Basispoint Design

Narrative is the holy grail for marketing strategists and copywriters.

We’re told that every product or service needs a story – an arc of conflict, struggle, and resolution to draw in customers. But while some widgets lend themselves to storytelling, others would do better to focus on delivering clear, creative, and authentic messaging.

Let’s explore two investment strategies – opportunistic credit and risk mitigation – to demonstrate the difference.

Content strategy playbook for emerging fund managers:

When narrative falls flat

Opportunistic credit strategies tend not to fit the classic narrative arc. Why? Because they’re not about solving an urgent problem or radically disrupting a status quo. Instead, they’re about identifying and capitalizing on specific, often short-lived opportunities in credit markets.

A traditional narrative framework—problem, catalyst, struggle, solution—feels forced here. What is the problem? That opportunities exist? The result is an artificial story that savvy investors roll their eyes at.

nstead, the key to impactful messaging for such a strategy lies in clear communication and creative specificity. Investors want to know:

• What exactly does this strategy do?
• What makes it different or better than other credit strategies?
• How would it fit into my portfolio?
• Who is involved and what are their credentials?

Saying what everyone else says (“We use deep fundamental analysis to identify unique, asymmetric opportunities”) isn’t enough.

The challenge—and opportunity—is to say it in a way that feels fresh and genuine. This requires deep work from the messaging ninjas: researching the strategy, understanding its nuances, speaking to the portfolio managers, scrutinising the competition, and, ultimately, crafting language that makes people take a beat.

For example, instead of vague claims about differentiation, a manager could say:

“Our wheelhouse is mid-market stressed situations that require onerous fundamental analysis to accurately price credits and identify the catalysts set to initiate a repricing.”

Investors are not expecting drama here. Instead, they’ll appreciate and reward simple and clear messaging delivered creatively with a touch of authenticity.

When narrative makes sense

Now, contrast this with risk mitigation strategies. When it comes to protecting capital, diversification is the tool the industry leans on.

But in extreme market downturns, correlations between asset classes tend to converge, rendering diversification less effective. What’s more, traditional diversification doesn’t give investors liquidity to capitalize on cheap assets or rebalance their portfolios.

Risk mitigation strategies challenge the diversification status quo.

Instead of just protecting capital, they make money during large dislocations, with payoffs increasing exponentially (convexity) as crises deepen and volatility rises. Many risk mitigations strategies then return capital to their investors, giving them the liquidity to buy assets at cheap valuations. They also allow managers to act more aggressively on their convictions during normal markets. Both support better compounding.

All the elements are the narrative arc are present here:

• Problem: Traditional diversification can be ineffective during crises.
• Agitator:Rising systemic risk in a highly indebted and leveraged global economy.
• Vision:A portfolio prepared for the unexpected, free from black swan anxiety.
• Hurdles:Human psychology—the longer markets rise, the more we believe they’ll continue.
• Solution:Risk mitigation strategies that payout during crises and enhance compounding.

This story resonates because it taps into a deep concern – avoiding catastrophic losses – and provides an (arguably) better solution to the status quo.

The takeaway

Not every product or service needs a story, but every product or service does need thoughtful messaging.

For some, like opportunistic credit strategies, clarity, creativity, and authenticity are far more effective than shoehorning a narrative where it doesn’t belong. For others, like risk mitigation strategies, a well-crafted story can challenge the status quo and inspire action.

The key is understanding your product’s essence and communicating it in a way that connects with your audience—whether through story, substance, or, ideally, a blend of both.