July 19, 2023 | Stamford, CT — While investment consultants continue to play a critical role for asset managers looking to grow their businesses, building strong relationships with these intermediaries has become more complicated and challenging than ever.  

A well-defined and executed strategy, consisting of a series of both tried-and-tested and new engagement practices, is required to navigate this rapidly changing landscape. A new report from Coalition Greenwich analyzes how these relationships have changed over the past years and presents a series of recommendations on how asset management companies can cultivate strong relationships with these critical intermediaries.

Critical Role, Evolving Market Dynamics
Investment consultants are vitally important in many markets, including the U.S., Canada, U.K. and key markets in Continental Europe. In the United States, more than 80% of institutional investors name their investment consultants as their primary source of investment counseling and advice. In the United Kingdom, that share approaches 90%. Against this backdrop, market dynamics have continued to evolve. 

“Consolidation of consultant firms, the growth of OCIO, new requirements for digital engagement, ESG, and a focus on private markets are just some of the factors impacting investment managers’ relationships with investment consultants,” says Mark Buckley, Head of Investment Management at Coalition Greenwich and author of Enhancing Investment Consultant Relationships in Asset Management. “Managers must take a disciplined and holistic approach to managing these relationships.”

Enhancing Investment Consultant Relationships in Asset Management provides a series of recommendations for asset managers to follow as they work to win and maintain strong relationships with the investment consultants who act as gatekeepers to many of their clients. Among the best practices presented: Apply a segmented strategy that targets the consultants most aligned with your business, upgrade consultant relations teams with professionals capable of having needs-based discussions with consultants, fully embrace consultant databases, communicate relentlessly, and position your firm as a thought leader through effective sharing of intellectual capital.