Finally, kasina LLC, a New York-based e-business consulting firm, can put together a Top 10 list of investment managers' online services for institutional customers. Why now? There are finally more than 10 with online services to evaluate.
There may have been a rush to the Internet during the last half of the 1990s by almost every business concern you can imagine, but institutional asset managers were not part of it. Sure, as an individual, you have been able to check your portfolio online, but institutional asset managers didn't want to divulge the kinds of portfolio details that an online display of accounts might entail. In addition, there wasn't going to be the cost savings for the institutional asset managers that retail managers enjoy.
But the customer is always right, and plan sponsors were beginning to question why information about their relatively puny personal IRAs was available at any given moment on the Web, but not the multibillion-dollar retirement funds they oversaw. "They would say, 'I've got $5 billion [invested] and I can't get Web reports as good as I can on my $75,000 IRA account,'" says Kelly Haughton, chief Internet strategist at Frank Russell Co., a Tacoma, Wash.-based investment services firm. With that the tide turned, and by the end of 2001, kasina reported that 80% of institutional investment managers offered online services, although less than 50% reported data on their Web sites. Still, it's better than it was.
Recommended For You
So what is it that plan sponsors really want from these Web sites? Even the sponsors aren't entirely sure. Various institutional asset managers have placed their bets on everything from content, to speed, to the fanciest bells and whistles.
Since defined-benefit plans usually place funds with various investment managers, some say custodians, who gather information from all the managers, are ideal to provide online data. For instance, Paul Mulholland, treasurer of Sunoco Inc., with $1.1 billion in pension assets placed with 10 managers, says the information he "really counts on" comes from the custodian, who can provide the total portfolio picture. But kasina CEO Steven Miyao says custodians only provide "accounting information," rather than the commentary that many pension plan sponsors need.
In the end, it will probably follow the evolution of most of today's online services: You don't know you need it until you can get it, and then you can't live without it.
Top 10 Institutional Web Sites
Alliance Capital
http://institutional.alliancecapital.com
Barclays Global Investors
www.barclaysglobal.com
Ranked #2 in usability, online services
Citigroup Asset Management www.citigroupam.com
Ranked #3 in online services
Credit Suisse Asset Management
http://extra.csam.com
Ranked #3 in usability
Fidelity Management Trust http://fmtc.fidelity.com
Ranked #1 in Web technology
Frank Russell
www.russell.com
Ranked #3 in content
J.P. Morgan Fleming
http://jpmorganfleming.chase.com
Ranked #2 in Web technology
Merrill Lynch Investment Managers
www.mlim.ml.com/USA
Ranked #1 in content
Morgan Stanley
www.morganstanley.com
Ranked #1 in online services
Putnam Investments
www.putnaminv.com
Ranked #3 in Web technology
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.