For many product providers and distributors such as asset managers, insurance companies, and custodians, RIAs hold out great potential given the growth and activity of this market segment. Yet RIAs have special needs and demands that make it more difficult to serve this audience and satisfy their varied requirements. Practical Perspectives has highlighted many of the different viewpoints and perspectives of RIAs as part of our proprietary research reports covering a wide range of topics relevant and critical to strategic and marketing/sales subjects. In this new 78 page report, we leverage several of the in-depth studies we have conducted to share a detailed examination of RIAs. Our goal is to provide product providers and distributors with insights and implications related to several strategic and tactical questions involving RIAs including:
Key Report Topic Areas
How RIAs Manage Client Portfolios
RIAs View of Marketing and Sales Support
RIAs Working with Retirement Clients
To Order the Report
The study is available in PDF format for the subscription price of $4,250. To order the complete 78 page, 61 exhibit report or for more information, please contact: Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyMuch has been written about the opportunities and challenges of engaging with Registered Investment Advisors (RIAs). For many product providers and distributors such as asset managers, insurance companies, and custodians, RIAs hold out great potential given the growth and activity of this market segment. Yet RIAs have special needs and demands that make it more difficult to serve this audience and satisfy their varied requirements. Practical Perspectives has highlighted many of the different viewpoints and perspectives of RIAs as part of our proprietary research reports covering a wide range of topics relevant and critical to strategic and marketing/sales subjects. In this new report, we leverage several of the studies we have conducted to share a detailed examination of RIAs. Our goal is to provide product providers and distributors with insights and implications related to several strategic and tactical questions involving RIAs including:
The singular focus of this report on RIAs provides additional in-depth perspective that can enhance the business development, product, and marketing approaches of firms interested in this audience. Overall, our research has consistently underscored several characteristics of RIAs worth noting including:
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: How RIAs Build Client Portfolios
A. RIA Portfolio Construction Trends and Techniques
List of Exhibits
Exhibit 1: How RIAs Typically Make Investment Decisions
Exhibit 2: Sources with Significant Influence on RIAs Investment Decisions
Exhibit 3: Extent RIAs Rely Heavily on Model Portfolios in Managing Investments
Exhibit 4: Use of Style Boxes vs. Unconstrained Approach
Exhibit 5: Significant Use of Investment Vehicles in Constructing Portfolios
Exhibit 6: Use of Actively vs. Passively Managed Investments
Exhibit 7: Change in Relative Use of Actively Managed vs. Passively Managed Investments in Past 12 Months
Exhibit 8: Passively Managed Usage – Limited vs. Broad Focus
Exhibit 9: Use of Passively Managed Solutions – Tactical vs. Strategic Decision
Exhibit 10: Most Important Factors Driving Use of Passively Managed Solutions
Exhibit 11: Preference for Passively Managed Solutions by Equity Categories
Exhibit 12: Preference for Passively Managed Solutions by Fixed Income Categories
Exhibit 13: Very Interested in Using Actively Manage ETFs – Equity Categories
Exhibit 14: Very Interested in Using Actively Managed ETFs – Fixed Income Categories
Exhibit 15: Most Important Factors to Increase Consideration and Use of Actively Managed ETFs
Exhibit 16: Familiarity and Experience in Using Smart Beta Solutions
Exhibit 17: Perceptions of Smart Beta Solutions – Active vs. Passive
Exhibit 18: Interest in Smart Beta Approaches
Exhibit 19: Use of Liquid Alternatives within Retail Client Base
Exhibit 20: Percent of Total Assets Managed in Liquid Alternatives
Exhibit 21: Vehicles Used to Invest in Liquid Alternatives
Exhibit 22: Factors Important in Selecting Liquid Alternatives
Exhibit 23: Important Factors in Selecting Specific Liquid Alternatives
Exhibit 24: Key Challenges in Use of Liquid Alternatives
Exhibit 25: Sources Used for Support/Training on Liquid Alternatives
Exhibit 26: Most Important Types of Support/Training on Liquid Alternatives
Exhibit 27: Enhancements to Liquid Alternatives to Better Serve RIAs Needs
Exhibit 28: Additional Support Related to Understanding/Use of Liquid Alternatives
Exhibit 29: Overall Usefulness of Marketing/Sales Communications and Contacts
Exhibit 30: Overall Impact of Marketing/Sales Outreach on RIAs
Exhibit 31: Impact of Value Add Programs on RIAs
Exhibit 32: Impact of Value Add Support on RIAs Attitudes and Behaviors
Exhibit 33: Reliance on Value Ad Support
Exhibit 34: Influence on Willingness to Learn More about Solutions from A Provider
Exhibit 35: Influence on Initial Decision to use Products or Solutions from a Provider
Exhibit 36: Significant Use of Value Add Support Based on Current Business Activity with Providers
Exhibit 37: Most Crucial Area of Value Add Support in Next 12 to 24 Months
Exhibit 38: Investment, Economic, or Product Topics for Support in Past 12 Months
Exhibit 39: Importance of Investment, Economic, or Product Topics for Value Add Support in Next 12 Months
Exhibit 40: Agree Face-to-Face is Best Way to Get Attention
Exhibit 41: Overall Importance to RIAs of Websites or Web Support from Providers
Exhibit 42: Overall Satisfaction with Provider Websites or Web Support
Exhibit 43: Ways RIAs Access Product Provider Web Support
Exhibit 44: Characteristics of Most Useful product Providers Websites/Web Support
Exhibit 45: Enhancements Desired to Increase Usefulness of Product Provider Websites
Exhibit 46: Overall Experience in Using Social Media for Business Purposes
Exhibit 47: When Began Using Social Media for Business Purposes
Exhibit 48: Frequency of Use of Social Media for Business Purposes
Exhibit 49: Extent to Which RIAs Take Advantage of Social Media Capabilities
Exhibit 50: Key Benefits of Using Social Media for Business Purposes
Exhibit 51: Use of Leading Social Media Platforms
Exhibit 52: Percent of Total Retirement Clients
Exhibit 53: Mix of Retirement Clients Served by RIAs
Exhibit 54: Extent RIAs Provide Support to Retirement Clients
Exhibit 55: Philosophy Used to Generate Income or Cash Flow for Retirement Clients
Exhibit 56: Extent RIAs Have a Significant Need for Additional Support in Working with Retirement Clients
Exhibit 57: Key Investment Related Challenges in Working with Retirement Clients
Exhibit 58: Key Relationship Challenges in Working with Retirement Clients
Exhibit 59: Most Important Topics for Additional Support in Engaging with Retirement Clients
Exhibit 60: Key Practice Management Challenges in Serving Retirement Clients
Exhibit 61: Most Important Topics for Additional Support Related to Developing a Practice Serving Retirement Clients
- How can providers align with key trends in the ways RIAs prefer to manage portfolios?
- What are the most effective marketing and sales outreach strategies to initiate, develop, and retain relationships with RIAs?
- What is a “robo-wholesaler” digital strategy and why is it important to tap into the RIA marketplace?
- How can providers capitalize on partnering with RIAs to reach their most important client segment - retirement-oriented investors?
Key Report Topic Areas
How RIAs Manage Client Portfolios
- What sources influence RIAs investment decision-making?
- How relevant are model portfolios and style boxes to RIAs portfolio construction?
- Which investment vehicles do RIAs prefer to use in building portfolios?
- How do RIAs use active vs. passive investment management and how has this been changing?
- For which investment categories do RIAs prefer passive vs. active solutions?
- How familiar are RIAs with smart beta solutions and how is use of these solutions changing?
- How prevalent is RIA use of liquid alternatives and which categories do they prefer to use?
RIAs View of Marketing and Sales Support
- How interested are RIAs in using value add marketing and sales support?
- What impact does marketing and sales support have on RIAs attitudes and behaviors?
- Which forms of marketing outreach are most preferred by RIAs?
- How important are websites and web support to RIAs and what capabilities are RIAs most likely to use?
- How engaged are RIAs with social media and which applications are they most likely to use?
- What types of value add support are of most interest to RIAs?
RIAs Working with Retirement Clients
- How important are retirement-focused clients to RIAs and which types constitute most RIA practices?
- Which forms of support do RIAs typically provide to retirement-focused clients?
- What are RIAs most significant challenges and needs for additional help in working with retirement-focused clients?
To Order the Report
The study is available in PDF format for the subscription price of $4,250. To order the complete 78 page, 61 exhibit report or for more information, please contact: Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyMuch has been written about the opportunities and challenges of engaging with Registered Investment Advisors (RIAs). For many product providers and distributors such as asset managers, insurance companies, and custodians, RIAs hold out great potential given the growth and activity of this market segment. Yet RIAs have special needs and demands that make it more difficult to serve this audience and satisfy their varied requirements. Practical Perspectives has highlighted many of the different viewpoints and perspectives of RIAs as part of our proprietary research reports covering a wide range of topics relevant and critical to strategic and marketing/sales subjects. In this new report, we leverage several of the studies we have conducted to share a detailed examination of RIAs. Our goal is to provide product providers and distributors with insights and implications related to several strategic and tactical questions involving RIAs including:
- How can providers align with key trends in the ways RIAs prefer to manage portfolios?
- What are the most effective marketing and sales outreach strategies to initiate, develop, and retain relationships with RIAs?
- What is a “robo-wholesaling” digital strategy and why is this approach likely to be effective with RIAs?
- How can providers capitalize on partnering with RIAs to reach a critically important end-user segment - the retirement-oriented investor?
The singular focus of this report on RIAs provides additional in-depth perspective that can enhance the business development, product, and marketing approaches of firms interested in this audience. Overall, our research has consistently underscored several characteristics of RIAs worth noting including:
- A greater focus among RIAs on affluent clients, with average account balances significantly higher than other advisors
- Higher propensity of RIAs to have a team structure although many solo practices exist
- Greater technology sophistication of RIAs compared to other advisors
- RIAs are more oriented to providing a variety of services to clients that go beyond investment management to include activities such as holistic planning
- Lower use of insurance solutions among RIAs, especially variable annuities
- Greater confidence of RIAs in their ability to serve and support end-user clients
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: How RIAs Build Client Portfolios
A. RIA Portfolio Construction Trends and Techniques
- How do RIAs make investment decisions?
- What sources influence RIAs investment decisions?
- How do model portfolios guide RIAs investment decisions?
- How relevant are style boxes in RIAs investment decision making?
- Which investment vehicles do RIAs typically use in constructing portfolios?
- How do RIAs use active versus passively managed investments?
- How is the use of active versus passive investments changing?
- How do RIAs employ passive investments relative to actively managed investments?
- Which factors drive RIAs use of passively managed solutions?
- For which investment categories do RIAs prefer to use passively managed solutions relative to actively managed investments?
- How significant is RIAs interest in actively managed ETFs and for which categories do they have greatest interest?
- What factors are most important to increase RIAs consideration and use of actively managed ETFs?
- How familiar and experienced are RIAs with Smart Beta solutions?
- How do RIAs utilize Smart Beta solutions?
- What is RIAs preferred approach among Smart Beta strategies?
- How prevalent is RIAs use of liquid alternatives?
- How much do RIAs invest in liquid alternatives?
- What vehicles do RIAs use most often to access liquid alternatives?
- Which liquid alternative strategies are RIAs most familiar with and which do they use most often?
- What benefits are most important for RIAs using liquid alternatives?
- What factors do RIAs focus on to select the specific liquid alternatives they use?
- What are the critical challenges for RIAs in using liquid alternatives?
- What sources do RIAs use for support and training on liquid alternatives?
- What forms of training and support for liquid alternatives are important to RIAs?
- What changes can providers make to liquid alternatives?
- What types of additional support should product providers offer RIAs regarding liquid alternatives?
- How interested are RIAs in marketing and sales outreach?
- How interested are RIAs in value add programs and content?
- Does value add support impact RIAs perceptions of product providers?
- How reliant are RIAs on value add support?
- How willing are RIAs to learn about product providers’ products and solutions?
- What value add content and topics are of most interest to RIAs?
- What types of educational value add support are of most interest to RIAs?
- To what extent do RIAs prefer face-to-face marketing and sales outreach?
- How valuable is email at getting the attention of RIAs?
- How important are websites and web support to RIAs?
- How satisfied are RIAs with provider websites?
- How do RIAs access provider websites?
- What types of activities or information do RIAs generally access through provider websites?
- What website characteristics are most important to RIAs?
- What website enhancements are most desired by RIAs?
- How engaged are RIAs with social media platforms?
- How long have RIAs been using social media?
- How often do RIAs typically use social media?
- Do RIAs believe they are maximizing the benefits of social media?
- What do RIAs perceive as the main benefits of using social media?
- What is the penetration level of RIAs using different social media platforms?
- To what extent do RIAs serve retirement-focused clients?
- What types of support and services do RIAs provide to retirement clients?
- What approach do RIAs follow to deliver retirement income to clients?
- Do RIAs express significant support needs or concerns in working with retirement clients?
- What are the most significant retirement-based relationship challenges for RIAs?
- What are the practice management issues and topics of most interest to RIAs in working with retirement clients?
List of Exhibits
Exhibit 1: How RIAs Typically Make Investment Decisions
Exhibit 2: Sources with Significant Influence on RIAs Investment Decisions
Exhibit 3: Extent RIAs Rely Heavily on Model Portfolios in Managing Investments
Exhibit 4: Use of Style Boxes vs. Unconstrained Approach
Exhibit 5: Significant Use of Investment Vehicles in Constructing Portfolios
Exhibit 6: Use of Actively vs. Passively Managed Investments
Exhibit 7: Change in Relative Use of Actively Managed vs. Passively Managed Investments in Past 12 Months
Exhibit 8: Passively Managed Usage – Limited vs. Broad Focus
Exhibit 9: Use of Passively Managed Solutions – Tactical vs. Strategic Decision
Exhibit 10: Most Important Factors Driving Use of Passively Managed Solutions
Exhibit 11: Preference for Passively Managed Solutions by Equity Categories
Exhibit 12: Preference for Passively Managed Solutions by Fixed Income Categories
Exhibit 13: Very Interested in Using Actively Manage ETFs – Equity Categories
Exhibit 14: Very Interested in Using Actively Managed ETFs – Fixed Income Categories
Exhibit 15: Most Important Factors to Increase Consideration and Use of Actively Managed ETFs
Exhibit 16: Familiarity and Experience in Using Smart Beta Solutions
Exhibit 17: Perceptions of Smart Beta Solutions – Active vs. Passive
Exhibit 18: Interest in Smart Beta Approaches
Exhibit 19: Use of Liquid Alternatives within Retail Client Base
Exhibit 20: Percent of Total Assets Managed in Liquid Alternatives
Exhibit 21: Vehicles Used to Invest in Liquid Alternatives
Exhibit 22: Factors Important in Selecting Liquid Alternatives
Exhibit 23: Important Factors in Selecting Specific Liquid Alternatives
Exhibit 24: Key Challenges in Use of Liquid Alternatives
Exhibit 25: Sources Used for Support/Training on Liquid Alternatives
Exhibit 26: Most Important Types of Support/Training on Liquid Alternatives
Exhibit 27: Enhancements to Liquid Alternatives to Better Serve RIAs Needs
Exhibit 28: Additional Support Related to Understanding/Use of Liquid Alternatives
Exhibit 29: Overall Usefulness of Marketing/Sales Communications and Contacts
Exhibit 30: Overall Impact of Marketing/Sales Outreach on RIAs
Exhibit 31: Impact of Value Add Programs on RIAs
Exhibit 32: Impact of Value Add Support on RIAs Attitudes and Behaviors
Exhibit 33: Reliance on Value Ad Support
Exhibit 34: Influence on Willingness to Learn More about Solutions from A Provider
Exhibit 35: Influence on Initial Decision to use Products or Solutions from a Provider
Exhibit 36: Significant Use of Value Add Support Based on Current Business Activity with Providers
Exhibit 37: Most Crucial Area of Value Add Support in Next 12 to 24 Months
Exhibit 38: Investment, Economic, or Product Topics for Support in Past 12 Months
Exhibit 39: Importance of Investment, Economic, or Product Topics for Value Add Support in Next 12 Months
Exhibit 40: Agree Face-to-Face is Best Way to Get Attention
Exhibit 41: Overall Importance to RIAs of Websites or Web Support from Providers
Exhibit 42: Overall Satisfaction with Provider Websites or Web Support
Exhibit 43: Ways RIAs Access Product Provider Web Support
Exhibit 44: Characteristics of Most Useful product Providers Websites/Web Support
Exhibit 45: Enhancements Desired to Increase Usefulness of Product Provider Websites
Exhibit 46: Overall Experience in Using Social Media for Business Purposes
Exhibit 47: When Began Using Social Media for Business Purposes
Exhibit 48: Frequency of Use of Social Media for Business Purposes
Exhibit 49: Extent to Which RIAs Take Advantage of Social Media Capabilities
Exhibit 50: Key Benefits of Using Social Media for Business Purposes
Exhibit 51: Use of Leading Social Media Platforms
Exhibit 52: Percent of Total Retirement Clients
Exhibit 53: Mix of Retirement Clients Served by RIAs
Exhibit 54: Extent RIAs Provide Support to Retirement Clients
Exhibit 55: Philosophy Used to Generate Income or Cash Flow for Retirement Clients
Exhibit 56: Extent RIAs Have a Significant Need for Additional Support in Working with Retirement Clients
Exhibit 57: Key Investment Related Challenges in Working with Retirement Clients
Exhibit 58: Key Relationship Challenges in Working with Retirement Clients
Exhibit 59: Most Important Topics for Additional Support in Engaging with Retirement Clients
Exhibit 60: Key Practice Management Challenges in Serving Retirement Clients
Exhibit 61: Most Important Topics for Additional Support Related to Developing a Practice Serving Retirement Clients
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