Thursday, October 19, 2017 Stamford, CT USA — With roughly 90% of institutional investors relying on consultants for guidance, maximizing the impact of these relationships represents a huge challenge to asset managers and a significant opportunity for those firms that execute seamlessly. 

A new report, Consultant Relations Playbook, from Greenwich Associates presents ‘10 Key Steps’ asset managers can take to build strong relationships and win more business through investment consultants. 

Relationships between managers and consultants are evolving due to changes on both sides. Managers are responding to demands from institutional investors by expanding advisory capabilities that historically been provided primarily by consultants. Meanwhile, consultants are shifting their models to focus on growing opportunities in “Outsourced CIO” and, in some cases, creating investment products that compete directly with asset managers. 

“For asset managers, the key challenge is creating and maintaining positive relationships with consultants in order to gain access to the pool of institutional assets, while simultaneously working to deepen relationships directly with institutional investors,” says Greenwich Associates Managing Director Davis Walmsley. “Critical to that effort will be close coordination across the organization, high levels of transparency and regular communications.”

Greenwich Associates provides a series of recommendations to help asset managers optimize the performance of their consultant relations function. These recommendations include advice on how to structure the function—including benchmarks on staffing levels, coverage portfolios and other metrics—how to develop effective coverage strategies, and how to work with and communicate with consultants on an ongoing basis. 

“The key to success is to create partnerships,” says Davis Walmsley. “Demonstrating that you can consistently add value to mutual client relationships and that you’re a reliable partner will set the stage for productive, long-term relationships.”