Nicsa's 2023 General Membership Meeting offered a look into the advisor landscape and the shifting intermediary marketplace. Broadridge’s Tim Kresl and Columbia Threadneedle Investments’ Jim Bumpus, Head of Intermediary Markets, discussed key trends.
With the increasing product complexity and evolving investor expectations, advice models are being reshaped. The session’s audience included executives from across the asset and wealth management industry. The discussion offered the following takeaways:
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Financial advisors are increasingly diversifying their allocations, including alternatives (liquid and non-liquid), separately managed accounts, model portfolios, active ETFs, and passive ETFs.
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Advisors are simultaneously shifting towards a focus on holistic financial planning, spending more time with clients and less on investment management and back-end operations.
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While the financial industry embraces product complexity and innovation, advisors are more focused on deepening client relationships.
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Advisors continue to look toward personalized portfolios to differentiate themselves and address various client needs.
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Advisor satisfaction has declined in recent years, likely due to lower returns in fixed income and challenging market conditions. Financial planning can help maintain client satisfaction during market fluctuations.
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Younger investors, especially Millennials and Gen Z, are less satisfied with the traditional financial advising model, presenting an opportunity for advisors to adapt their services to meet the unique needs of younger clients.
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A significant transfer of wealth is expected, making it essential for advisors to connect with younger investors and address their specific financial goals and needs.
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Attracting younger and more diverse talent to the financial advisory industry is a challenge but critical for its future success.
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Delivering value-added services, beyond just products, is crucial for financial advisors to better serve their clients.
These key takeaways highlight the evolving landscape of financial advisory services, emphasizing the importance of adaptation to meet changing client needs and the increasing focus on holistic, value-added services and financial planning.
Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.
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