Biggest Asset Manager Challenge: Delivering Consistent Message

Asset management firms struggle to convey a consistent message to the marketplace, according to Cerulli Associates.

More than 60% of asset managers report that delivering a consistent message to the marketplace is the most significant challenge they face in their marketing and sales efforts, according to a report from Cerulli.

To combat this problem, now more than ever firms are utilizing many forms of media to sell their products—such as e-mail, conference calls, and meetings. According to a release from Cerulli, firms are increasingly aware that their marketing messages might not be the same across the various channels they sell into and their wholesalers might not be carrying the same messages.

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Web sites are now not only for customers, but also used internally. Some firms use their Web sites to educate the sales force so they tell the same product story. However, some firms are in need of a Web site makeover, having not undergone a complete Web site overhaul since first launching them in the early “90s, Cerulli says.

More than 80% of firms plan to make changes to both their investor and company Web sites, according to the release. For financial advisers, asset managers are creating specific sites with educational resources, such as white papers and other tools. That allows them to provide targeted information to directly support a specific group.

Cerulli also said firms are looking to expand their sites to benefit professional buyers at broker/dealer firms, using analytically-driven data, attribution analysis, platform information, video, and timely economic commentary.

But how are firms maintaining a consistent electronic message? Many have recognized the future of marketing and developed electronic marketing groups.

Cerulli’s analysis can be found in its recent report, Cerulli Quantitative Update: Retail Product Marketing and Sales Organizations 2008.


Providers Unsuccessful at Retaining DC Plan Assets

Despite the increased focus on the need to capture Baby Boomers’ assets post-retirement, defined contribution plan service providers are largely unsuccessful at retaining participant assets after retirement, according to research from the Diversified Services Group (DSG).

A DSG press release said this is due to insufficient focus on the retention issue, the inability to reach the plan participant at the appropriate time, and failure to build a relationship with the participant prior to retirement. The research also found that plan service providers miss opportunities to aggregate all of a plan participant’s assets at the point of retirement.

The majority of plan sponsors responding to the research indicated they do not care whether or not their participants take assets out of DC plans at the time of retirement, and more than 80% of participants from the companies interviewed do take their assets at retirement.

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“Since the majority of the firms we interviewed lost between $500 million and $4 billion of defined contribution plan assets last year, it is certainly valuable to explore the intricate interactions and relationships between the plan provider and the plan sponsor and what initiatives can be taken to retain a significant portion of these assets and client relationships,” said James Sholder, a DSG Principal of its Retirement Market Practice, in the release.

The research showed that education at the worksite continues to be mostly focused on asset accumulation rather than creating retirement income.

The syndicated research study, Capturing and Retaining Rollover Assets at the Retirement Inflexion Point, includes findings of two separate, but complementary, research efforts: in-depth executive interviews of defined contribution retirement plan providers and retirement plan sponsors.

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