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.
With the exception of annuity products, most retail and mass affluent pre-retirees have minimal access to attractive income producing investment solutions. Most investors are highly reliant on funds for their income choices. Unfortunately, income fund options offered today are largely restrictive in their security selection, resulting in fairly constrictive yields. Moreover, they offer little protection from market volatility and the impact of rising interest rates on bond investments. As we wrote in our last edition of Product Strategy Compass, the opportunities we recommend include:- Greater use of alternative yield-oriented assets - Integration of derivatives to hedge against downside price volatility - Exploration of target yield solutions Greater use of alternative yield-oriented assets
Most retirement income solutions today do not take advantage of three key alternative income securities:
1. Emerging market corporate and sovereign bonds – Given the size and diversity of the emerging debt markets, both emerging market corporate and... [read more]
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]