Asset managers are courting RIAs with a slew of marketing and education materials. Yet, advisers aren't always impressed with the outreach, according to a new survey from Morningstar and SwanDog.
As the RIA channel continues to grab a larger chunk of assets from wirehouses and brokerages, asset managers now appear to be shifting a great deal of their attention and marketing efforts to this burgeoning independent channel — but with spotty success.
“The registered investment adviser channel is growing so rapidly and everybody is trying to focus their business on them,” said Dave Swanson, founder and managing principal at SwanDog Strategic Marketing LLC. “This represents the new frontier.”
Asset managers, for their part, are making a considerable effort to get in front of RIAs with marketing materials about fund performance, practice management, investment strategies and economic developments.
A number of managers, however, appear to be missing the mark with their outreach efforts, according to a survey of advisers and RIAs from Morningstar Inc. and SwanDog.
The biggest complaint, cited by 42% of the RIAs polled about asset manager communications, is that they are sent information that is not relevant.
Also, 34% of the RIAs said that the information they get is not objective.
Marketing and educational materials from asset managers on practice management issues appears to have little appeal to advisers, for instance, with only 31% of the respondents noting that this information is relevant.
Brochures on funds, meanwhile, were labeled as relevant by just 26% of RIAs, and just 18% said they found sales ideas relevant.
“It's not to say that sales ideas and fund brochures are not valuable, but they are not looking for that from asset managers,” said Mike Barad, a vice president in Morningstar's financial communications unit.
Four or five years ago you needed to get that information from the fund company but advisers now have better access to third-party research, he said.
Instead, advisers now want perspectives on the economy and broader investment issues, according to the Morningstar/SwanDog survey.
A full 67% said they considered economic perspectives relevant, while 65% of advisers said portfolio manager updates were relevant.
“The demand for economic insight has increased as a result of the market downturn,” said Leslie Banks director of marketing in Morningstar's financial communications group.
“Clients, too, are going to their advisers and saying ‘what happened?' and ‘how did we get here?' They will be monitoring their investments more frequently.”
“There is a real thirst for that information,” said Mr. Barad. “One of the advisers specifically mentioned that ‘objective analysis is rare and valuable.'”
The study, which canvassed 325 advisers — including 98 registered investment advisers — was conducted online from April 1 through May 8, and also included telephone and in-person interviews.
