When FAs Evaluate Providers, These Two Factors Stand Out
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Friday, October 14, 2016

When FAs Evaluate Providers, These Two Factors Stand Out

When financial advisors evaluate mutual fund shops and other product providers, performance isn't the only factor on top of their minds.

T. Neil Bathon
FUSE Research Network
Managing Partner
The folks at New York City-based industry marketing communications agency JConnelly informally surveyed 128 wirehouse FAs and RIAs earlier this fall on behalf of FUSE Research Network. The JConnelly team found that, when asked what factors they consider when evaluating product providers, the top answers were "performance" (three-quarters of FAs listed this) and about "reputation/brand" (also about three-quarters). And about two-thirds of FAs pointed to "clear specialty or differentiator".

On the flip side, fewer than 20 percent of FAs said that having a "broad product mix" factors in when they evaluate product providers. And fewer than half of FAs said that "client-ready or informational materials" or "key executives/thought leaders" factor in to their evaluations.

The JConnelly folks also asked the FAs about: how they want to hear from fundsters and other non-clients (more than 80 percent of FAs said they prefer email); what information sources they turn to when evaluating providers ("word of mouth" and information from analysts came out on top with nearly 70 percent each); and using social media (more than 60 percent said they do use it for professional purposes).

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