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.
A recent Aberdeen Asset Management survey of RIAs (as described in an Ignites article yesterday morning) supported kasina’s findings from our Advisor Insights service: RIAs care more about philosophy and strategy than rankings and returns, they value online research over wholesaler support,
and they are open to new investment products. As we wrote in our “Effectively Targeting RIAs” report, 65% of RIAs prefer online communications with asset managers and over one-third of high-end RIAs (AUM >$500 Million) have increased their exposure to alternative products over the past 12 months.
As more firms launch alternative investments every day, the RIA space is a ripe audience. But firms must effectively tell RIAs (and other advisors) the story of their product(s), particularly on their website. Some guidelines to keep in mind include:
Connect the Dots: don’t simply focus on the facts and figures about a product, but take steps to help advisors understand:
o The... [read more]
‘Tis the season for changes to compensation plans … and, for most firms … rolling them out before the National Sales Meeting in January.
Surely the structure of the plan
and the perceived increase/decrease in opportunity will play a large role in how well the plan is received. But let’s not discount the framing of the message as a way to build wholesaler buy-in for the plan.
Here are key “messages” that managers should include as part of their communication plan.
1. The “Big Picture”: Clearly articulate the state of the company and what it will take for the company to be successful in the future. The crucial aspect here is aligning the changes to the compensation plan to the company strategy. The story must be simple, real, and fact-based. It must be authentic. Salespeople especially can spot HR/PR-spin a mile away!
2. Wholesaler autonomy: Wholesalers, like other high-performers,... [read more]
Who are your financial role models? I was lucky to learn sound financial practices from my family – especially my grandmother, a retired bookkeeper. From a young age, she (and my parents) helped me to understand basic concepts like budgeting,
and provided my first introduction to the stock market.
Unfortunately, too many kids do not have a financial role model and are making poor financial choices as a result. Young Americans have been found to be less financially capable than older Americans and are significantly more likely to engage in non-bank borrowing. And while 89% of teachers feel that students should be taught about financial literacy in school, less than 20% of teachers feel prepared to teach this critical subject.
You can help by joining the kasina Youth Foundation to become a volunteer or mentor that guides kids through the basics of financial literacy. You would be helping them, and often,... [read more]
At kasina, we often find it helpful to “go to the source” and spend time with advisors to directly see the types of issues they are confronting. These findings can greatly assist asset managers and ultimately provide the best chance for them do to business.
Last week, I had the chance to visit a small office outside of NYC that represented a major independent broker/dealer. In spending time with them and being part of a wholesaler presentation over lunch, I came away with several key takeaways:
1) Advisors are pressed for time: The advisors I met with each told me their biggest challenge was time. They are spending a great deal of time attending to client needs and have little, if any, time to meet with a firm’s wholesalers. This particular firm of 6-8 advisors limits wholesaler meetings to once a week. For the entire office.
2) They don’t want that... [read more]
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