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Thursday, November 18, 2010

What Types of Products are Advisors Asking For?

Reported by Armie Margaret Lee

Cerulli Associates earlier this year polled around 20 asset managers on what types of investment strategies advisors are requesting, and the results do not come as a surprise.

Eight-two percent of respondents pointed to alternative strategies as among the top five investment products advisors are requesting. An equal percentage of surveyed asset managers mentioned global asset allocation.

Here are the rest of the results: style pure (59 percent), retirement income (47 percent), broad-based (24 percent), other (24 percent), domestic asset allocation (18 percent), lifecycle/target date (18 percent), socially responsible (12 percent), principal protected (12 percent), lifestyle/target risk (12 percent), liability-focused (12 percent), index (12 percent) and enhanced index (0 percent).

Cerulli also found that for the second straight year, alternative strategies are the most popular strategy type slated for product development. Twenty-four percent of new product development is allocated to such strategies.

The findings are part of Cerulli Quantitative Update: Retail Products and Strategies 2010, which Cerulli released this summer. Retail asset management group director Cindy Zarker, senior analyst Pamela DeBolt and analyst Alec Papazian penned the report. 

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