NEW YORK, (March 26, 2008) — A recent kasina study suggests current economic woes may lead financial advisors to rely more heavily on asset manager leadership. As part of kasina’s ongoing research on intermediary distribution, kasina surveyed financial advisors to determine their assessment of current economic uncertainties.
With the subprime mortgage fallout undermining buyer confidence, the Consumer Sentiment index fell this January to its lowest point since 1992. Experts and laymen alike are questioning our economic future, and recent market volatility has echoed these concerns.
Not surprisingly, advisors are also affected by the waning consumer morale. While 41 percent of advisors think the economy is headed for recession, 34 percent are expecting a turnaround, and 26 percent are yet unsure. And even though less than half of advisors believe the US is stuck in a recession, more than half see the economy as their greatest fiduciary concern for the upcoming year. This uncertainty is echoed in advisor predictions for asset class performance. International equity garnered 29 percent of the confidence pool, with the remaining 71 percent diffused among the remaining asset classes.
However, in the midst of widespread division and uncertainty among advisors, the vast majority still rely on asset managers for support and service. An overwhelming 96 percent of advisors say that the ability of a fund company wholesaler to deliver an informed opinion at least somewhat impacts their transaction decisions.
These recent statistics show asset managers have the potential to hold sway over advisors now more than ever. In the current pessimistic climate, asset managers must communicate clarity and thought leadership through all outlets in the distribution organization.
kasina is a management consulting firm that is focused on helping financial services companies create intelligent relationships with their investors and intermediaries. By combining knowledge of distribution trends, technological innovations, and marketing strategies, kasina aids leading asset management firms with front-office efforts and publishes a regular schedule of cutting-edge industry research. kasina�s client list includes 18 of the 20 largest asset managers in the United States and leading firms in Canada, France, Germany, and the United Kingdom. www.kasina.com.