How to Stand Out in the Asset Management RFP Process?

Organisations and large-scale investors depend on asset managers to maximise their returns. An institutional investor or HNI client might fail to manage their assets without external support. It is where asset managers help professionally manage different types of assets. Besides managing assets, they also keep an eye on portfolio risks. They work with clients to create investment strategies that can maximise portfolio performance. Large-scale companies, institutional investors, and many others depend on asset managers for portfolio management. These investors and organisations issue RFPs (Request for Proposals) for asset managers to respond. Read on to understand more about the asset management RFP process.

Understanding the Asset Management RFP Process

Organisations and investors must find the best asset managers for portfolio management. They cannot meet every asset manager in the city or state to choose the best one. To find asset managers, organisations issue RFPs. An RFP is a formal document to invite proposals from interested asset managers. The RFP will contain the asset management requirements in detail. Potential asset managers respond to RFPs, and the issuer selects the best one. Since several asset managers will respond to an RFP, the issuer can compare their offerings. An RFP will include all the needs of the issuer, which can be an investor or an organisation.

An RFP is issued on a digital or traditional channel, depending upon the preferences of the issuer. One can find RFPs on company websites, public procurement portals, newsletters, print media, social media, and professional networks. The issuer must ensure that all details and needs are mentioned in the RFP. Similarly, the asset manager must ensure that relevant details are provided while submitting an RFP response. Asset managers responding to RFPs must focus on the requirements and objectives of the client. If they can meet the portfolio management goals mentioned in the RFP, they must send a response. Let us discuss ways to stand out in the Asset Management RFP process.

Tips to Stand Out in the Asset Management RFP Process

Numerous asset managers are looking for opportunities in the market. Amidst the high competition, it can be challenging to find new clients. There might be a case where your RFP responses might get rejected. Asset managers must follow some strategies while responding to RFPs. A good RFP success rate means more clients and a better reputation. Here are some tips for asset managers to stand out in the RFP process:

Understand the Needs of the RFP Issuer

Haste makes waste and the same applies to the asset management RFP process. Managers must go through all the details in a proposal before drafting a response. It is crucial to ensure that you can meet all the requirements mentioned in the proposal. If managers feel they cannot fulfil all requirements, they must refrain from drafting a response. Once you understand the client’s requirements in a proposal, you can tailor your response to meet specific needs. It will also boost your RFP success rate in no time.

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Talk About Your Approach

You must stand out from other asset managers while responding to an RFP. It can happen when you discuss your unique investment strategies and portfolio management techniques. Asset management firms can highlight their track record and experience. Similarly, individual asset managers can share their experience of similar projects. It will highlight your uniqueness and increase the RFP success rate.

Give a Personal Touch

Many asset managers respond to RFPs in bulk. They often submit generic responses in all RFPs. Since there is no customisation, the responses get rejected. Take some time to figure out the requirements of the client. Include customised responses to directly address the client’s needs.

Don’t Forget to Add Data

It is good to include your investment philosophy in the RFP response. However, you cannot forget to add data and facts in doing so. You must provide data regarding past performance to win the client. Provide some numbers to back your proposal. Experienced asset managers include KPIs (Key Performance Indicators) to highlight their effectiveness.

Explain Your Reporting Process

Organisations and investors demand frequent reports from their asset managers. The client needs to know how the portfolio is performing at all times. It will happen only when the asset managers maintain regular communication. Asset managers must stay in touch and provide frequent performance reports. It also improves the trust between the client and the asset manager. You can highlight your frequent reporting standards in the RFP response. These little things can make or break your asset management RFP response.

In a Nutshell

Asset managers must customise their RFP responses to meet the specific needs of clients. By submitting personalised and thorough RFP responses, asset managers can win more clients. Asset management firms can always seek external support by partnering with a third party to submit effective RFP responses. Follow the right RFP strategies now!