National Accounts 2015: A Guide to Benchmarking, Budgets & Productivity

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Neil Henry
6 years ago
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1 BenchMark Series: National Accounts National Accounts 2015: A Guide to Benchmarking, Budgets & Productivity Spring 2015 Study Overview The importance of the National Accounts function continues to rise as the influence of gatekeepers over sales is increasing and a growing portion of flows are tied to recommended fund and advisory program lists. In addition to benchmarking National Accounts efforts with one s peers, this study provides asset managers with the necessary decision-support metrics to implement refinements to improve productivity and effectiveness. The FUSE BenchMark Series is focused on benchmarking and optimization of resources within different functional areas of an asset management firm. Our BenchMark reports are effectively support programs that combine market intelligence with a pre-defined methodology for self-assessment to produce a structured approach to the decision-making process of senior executives. FUSE provides upfront evaluations and ongoing monitoring to help ensure that business needs are met and objectives realized. The baseline research for the National Accounts report comes from a detailed survey and series of interviews with National Accounts Leaders. Benefits This study will help Heads of Distribution, National Accounts Leaders, and other distribution executives evaluate their teams and improve productivity and effectiveness by providing the following: Organizational Structures of National Accounts Function Best practices for selecting platform opportunities Compensation Metrics for National Accounts Manager by firm size Staffing metrics Type and frequency of platform interaction Time allocation by role and budget metrics Metrics to measure the effectiveness of National Accounts relationships

2 The Study Provides Answers to These Questions: How do our compensation levels compare to industry peers? What changes should I make to my compensation structure to motivate the National Accounts group? What group should be responsible for covering due diligence teams? on communication Tomorrow s winners need to have both wholesalers and National Accounts, and both need to work together. Am I providing adequate coverage of my Focus/Tier 1 partners? What criteria should I use when searching for distribution partners? How should I utilize the Junior National Accounts Manager role? How can I maximize my impact on platforms with limited resources? What is the appropriate National Accounts group headcount for a firm our size?...and many more that are crucial to the overall success of your National Accounts efforts.

3 Table of Contents CHAPTER ONE NATIONAL ACCOUNTS ORGANIZATIONAL STRUCTURE Reporting Structures National Accounts Roles Due Diligence Roles Other Roles Organizational Structure by Firm Size CHAPTER TWO PLATFORM EVALUATION & SEGMENTATION Platform Selection Criteria Firm Segmentation Planned Changes to Tier Coverage Contribution to Gross Sales & AUM by Tier CHAPTER THREE NATIONAL ACCOUNTS STAFFING Staffing by Role National Accounts Metrics Future of National Accounts Staffing CHAPTER FOUR TIME ALLOCATION & NATIONAL ACCOUNTS BUDGET Time Management Benchmarks Time Spent by Firm Size & Role Senior National Accounts Manager Interaction by Tier Sales Team Collaboration National Accounts Total Budget and Travel & Expense Budget CHAPTER FIVE COMPENSATION STRUCTURE & TRENDS Compensation Structures Median Compensation Team Costs & Productivity CHAPTER SIX MEASURING NATIONAL ACCOUNTS SUCCESS Sources of Gross Sales Drilling Down into the Wirehouse Channel National Accounts Success CHAPTER SEVEN RECOMMENDATIONS

4 There are more than 75 exhibits in the study including: Importance of Platform Selection Criteria for Asset Managers National Accounts Staffing Levels by Firm Size Median Number of Distribution Partners by Segmentation Tier Average Gross Sales and AUM by Size of Firm and Tier Due Diligence Team Presence and Reporting Structures Importance of Senior National Accounts Manager Skills/Qualifications Number of Focus Partner Relationships per National Accounts Manager by Firm Size Planned Staffing Changes over Next 12 Months by Role Average Time Allocation of Junior National Accounts Managers National Accounts Budget by Firm Size Wirehouse Channel Percent of Firm Gross Sales by Firm Size, 2014 vs Comparison of Average Compensation Levels by Relationship Management Role Study Excerpt on Focus Partner Relationships In comparing this year s results to 2013, in general, it appears that asset managers are becoming more focused, dedicating more resources to fewer partners. For large managers in particular, the median number of Focus/Tier 1 partners declined from 13 in 2013 to in This suggests that asset managers are devoting more of their resources, both financial and human, to the relationships that deliver the highest level of sales currently and/or offer the best prospects for growth. Exhibit - Focus/Tier 1 Partners by Firm Size, 2014 vs Large (>$50B) Mid ($20B-$50B) Small (<$20B) Aggregate Sources: FUSE National Accounts Surveys, 2014 & 2013

5 About FUSE Research Network, LLC for more information contact: Jason Heinhorst fuse-research.com FUSE Research Network was launched with the view that research and consulting support for asset managers has failed to evolve with the changing needs of the client. The future competitive environment will demand that clients make important business decisions within shorter and shorter time frames. In order to support clients in this setting, FUSE provides a dynamic research platform that covers our clients current and future decision areas (strategic and tactical). Our goal is to become an invaluable business partner through the delivery of highly informed and forward-looking recommendations that are among the critical inputs our clients need to optimize results.

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