2014 Surprises and 2015 Predictions | Using Data More Effectively

The Changing word Unexpected into ExpectedNICSA webinar series kicked off 2015 with a look at the big picture.  Experts from kasina and Strategic Insight glanced back at the most surprising operational developments of 2014 and predicted the biggest disrupting trends in store for 2015.

Here is a quick look at the highlights of the conversation:

2014 Surprises

  • Industry profit margins defied expectations in a year marked by fund outflows.
  • Asset managers put more resources into national accounts teams, boosting Tier 2 coverage.
  • Net sales remains a small piece of total wholesaler compensation plans.
  • Despite significant gains by passive funds, there were $3 trillion of new actively managed fund sales.
  • Asset allocation has come to dominate financial advisers’ work, with steady strategic allocations across fund categories regardless of the markets.

2015 Predictions

  • Predictive modeling will play a bigger role in asset manager prospecting, yielding a higher financial adviser conversion rate.
  • To maintain sales margins, more firms will adopt data analytics.
  • Asset managers will revisit sales coverage ratios and increase the size of national account teams.
  • Net sales will become a bigger component of wholesaler compensation thanks to better access to redemption data, which will help inform accuracy.
  • Implementation of active ETF product programs will accelerate, particularly if the industry adopts a common chassis for these products.
  • Regulator focus on shareholder costs will intensify around the globe.
  • Tolerance for “average” performance from active funds will continue to decrease as interest in excellence rises.
  • The trend towards integrating active and passive approaches in single-wrap products – such as smart beta – will pick up steam.
  • Liquid alternative strategies will reach a new phase of adviser adoption and integration into asset allocation models.

Watch for these trends and, if they come to pass, we’ll highlight them in the first webinar of 2016!

To listen to the webinar in its entirety, click here.

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