Seventy-two per cent of US institutional investors identify the consistency of performance relative to expectations and the experience, talent, chemistry, and stability of investment professionals as the most important characteristics of top asset management firms, according to research published by Cerulli.
Firms that provide timely, candid, and concise communications (61%) and minimise negative surprises are also viewed favourably.
“While institutions want a candid assessment of the past quarter’s performance results, many clients prefer the update to focus more on the current investment strategy and portfolio positioning for assurance that their portfolio is properly positioned to endure the current environment,” Cerulli director, Michele Giuditta, stated.
Asset managers that have a reputation for having a great firm culture (49%)—with loyal, long-tenured employees and incentives that are aligned with clients—are also better positioned. Institutions also value managers that have strong investment beliefs about their skills—and investment strategies that align with those beliefs (44%).
“An investment team that is adequately staffed and has the resources and an aligned team to deliver long-term performance results is also important,” Giuditta said.
“Asset managers that can articulate and clearly display their edge and show that they can implement the strategy will have a competitive advantage in winning and retaining clients.”
