Product companies ramp up outreach

Money managers pitching funds are more aggressive than ever.
SEP 01, 2013
By  JKEPHART
If you feel as though asset management companies are reaching out more aggressively than ever before, that's because they are. On average, advisers are contacted 126 times a month from companies trying to sell investment products, up from 110 times a month last year and about 100 times a month five years ago, according to the 2013 Cogent Research Advisor Touchpoints survey.

Social media surged

Social media saw the biggest increase in use by asset managers as the number of communications doubled over last year to more than four a month. E-mail, old-fashioned mail, webinars, internal sales calls, wholesaler visits and road shows all saw increases as well. Not all of the channels are getting rave reviews from advisers. Two out of five advisers said they prefer to be contacted by e-mail and 31% said they prefer external wholesaler visits, according to the Cogent survey of more than 1,700 financial advisers. For some, the crush of communications is more of a nuisance than a help. “It's way too much,” said Matt Reiner, chief investment officer at Capital Investment Advisors. Mr. Reiner routinely deletes e-mails with headlines like “Morningstar Top Percentile!” or weekly investment commentaries. “You do remember them if they keep on going all the time, but it tends to be too much,” he said. “If they really want your business, they'll figure out how to get in touch with you.” Once a company does get in touch, what matters most to Mr. Reiner is whether it is willing to establish a working relationship that goes beyond just pitching products. “We don't try to talk to companies too much, but we want them to be available when we need them,” Mr. Reiner said.

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