Cogent Reports: Low Awareness Hampering Uptake of LDI and OCIO Services

CAMBRIDGE, Mass.--()--Dozens of asset managers and consulting firms are courting institutional investors with solutions-based approaches, yet relatively few are successfully achieving meaningful recognition for their liability-driven investing (LDI) or outsourced chief investment officer (OCIO) capabilities. In fact, one-third (34%) of institutional investors are unable to name an LDI provider they would consider, and 59% cannot name an OCIO provider. These and other findings are included in the annual US Institutional Investor Brandscape®, a Cogent Reports™ study by Market Strategies International.

“Liability-driven investing, or LDI, is a clear favorite among corporate pensions managing to a very specific and defined liability stream, and many in the industry are forecasting continued interest in OCIO or fiduciary management services,” explains Linda York, senior vice president, Market Strategies, and author of the report. “That said, when we prompted institutional investors with a list of 30 LDI providers, 21% of respondents who said they were interested in or currently employing LDI did not recognize any of the firms as offering LDI services. Moreover, when prompted with a list of 39 OCIO providers, 11% of those interested in or currently employing OCIO services did not recognize any of the firms as providers of OCIO services.”

“These findings suggest that while many firms are adding to staff and building expertise in these solutions-focused areas, few firms have yet to establish themselves as serious contenders for these services,” continues York. “The next step for these firms needs to be a concerted marketing and communication effort to boost awareness and attract new business.”

The study identifies the firms that achieve the strongest recognition for their LDI and OCIO services, many of which are already atop the leaderboard for their asset management capabilities and are leveraging these solutions-based offerings to deepen their reach with existing clients beyond the fulfillment of a particular investment mandate. Providers seeking to break in to this lucrative yet increasingly competitive market face an uphill battle but have the opportunity to differentiate themselves by touting their unique approaches to investment outsourcing and the associated benefits that clients can expect to reap.

Top 10 Firms Recognized as LDI Providers

 

Top 10 Firms Recognized as OCIO Providers

 
1. BlackRock

1. J.P. Morgan Asset Management

2. J.P. Morgan Asset Management

2. Wells Fargo

3. Vanguard

3. Goldman Sachs Asset Management

4. T. Rowe Price

4. Vanguard

5. PIMCO

5. Northern Trust Asset Management

6. BNY Mellon Investment Management

6. BlackRock

7. Goldman Sachs Asset Management

7. Russell Investments

8. Wells Fargo

8. State Street Global Advisors

9. State Street Global Advisors

9. Commonfund

10. Northern Trust Asset Management

10. SEI Investments

 

Base: Institutional investors currently using or considering LDI/OCIO services

Source: Market Strategies International. Cogent Reports™. US Institutional Investor Brandscape®, January 2016.

 

About US Institutional Investor Brandscape

Cogent Reports conducted an online survey of a representative cross section of 405 investors managing $20 million or more in institutional investable assets from October 1 to December 10, 2015. Survey participants were required to play a direct role in the evaluation and selection of investments or asset managers within their organizations. In determining the sampling frame for this study, Cogent Reports relied upon the Standard & Poor’s Money Market Directories (MMD) database of institutional investors. To ensure the population for this research was representative of the universe of institutional investors, strict quotas were established by Cogent based upon a nested classification of institutional investor category and size of assets. Minimal weighting was applied to adjust for purposeful deviations from the actual marketplace distribution. The data have a margin of error of ±4.87% at the 95% confidence level. Market Strategies will supply the exact wording of any survey questions upon request.

About Market Strategies International

Market Strategies International is a market research consultancy with deep expertise in consumer/retail, energy, financial services, healthcare, technology and telecommunications. The firm is ISO 20252 certified, reflecting its commitment to providing intelligent research, designed to the highest levels of accuracy, with meaningful results that help companies make confident business decisions.

Market Strategies conducts qualitative and quantitative research in 75 countries, and its specialties include brand, communications, CX, product development, segmentation and syndicated. Its syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and monitor their brand and products within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world, with offices in the US, Canada and China. Read Market Strategies’ blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.

Contacts

Market Strategies International
Anne Denz, 617.715.7611
anne.denz@marketstrategies.com

Release Summary

Dozens of asset managers and consulting firms are courting institutional investors with solutions-based approaches, yet few are recognized for their LDI or OCIO capabilities.

Contacts

Market Strategies International
Anne Denz, 617.715.7611
anne.denz@marketstrategies.com