NEW YORK, April 19, 2021 /PRNewswire/ -- Broadridge
Financial Solutions, Inc. (NYSE: BR), a global Fintech leader,
today released results from an annual survey of 400 financial
advisors, revealing that a majority of advisors across channels use
ESG products, citing direct interest from investors. The study also
shows how the advisor-wholesaler relationship is evolving
post-pandemic.
Sixty-one percent of advisors use ESG products, and usage is
even higher among female advisors (71%) and advisors under 40
(67%). Of advisors who use ESG products, 81% plan to increase their
usage over the next two years as investors actively seek out these
products. Wirehouse advisors are the most likely of all channels to
use ESG products and to cite both inclusion on their broker-dealer
platform and promotion by their home offices as reasons for doing
so.
Sixty-two percent of financial advisors use separately managed
accounts (SMAs), and that number is even higher among advisors
under 40 (70%). Fifty-six percent of advisors who use SMAs plan to
increase their usage over the next two years.
As advisors explore new investment vehicles such as ESG and
SMAs, half of advisors (51%) are now also using private funds.
Eighty-one percent of advisors who use private funds also use
SMAs.
"Now more than ever, investors are speaking up about the types
of products they want to invest in, whether it be ESG, private
markets or other emerging asset classes. As advisors become more
focused on providing the best client-centric experience and are
optimistic about the year to come, they are looking to be equipped
with the right tools and products to service their clients and
investments," said Matthew
Schiffman, Principal of Distribution Insight at Broadridge
Financial Solutions. "Asset managers are primed to step up and
address the demand for these products."
The "New Normal" For Advisor-Wholesaler Relationships
On average, advisors maintain 48% of their AUM with their
top-five asset management firms. However, 28% of advisors are very
open to adding new asset managers, identifying an opportunity for
asset managers to uncover new ways to showcase their value, win
over prospects and retain AUM.
A quarter of advisors (25%) plan to engage with external
wholesalers more in 2021 and 70% of advisors say that an external
wholesaler is one of their top-three most preferred methods of
engaging with an asset manager.
"Forced into a fully remote environment just over a year ago,
many advisors dramatically accelerated their digital journey to
maintain and grow their business. Today's advisors are actively
focused on business development and client-facing activities, and
are increasingly using model portfolios as part of their practice
to allow for increased efficiency in a post-COVID world," added
Schiffman. "Advisors were not able to engage with wholesalers in
the same way they did before the pandemic and were initially
hesitant to engage virtually. Now, as the COVID-19 vaccine rollouts
progress and we may see a return to normal sooner than expected,
advisors are eager to re-engage with wholesalers and are receptive
to new relationships."
Advisors continue to feel positive about conditions for success
today and in the future, with the study showing that 77% are
favorable (somewhat or very) about growing and scaling their
practice today, and 67% expect conditions to be better three years
from now. Further, 66% of advisors are confident (somewhat or very)
in acquiring new clients today and 56% expect to see improvements
three years from now.
View Broadridge's 2021 report The Evolving Advice Business
Model.
Methodology
This Broadridge survey was conducted by 8
Acre Perspective to assess the world of financial advice and
guidance. A total of 400 financial advisors across wire, regional,
IBD and RIA channels completed the survey, which was fielded in
January and February 2021. For
further details on survey methodology, please contact a Broadridge
media representative.
About Broadridge
Broadridge Financial Solutions
(NYSE: BR), a global Fintech leader with over $4.5 billion in revenues, provides the critical
infrastructure that powers investing, corporate governance and
communications to enable better financial lives. We deliver
technology-driven solutions to banks, broker-dealers, asset and
wealth managers and public companies. Broadridge's infrastructure
serves as a global communications hub enabling corporate governance
by linking thousands of public companies and mutual funds to tens
of millions of individual and institutional investors around the
world. In addition, Broadridge's technology and operations
platforms underpin the daily trading of on average more than U.S.
$10 trillion of equities, fixed
income and other securities globally. A certified Great Place to
Work®, Broadridge is a part of the S&P
500® Index, employing over 12,000 associates in 17
countries. For more information about us and what we can do for
you, please visit www.broadridge.com.
Media Contacts:
Matthew
Luongo
Prosek Partners
+1 646-818-9279
mluongo@prosek.com
Linda Namias
Broadridge Financial Solutions
+1 631-254-7711
Linda.Namias@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.