kasina compiled its report on the basis that asset management firms are developing ETFs at a very quick rate – “With a backlog for SEC review, cash flows to existing ETFs surging, and the market currently dominated by iShares, State Street, and Vanguard, firms are chomping at the bit to get a piece of the pie,” kasina asserts.
Despite the popularity of ETFs that does not seem to be slowing down any time soon, kasina says asset management firms will be most successful at distributing their ETFs if they have a plan and understand that not all advisers operate in the same way.
kasina’s report groups advisers into three categories: 1)Non-adopters, who do not understand or do not use ETFs, 2) Multi-Provider Advisers, who use ETFs from multiple firms, and 3) Loyal Advisers, who gravitate towards one or two firms consistently.
“These three audiences want and expect different things from asset managers,” says Steven Miyao, kasina’s CEO and co-founder. “Firms should focus on educating Non-Adopters, articulating the differentiating value proposition to Multi-Product advisers, and trying to lock in the Loyal Advisers. The goal is to move all advisers along the continuum towards loyalty by giving them targeted messages, all in a way that is cost-effective for the firm.”
The report includes insights and analysis from interviews with senior distribution executives representing the top seven asset management and insurance firms. It also includes findings from the FA Vision ETF Topical Survey, a report on behavior and preferences of over 550 U.S. financial advisers conducted in partnership between kasina and Horsesmouth.
Some of the specific issues addressed in Mastering ETF Distribution include:
- Key distribution challenges facing ETFs providers
- Margins in the ETF market
- Targeting the three types of advisers
- ETF attributes advisers care about most
- Adviser communication and support preferences
The report can be purchased at www.kasina.com/reports.