Tuesday, January 15, 2008
Which Fund Shops Prep Advisors Best for Calming Jittery Clients?
News summary by MFWire's editors
Has your fund firm prepared advisors to answer tough question that arise when the market tanks? If not you may want to look to American Funds
and Van Kampen
for models on how it should be done. The two companies have topped Corporate Insight's
assessment of which fund firms are best preparing advisors for client inquires on unstable market conditions.
Company Press Release
Corporate Insight, the leader in competitive intelligence research for the financial services industry, recently assessed the methods mutual fund firms are using to prepare advisors for wary clients during unstable market conditions. Each firm was evaluated using the following criteria: accessibility, usability, and content. Researchers analyzed marketing materials, including brochures, prospecting products, and PowerPoint presentations.
The pieces were reviewed not just in terms of how effective they are at quelling client concerns about volatility, but their ability to provide portfolio reallocation advice, alternative strategy proposals, and stable fund recommendations.
"Of the fund companies we follow, two major firms stood out from the competition in providing a variety of quality materials that can be utilized by a financial advisor to help deal with client concerns about market volatility: American Funds and Van Kampen," said Lauren Wistrom, Senior Analyst at Corporate Insight and author of Mutual Fund Monitor - Advisor reports. "American Funds offers advisors a well-rounded variety of resources aimed at helping clients deal with market instability. In addition to prospecting tools, client education pieces and a multilateral sales idea, the company offers four pre-arranged hypothetical illustrations intended to address client concerns about the economy."
Wistrom continues, "Van Kampen, the other top performer, organizes its volatility-related materials into a single resource area entitled 'Navigating Volatility' and includes a variety of resources that contain a useful context in which advisors can discuss volatility issues and introduce inexperienced or anxious investors to the positives and negatives of market fluctuation."
In this 38 page report entitled, "Reacting to Market Volatility: Calming Clients in Uncertain Times" (www.corporateinsight.com/volatility), the New York-based firm evaluated each institution using a set of 23 attributes in 4 categories: basic offerings, accessibility, available formats, and tactics used. The report also contains detailed findings, a summary, and recommendations on what firms can do to improve their materials to support advisor communications with investors concerned about market volatility.
For more information on this research and related services, please visit: www.corporateinsight.com.
About Corporate Insight
Corporate Insight is the leading provider of competitive intelligence, analysis, and consulting services to the financial services industry. Founded in 1992, the firm has a blue-chip client base of industry leaders who rely on the company's commentary and insight gleaned through years of research examining the issues and trends that have shaped the industry. CI monitors the top firms on an ongoing basis, measuring, analyzing, and communicating industry best practices. Its products include Bank Monitor, Broker Monitor, Credit Card Monitor, e-Monitor, Mutual Fund Monitor, Mutual Fund - Advisor Monitor, and Annuity Monitor, as well as custom project work. For more information, please visit www.corporateinsight.com.
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