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Procurement Market Intelligence Report

Investment Management Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Investment Management Services?

What is the average price of Investment Management Services?

This procurement report includes pricing information to help you purchase Investment Management Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Investment Management Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Investment Management Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Investment Management Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Investment Management Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 23,000 investment management firms in the United States, the top four operators account for less than 30.0% of total market revenue, signaling a low level of concentration. The majority of operators are small with only a handful of employees, so they do not have the resources to... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Performance

What methods do you use to evaluate the performance of an investment?

How have your clients' investments performed over the past few business cycles?

How many of your clients have left your firm due to underperforming investments during the past three years?

What actions has your firm actively taken to improve the performance of clients' investments?

How have your clients' portfolios been impacted by coronavirus? Have they experienced a net loss or gain since the onset of the outbreak?

Experience

How long has your firm been managing investments for investors?

What licenses, certifications and/or credentials do your employees have?

Do you specialize in managing specific types of investments? If so, what kinds of investments?

How many years of experience, on average, do your employees have managing investments?

Fees

Aside from a yearly management fee, what other fees must I pay? What services do not fall under the umbrella of the annual management fee?

Do you receive any compensation for recommending certain types of investments? If so, which types of investments?

What types of investments entail the highest amount of extra fees?

Do you earn a fee even if my investment is underperforming?

How do your fees compare to those of your competitors?

Regulation

How does your firm ensure compliance with legal and regulatory statutes?

Have you ever been disciplined by the SEC, a state regulator or other organization?

Are you currently registered with our state securities regulator?

How will your firm be impacted by the repeal of the DOL's Fiduciary Rule?

Communication

How frequently do I receive reports outlining the performance of my investment?

Do you communicate the rationale for buy/sell decisions to clients?

How may I contact you if I have any questions about my investment? What are your business hours?

Have you ever been involved in any arbitration cases? If so, what happened?

How have you ensured your communication with your clients has remained satisfactory during the pandemic?

Investment Philosophy

What factors are paramount to your investment philosophy?

How has your investment philosophy informed your investment strategies?

How does your investment philosophy help me achieve my investment objectives?

How do you stay up to date on trends in financial markets?

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Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include a detailed breakdown of all relevant fees (e.g. advisory fees, custodial fees, conversion fees, travel, training).

Vendors should disclose any fees they may receive from any particular investments.

Selection Criteria

Buyers should evaluate the firm's experience managing funds of similar size and complexity, as well as the qualifications of all relevant personnel.

Buyers should evaluate investment managers based on their cost proposal.

Buyers should evaluate vendors on their investment philosophy and demonstrated performance.

Buyers should evaluate references from the firm's longest tenured clients.

Buyers should evaluate the extent to which value-added services are provided.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. presentations or final interviews) prior to the contract award.

Buyers should include the date when the contract begins and ends, as well as any options for contract renewal.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for providers of investment management services is low. The risk of service interruptions or spikes in rates for service due to adverse events in the supply chain is minimal, thus helping buyer power. Investment managers source inputs from a number of upstream suppliers, including securities brokerage... Subscribe to learn more.

HIGH

MEDIUM

LOW