Case Studies

    Corporate Pension Liability
    Global/International Equity Manager
    Risk Exposure Management
    Insurance Asset Management
    Merge Intermediary Business Units
    Launch Asset Management Unit
    Institutional Equity Asset Management
    Institutional Fixed-Income Management


  Proprietary Papers





Project goal:
To develop a comprehensive plan to rebuild institutional assets after poor performance and lack of sales efforts caused 75% erosion in business.

Business context:
The asset manager had lost the majority of its client assets over a decade due to poor performance after being a leader in the international and global equity arena. Since it had reached capacity it had eliminated its sales efforts. In order to rebuild, it needed to evaluate its potential success when performance improved and restructure its organization to once again build new business.

Margolis Advisory Group interviewed firm personnel to gain perspective on the problem and to evaluate personnel for new business roles. Importantly, client and consultant contacts were interviewed to gain an outside perspective on the firm and its potential for success. Firm information, and that of its competitors, was studied in order to understand how challenging it would be for the firm to compete after its poor performance period.

A comprehensive plan was devised, including a reconstituted organizational chart incorporating role changes for specific individuals. A suite of marketing tactics were developed to rebuild the firm's strong brand. Specific client communications were recommended in order to avoid continued deterioration of client assets, a significant risk uncovered from the client and consultant interviews. Finally, a communication plan was developed for the investment and client relations teams to proactively meet with clients and consultants to address their concerns about the on-going performance issues.

In order for the firm to execute the recommendations, it established an implementation team, asking Margolis Advisory Group to contribute as a member. A multi-faceted work plan was devised incorporating all functions within the organization. The firm is now retaining a significant percentage of its remaining client assets, building a sales effort, and gradually working its way back toward meeting its business objectives.

Lessons learned:
Don't rest on your laurels. Business dominance does not last without constant effort across the firm. Also, recognize quickly when conditions are changing. Temporary performance breaks generally don't damage a firm that has been highly successful, but a tipping point is reached when these breaks become an on-going trend. Once that tipping point is reached, the problem presents a serious threat to an asset manager's business and serious action should be promptly taken. While addressing the threats to the business, plan to take the necessary steps to rebuild.