Asset Management Performance Intelligence

Conducted in partnership with Institutional Investor’s U.S. and European Institutes and Casey Quirk, we run an annual asset management business benchmarking study. The study benchmarks revenue, expenses, and headcount by location at a granular level, providing insights about asset management firm business results.

Global Intelligence, Focused Expertise

Our team is a leader in the industry, working as a partner with clients to benchmark revenue, expenses, and headcount by location and compare performance against peers at a granular business level. We work with over 100 firms globally, helping our clients allocate resources effectively and productively.

Sustainable Performance Management Strategies

We help our clients answer questions critical to their business performance. Some of the topics covered in this study include:

Business Performance

  • How do industry profit margins vary across different types of firms?
  • Per dollar of revenue, how much do firms spend on investments, sales, and operations?
  • How much are specific expenses, such as rent, benefits, and travel, as a percentage of revenue?

Staffing Levels and Global Expansion

  • What were absolute and relative staffing levels in investments, sales, and operations?
  • Where have firms expanded globally and how have they dealt with the challenges of operating in Asia?

Value and Profit Sharing

  • How much were investment professionals paid as a percentage of revenues and how has that changed over time?
  • What were compensation and benefits payout rates and how were compensation and benefits structured?
  • What were bonus payout rates relative to profit?
  • How was the overall pay pie divided between investments, sales, and administration?

McLagan Operational Due Diligence IQ Services

We are helping asset managers empower results through actionable data and insights into operational risk areas that may exist at your firm. With a focus on attracting and maintaining institutional assets, it’s imperative to know how your firm compares to its peers when competing for mandates. McLagan’s Operational Due Diligence (ODD) IQ provides empirical reporting to help identify operational improvement opportunities across your firm.

ODD IQ evaluates asset managers in up to 200 risk areas across eight core investment management operating areas. With nearly 500,000 data points collected from over 300 asset management firms, ODD IQ helps you achieve optimal positioning in the market.

  • Actionable insights into what institutional investors are looking for.
  • Data driven approach to assess operational risks across your firm.
  • Custom benchmarking of your firm relative to peer groups of competitors.

ODD IQ's Value Across Your Firm

Finance / COO / Legal
Executive Compensation | Executive Compensation Strategy

Budgeting tool: Identify low hanging fruit to optimize operational improvement opportunities with minimal incremental cost.

Pinpoint blind spots: Breadth of coverage ensures visibility across firm departments, including areas previously overlooked. Focus on your firm's low quartile risk areas where improvements can be implemented quickly.

 

IR / Marketing
Executive Compensation | Executive Compensation Strategy

Asset owners insights: Benefit from the best practice insights that Aon's ODD teams utilizes to advise asset owners. Remove the qualitative human perspective inherent in a consultant review.

Risk profile snapshot: Benchmark illustrates your risk profile relative to competitors, allowing you to make an informed decision regarding prioritization based on market practice. You never know which area could prevent you from winning a mandate.

Pre-audit check: An opportunity to view and correct how your RFP team completes due diligence questionnaires before the high stakes to win a mandate (i.e., your firm may be following a best practice, but your team did not answer a question correctly in its questionnaire submission).

 

IT / Operations
Executive Compensation | Executive Compensation Strategy

CyberSecurity: In a constantly evolving cyber landscape, understand where your firm does and does not need to invest.

Business continuity: Check your firm's disaster recovery preparedness.

ODD IQ Case Studies

Asset management firms are required to complete due diligence questionnaires (DDQ) for evaluation by investment consultants. If you have relatively weaker operational practices, you may not receive a buy rating. ODD IQ helps you avoid this by illuminating the criteria on which you will be assessed prior to the formal evaluation and benchmarking your performance to peers.

Our recent case studies provide examples of how ODD IQ helped asset management firms avoid a negative situation by revealing potential blind spots. Read the case studies here.

Ready to learn more? Contact our team today