institutional channel

MaryW commented on the word institutional channel

In today's market, asset management services are distributed to US-based investors primarily through five principal distribution channels: direct, professional advice, retirement plan, supermarket platforms and institutional.

. . .

5. Institutional channel. The previous four channels are geared almost exclusively toward retail or mass affluent investors with less than US$10m in net investable assets. In contrast, the institutional channel includes businesses, such as the treasury department of a corporation as well as insurance companies,

endowments, private family offices, defined benefit pension plans, foundations and universities. The key driver to success in institutional distribution — apart from demonstrating proven performance results — is building solid relationships with the institutions’ designated investment consultants. Because they act as vigilant gate-keepers and decision-makers in allocating assets among different managers, it is essential to win their

hearts and minds.

Ernst & Young, Sea of Change on the Horizon: US Fund Distribution 2014 (2014), pp. 5, 8

December 28, 2016