Financial Advisors Rank American Funds and Vanguard as Top Asset Managers

Financial Advisors



Financial Advisor identifies five brands—American Funds, Vanguard, BlackRock, JP Morgan and First Trust—as best-in-class asset managers in a new study by ISS Market Intelligence, which like PLANADVISER is owned by Institutional Shareholder Services Inc. .

Their survey, released Wednesday, found advisors ranked trust, performance and ease of doing business as the three most important factors when evaluating asset manager brands. shown. Ease of doing business takes precedence over factors such as risk management, fees and thought leadership.

ISS Market Intelligence reveals that the top factors tend to align with advisors’ ratings of best-in-class managers. For example, advisors who named First Trust a best-in-class brand are more focused on ease of doing business. Advisors who named American Fund among the best, on the other hand, put more emphasis on trust.

The survey found that 86% of advisors said a strong brand is an important factor when recommending a money manager to clients. A strong brand was particularly important to Wirehouse advisors (90%). Nearly a quarter of all advisors felt that a strong brand was “very” important.

Nearly 60% of advisors rated external wholesalers as ‘very effective’ or ‘effective’ in communicating their asset manager’s brand. They ranked external ahead of thought leadership, websites, media and other brand messaging mechanisms. However, registered investment advisors place more trust in corporate thought leadership.

When it came to the topic of thought leadership, advisors of different age groups had different preferences for content consumption. About 40% of advisors reported listening to podcasts on financial topics. Younger advisors and RIAs, defined in the study as those under the age of 40, listened to podcasts more than their older peers.

The study found that managers with sub-brands should consider how they present their core brand, rather than that of their affiliates or sub-advisors. More than half of advisors (58%) did not believe hiring a sub-advisor or multi-affiliate approach would impact brand favorability. However, his 26% of advisors believed this approach would impact the company’s brand.

of ISS Market Intelligence Market Metrics Brand Awareness & Podcast Research, The study, conducted in March, is based on interviews with 802 US-based financial advisors.



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