The Internet is becoming an increasingly important tool in conducting business for financial services firms, at least that is what London-based
IPE International Publishers, a publisher that focuses on the European pensions market, is betting on.
Officials at the firm have launched a Web site that allows institutional investors, including those with pension and other kinds of retirement plans, to search for asset managers.
"Right now, we are being used chiefly by European institutional investors, but it is designed to be used globally,"
Tony Hay, director, told the 401kWire.com. "It could certainly be used by US defined contribution sponsors and other retirement plans that are looking to provide a strong cross-selection of funds for their employees."
Hay further explained that the system -- called
IPE-Quest -- was designed for any company that wanted to appoint an outside asset manager. Currently, according to the official, there are 210 asset managers in the system, and they are from the US, the UK, and continental Europe.
Officials with the plan sponsor fill in a questionnaire from IPE. This is done to specify the criteria as to the kind of asset manager for which they are looking. "We then announce the search, but we keep our clients anonymous. It resembles a dating service. The asset managers respond, and the sponsor chooses finalists from there."
Hay noted that sponsors can respond in a number of different ways. They can issue RFPs to asset managers they consider to be finalists, or they can zero in on a firm they think suits their needs the best.
To participate in a search, an asset manager has to purchase applications. The service only allows asset managers to purchase a minimum of ten applications at a time for approximately $700 US. When the asset manager has used up those ten, more applications need to be purchased.
The IPE site provides no subjective data on asset managers. The system can be used by institutional investors with or without consultants. "We are not looking to replace the consultant. In fact, we believe that this service would be extremely valuable to the consultant."
IPE-Quest is a relatively new system, having been introduced in the second half of 1999. So as of this year, the system's first searches are now just being completed.
The next step for the product, according to Hay, will be providing more objective research on the asset managers. "Right now, clients have to go somewhere else to fulfill their fiduciary responsibilities. We want to provide the research they will need to help make their decisions," he stated.
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