Around 40% of institutional investors – and more than half in continental Europe and Canada – have said asset managers who provide bespoke or customised offerings are included in all request for proposals (RFPs).
Research from Crisil Coalition Greenwich said many institutions are even willing to pay additional fees for bespoke service, including a third of Canadian institutions and closer to 40% of institutions in the UK.
However, as more managers agree to these requests, they are quickly discovering that customisation has some major drawbacks. Namely, providing customised service propositions to clients is expensive and creates a level of operational complexity that can sap organisations of efficiency.
“In the end, both managers and clients lose if resources are being misallocated to unnecessary services,” Marlie Vredenburgh, senior relationship manager at Crisil Coalition Greenwich, said.
“To avoid that situation, managers need to take a wider perspective, get closer to clients to better understand specific needs, and-most importantly-dare to tell clients, ‘No.’”