It’s clear that investment consultants have plenty of clout in the asset management market today.
In fact, according to new data from Cerulli Associates reported in FundFire, roughly 62% of all institutional asset flows in the U.S. in 2014 were overseen by these intermediaries. The percentage was even higher among small- and mid-sized managers, with 67% of this group’s new assets coming from consultant-directed portfolios.
Whether it’s engaging with firms like eVestment, Mercer or Wilshire, or going the outsourced chief investment officer (OCIO) route, more asset owners are seeing the benefits of bringing a third-party into their manager selection processes.
That’s why managing relationships with consultants is now a critical function for asset managers.
Top-tier firms can afford to hire consultant relations experts to handle this role with its complex mix of sales and business development responsibilities. People hired for these roles typically are seasoned industry veterans who thoroughly understand the firm’s products and strategies, and are able to map them to consultants’ specific areas of interest. Bringing a valuable mix of skills and experience to bear, these individuals can have a big impact on their firms’ results.
For many smaller asset managers, however, resource constraints preclude them from hiring these ‘big guns’. Often that translates into subpar consultant relations efforts and missed opportunities.
The good news for small- to mid-sized asset management firms is that technology can help them level the consultant relations playing field. With the right technology, firms can sidestep their resource constraints and equip their existing teams of relationship managers and wholesalers to have more personalized and productive conversations with these key industry middlemen.
Content automation solutions can fuel these critical conversations. With a content automation solution, any distribution team member can instantly put their firm’s best, most relevant and most compelling content in a consultant’s hands, and propel new business conversations.
Regardless of their size or budget, firms can leverage content automation solutions to stand out in the crowded and noisy consultant relations space. With such a system, firms can get the right material to the right consultant at the right time, and deliver it the right way. It’s a great start toward making the cut for consultants’ lists of recommended managers.