Skip to main navigation

2011 wealth management study - investing in the future - Wealth management product demand - EY - United States

2011 wealth management study - investing in the future

Wealth management product demand

  • Share

In each of the following individual product categories, please describe: a. Whether you actively sell the product? [If yes] In each of the following individual product categories, please identify: b. Your firm's expected inflow of assets under management, excluding annual return, for the next year.

In each of the following individual product categories, please describe: a. Whether you actively sell the product?[If yes] In each of the following individual product categories, please identify: b. Your firm's expected inflow of assets undermanagement, excluding annual return, for the next year.

Source: Greenwich Associates
Note: Number in parentheses represents the number of respondents. Some respondents did not answer this question.

In each of the following individual product categories, please tell us: a. Whether you actively sell the product? [If yes] In each of the following individual product categories, please tell us: b. Your firm's expected inflow of assets under management, excluding annual return, for the next year?

Source: Greenwich Associates
Note: Number in parentheses represents the number of respondents. Some respondents did not answer this question.



Separately managed and mutual fund wrap accounts are the two most actively sold managed accounts.

It is important for firms to have a benchmark for which products firms are actively selling and their growth expectations as they expand their offerings.

What products do you sell?

Nearly all of the wealth management firms we interviewed offer mutual funds and three in four offer ETFs. The disparity between ETFs and mutual funds sold, especially in light of the lower fee structure, may be a reflection of the maturity of the two markets.

Additionally, nearly all wealth management firms offer managed accounts, but just half offer unified managed accounts. For those firms that actively sell managed accounts, nearly 40% of the wealth management firms expect annual growth in AUMs to exceed 15%.

How would you characterize your firm's product and client statergy for the next two to five years?In each of the following individual product categories, please describe Whether you actively sell the product?

Product demand — managed accounts

Overall, separately managed and mutual fund wrap accounts are the two most actively sold managed accounts.

Investment professionals targeting high-net-worth clients are significantly more optimistic about AUM growth in unified managed accounts, advisor-directed managed accounts and ETF wrap accounts. Those wealth management firms targeting the mass-market clients are much more optimistic about growth of mutual fund wrap accounts.

How would you characterize your firm's product and client statergy for the next two to five years?In each of the following individual product categories, please describe Whether you actively sell the product?

Product demand — unified managed household accounts

Only 28% of the wealth management firms interviewed offer unified managed household accounts (UMHAs) and there were no major distinctions across the various segment types. Wealth management firms of larger scale were slightly more prone to offer UMHAs than their smaller counterparts.

Because of the relative newness of this product, we did note varying definitions of the UMHAs and a lack of consistency with respect to product features.

Firms not currently offering this product may need to evaluate their competitive positions.

Does your firm have an annual product review?

Does your firm have an annual product review?

Source: Greenwich Associates
Note: Chart based on 36 respondents.

Which one or two aspects of UMHAs are most challenging?

Which one or two aspects of UMHAs are most challenging?

Source: Greenwich Associates
Note: Chart based on 9 respondents. Percentages do not total to 100%
due to multiple responses by survey respondents.

Best-performing asset classes

Product strategy and product management professionals at leading wealth management firms expect emerging market equities and US equities to be the best-performing asset classes over the next two years, and the outlook is fairly consistent across small and large firms.

Based on your capital market assumptions, what do you expect will be the best-performing asset classes over the
next two years?

Based on your capital market assumptions, what do you expect will be the best-performing asset classes over the next two years?

Source: Greenwich Associates
Note: Chart based on 9 respondents. Percentages do not total to 100%
due to multiple responses by survey respondents.

 


<< Previous

Content

Download

Investing in the future - 2011 US wealth management study: a focus on product and client trends

Contact us:

Hank Prybylski
FSO Advisory Leader
Ernst & Young LLP
New York, NY
+1 212 773 2823

Anthony Caterino
Partner, Americas Wealth Management
Ernst & Young LLP
Charlotte, NC
+1 704 331 1851

Alan Fish
Partner, Americas Asset Management
Ernst & Young LLP
New York, NY
+1 212 773 6560

Marcelo Fava
Principal, Americas Wealth Management
Ernst & Young LLP
Charlotte, NC
+1 704 350 9124



Back to top