A new survey shows that asset managers and technology have important roles to play in the transition
There’s a move towards financial advisors (FAs) providing a more holistic financial wellbeing service with younger FAs particularly keen to see a transition.
Those aged under 40 are more likely than their older peers (especially over 55s) in saying that holistic financial planning is the main value they provide to clients.
The survey from global fintech firm Broadridge also reveals that more than half of all respondents expect their business to have an increased focus on holistic financial planning going forward.
Solo working will become less of a thing as working in teams prevails and respondents believe that the number of advisors with 75% or more fee-based assets under management (AUM) will increase from 51% to 67% over the next three years.
"While we surveyed advisors prior to widespread quarantining, our perspective is that the current global environment has intensified pre-existing trends. As advisors accelerate the move to holistic planning in part due to this, they need two things: a digital-first mindset and broad support from asset managers," said Matthew Schiffman, Principal of Distribution Insight at Broadridge Financial Solutions.
Asset managers
Schiffman added that the onus is on asset managers to address advisor and ultimately investor concerns – particularly ones that are exacerbated by the global crisis we are in.
More than 80% of FAs said they want asset managers to help them optimize their business including supporting portfolio construction and risk management.
But this desire was not backed up by the share of FAs that are actively seeking new relationships with asset managers (just 25%).
The survey also uncovered an opportunity for managers to provide support around generational and demographic shifts in investing.
More than half of advisor respondents (59%) expressed interest in receiving content on how to market to women and minorities; and 71% of advisors expressed interest in acquiring new millennial investor clients.
