Institutional consultants face many challenges. It is a highly competitive business and consultants are expected to produce top-tier research while enduring shrinking margins. Whether serving pension plans, endowments or other institutional investors, clients expect their consultants to identify and research top performing fund managers. This requires an investment manager selection process that is designed to efficiently identify and analyze managers.
Consultants must also understand their clients’ needs. For example, pensions must fund their obligations and endowments have minimum spending requirements. This expands the consultant’s role beyond investment manager research to creating an asset allocation framework that is best for their clients.
Finally, institutional consultants must help their clients understand the managers in which they are investing and how their portfolio is designed. This requires both face time with clients and reports that will help tell the story.