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This year, there is an increased opportunity for new manager additions among international institutional investors. Significantly fewer institutions are likely to add zero new managers to their lineups in the next 12 months when compared with two years ago. Organizations in the UK, Switzerland and France are most likely to anticipate additions to their lineup, expecting to add a mean of 0.8, 0.6 and 0.6 managers, respectively. How can firms seize this opportunity and increase their share of the market?
The criteria institutions use to evaluate asset managers before adding, or conversely removing, them from their lineups differ by country. To capitalize on the opportunities and maximize their consideration potential, asset management firms must ensure that they are meeting these criteria.
In the UK, having a local presence remains the leading factor when institutions evaluate asset managers. These institutions also cite investment philosophy, research process, investment performance, and service and support model as important criteria in their selection process. Swiss institutions are most likely to focus on brand reputation and investment performance. Swiss organizations also consider investment team, local presence and financial stability among their leading selection criteria. Finally, French institutions are most likely to consider brand reputation and financial stability in their assessment of new managers. Service and support model and organizational stability are also likely to factor into the selection process.
Firms looking to maintain or increase their market share internationally must understand the key differences in priorities between countries and the effect those priorities can have on the selection process. Monitoring these differences and changes year over year will enable firms to adjust their messaging and strategic plans for the different markets they serve, increasing firms’ overall success and profitability internationally.