Advisors demanding more from asset managers than just latest fund
Face it, fund companies. It’s no longer enough just to push products. Financial advisors want more.
With more than 16,000 individual investment management firms registered with the ICI, the asset management industry is far from lacking suppliers of financial products. At the same time, advisors are seeking to spend more time with clients, as opposed to learning about the latest, greatest mutual fund or exchange-traded fund.
As a result, asset managers are being forced to move beyond pushing products to move the needle, says Matt Oomen, global head of distribution at BNY Mellon Investment.
“If you think about competitive advantage, price or differentiation, it’s getting harder to differentiate on products,” Oomen said. “And so we see asset managers having to provide more services, technology support, education to remain relevant and ultimately provide a better partnership to advisors.”
Steve Stanganelli, certified financial planner with Clear View Wealth Advisors, notes that fund companies have been improving their website tools and resources to provide more education to retail investors. He points out the fact that this is fairly evident with the content posted at all the major mutual fund and ETF giants.
The ones he appreciates the most are the firms that provide extra educational materials focused on explaining special tax issues likeopportunity zones, oil and gas partnership tax deductions, or tools to manage volatility risk, like flex options.
“I also like how some firms offer lots of continuing educational content and market commentary,” Stanganelli said. “In this group, I’d place firms like Apollo Global, they have a full suite of continuing education tools under the label of ‘Apollo Academy.’”
As a practical
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