New kasina study shows: Firms Must Look Beyond Standard Metrics to Guide Strategy

New York, (June 24, 2008) – Applying more rigorous tactics to measuring the impact of distribution can help asset managers efficiently allocate scarce resources, according to a new study by kasina, a leading asset management consultancy. The study, “Quantifying Distribution Strategies,” examines the ways in which firms can refine their current measurement strategies to ensure that they remain competitive in a changing marketplace.

In today’s climate of narrowing margins, market volatility, and macroeconomic uncertainty, effective use of metrics can make the difference for asset managers who want to sell, service, and market better than the competition.

The metrics that firms are currently using are not doing the trick. There is widespread uncertainty about the relative effectiveness of the individual distribution functions: among the distribution executives interviewed for the study, 50% felt that their Sales team was overvalued, while 58% felt that the Marketing team was undervalued.

Though current metrics give firms a top-level, bird’s eye view of distribution, they don’t adequately measure the many variables that contribute to sales. Firms must look toward different kinds of metrics to gauge the true value of areas within the firm, such as Marketing, whose contribution has been notoriously difficult to measure in the past.

The advantage of using better metrics is clear: it enables firms to develop superior distribution and differentiate themselves in the overcrowded fund market.

But to truly follow through, firms must first overcome some common roadblocks that prevent accurate metrics and data from being obtained. Lack of transparency, time, and resources are frequent obstacles firms face when generating metrics.

According to kasina, firms can rethink their current approach to metrics by:

  • Disaggregating data
  • Contextualizing data
  • Opening Up Information Flows

As asset managers struggle to stay ahead of the curve in a difficult market environment, the opportunity to create operational efficiencies and drive sales by streamlining distribution efforts should not be overlooked.

Get more information on the full report, “Quantifying Distribution Strategies.”

About kasina

kasina is a management consulting firm that is focused on helping financial services companies create intelligent relationships with their investors and intermediaries. By combining knowledge of distribution trends, technological innovations, and marketing strategies, kasina aids leading asset management firms with front-office efforts and publishes a regular schedule of cutting-edge industry research. kasina�s client list includes 18 of the 20 largest asset managers in the United States and leading firms in Canada, France, Germany, and the United Kingdom.