Institutional investors want best ideas/wide asset class access from FMs

Written by Adam Cadle

04/10/2022

Almost two-thirds (64%) of institutional investors say access to the best ideas and managers is one of the most important benefits of hiring a fiduciary manager (FM) or outsourced chief investment officer (OCIO), according to a CoreData Research study of nearly 300 global institutional investors.

The majority of investors also cited access to a wide range of asset classes including alternatives (55%) and dedicated expertise and specialism (52%) as the other benefits.

Regionally, European and Asia Pacific Investors (both 67%) are more likely to pick out access to the best ideas and managers as a key benefit. European investors are more likely (60%) to see dedicated expertise and specialism as one of the most important benefits. Over a quarter (26% vs.18% globally) of Asia Pacific investors said helping to make portfolios more sustainable is an important benefit of fiduciary management.

North American investors are more likely to say access to a wide range of asset classes including alternatives (58% vs.55% globally) and freeing up time are the key benefits.

By AuM, access to the best ideas and managers and lower investment costs are favoured by smaller investors (less than $5bn AuM) as key benefits. Large investors ($50bn plus AuM) are more likely to see a bespoke solution with a scheme-specific benchmark and portfolio as an important benefit.

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