Intermediaries speak out

Despite the recent market upheaval, more financial intermediaries are increasing their investments in equity funds than are decreasing them, according to a survey by kasina LLC.
OCT 05, 2008
Despite the recent market upheaval, more financial intermediaries are increasing their investments in equity funds than are decreasing them, according to a survey by kasina LLC. Twenty-nine percent of surveyed intermediaries were investing more in bond, equity and money market funds, while 24% were investing less, the New York-based asset management consultant found in the survey, which screened 174 financial intermediaries Sept. 24 and 25. The study also found that intermediaries were using variable annuities and alternative investments less frequently. A full 22% were investing less in variable annuities, while 16% were investing more. And 31% of those surveyed said that they were investing less in such products as hedge funds and 130/30 strategies, while just 14% were investing more. The group was split on the use of international investments, with 27% reporting that they were investing less in international markets and 22% reporting that they were investing more. When looking for information on market conditions, financial advisers tend to use asset management firm websites rather than contact wholesalers, according to the survey. During the two weeks prior to when they were surveyed, 47% said that they had visited a website to get information about market conditions, and 37% said that they had contacted a wholesaler. The participants most often named as providers of valuable information on market conditions were American Funds, advised by Capital Research and Management Co. of Los Angeles, Fidelity Investments of Boston and RiverSource Investments LLC, a unit of Ameriprise Financial Inc. of Minneapolis.

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