Satisfaction With Institutional Asset Managers Has Taken a Hit

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Satisfaction with Institutional Asset Managers Has Taken A Hit | Cogent Reports

It’s no secret that 2017 closed with a period of remarkable and sustained market expansion. Capping a year that featured strong economic growth, an improving job outlook and bolstered consumer confidence, the Dow Jones Industrial Average index hit record high after record high in the fourth quarter.

Despite this historic bull market that boosted performance for many investment strategies, institutional investors’ overall satisfaction with their existing asset managers has declined sharply from the previous year. Specifically, institutional investors surveyed in the eighth annual US Institutional Investor Brandscape® study report an average top 3-box satisfaction score of just 60%, versus 67% in 2016.

Institutional Investor Satisfaction Scores: Trended Industry Averages

Although satisfaction scores of “softer” attributes such as integrity and transparency, service and support, and investment team makeup show positive improvements in 2017, fewer than half of institutional investors are satisfied with more tangible attributes such as asset manager fees and fee structure, alignment, and product innovation.

Yet, in spite of these negative trends, there are some intriguing alternatives for asset managers looking to meet the changing needs of institutional investors. By moving beyond the traditional focus on investment performance and exploring untapped opportunities within the smaller end of the market, asset managers can take positive steps toward solving the satisfaction puzzle.

 

Download our white paper, Solving the Institutional Satisfaction Puzzle, for more on uncovering untapped opportunities in the challenging US institutional market.

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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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