EUROPE - Fund managers across Europe must alter their sales processes radically to boost win rates and cut costs, new research suggests.
Managers currently spend US$9bn (e8.7bn) on managing, duplicating and distributing product information to schemes and consultants, according to a report commissioned by software provider Activiti and performance measurers Russell/Mellon CAPS.
It found the current system of fund managers responding to requests for proposals (RFPs) was inefficient and costly for consultants and for fund managers.
The report said “information demands” had increased by 70% over the last three years but only 34% of firms intended to increase their marketing resources.
The study states that to improve the RFP process, fund managers need to work with consultants to produce information in a standardised format, cut down on the amount of products they try to sell schemes and only pitch for the mandates they believe they can win.
Mercer Investment Consulting global head of research Bill Muysken, said: “A lot of work goes into RFPs in the first place, at the manager end to prepare responses and at the consultant end reading and analysing them all.
“There’s a fair amount of repetition that goes on and it would be good if the process was made more efficient.”
Muysken added that Mercer had moved to improve the tendering process by setting up its global investment manager database.
In exchange for regularly updating its database, Mercer consults the database on manager selection issues and does not subject fund managers to the RFP process, saving both sides time and money.
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