Webinars, websites and active social media accounts became the preferred mode of communication during the Covid-19 crisis, and asset management firms that focus on digital engagement with advisors are achieving the best brand perceptions and reaping the largest inflows of new investment from those advisors, according to a study by J.D. Power.

The J.D. Power “2020 Advisor Digital Engagement Study” pointed out that this more direct digital engagement between asset managers and financial advisors means less room for shrinking ranks of fund wholesalers, and the arrival of Covid-19 has further accelerated that trend.

The study, which was fielded from May through July and included 1,330 financial advisors, found that asset managers who build strong digital relationships with advisors see significantly higher investment inflows from those advisors. The top four asset management firms earning the highest scores across multiple digital experiences were Capital Group, BlackRock, J.P. Morgan and MFS Investment Management. These firms also see the highest levels of intent to invest among advisors, the study said.

“For asset managers in the current marketplace, forging and maintaining successful relationships with advisors is increasingly about effective digital engagement,” said Mike Foy, senior director of wealth and lending intelligence at J.D. Power, in a statement. Foy further noted that the trend has ramped up during the pandemic, with fund wholesalers unable to meet face to face and advisors citing higher levels of stress and increased workloads.

The survey found that more than half of advisors (58%) cited increased stress and anxiety, and 25% said their work hours have increased since the pandemic. “Accordingly, digital engagements that resonate most are those that provide easy access to asset management content and resources,” it said.

Webinars, the survey noted, showed the largest increase in advisor engagement, with 56% of advisors saying they have attended their primary asset management firm’s webinar in the past six months, up from 34% in 2019. E-mail, websites and social media have also seen year-over-year growth in usage, the survey said.

Advisors with 16 or more years of experience in the industry are significantly more likely to rely on digital interactions with asset managers than those who have been in the industry only five years or less, the survey found. Also, independent advisors and those who invest primarily in exchange-traded funds (ETFs) are more likely than wirehouse brokers and those who invest primarily in mutual funds to rely on digital.

J.D. Power suggests that asset managers need to understand which advisor segments are most open to digital but also perceive which ones still want more personal interaction with wholesalers.

The study also noted, meanwhile, that advisors remain skeptical about environmental, social and governance (ESG) commitment. While 55% of advisors indicated they are very likely to invest more in brands they identify as committed to ESG, advisors perceive that only 15% of the brands with which they currently work are genuinely committed to this issue.