Warning: Institutional Investors Express Discontent

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Warning_Institutional Investors Express Discontent

In the institutional market, industry average satisfaction scores are trending downward on many measures this year, which should warn asset managers serving this space.

Investment performance remains a key driver of satisfaction across all segments of the market, particularly the larger non-profits managing $250M+ in assets. Yet additional opportunities avail themselves to asset managers seeking to deepen client relationships beyond the investment performance metrics. A distinctive investment philosophy, strong investment team and attentive service approach can all serve to boost satisfaction levels among current clients. Particular areas of weakness for many firms this year include meeting client expectations with the aspects of investment performance, service and support, product innovation, alignment, and social responsibility.

Larger institutions continue to represent the area of greatest opportunity for new manager additions, as $1 billion-plus pensions plan to add an average of just over 3 new managers and their non-profit counterparts intend to add more than 4 new firms to their roster in the coming year. Yet this year, we observe a significant increase in the number of managers likely to be added by non-profits managing $100 million to less than $250 million in assets, suggesting that the opportunity for new-client acquisition is not isolated to the largest segment of the institutional market.

Satisfaction Scores Trended Industry Averages

Institutional investors are also reexamining their portfolios and reassessing their use of different asset classes, investment products and asset managers in reaction to the uncertainty in the US and global financial markets. But the needs, perceptions and behaviors of institutional investors vary dramatically by asset size and category. Download our webinar Finding Your Niche in the Institutional Marketplace for more insight into current and anticipated asset allocation, factors influencing asset manager selection and key factors impacting brand equity and consideration potential.

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This entry was posted in Brand and Messaging, Financial Services and tagged , , , by Linda York. Bookmark the permalink.
Linda York

About Linda York

Linda York is a senior vice president in the Syndicated Research division where she leads the Wealth Management Syndicated Research & Consulting practice. She has over 20 years of experience in financial services spanning responsibilities in finance, marketing and business strategy. Before joining Market Strategies, Linda was the practice director of Syndicated Research at Cogent Research, where she managed the product development and execution process for syndicated research projects and consulted with dozens of clients in the retail and institutional wealth management space. She earned an MBA in marketing from the University of Connecticut and a bachelor’s degree in mathematics from Mount Holyoke College. Linda is an avid equestrian and a two-time finisher of the Boston Marathon.

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