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U.S. advisor-sold asset management: This time it’s personal

How to develop a data-driven strategy for the 21st century

Most asset managers are still approaching a 21st-century clientele with 20th-century business models. Today’s U.S. investors demand an increasingly personalized approach to investing, reshaping product and distribution strategies across the industry.

Only asset managers willing to invest in thoughtful change — and organize around the marketplace’s evolving needs — will thrive in a more personal future.

What are our decisive competitive advantages? How can we effectively deploy them? Asset managers will look to data for both answers. Here’s what we know…

The U.S. advisor-sold investments marketplace — global asset management’s largest opportunity

Year-end 2022

Individual U.S. investors hold

OVER A THIRD

of global assets

Individual U.S. investors hold over a third of global assets, representing a larger pool than any other region in aggregate (individual + institutional).

3

~

%

Organic CAGR growth over the next five years

U.S. advisor-sold active AUM is projected to grow at a ~3% organic CAGR over the next five years, almost twice that of the global average.

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Source: Broadridge Global Market Intelligence, Broadridge Advisory Analysis

Personalization: The U.S. fund industry’s greatest near-term challenge

Investors’ growing needs and expectations for personalized investment advice will reshape how distributors and asset managers cooperate and compete with one another for customer attention and trust.

Percent of U.S. asset management firm respondents (each respondent permitted two answers)

43

Greater Personalization

%

40

Private Markets

%

33

Consolidation

%

29

Regulation

%

19

Disintermediation

%

14

Direct Indexing

%

14

Active ETFs

%

12

New Disruptive Competitors

%

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Source: Broadridge + IMEA All-Council Members Survey 2022

Five big themes underpin U.S. individual investors’ push for more personalized portfolios

1

Additional portfolio objectives

Individuals seek advice tailored to their own tax and non-financial considerations.

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Competitive calculus

These secular trends are forcing asset managers to compete more aggressively, transforming advisor-sold distribution strategies across four dimensions:

Data will fuel success.

Data-driven strategies will incorporate demand across all key stakeholders:

We’ve identified 16 action items for asset managers to take their advisor-sold distribution strategy into the 21st century. Get the white paper to learn more.

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