FULL WHITEPAPER
Levering Wealth Market Paradigm Shifts to Drive
The retail asset management marketplace is becoming increasingly more institutionalized while also growing at more than twice the rate of the traditional institutional marketplace. Retail asset managers must overcome institutional-like hurdles standing between them and new retail asset flows, such as model portfolios, shrinking approved manager lists and investment consultants. Conversely, institutional asset managers continue to seek ways to diversify their businesses and client mix. A growing focus on targeting intermediaries, financial institutions and their investment consultants to access lucrative “wealth” segments is very much in motion creating a convergence effect on distribution teams.
At major wirehouses as well as at independent RIA firms, with or without a requirement to use model portfolios, there is an increasing reliance on centralized portfolio construction and compliance. This has resulted in very little client account discretion being left to the individual advisor.
Institutional investment consultants play an increasingly large role advising and creating retail portfolio models, thereby resulting in a strong “buy” rating from a major investment consultant’s manager research team. This creates an excellent opportunity for institutional asset managers already skilled at navigating the consultants’ research processes.
- Institute substantial, ongoing and online advisor education programs.
- Institute consistent brand narrative campaigns that highlight relevant strategies and solutions expertise to drive traffic to your firm.
- Create and employ a different operating infrastructure.
As Retail and Institutional Markets converge, Managers are combining sales and marketing responsibilities leading to the conclusion below:
- Asset managers trying to move with the changing marketplace face challenging decisions around talent management
- To manage talent effectively, it is imperative that asset managers properly align the sales incentive structure
- Organizational and talent issues extend beyond the sales team
The retail asset management marketplace is becoming increasingly more institutionalized while also growing at more than twice the rate of the traditional institutional marketplace. Retail asset managers must overcome institutional-like hurdles standing between them and new retail asset flows, such as model portfolios, shrinking approved manager lists and investment consultants. Conversely, institutional asset managers continue to seek ways to diversify their businesses and client mix. A growing focus on targeting intermediaries, financial institutions and their investment consultants to access lucrative “wealth” segments is very much in motion creating a convergence effect on distribution teams.
At major wirehouses as well as at independent RIA firms, with or without a requirement to use model portfolios, there is an increasing reliance on centralized portfolio construction and compliance. This has resulted in very little client account discretion being left to the individual advisor.
Institutional investment consultants play an increasingly large role advising and creating retail portfolio models, thereby resulting in a strong “buy” rating from a major investment consultant’s manager research team. This creates an excellent opportunity for institutional asset managers already skilled at navigating the consultants’ research processes.
- Institute substantial, ongoing and online advisor education programs.
- Institute consistent brand narrative campaigns that highlight relevant strategies and solutions expertise to drive traffic to your firm.
- Create and employ a different operating infrastructure.
As Retail and Institutional Markets converge, Managers are combining sales and marketing responsibilities leading to the conclusion below:
- Asset managers trying to move with the changing marketplace face challenging decisions around talent management
- To manage talent effectively, it is imperative that asset managers properly align the sales incentive structure
- Organizational and talent issues extend beyond the sales team