A new report claims that predominantly fee-based advisors (those earning at least three quarters of their total compensation from asset-based fees) now comprise 4 in 10 financial advisors.
And, according to the Cogent Reports study released by Market Strategies International, while consistency of fund performance and having a distinctive company investment philosophy remain critical, fees and expenses offer the greatest potential to enhance loyalty among these predominantly fee-based advisors.
According to the report, mutual fund managers seeking to secure and strengthen relationships with these high-end producers, highlighting consistent, long-term investment performance and value for the money is even more important to convey. The report notes that active mutual fund managers also have an opportunity to emphasize their firm's distinctive investment philosophy and strong performance in asset classes, with the highest growth potential including U.S. equities, non-U.S. equities, U.S. fixed income and emerging markets.
The report claims that DFA, Vanguard, T. Rowe Price, DoubleLine and American Funds earn the strongest loyalty among this increasingly important target market.
