Most asset managers view product differentiation as their primary challenge, according to a new report.
Cerulli Associates, Boston, published this finding in the August 2012 issue of “The Cerulli Edge: U.S. Asset Management Edition.” The monthly publication analyses topics related to product development and strategy, distribution, pricing and market segmentation.
Of the registered investment advisors surveyed, 41% say that “differentiating their offering in a crowded marketplace” is their primary challenge.
Smaller percentages of the respondents identify fee pressure from broker-dealers and managed account groups (24%), industry regulation (12%), lack of focus on retirement planning (12%) and increased competition from low-cost options, such as ETFs and index funds (6%), as their primary challenge.
Registered investment advisors with assets under management of between $100 and $250 million and between $250 million and $500 million experienced the most significant change in market share between 2008 and 2010. The market share garnered by RIAs in these AUM segments grew to 10.5% and 4.2%, respectively, in 2010, up from 8% and 3.6%, respectively.