Roughly six in 10 (59 per cent) institutional investors view their asset manager as a strategic partner in their work, according to a new survey by Crisil Coalition Greenwich.
The survey, which polled 372 global institutional investors, also found money managers oversee, on average, 62 per cent of institutional assets, with the highest level reported in the U.K. (71 per cent). In Canada, money managers oversee an average of 59 per cent of assets.
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A deeper relationship between institutional investors and money managers usually leads to increased business together, noted the survey. Indeed, 50 per cent of respondents said managers that secure strategic partner status end up receiving additional mandates with 36 per cent indicating it also leads to access with senior decision makers.
More than half (52 per cent) of institutional investors said they allow strategic partners more time, between a quarter to an additional year, to turn performance around. However, 30 per cent of respondents said they wouldn’t give additional time in case of underperformance to money managers that are considered strategic partners.
In a press release, Mark Buckley, global head of investment management at Crisil Coalition Greenwich, said roughly 40 per cent of investors rely on management partners for general education and knowledge transfer on investment topics or risk management.
“Thought leadership plays an important role in these strategic relationships. That’s especially the case in the U.S., where institutional investors value thought leadership on specific asset classes and access to the manager’s economists, portfolio managers and other thought leaders.”
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