(Cerulli Associates) - As the marketplace becomes more crowded, securing a spot in an institutional investor’s portfolio has become more challenging for asset managers. While performance relative to expectations is vastly important, a cohesive and stable investment team, timely communications, and firm culture also matter to institutional investors, according to the latest Cerulli Edge—The Americas Asset and Wealth Management Edition.
When asset owners evaluate the capabilities, qualities, and characteristics of what they believe are top asset management organizations from both a strategy and firm perspective, a majority (72%) of institutions identify the consistency of performance relative to expectations and the experience, talent, chemistry, and stability of investment professionals as the most important characteristics of top asset management firms. Firms that provide timely, candid, and concise communications (61%) and minimize negative surprises are also viewed favorably.
“Institutional investors seek communications that are timely, accurate, and transparent,” says Michele Giuditta, director. “While institutions want a candid assessment of the past quarter’s performance results, many clients prefer the update to focus more on the current investment strategy and portfolio positioning for assurance that their portfolio is properly positioned to endure the current environment. Cerulli recommends relationship managers ask each client which elements of the quarterly client letter are most important to their institution and, when possible, offer customization based on their needs,” she adds.
Asset managers that have a reputation for having a great firm culture (49%)—with loyal, long-tenured employees and incentives that are aligned with clients—are also better positioned. Institutions also value managers that have strong investment beliefs about their skills—and investment strategies that align with those beliefs (44%).
“An investment team that is adequately staffed and has the resources and an aligned team to deliver long-term performance results is also important,” says Giuditta. “Asset managers that can articulate and clearly display their edge and show that they can implement the strategy will have a competitive advantage in winning and retaining clients,” she concludes.
April 16, 2026
