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Pension funds play hard to get

On a five-point scale, asset managers get a score of 4.1 for difficulty in getting on their buy list. General accounts of insurance companies and consultants, who get 3.9 points each for difficulty, come second. Banks are considerably less hard to charm, with an average score of 3.3. Unsurprisingly, fund platforms are easiest to convince for asset managers, though it still requires a little bit of effort: 2 points on a scale of 5.

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They are also the easiest lists to stay on, followed by banks, who seem to have relatively stable selection lists. Staying on a buying list tends to be easier than getting on it, but the largest gap in this respect is to be found with insurance companies which provide investment-linked products.

Size matters

Pension fund and insurance companies’ buy lists are possibly more difficult to accede because they tend to have a smaller buying list than retail banks, according to the research. Almost three in 10 pension funds and insurance companies have fewer than 10 funds on their buying list, while banks typically offer between 20 and 40 funds.

Considering banks are easier targets than institutional investors, it seems quite logical as well that asset managers focus their marketing efforts on banks, providers of multi-asset solutions and consultants. Still, it is quite striking that asset management companies do not really engage with insurance companies. 

Part of the Bonhill Group.