Financial product providers who want to engage fee-based RIAs need to develop a targeted approach to these advisors, says Practical Perspectives in a study released recently.
The vast majority of RIAs (74 percent) use actively managed product solutions, according to Practical Perspectives’ report, which was based on the opinions of 1,000 RIAs. Practical Perspectives is a consulting and research firm.
A minority of RIAs (26 percent) want passively managed solutions, according to the report. For those who use passively managed accounts, 80 percent say they do not expect to shift away from passive solutions in the foreseeable future.
Most (79 percent) want access to lower-cost products to improve client satisfaction with actively managed accounts.
What most do not want to handle are insurance products. Only 18 percent consider providing access to insurance solutions as a significant priority and the majority also is not engaged in offering annuities.
Marketing outreach from asset managers and insurers gets little attention from RIAs, with 66 percent spending less than 15 minutes each day on these types of phone calls and emails, according to the report.
Practical Perspectives says RIAs strongly prefer websites and digital tools that are advisor-focused rather than those accessible to the public. Compared to other advisors, RIAs are more engaged with technology-based tools and resources, including mobile devices and social media.