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.
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.
MOST DISRUPTIVE TRENDS IN U.S. RETAIL ASSET MANAGMENT THROUGH 2027
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
%
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.
Competitive calculus
These secular trends are forcing asset managers to compete more aggressively, transforming advisor-sold distribution strategies across four dimensions:
Brand From table stakes to competitive differentiation
Organization From broad channel to specific intermediary and client
IP Delivery From standardized to flexible
Product development From big box to bespoke
Data will fuel success.
Data-driven strategies will incorporate demand across all key stakeholders: