyes to something new.
Your Professional Website & Blog
You should also have your own website that acts as your blog. This is where people can come to learn about who you are.
If you think about how you found this guide, it was through the exact process I’m walking you through right now.
A website is a completely different channel to social media. It allows you to have a clear presence on all of the online search engines.
This means that when people search in places like Google they will be able to find your site quickly and easily.
The main purpose of a website is for people to learn your story and who you are as a person and as a trader. A blog is also fantastic at helping people learn all about your approach.
The mantra of quality over quantity applies as well to a blog as it does to social media channels. Think about the biggest questions you had when you were learning to trade.
Create blog posts that go as deep as possible and give as much information and value as you can.
You need to share these posts on your social media channels. For inspiration, you can use the same template that I use for my own professional blog.
Think of your main website as a hub that all the pathways lead into. Once they are on your site people can learn all about you and then decide if they would like to learn more.
Don’t be afraid to get personal on your website. Tell people your story and how you learned to trade. Also, share how you built your asset management business to where it currently is.
Credibility is important but you shouldn’t exaggerate your performance. This will generate a lot of negativity over time.
Drive Investors To Your Site
Once you’re set up on investor databases, social media and your main blog site, the next step is to grow your traffic.
Traffic means the number of people visiting your site. More traffic means more people seeing your blogs. More people means more potential investors.
Generating traffic online can seem mysterious and complicated. It is actually rather simple once you understand the formula.
The first thing you can do is create blog posts around content that investors will be searching for. For example, how to invest £50,000 would be a great example of this.
Anyone searching for that phrase has probably got £50,000 in investment capital. They are also actively searching for a good investment idea to make the most of it.
This is a targeted client that would be very interested to learn more about your trading strategy.
Write an article answering that question from the perspective of your trading strategy. This creates another small pathway into your world.
Keep this principle in mind when creating blog posts or even videos that you post online.
Remember to create content for the perfect type of client you are looking for. Over time, that is exactly who you will start to attract.
You should aim to post new content to your website every week at the very least. If you do this with very high quality then you will see results.
I’ve seen many people launch a blog and then write about the mundane details of their every-day life. This is not going to attract investors.
Keep it relevant to your business, keep it of the highest quality and keep it consistent. The goal of content is to help them solve a problem or learn something new.
Utilising Social Media
Social media is a goldmine of potential clients and investors. Almost everyone in the western world uses things like Facebook and Instagram.
This includes high net worth professional investors. Your job is to get your message in front of them as they browse their daily news feeds.
As we touched on earlier, each social media channel has its own specific purpose. People will be expecting and be responding to very specific types of content.
The first rule of social media marketing is to keep the content in line with the purpose of the platform.
And never mindlessly post content just for the sake of it. Never repeat content across platforms. If this sounds like hard work it’s because it is, and it needs to be to hit £10 million.
Twitter is fantastic for updating people about your up to the minute thoughts on the market. Short, snappy and interesting content only.
If there is an unexpected event taking the market by surprise you can tweet your interpretation of it to help people understand.
Professional news feeds may give you access to exclusive information. You can tweet this to help your followers keep up.
You can tweet market whispers and similar rumours to keep your followers in the loop. Remember to always write everything in your own words.
It can also be a good platform to share interesting content from other sources. Followers will appreciate that it’s a real person posting intelligent information.
Other Social Media Platforms
Facebook is good for more detailed posts. But the real power is in the engagement potential.
Engagement means how much interaction there is between you and your followers. No matter how many followers a page has, if there is no engagement it is worthless.
Post high-quality content and interact with your followers. This will create an invaluable community. The more engagement you can receive the more fruitful your page will be.
Engagement can include comments on your articles or likes and shares for your posts. The most powerful form of Facebook engagement is something called Facebook live streams.
Facebook allows you to film yourself and stream it live to your Facebook followers. This helps them to see you as a real person that trades the markets and operates a credible business.
It’s best to talk about topics that potential investors will find compelling.
Host Facebook live events with your followers. This will build levels of trust close to that built through personal meetings.
Another powerful platform is LinkedIn. This gives you a great chance of building a following of possible future investors.
The key to content on this platform is that it is insightful. This is the perfect place to share any detailed blog posts you have recently created.
It’s also a great place to share other content that you find across the web.
Finally, there is the Youtube platform. This is one of the most powerful because it is video based.
According to a popular study, people remember 95% of anything they watch. They only remember 10% of anything they read.
Video content is imperative for both building trust and also leaving a lasting impression.
Receiving Introductions From Brokers
Build a good relationship with your broker. This is another great channel because non-retail brokers are full of professional clients.
Many of those clients will have had a tough time trading themselves. They will be open to a professional doing it for them.
Brokers are also a beacon for attracting investors. They will check with brokers for successful traders and asset managers.
One tip is to build as much of your track record as possible with a single, professional broker.
Once you have enough capital it’s important to move to a broker you can grow your business with. A retail market maker isn’t going to tolerate you generating profits on client accounts.
When you have found a broker you can grow with it’s important to build a relationship too. Go to their offices, meet them and go out for lunch with them where you can.
They will then be very open to making introductions and connections. This bond gets stronger as you bring them client accounts on a regular basis.
Show them that you are serious about building your business with them. They will then be serious about helping you with that process.
You can also meet new brokers and offer them your existing client base. This can tempt them into bringing you new business.
We can illustrate this with an example. If you have £2 million under management a new broker might agree to introduce an extra £1 million within 3 months.
You can then move your client accounts to that new broker and you have increased your AUM by 50%.
Use a basic agreement that states you will move £X of clients to the broker after they introduce £X of new business.
Working With Affiliates & IBs
You should only move to a new broker if they are going to introduce significant new business. You must also be sure that this will happen within a specified time.
An affiliate or Introducing Broker (IB) can also introduce you to new clients.
A financial advisor might have several high net worth investors that they are advising. It’s possible to encourage them to introduce those clients to your strategy.
A word of caution about IBs that introduce capital only to FX traders.
Many of them work for the commissions that they can cream off the top of the traded accounts. They have zero interest in the profitability of their clients.
A red flag is any IB that wants a guaranteed payment amount each month. For example, they commonly request 1% or even 2% each month off the top.
In exchange for this, they will bring in new capital every month. This might sound great but you will be under constant pressure to trade more frequently than you normally would.
You will also be under pressure to use more leverage than normal. This is so that you can generate the required commissions to pay the IB.
This causes your client to lose money. It also damages the trust and relationships you have built.
It’s best to have a fixed compensation structure that has integrity and is sustainable. For example, you could offer them a guaranteed payment of 1% per year.
This will be much easier to produce while allowing you to focus on generating a profit for the client. Another option is to split the money you make with the IB down the middle.
It has to motivate the IB to bring new clients consistently over time. If you find reputable affiliates then it can be a great source of new capital.
Finding IBs & Affiliates
These type of connections generally come through word of mouth introductions. For example, your broker will know of some IBs.
Think of any connection that you have that operates within the industry.
This includes your fund administrator and regulatory hosting provider. It also includes your compliance consultants and even existing investors that you have.
You can also search out independent financial advisors. These are people that specialise in connecting investors with investment opportunities.
Finding these is as easy as doing a local online search. You can also look for companies working in your nearest city.
Reach out to any new contact by phone and try to arrange a face to face meeting. Avoid asking them to introduce clients right away.
Try to get a deeper understanding of how they operate and what they look for in an investment.
Listen to them and get an idea of who their clients are and what kind of service they provide. Many will not be able to help but they will likely have a contact that can.
Only deal with regulated advisors and introducers. Always double check their registration is active.
You can negotiate a compensation arrangement with each introducer individually. Keep your standard template in mind but be flexible.
The most important thing is that the deal works for your client and your business.
There are also capital introduction companies that charge a flat fee. They specialise in helping smaller funds raise money.
The average cost of these types of services is usually around £12,000 per quarter. This is worth investigating as your fund grows.
One good IB alone can get you to £10 million. It’s worth the effort.
Buying Traffic & Paid Advertising
Your audience will grow as you actively post high-quality content to your blog. You should also share this on your social media channels.
This will require hard work. The beauty of content marketing is that it keeps working years after it’s created.
Once your AUM is growing and you start to have some funds available it is a good idea to expand into paid channels.
For example, when you post your blog or content on Facebook or LinkedIn you can also pay to boost the reach of each post. This will make sure more people see it.
You can pay for more exposure on all the major social media channels. You can also pay for the same thing on search engines like Google.
When someone types in a targeted term, you can pay to make sure your website displays to that person.
It’s important to understand that the intent of the person searching is vital to your success. This will also ensure you don’t waste your money.
For example, someone searching for forex trading has no clear intent. Displaying your website to them will be a waste of time and money.
Someone searching regulated FX managed accounts is a totally different thing. They are clearly looking for the exact product that you offer.
It’s worth testing as many paid advertising sources as possible when you have a budget. This includes Industry publications, investor websites and even radio and TV.
Remember, never advertise for the sake of it. Create interesting content that helps your target client learn something.
A radio advert that talks about how great your brand is isn’t as effective as an ad that shares your market predictions.
Prove your competence and investors will flock.
Adding Exposure & Credibility To Your Brand
Another channel you can build is that of professional networking and contributions.
You can speak at industry conferences. You can also be available to give financial journalists quotes for their articles.
This type of activity will generate some more exposure but it is unlikely to bring you new clients.
Instead, it will give your brand and your business increased credibility. Contributing to Bloomberg and the Wall Street Journal generates incredible trust with clients.
There are online services you that connect you with journalists looking for information.
All you need to do is reply and offer to help them. Over time they start coming back to you because it makes their life easier.
Utilise your connections to locate conferences that are taking place in a local city.
Contact the event organisers and offer to speak for free or be part of a roundtable discussion. You can provide a unique and insightful perspective as a start-up fund manager.
Local newspapers are surprisingly easy to get into to add further credibility. They particularly enjoy the success story of a local to write about.
The launch of your first fund or hitting the £1 million AUM mark could be enough to get some coverage and exposure.
You can also use LinkedIn to find other professional traders with established funds.
Look for those managers at the level you are trying to reach next. For example, anyone in the £10 million to £50 million range will still be accessible.
Send an email, explain who you are and arrange to meet for coffee. You’ll be surprised at how many replies you get and the opportunities this leads to.
Converting Your Followers Into Investors
It will likely take six months of hard work to build out all the channels that we have walked through.
If you build them all out then you will reach £10 million in AUM within two years. The process is straightforward despite requiring serious hard work.
But this is only half of the battle. The followers engaged with your message need to convert into investors.
The principle at this stage is to weed out the serious candidates that have the potential to invest. You then build a relationship with them.
The first step you need to take is to invite all your followers to sign up or join your community. This can be as simple as an email list.
This will give you a very important asset which is the ability to contact them at any time.
Up to this point, you can only share your message with them when they are looking at your site or social channels.
It’s very important to move beyond this and gather their contact details. This allows you to send them any message you like at any time.
I cannot overstate the boost that this will give to your business. If you don’t have a list of potential investors then it will be harder to build your AUM.
With a list in place, you need to encourage your subscribers to consider making an investment.
This is a sequence and is imperative to deliver the right message at the right time. The purpose of a sequence is to make sure that you’re leading the right people to the right offer.
The Goal Of Your Sequence
Your end goal for every person that subscribes to your list is to turn them into an investor into your fund.
The sequence begins when they first visit your site or hear from you online.
You need to encourage them to give you their contact details so that you can email them in the future.
To do this you must keep to the rule of always giving people high-quality value. This is what builds trust and demonstrates your competence.
To receive their contact details you need to offer something valuable in exchange.
Whatever you give them needs to clearly relate to your end goal of them investing money with you. If you fail to make this connection then you could end up with unqualified leads that have no value.
You could offer a guide to help the investor understand all the investment options open to them. If they like that they will be open to more information.
Continue to send them helpful information based on their position as an investor. After this, you can start encouraging them to invest.
You can start to include information about your business and performance track record. By the end of this process, if your content was high quality, they will be ready for the next step.
This is where you invite them to a personal call with you. This call is where you deliver your pitch. We discussed this earlier in the guide.
At the end of the pitch, you invite them to invest with you. When you sequence everything correctly you will have a very high success rate.
Increasing Investment From Existing Clients
When you install these different systems you will transform your business.
You will create a conveyor belt of new clients ready and eager to invest with you based on their trust in you.
Some private placement funds have limitations. This means two things that you should be aware of.
First of all, you can only bring investors in after a one on one conversation such as a phone call. There is a maximum amount of investors allowed at any given time.
This limit is usually 99 investors. Once you hit your ceiling you cannot bring any more in. Unless your minimums are at £100,000 you will struggle to hit £10 million in this scenario.
There is one final concept that you need to implement in order to rapidly increase your AUM to the £10 million figure.
This concept is that of engaging your existing clients to help you grow. Work on this on a continual basis.
Look for opportunities to encourage them to increase the amount of money they invest.
Very often this simple measure can be the one that gets your total assets to over £10 million. Offering to reduce your fees or providing some other added value can be enough.
The results can be pretty powerful in growing your AUM.
Also, incentivise each client to introduce their friends, family or colleagues. Remember that a higher AUM makes it easier to attract further capital.
One year of free trading in exchange for two more equal sized investors is a huge carrot.
For each of these principles that you use, feel free to be creative and try and make them better and more effective.
If you’re working on this type of plan then hitting £10 million within two years is actually quite simple.
This guide will help you attract individual investors with a high net worth. A larger AUM will help you target more institutional investors such as pension funds.
Getting to £10 million is imperative to survive the basic costs of running a start-up business.
This gives you room to grow and build up your AUM over time in a more stable manner.
To have a chance of attracting institutional clients you need to be hitting £50 million in AUM. All the tactics in here can help you do that if you implement them correctly.
Remember to build your baseline before trying to grow your AUM. You need regulation, a credible structure and at least 1 year of verified returns.
Create as many pathways as possible for people to find your trading fund. As you create a new channel always look for ways to expand it and make it bigger.
Create a system for converting followers into subscribers and then into investors. The power is in the quality of your information and the sequence you use.
Never forget to work with existing clients to help you increase your AUM. This can very often be the most powerful way to reach £10 million in a short period of time.
I hope you have found this guide helpful and if you have any questions or comments please leave them below. I read each one and reply when I can.