Retiring Boomers Are Increasingly Demanding More Personalized Attention From
Their Investment Advisors
Recently Completed National Survey of Investment Advisors Finds Growing Interest
in New Products Such as ETFs, but Still Little Understanding of Them
Investors today are more sophisticated than ever before and are becoming
increasingly engaged in their personal financial planning, according to a new
national survey of investment advisors from Advisor Software Inc. (ASI). But, as
investors — especially Boomers nearing retirement — get more involved in their
finances, they are expecting more personalized service from their investment
advisors, who now must spend more time educating them about new investing
strategies and products such as Exchange Traded Funds (ETFs).
The survey found that investors are interested in a wide range of investment
vehicles:
— 73 percent of Registered Investment Advisors (RIAs) say that investors are
very interested in ETFs — however, 85 percent of those RIAs agree that
investors are not knowledgeable about ETFs
— One-third of advisors find that investors are interested in Hedge Funds
— 64 percent of advisors find that retirees are willing to take higher risks
compared to 10 years ago
The result, according to ASI, is that RIAs are spending more time servicing
existing clients and less time cultivating new ones. For example:
— 67 percent of RIAs agree that investors are more savvy today and require
special handling
— 52 percent of RIAs feel that the reason investors turn to advisors is because
they are looking for personal attention
— RIAs agree that the most common challenge they face is finding new clients
(37 percent)
« Our survey confirmed that investors today, especially Boomers, are very
interested in hot new investment vehicles like ETFs, but they really don’t know
much about them, » said Neal Ringquist, President of ASI. « At the same time these
investors are becoming more focused on and engaged with their finances,
requiring advisors to spend even more time advising and educating them.
Consequently, advisors end up spending less time developing new client
opportunities, which is vital to their continued success in an increasingly
competitive profession. »
Advisors are turning to technology solutions to help drive more efficiency in
their business. Technology that allows advisors to construct, manage and propose
portfolios was identified as a key source of efficiency for advisors. When asked
what tools are critical for advisors to acquire and maintain successful client
relationships:
— 45% of the respondents indicated portfolio management software,
— 16% indicated proposal generating software,
— 13% indicated research/analytics software, and
— 10% indicated rebalancing software.
According to an investment advisor who took part in the survey, « We rely on
technology because it enables us to keep better track of our clients and what
they like. It makes interoffice communication a breeze. Without it, portfolio
reporting would be very difficult. »
Ringquist asserts that recent demand in ASI’s Client Acquisition Solution™ (CAS)
is driven by these trends. « The advisors’ time is increasingly stretched by the
demands of existing clients, and the need to generate differentiating advice to
attract new clients. The ability to leverage ASI analytics in CAS to construct
custom model portfolios, allocate to multiple custom model portfolios uniquely
for each client, and present the result to the client in an intuitive way has
been a key differentiator for ASI. »
The survey, which was conducted electronically by THUNDER FACTORY Research on
behalf of ASI, was sent to 5,053 registered investment advisors and received
approximately a 2 percent response rate. The survey was conducted between March
2 and March 15, 2006.
About Advisor Software, Inc.
Advisor Software, Inc. (ASI) was founded in 1995 by Andrew Rudd (Founder, former
Chairman and CEO of Barra, Inc.) to deliver institutional-strength analysis and
advice to the individual investor. ASI’s applications are designed for a wide
range of asset management firms, broker-dealers, banks, insurance companies,
online brokerages, and other financial institutions, enabling these institutions
and their advisors to deliver more insightful, actionable investment advice and
build stronger, more profitable client relationships. Advisor Software provides
financial institutions with web-based hosted solutions that facilitate the
investment decision-making process for their advisors and clients.
Media Contacts:
Neal Ringquist
ASI
925-299-7782 x230
Email Contact
Jaclyn Tully
THUNDER FACTORY
818-206-8304
Email Contact
SOURCE: Advisor Software, Inc. (ASI)
All of the above text is a press release provided by the quoted organization.
globalagingtimes.com accepts no responsibility for their accuracy.