This is the case particularly among mid-sized institutions that show a greater propensity for making changes to their current manager lineup. These and other findings are included in the inaugural edition of International Institutional Investor Brandscape®, a Cogent Reports study from Market Strategies International.
When asked how likely they are to add managers in the next year, 58% of institutions with $250 million to just under $1 billion in assets across Australia, Canada and 10 European countries indicated they are likely to do so, with one-third (32%) planning to add three or more. In contrast, more than half (51%) of institutions with $1 billion or more in assets in those same countries do not plan to add any new managers next year and 49% will add just one or two. A similar dynamic emerges among institutions planning to drop managers. Thirty-eight percent (38%) of mid-sized institutions expect to drop one or two managers over the next year, while very few, only 2%, of larger institutions expect to terminate any existing relationships.
According to the report, manager selection criteria and preferences for non-domestic equities and fixed income can vary significantly by country, thus requiring a tailored approach by firms planning to enter specific markets. However, a significant number of US-based asset managers have achieved a broad level of both awareness and consideration, placing them in contention for winning new mandates in multiple countries abroad. ¡°The first step for any product line extension in a new market is to build brand awareness,¡± says Linda York, a vice president in the syndicated division and author of the study. ¡°Once that has been achieved, managers need to build a credible and compelling story, emphasizing the capabilities and characteristics considered most critical to their chosen markets.¡±
