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May 2014, Boston.According to new research from global analytics firm Cerulli Associates, 53% of asset managers polled plan on placing even greater emphasis on fostering consultant relationships.
"Investment consultants are highly influential in the institutional market," states Michele Guiditta, associate director at Cerulli. "Consultant-intermediated business accounted for just under 60% of asset flows in 2012, according to asset managers polled by Cerulli."
Cerulli's The Evolving Investment Consulting Industry and Business Model: Opportunities for Institutional Asset Managers report provides insights about the institutional investment consulting industry and how asset managers can collaborate with consultants to meet institutions' expanding needs and grow assets.
"Given the powerful impact of investment consultants on institutional sales, it's not surprising asset managers are focusing more on further developing these relationships," Guiditta explains. "Firms are devoting significant resources to these efforts and plan on continuing to do so."
"However, getting the attention of investment consultants is challenging," Guiditta continues. "Cerulli found that, on average, institutional asset managers employ roughly three consultant relations professionals and an additional two consultant database analysts."
Partnering with investment consultants is a beneficial strategy for firms with a small salesforce and limited distribution resources. While the due diligence process can be grueling, efforts expended could pay off handsomely with multiple wins and less time and resources employed thereafter.