A commonly held misconception by superannuation fund trustees is that all asset consultants are the same. Therefore, it doesn’t matter which is selected. In fact, although asset consultants provide similar services there are notable differences in the ranks. Differentiation exists across a number of key areas including quality of investment research, calibre of staff, business services, conviction of advice, business passion, client service and costs.

The asset consultant selection process must enable trustees to clearly identify what these differences are and how they will impact on their fund. Only then can trustees embark with confidence on the next stage, which is selecting an asset consultant that is best suited to achieving their specific investment objectives. Importantly, trustees must resist the temptation to do what everyone else is doing.

Instead the focus should be on identifying an asset consulting organisation that espouses trust, and operates with integrity and shared values. These key ingredients will ensure a successful and long term relationship to the mutual benefit of both parties.

Conclusion

 Choosing an asset consultant is one of the most important decisions that will be made by superannuation fund trustees. All asset consultants are not the same. Therefore, it is critical to select an asset consultant that will be a trusted long-term partner, possessing the investment capabilities and experience to assist the fund in navigating its way through constantly changing global financial markets and regulatory requirements.