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

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

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

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

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

Disintermediation

Data will fuel success.

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

MOST DISRUPTIVE TRENDS IN U.S. RETAIL ASSET MANAGMENT THROUGH 2027

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

Regulation

Consolidation

Private Markets

Greater Personalization

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.

OVER A THIRD

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.

of global assets

Individual U.S. investors hold

Organic CAGR growth over the next five years

Year-end 2022

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…

New Disruptive Competitors

Active ETFs

Direct Indexing

Source: Broadridge + IMEA All-Council Members Survey 2022

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

A focus on holistic outcomes

Rising rates and aging investors are boosting demand for more holistic portfolios that provide more than asset accumulation alone.

1

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

Additional portfolio objectives

2

The traditional collective scheme’s tax inefficiencies and non-customizable pooled format are spurring interest in new vehicles and delivery mechanisms.

Mutual fund evolution

3

Increasingly diverse methods of raising capital are creating opportunities for individual investment across both private and public markets.

Shifting capital markets

4

Large distributors are placing more business with fewer asset managers while simultaneously competing with them across a wider array of advice services.

Industry concentration

5

Source: Broadridge Global Market Intelligence, Broadridge Advisory Analysis

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.

Prioritizing key intermediary platforms with specific, tailored strategies

Identifying ideal advisors through detailed segmentation

Incorporating the individual investors’ voice to shape fit-for-purpose offers

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.

Icon depicting one person in bright blue pictured on a white laptop with a talk bubble above their head against a darker blue circle representing individual investors.

Icon depicting two people in the background in white and one bright blue person in the center foreground under a white magnifying glass against a darker blue circle representing ideal advisors.

Bright blue icon of one person standing with crossed arms in front of big white corporate building against a darker blue circle symbolizing large distributors.

%

3 ~

Icon depicting two people in the background in darker blue and one brighter blue person in the foreground under a magnifying glass representing individualized portfolios and advice.

Dark blue icon of magnifying glass showing a white bar chart over a portfolio in bright blue circle symbolizing a focus on outcomes.

Dark blue icon of a tax document with a calculator in a bright blue circle symbolizing tax and non-financial considerations.

Dark blue icon of a light bulb with a white dollar sign in the middle against a bright blue circle symbolizing Interest in new vehicles and delivery mechanisms.

Dark blue icon of coins and currency with a white arrow pointing up against a bright blue circle symbolizing diverse methods of raising capital.

Dark blue icon of one person standing with crossed arms in front of big white corporate building against a bright blue circle symbolizing large distributors placing more business with fewer asset managers.

Get the white paper.

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

Competitive calculus

IP Delivery From standardized to flexible

Product development From big box to bespoke

Brand From table stakes to competitive differentiation

Organization From broad channel to specific intermediary and client

Get the white paper.