• 56% of TPM firms have between three and five investment management clients, with 33% servicing six or more clients
  • 83% of TPM firms represent investment managers in multiple jurisdictions
  • Multi-family offices, single-family offices and pension funds are priority channels for TPM firms
  • 24% of TPM firms believe their own reputation is a key differentiating factor to make them successful in this current environment
  • For 33% of TPM firms, reputation of an investment management company is also the most important consideration when they look to represent a client
  • 50% of TPM firms are regulated in the countries where they market the investment strategies and/or funds of their clients, with 26% regulated in at least some of these markets 
  • 49% of TPM firms have a retainer-plus-success fees model

 London & Dubai:  The second annual survey of the global Third Party Marketing (TPM) landscape shows the industry is responding to the changing needs of clients and markets with more relevant strategies and robust business models. 

In a challenging investment environment for traditional asset managers, the focus of TPM firms is on building relevant, resilient and higher quality offerings. Greater regulatory certainty is also increasingly important. 

This is according to some of the latest research findings, in a report entitled ‘Making third party marketing more mainstream’.

In total, 70 market practitioners completed the survey, 16 more than in 2021. Plus, the coverage now includes Asia Pacific, to add to responses from the UK, Continental Europe, South Africa and the Middle East. Within EMEA and APAC there are now over 200 firms, a significant increase compared to three years back

“The momentum behind the evolution of TPM seems to be gaining ground globally,” said, Stuart Alexander, UK Chief Executive at GemCap, a Platinum Partner of the research. “When looking at the wider investment landscape, it is no surprise that appetite for and acceptance of this model is growing.”

In particular, the greater efficiency of the TPM approach to engaging asset owners, along with a need for greater comfort among asset managers about who they partner with, is leading to TPM players being more diverse, well-resourced and better regulated.

“TPM firms appear to consider it more important to be regulated where they promote the investment strategies or funds of their clients,” said Jeremy Albrecht, Managing Director, Head of Continental Europe, UK and Ireland, Client Coverage, at RBC Investor & Treasury Services, another Platinum Partner.

In addition, although depth and size of network remain key drivers to help a TPM firm stand out, a solid reputation is significantly more important than 12 months ago, according to the inaugural survey. Further, no longer do the majority have a transaction mindset, plus there is more appetite to represent investment managers across asset classes. 

“Ultimately, based on the latest research findings, the TPM model is adapting to today’s investment challenges,” added Nigel Sillitoe, CEO and Founder of Insight Discovery, the consulting firm which conducted the exclusive research.

This second annual survey again aims to provide actionable insights based on the trends, developments and characteristics of the TPM landscape.

The Gold Partners for this research project include: Active Fund Placement; Capital Strategies Partners; First Forte Consultancy; Garnell; and More Global Markets.

*6 in Israel

-Ends-

About Insight Discovery-

Insight Discovery is a multiple award-winning consultancy that specialises in market intelligence and strategic communications. We provide solutions and support to major conglomerates, government agencies and many of the world’s largest and best known financial institutions in all of these areas.

About GemCap-

GemCap offers clear strategies for Asset Management businesses utilising our Dublin based UCITS Funds platform. We deliver management company services to the Irish umbrella UCITS structure, GemCap Investment Funds (Ireland) Plc platform, and help tailor your investment proposition to ensure it’s ready for market. We do this through our UCITS Umbrella Structure supported by our Dublin-based management company (ManCo). GemCap is a team of experienced individuals from across the Funds industry who share a similar set of values that we believe make us unique in the industry. We also offer Fund Distribution and Fund Oversight Services to investment companies and fund managers. 

About RBC Investor & Treasury Services (RBC I&TS)

RBC Investor & Treasury Services (RBC I&TS) provides asset and payment services to corporate investors and financial institutions globally. Trusted with CAD 4.1 trillion in assets under administration,1 clients are at the heart of our service offering. As a financially strong partner,2 our focus is on safeguarding client assets as we leverage data and technology solutions to deliver meaningful insights, simplify our clients’ operations and support their growth.    

(1) RBC quarterly results as at July 31, 2022
(2) Standard & Poor’s (AA-) and Moody’s (Aa1) legacy senior long-term debt ratings of Royal Bank of Canada as of August 23, 2022