Filed Under:Life Insurance, Life Planning Strategies

Three-quarters of advisors use managed money solutions

According to Cogent research

Virtually all bank advisors have at least a portion of their clients’ assets in managed solutions.
Virtually all bank advisors have at least a portion of their clients’ assets in managed solutions.

Currently, three out of four advisors use managed money solutions, and usage is even higher in the broker-dealer channels, according to a new report from Cogent Research.

The survey reveals that virtually all (96 percent) of bank advisors have at least a portion of their clients’ assets in managed solutions. This is in contrast to just four in ten (42 percent) of RIAs, who prefer to manage portfolio construction themselves.

“On average, advisors using managed accounts rely heavily on these solutions, meaning that providers should consider ramping up their engagement with gatekeepers at the large broker/dealers, in addition to maintaining their level of outreach and support to advisors,” the report states.

The following table reveals the percentage of advisors using managed money solutions:

Total

National

Regional

Independent

Bank

RIA

76%

82%

81%

79%

96%

42%

In separate news, a Cogent Research report shows that defined contribution plan participants who are auto-enrolled contribute 7.6 percent of their income to their retirement plan, slightly higher than the rate of 7.3 percent who are not. However, participants enrolled in auto-increases contribute an impressive 9.3 percent of salary on average, a full percentage point higher than the industry average.

Cogent Research also reports that the proportion of defined contribution plan sponsors that are considering a change to their provider relationships has increased over the past year, availing firms of opportunities to woo new plan sponsors to their platforms.

“In order for providers to maximize their acquisition potential, they need to understand the resources plan sponsors typically use to ensure a strong, competitive position,” the report states. “Our research indicates that plan sponsors want information and guidance from multiple sources when determining which plan providers to consider, and those sources vary by plan size.

“Micro and small plan sponsors tend to rely most on the assistance of a financial advisor or company representative, while large and mega plans seek input from consultants or other plan sponsors,” the report adds. “Therefore, it is critical for providers targeting the small end of the market to monitor the perceptions of financial advisors, while those focused on larger plans need a solid understanding of the aspects most likely to influence the consultant community.”

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