To provide our clients with high quality tailored consulting and research, we need to know the financial services industry and our clients. To build lasting and profitable relationships, we dedicate ourselves to staying not just current on, but ahead of industry trends. This blog is intended to share our industry insights and, at the same time, to capture feedback from our readers.
kasina’s Advisor Insights data indicates that for the past four years, approximately one third of financial advisors are strong supporters of the external wholesalers that they meet with (as evidenced by the fact that they are highly likely to recommend that wholesaler to a colleague). However, less than 30% of these advisors anticipated doing more business with a given wholesaler’s firm. In order to grow their business, asset managers need to create an environment where they don’t have to primarily depend on new advisors for growth. Improving wholesaler interactions is one means to this end.
kasina’s latest Advisor Insights survey asked over 2,000 advisors across all channels about their desired wholesaler characteristics. While there were several characteristics that advisors seek (and look to avoid), two that caught my attention were a desire for “product knowledge” and a frustration with “lack of contact.”
Advisors choose to do business with wholesalers who possess... [read more]
The March 2014 issue of kasina’s Product Strategy Compass includes data and commentary on the very hot category of unconstrained bond funds. The broad appeal for these funds is that they offer investors the benefits of traditional bond investing (capital preservation and low correlation with the equity markets) with greater flexibility in selecting investments across sectors while controlling inherent fixed-income risks. Under the unconstrained umbrella managers have the ability to control duration and limit interest rate risk while adding alpha by using a broad array of tools and techniques. As a result, we’ve seen investors flocking to unconstrained bond strategies as a way of providing income in an environment where the timing and magnitude of interest rate increases has proven difficult to predict.Estimated Nontraditional Bond Fund Net Flows (Morningstar)
So it is with no surprise that these products have been a rare bright spot among fixed-income funds in attracting money... [read more]
1. Define the segment
Segmenting clients and providing segments with a unique experience is a terrific way to allocate firms’ scarce resources. But many firms struggle to implement the segmentation. Here are our thoughts on how to make segments meaningful, pragmatic, and ultimately successful.
A segment generally categorizes people with similar characteristics. The implication is that similar people will make similar choices. Consider the following questions when defining segments:
– What major characteristics define it? Marketers must be careful not to define segments using data that is hard to find.
– Does the data that describes the segment tell a pragmatic story? Describe the segment so that one can visualize the people in it.
Naming segments is not as easy as one would hope it would be. Names of segments must:
– Succinctly capture the story behind the segment
– Describes the type of person(s) who will fit in this... [read more]