When it comes to advisors choosing wholesalers to turn to regularly, strong service and strong fund performance are the most important factors.
| Patrick "Pat" Newcomb|
Fuse Research Network
Director of Benchmark Research
In "Wholesalers: The Advisor View"
, the latest report in Fuse Research Network's Advisor Trend Monitor Series
, the Fuse folks founds that 59 percent of advisors pointed to fund investment performance as being "very impactful" in driving loyalty to their top three ongoing wholesaler relationships, and another 33 percent called it "somewhat impactful." "Consistently strong service," with 59 percent very impactful and 32 percent somewhat impactful, came next.
The only other factor cited by more than half of FAs was "strong investment knowledge" on the part of wholesaler, listed as very impactful by 52 percent of advisors and somewhat impactful by 38 percent.
On the flip side, wholesalers' industry credentials was a much less important factor in FAs' eyes: 14 percent called it very impactful, 33 percent called it somewhat impactful, and 54 percent said it was not impactful at all. Other factors (like the wholesaler being a good quarterback for their firm, longtime friendship with the advisor, firm value-adds, and portfolio construction analysis and support) were more in the middle, with decent advisor support.
"The percentage of assets in investment offerings from advisor's top three wholesalers has been steadily increasing and is projected to continue on that trajectory over the next several years," states Pat Newcomb
, director of advisor research at Fuse.
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