Financial advisors are navigating a period of rapid change in investment products, and many are turning to wholesalers and product specialists for guidance as they shift client portfolios toward exchange-traded funds, separate accounts, and alternative assets.
That’s one of the key takeaways from Cerulli Associates’ latest research, which finds that education and access to technical expertise are increasingly valued as the menu of available investments grows more complex.
Cerulli’s data shows that by 2027, advisors expect to reduce their mutual fund allocations by more than four percentage points, while ETF allocations are projected to rise nearly four points. Illiquid alternatives are also on the rise, with advisors forecasting a jump from 2.4% to 3.3% of their asset mix over the next two years.
These trends reflect a broader push for flexibility, transparency, and tax efficiency – attributes that ETFs and separate accounts can deliver more reliably than traditional mutual funds.
But as advisors incorporate new products, many say they need more than just marketing materials or online resources. Three-fifths of respondents to Cerulli's survey research (58%) agreed speaking with a wholesaler is important before committing client assets to an asset manager’s strategy. Only 38% place the same value on conversations with portfolio managers, and just 13% believe they can skip a wholesaler entirely.
“Deploying dedicated advisor-facing product specialists can be a game-changer – helping asset managers elevate client service, share compelling competitive product information, and attract more assets through their specialized expertise,” said Andrew Blake, associate director at Cerulli.
Product specialists, in particular, are emerging as vital partners for advisors. Nearly half of those surveyed (44%) said it is essential to consult with a product specialist before investing in a new strategy. Unlike portfolio managers, who are often focused on day-to-day operations and servicing the largest accounts, Cerulli says product specialists are positioned to provide nuanced, technical insights that help advisors navigate new offerings and regulatory changes.
The report also offers insights on what advisors want from wholesalers. Three-fourths (74%) of wholesalers see product savvy as their main value proposition, and close to 70% of advisors said the same. On that note, two-fifths of advisors rated competitive product information (39%) as a "highly valuable wholesaler resource.".
But Cerulli found advisors and wholesaler perceptions were further apart on other fronts. While 40% of wholesalers thought advisors prized their ability to arrange meetings with specialists, just 21% of advisors agreed. Similarly, wholesalers were more likely to say making themselves accessible is a plus for advisors (57%) compared to advisors themselves (43%).
"These differences mean that financial advisors may be leaving some meat on the bone when it comes to their wholesaler interactions," Cerulli says. "Asset managers should market the strengths of their advisor-facing teams and their product specialists, while advisors should ensure they are making the most of the resources available to them."
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