Top 8 Trends for Asset Managers to Watch in 2012: Cerulli

7) Advice an Anglo-Saxon Trend

As a global trend, advice remains confined to a handful of markets around the world, with the Anglo-Saxon world of the United States, Australia and the United Kingdom being islands of activity. In Asia, the rest of Europe and Latin America, advice remains a bank-driven transaction business, with the exception of the private banking channel. “This trend will not change in 2012,” Cerulli asserts.

In the United States, high-net-worth investors have become more involved in the oversight of their financial investments after being shaken up by the last three years. “These investors no longer implicitly trust their advisors’ recommendations,” Cerulli says.  “Accordingly, they are demanding more information, greater transparency, and greater involvement in investment decisions. Among high-net-worth investors, 86% verify their advisors’ recommendations through their own due diligence efforts.”

In the United Kingdom, RDR regulation, when implemented, has the potential to change the local independent financial advisor market by making advice and transaction charges transparent and forcing many advisors to change their business models, assuming the regulations are not watered down.

Client-facing advisors, meanwhile, are looking for ways to reinforce their value to investors. Faced with ongoing volatility, U.S. advisors are increasingly adding alternative, non-correlated, and tactical asset allocation elements to client portfolios in an effort to steer clients away from risk. Additionally, large broker/dealers continue to express interest in broadening their advisors’ relationships with investors by increasing the role of financial planning.


Wednesday, March 28th, 2012 EN

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