Value add and practice management support is a core business development activity of asset managers, annuity providers, broker-dealers, custodians, and other firms that rely on financial advisors to distribute their products and services. These programs and tools create awareness and differentiation to help product distributors stand out in a highly competitive marketplace. The types of capabilities offered to advisors are diverse and include economic and capital markets issues, new business development, operations and technology, retirement planning, continuing education, and skills enhancement.
It is with this context that Practical Perspectives, a leading consulting and research firm, examines value add and practice management support from the distinct perspective of financial advisors. This new 96-page report builds on prior studies and offers detailed data driven findings and trends related to the impact of these programs, the sources advisors rely on most often, characteristics of leading programs, advisor needs for additional capabilities, how advisors learn about resources, and the subjects of most interest to advisors for future support. The report is based on proprietary research completed in October 2019 with over 625 advisors including those affiliated with RIAs, Independent broker-dealers, and wirehouse, national, and regional broker-dealer firms.
Key Topic Areas
How Advisors Use Value Add and Practice Management Support
- Which key sources do advisors rely on most frequently for support?
- Is technology-based support supplanting in-person delivery?
- How has availability and use of support changed in the past 12 months?
- Which types of tools and programs do advisors use most often?
- What factors characterize the most useful value add and practice management support?
- What changes can improve the usefulness of support to advisors?
- Which firms deliver the most useful value add and practice management support?
- How do advisors typically learn about support and how important are wholesalers in delivery of these programs and tools?
Key Support Topics and Advisor Needs
- For which topic areas are advisors most interested in receiving support?
- For which investment or economic topics, practice management subjects, business development and client engagement issues, retirement-related areas, and professional or personal skills development have advisors recently received support and which are most important in the next 12 to 24 months?
- How customized is value add and practice management support available to advisors?
- What are advisors most significant unmet needs for value add and practice management support?
The Impact of Value Add and Practice Management Support
- What impact does support have on advisors and how does it influence advisor perceptions and behaviors?
- How does advisors use of value add and practice management support differ across key channels and what distinguishes advisors who are most heavily reliant on support?
To Order the Report
The study is available in PDF format for the subscription price of $5,350. To order the complete 96- page, 62 exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and Methodology
Asset managers, annuity providers, broker-dealers, custodians, and other firms invest heavily each year in value add and practice management support designed to engage and influence advisors. These programs are often a major element of sales, marketing, and servicing efforts for sources distributing their solutions through financial advisors. By offering this support, firms hope to capture the consideration of advisors, build engagement, differentiation, and loyalty, and generate incremental business.
Our goal in this report is to offer a deep, data driven view that examines value add and practice management support from the singular perspective of financial advisors. For this research, value add support was defined to include includes programs, training, content, tools, insights, and practice management support offered by product providers, broker-dealers, custodians, or other third parties. This report is written to provide relevant and actionable information to key constituents interested in understanding advisor preferences and behaviors related to value add support and identifying how to enhance the effectiveness and differentiation of the resources they offer. The study builds upon prior reports on this subject published beginning in 2013 to discern patterns and changes in advisor behaviors and needs.
“Value Add and Practice Management Support to Financial Advisors – 2019” examines the aspects of support advisors use currently and the types of capabilities of greatest import going forward. The analysis looks in detail at specific elements of value add and practice management offerings to advisors, including the impact of these solutions, the characteristics associated with the most widely used capabilities, and the topics of most interest for ongoing support. It also provides a detailed look at how advisor behaviors and preferences differ by channel to enable providers to craft and implement more targeted, relevant, and effective support.
Among the key questions addressed in this report are:
· How useful to advisors is value add and practice management resources?
· What impact does support have on advisors and their practices?
· To what extent does support influence advisor attitudes and behavior?
· Which sources are advisors turning to most often for support?
· How has advisor use of value add been changing in the past 12 months?
· To what extent is technology-based delivery of value add support supplanting in-person support and among which types of advisors?
· How useful are various formats in how value add capabilities are provided to advisors?
· Which factors characterize the support most useful to advisors?
· Which providers offer the most useful support?
· What subjects are most important for advisors to receive additional support?
· Which types of support are advisors using and what are their most significant needs going forward?
· What can be done to better meet advisor needs through value add support?
· What are the key differences among advisors in their interest and use of value add and practice management support?
· How do advisors learn about value add resources and how important a role do wholesalers play in engaging advisors on these capabilities?
· How customized is value add support to advisors?
This report is based on input from a broad cross-section of advisors across key channels including wirehouse, regional, independent, and RIAs. In September 2019, advisors were asked to participate in an on-line survey regarding support they receive in running their practice. Advisors were randomly solicited across all delivery channels. More than 625 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey.
Key findings in the report are provided for the complete sample as well as for the largest distribution channels – Full Service BD (wirehouse, national, and regional), Independent BD, and independent RIA. Findings are also compared to prior results as appropriate to reveal trends or shifts in how advisors perceive and use value add support.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: How Advisors Use Value Add and Practice Management Support
A. How useful to advisors is value add and practice management support from product providers and other sources?
B. Which key sources do advisors rely on most often for value add and practice management support?
C. How has advisor access and use of value add and practice management support changed in the past 12 months?
D. To what extent is technology-based value add and practice management support supplanting in-person delivery and which ways of delivering capabilities are most useful to advisors?
E. What types of value add and practice management support are most useful to advisors?
F. What factors characterize the value add and practice management support advisors use most often?
G. What changes can improve the usefulness of value add and practice management support?
H. How customized is value add and practice management support?
I. Which firms deliver the most useful value add and practice management support?
J. How do advisors typically learn about value add and practice management support and what role do wholesalers play in promoting these capabilities?
Section IV: Value Add and Practice Management Support Topics and Needs
A. What key changes have advisors made to their practices in the past year?
B. For which topic areas are advisors most interested in receiving additional support?
C. For which investment or economic topics have advisors recently received support and which are most important in the next 12 to 24 months?
D. For which practice management topics have advisors recently received support and which are most important in the next 12 to 24 months?
E. For which business development or client engagement topics have advisors recently received support and which are most important in the next 12 to 24 months?
F. For which retirement topics have advisors recently received support and which are most important in the next 12 to 24 months?
G. What are advisors most significant unprompted needs for additional support in the next 12 to 24 months?
Section V: Profile of Survey Respondents
Section VI: Value Add and Practice Management Support – Impact and Implications/ Considerations
List of Exhibits
Exhibit 1: Usefulness of Value Add and Practice Management Support
Exhibit 2: Usefulness of Value Add and Practice Management Support by Channel
Exhibit 3: Reliance on Value Add and Practice Management Support from Key Sources
Exhibit 4: Reliance on Value Add and Practice Management Support from Asset Managers Currently Used by Channel
Exhibit 5: Reliance on Value Add and Practice Management Support from Broker Dealers by Channel
Exhibit 6: Reliance on Value Add and Practice Management Support from Custodians by Channel
Exhibit 7: Reliance on Value Add and Practice Management Support from Annuity Providers/Insurance Companies Currently Used by Channel
Exhibit 8: Reliance on Value Add and Practice Management Support from Asset Managers Not Currently Used by Channel
Exhibit 9: Reliance on Value Add and Practice Management Support from Annuity Providers/Insurance Companies Not Currently Used by Channel
Exhibit 10: Changes in Accessing Value Add and Practice Management Support in Past 12 Months
Exhibit 11: Change in Overall Reliance on Value Add and Practice Management Support in Past 12 Months by Channel
Exhibit 12: Change in Number of Different Value Add and Practice Management Programs Used in Past 12 Months by Channel
Exhibit 13: Change in Number of Different Providers or Sources of Value Add and Practice Management Support Used in Past 12 Months by Channel
Exhibit 14: Change in Willingness to Use Value Add and Practice Management Support in Past 12 Months by Channel
Exhibit 15: Change in How Often Rely on Value Add and Practice Management Support in Past 12 Months by Channel
Exhibit 16: Value Add and Practice Management Support Used Most Often: Technology vs. In-Person Delivery
Exhibit 17: Value Add and Practice Management Support Used Most Often: Technology vs. In-Person Delivery by Channel
Exhibit 18: Most Useful Formats for Delivering Value Add and Practice Management Support
Exhibit 19: Most Useful Formats for Delivering Value Add and Practice Management Support by Channel
Exhibit 20: Most Useful Types of Value Add and Practice Management Support
Exhibit 21: Most Useful Types of Value Add and Practice Management Support by Channel
Exhibit 22: Factors Associated with Most Used Value Add and Practice Management Support
Exhibit 23: Factors Associated with Most Used Value Add and Practice Management Support by Channel
Exhibit 24: Advisor Usage: Client Facing Support vs. Advisor/Staff Support
Exhibit 25: Advisor Usage: Client Facing Support vs. Advisor/Staff Support by Channel
Exhibit 26: Advisor Usage: Educational vs. Action-Oriented Support
Exhibit 27: Advisor Usage: Educational vs. Action-Oriented Support by Channel
Exhibit 28: Changes to Improve Usefulness of Value Add and Practice Management Support
Exhibit 29: Changes to Improve Usefulness of Value Add and Practice Management Support by Channel
Exhibit 30: Extent Value Add and Practice Management Support is Customized
Exhibit 31: Extent Value Add and Practice Management Support is Customized by Channel
Exhibit 32: Most Frequently Mentioned Providers of Most Useful Value Add and Practice Management Support
Exhibit 33: Most Frequently Mentioned Providers of Most Useful Value Add and Practice Management Support by Channel
Exhibit 34: How Advisors Learn About Value Add and Practice Management Support
Exhibit 35: How Advisors Learn About Value Add and Practice Management Support by Channel
Exhibit 36: Importance of Wholesalers to Advisors Consideration and Use of Value Add and Practice Management Support
Exhibit 37: Importance of Wholesalers to Advisors Consideration and Use of Value Add and Practice Management Support by Channel
Exhibit 38: Key Practice Changes in Past 12 Months
Exhibit 39: Key Practice Changes in Past 12 Months by Channel
Exhibit 40: Most Crucial Area of Additional Support in Next 12 to 24 Months
Exhibit 41: Most Crucial Area of Additional Support in Next 12 to 24 Months by Channel
Exhibit 42: Investment, Economic or Product Topics for Support in Past 12 Months
Exhibit 43: Investment, Economic or Product Topics for Support in Past 12 Months by Channel
Exhibit 44: Most Important Investment, Economic or Product Topics for Support in Next 12 to 24 Months
Exhibit 45: Most Important Investment, Economic or Product Topics for Support in Next 12 to 24 Months by Channel
Exhibit 46: Practice Management Topics for Support in Past 12 Months
Exhibit 47: Practice Management Topics for Support in Past 12 Months by Channel
Exhibit 48: Most Important Practice Management Support in Next 12 to 24 Months
Exhibit 49: Most Important Practice Management Support in Next 12 to 24 Months by Channel
Exhibit 50: Client Engagement and Business Development Topics for Support in Past 12 Months
Exhibit 51: Client Engagement and Business Development Topics for Support in Past 12 Months by Channel
Exhibit 52: Most Important Client Engagement and Business Development Support in Next 12 to 24 Months
Exhibit 53: Most Important Client Engagement and Business Development Support in Next 12 to 24 Months by Channel
Exhibit 54: Retirement Topics for Support in Past 12 Months
Exhibit 55: Retirement Topics for Support in Past 12 Months by Channel
Exhibit 56: Most Important Retirement Topics for Support in Next 12 to 24 Months
Exhibit 57: Most Important Retirement Topics for Support in Next 12 to 24 Months by Channel
Exhibit 58: Profile of Respondents by Key Characteristics
Exhibit 59: Respondents Reliance on Key Investment Solutions
Exhibit 60: Respondents Reliance on Key Investment Solutions by Channel – Significant Reliance
Exhibit 61: Impact of Value Add and Practice Management Support on Advisor Attitudes and Behaviors
Exhibit 62: Impact of Value Add and Practice Management Support on Advisor Attitudes and Behaviors by Channel
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