Cogent Reports: Winning Bids in an Institutional Mandate Takes More Than Performance

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Even given multiple opportunities to influence the search and selection
process when bidding on an institutional mandate, many asset managers
still aren’t winning. New research from Cogent Reports finds that
despite the strength and fit of a particular investment strategy, the
efforts of marketing and sales teams can make or break an asset
manager’s success. These and other findings are included in Beyond
a Cogent
study by Market Strategies International-Morpace.

A series of one-on-one telephone interviews with institutional investors
and consultants overseeing collective assets of nearly $150 billion
identified four distinct purchase journeys, each with its own nuance and
areas of influence. The research also uncovered common mistakes asset
managers make in the process of bidding on an institutional mandate,
many of which lie largely within the control of sales and marketing
teams. One sure way to get disqualified is to present as just another
salesperson who is “pitching product with every other sentence.” In
addition, poor-quality RFI/RFP responses or inconsistencies between the
RFI/RFP response and the finals presentation are red flags for
institutional decision-makers.

“Once an asset manager makes it to the point of being considered for a
particular mandate, there are opportunities to gain the competitive
edge. Personalizing the story so that it feels less like a product pitch
and more like a desire to best serve the client’s business need is one
of those opportunities,” says Linda York, senior vice president of
Market Strategies International-Morpace and co-author of the report.

Asset managers should also not underestimate the importance of skilled
presenters who develop a strong connection with the investment committee
during the finals presentation. According to the report, an asset
manager’s presentation team is being judged on many aspects beyond the
quantitative numbers, such as the believability and trustworthiness
conveyed by their bearing and articulation, the investment philosophy
that they verbalize matching the investments they recommend, and the
diversity of the presentation team at-a-glance.

“While performance and price along with familiarity and strength of the
brand are integral in the evaluation of asset managers, a variety of
more subjective factors weigh heavily in the final selection decision,”
explains York. “Our research confirmed that sharing knowledge through
thought leadership, gaining knowledge by seeking to understand clients,
and building personal relationships are key to a successful
institutional asset management business model.”

About Beyond ConsiderationTM

Cogent Reports conducted individual telephone interviews with 26
institutional investors and investment consultants from November 26
through December 10, 2018. Survey participants were required to be
senior-level investment decision-makers managing defined contribution,
defined benefit or non-profit institutional assets of at least $100
million. Due to the qualitative nature of the research methodology,
qualitative base sizes are intentionally of an elite size; findings are
for directional guidance by nature and not quantifiable. Market
Strategies International-Morpace will supply the exact wording of any
survey question upon request.

About Market Strategies International-Morpace

Leading market research firms Market
Strategies International
and Morpace
bring clients closer to their customers through exceptional insights,
which includes deep expertise in financial services, specifically among
wealth, banking, payments and insurance organizations. The firms
specialize in brand, customer experience, product development and
segmentation research, and are known for blending primary research with
data from syndicated, benchmarking and self-funded studies to help
clients succeed. The syndicated products, known as Cogent Reports, help
clients understand the market environment, explore industry trends and
monitor their brand within the competitive landscape. Market Strategies
and Morpace have earned the trust of many of the world’s top brands
across the automotive, consumer & retail, energy, financial services,
health, technology and telecommunications industries. They are combining
into one firm, as part of an acquisition of both firms by STG, and will
be rebranded under a new name to be announced in 2019. With more than
450 research professionals, the collective firm is now the 15th largest
market research firm in the US and top 25 globally.


Sarah Keller, 734.779.6847

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