Cerulli anticipates this figure should continue to increase as plan sponsors look to augment the fiduciary skill associated with their plans, and demand best-of-breed managers and custom target-date funds. According to the report, there has been a continued shift by consultants of client assets into alternatives and long-duration fixed income, as over three-quarters of consultants said they desire a consistent investment performance track record and no surprises.
In a press release, Cerulli said institutional investment consultants have become a critical avenue for asset managers hoping to distribute through a 401(k) platform. The report suggests asset managers should develop the role of the portfolio specialist, as consultants respond positively to this role, and only 57% of consultants feel access to a portfolio manager is very important.
“By understanding how investment consultants operate and
effectively meeting their demands, managers can be best
poised to take part in custom target-date funds and
open-architecture DC platforms,” Cerulli said.
The report can be purchased from www.cerulli.com .
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