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.
Asset managers are dedicating a good deal of thought and resources toward a new generation of multi-asset class (MAC) or solutions-based funds, such as retirement income, risk-constrained, and multi-alternative funds. The development of these products is largely based on an assumption that the advisors and their retail clients will increasingly turn toward asset managers for help with asset allocation decisions. But what percentage of the intermediary market invests in these funds, what investment strategies are most in demand, and what percentage of client money is typically allocated to MAC funds? Answers to these questions are critical to the growth of this market.
Over the past year, kasina has been closely canvassing advisor investment approaches through our Advisor Insights service in conjunction with our partner, Horsesmouth (an intermediary market affinity group). Specifically, we have surveyed advisors on their investment approach and portfolio management, investment tactics, and the types of investment products... [read more]
If you work with financial advisors and think that you don’t need to pay attention to developments with active ETFs, you may be ignoring an aspect of their business that’s more significant than you think. As fund managers continue to file for exemptions to pave the way for active ETFs (SEC filings here) and ideas about non-transparent ETFs structures are floated, the reality of fund managers standardly offering active ETFs seems closer. Last week, Ignites hit on the topic with a reader poll that indicated nearly two thirds of respondents expect active ETFs to be a standard consideration within advisor portfolios within the next 5 years. Data from kasina Advisor Insights (advisor surveys collected in partnership with Horsesmouth) shows that over a third of advisors are already using active ETFs, with 14% of advisors allocating over 20% of their total AUM to active ETFs.
What can we know about these advisors that... [read more]
Hindsight is 20/20, or maybe not so much.
For the most part, asset managers are trying to utilize historical data to make decisions about how best to deploy sales resources in the future. But if data arrives well after the fact and takes time and effort to scrub and integrate and still the quality is questionable, how insightful is it?
A short list of things to keep in mind as business intelligence becomes more prominent in the intermediary space:Start with the end in mind
Integrating data into a central repository is not an objective, rather a necessary step in a strategic initiative to drive higher asset retention, for example. Clearly define the business strategy and work backwards to identify the necessary steps.Business drives the bus
Be as specific as possible in your business objectives. For example: reducing redemptions by 15%+ for two key... [read more]
Those of us in the asset management industry have been inundated with discussions, whitepapers, articles and webinars on solutions based products. So what exactly are solutions? Like liquid alternatives and smart-beta, the definition can be quite ambiguous as it’s generally applied to a wide range of investment strategies.
The most broadly accepted definition is a product which has managed to meet a specific outcome or goal rather than a benchmark. These products are also typically managed using multiple asset classes with no strict mandate on their allocations. Thus when we hear solutions, we are talking about dynamically managed multi-asset class products focused on meeting a specific objective – such as targeted income, volatility constraints, capital preservation and growth to name a few.Everyone is Focused on Solutions
It’s been a busy year to date in the ’40 Act mutual fund space. As of mid-August, there have been 254... [read more]