For more stories like this, sign up for the PLANADVISERdash daily newsletter.
In Practice June 22, 2011
Report Highlights Sub-Adviser Opportunities
A recent report from Financial Research Corporation (FRC) reveals that
sub-adviser firms polled say their primary source of manager search
information is the manager itself.
Reported by Rebecca Moore
For Winning in the Sub-Advisory Business, FRC interviewed 33 firms via an online survey during the first quarter of 2011, and uncovered other ways sub-advisers learn about searches. Networking opportunities was rated 2.35 on a helpfulness scale (with 1 = Extremely Helpful and 5 = Provides no Help) and historical fund performance data was rated 2.4.
There was a three-way tie between cold calling, consultant relationships, and sub-advisory mandates changes, FRC found, with each of these ranking 2.85 on the helpfulness scale. FRC said the reason consultant relationships ranked so low may be due to the infrequent use of consultants, as reported by respondents.
The report also reviews the relationship between firm size and mandate discovery. Among the key aspects of the search process, FRC discusses how firms are prioritized, and the best ways for sub-advisers to get on the radar of advisers.
More information is at http://www.frcnet.com/documents/Winning-in-the-Sub-Advisory-Business-Brochure.pdf.