Asset management wholesalers that can deliver an informed opinion about their products are more likely to impact advisors' opinions in current market conditions, says a new study by kasina. Of the 107 advisors surveyed, 96 percent told the consulting firm that this skill, "at least somewhat impacts their transaction decisions."
Company Press Release
A recent kasina study suggests current economic woes may lead financial advisors to rely
more heavily on asset manager leadership. As part of kasina’s ongoing research on
intermediary distribution, kasina surveyed financial advisors to determine their
assessment of current economic uncertainties.
With the subprime mortgage fallout undermining buyer confidence, the Consumer
Sentiment index fell this January to its lowest point since 1992. Experts and laymen alike
are questioning our economic future, and recent market volatility has echoed these
concerns.
Not surprisingly, advisors are also affected by the waning consumer morale. While 41%
of advisors think the economy is headed for recession, 34% are expecting a turnaround,
and 26% are yet unsure. And even though less than half of advisors believe the US is
stuck in a recession, more than half see the economy as their greatest fiduciary concern
for the upcoming year. This uncertainty is echoed in advisor predictions for asset class
performance. International equity garnered 29% of the confidence pool, with the
remaining 71% diffused among the remaining asset classes.
However, in the midst of widespread division and uncertainty among advisors, the vast
majority still rely on asset managers for support and service. An overwhelming 96% of
advisors say that the ability of a fund company wholesaler to deliver an informed opinion
at least somewhat impacts their transaction decisions.
These recent statistics show asset managers have the potential to hold sway over advisors
now more than ever. In the current pessimistic climate, asset managers must
communicate clarity and thought leadership through all outlets in the distribution
organization.
About kasina
kasina's commitment to innovating distribution in the financial services industry has made it one
of the most influential strategy consulting firms in its sector. kasina works with a wide variety of
clients from five continents, including firms representing 90% of the U.S.'s total assets under
management. An overview of services offered by kasina is available at www.kasina.com.
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