Responsiveness Nearly as Important as Performance in Cultivating Advisor Satisfaction, ISS Market Intelligence Study Finds
ISS Market Intelligence today announced the release of two studies surveying U.S.-based financial advisors and research analysts on their needs and satisfaction with the asset managers with whom they work.
American Funds, Vanguard, BlackRock, JP Morgan, and First Trust Deemed Best-in-Class Brands by Advisors, ISS Market Intelligence Study Finds
Survey findings show that 86 percent of advisors believe a strong brand is an important attribute when recommending asset managers to clients, with wirehouse advisors in particular, at 90 percent, placing value on a strong brand.
After a Dreary Decade, a Brightening Backdrop for Alts
We expect demand will remain strong in the years ahead. ISS MI’s 2023-2027 outlook projects nearly $240 billion in alternative fund flows over five years, a 12% annual organic growth rate. On the back of brisk sales, AUM is projected to rise 15% annually to almost $620 billion.
Active ETFs Emerge, Seeking to Soar
Active ETFs that come to market will continue to face similar obstacles as actively-managed products more broadly. Active ETF managers without top-quartile long-term results and bottom-quartile fees will struggle to attract assets, just as they have in the mutual fund arena.
For Active Managers, AUM a Weakening Indicator of Financial Success
Even controlling a minority of the assets, active managers will still generate most of the fund industry’s revenue growth over the next half decade. While no longer the industry’s growth engine, active management will still be its biggest money maker.