September, 2022
Event Details
Industry leaders gathered for an in-depth roundtable discussion on portfolio construction Sept. 29 at Federated Hermes in New York. Catch up on the discussion with session highlights below.
Event Details
Industry leaders gathered for an in-depth roundtable discussion on portfolio construction Sept. 29 at Federated Hermes in New York. Catch up on the discussion with session highlights below.
Host:
Discussion Highlights:
FUSE Research Network Advisor Survey Highlights
Mike Evans | Partner & Director of Advisor and Benchmark Research | FUSE Research Network
View FUSE Presentation Slides
- Approximately 20% of advisors solely use home office models without any outside customization/support – i.e., 80% of advisors need or benefit from portfolio construction services partnerships (PCS)
- 1/3 of advisors met with PCS teams and 1/3 of those meetings led to product sales
- The ratio of wholesaler meetings leading to product sales is significantly lower than 1/3
- Less than 10% of advisors want a consultation from a wholesaler directly – i.e., more than 90% of advisors want to interact with a PCS specialist
- Advisors are using multiple PC fund firms
- Risk identification and tax-loss harvesting reinvestment/rebalancing are the most compelling for PC engagement
- Advisors prefer quarterly or semi-annual PC consultations
- 30% of consultations lead to product sales
- Close rate is higher among female advisors (50%) compared to male advisors (30%)
- Risk exposure analysis is cited as a top reason for engaging in PCS
- Advisors are using multiple PC fund firms
Roundtable Discussion – Metrics
- The percentage of portfolio construction services (PCS) meetings leading to a product sale over a given time period vs. the percentage of typical non-PCS interactions
- Investigating the mix of PCS product sales vs. non-PCS product sales
- Investigating the results of long-term/routine/recurring PCS clients vs. one-time and/or non-PCS clients
- Correlating territory sales rank vs. territory PCS usage volume
- Tracking win size and tracking top wholesalers vs. bottom usage
- Most teams aligning by territory found the pros outweigh the cons
- Teams looking to enable sales force for digital tools/iPad
- Digital PC engagement tools for salespeople
- Continuous PC advisor working relationships
- Working with advisors before their investment committee meetings
- Sales correlation analysis of most active PC salespeople