FRC’s third study on the 529 college savings market provides 529 program managers a comprehensive resource for building sustainable 529 plans in an increasingly competitive marketplace. In this study, FRC examines the role 529s play in the larger college savings market, explores consumer and advisor preferences, focuses on 529 platforms and how they will change over the next year, and forecasts the future of the 529 savings plan marketplace. Findings are based on surveys FRC conducted of three distinct groups—consumers, financial advisors, and program managers, as well as personal interviews FRC conducted with a number of industry executives, state agencies, think tanks, and 529 practice consulting firms to provide comprehensive analysis and commentary into the evolving nature of the 529 business.
Based on a survey completed in Spring 2009, FRC provides a rich and intimate view of Mass Affluent retail investors, their asset and account changes over an extremely difficult investment period, and the rationale behind those changes. The study also closely examines the demographic characteristics of these investors, their preferences regarding investment providers and investment services, and factors that influenced their investment decisions. The findings in this study offer insightful guidance to investment firms who wish to attract assets from the Mass Affluent.
As a result of the recent recession, retirement plans of workers have been turned on end, which has thrown investor behavior into a tailspin. Financial firms are seeking ways to meet the new needs of these workers and retirees. FRC surveyed approximately 1,500 baby boomers (PowerBoomers) and current retirees (RealRetirees), with greater than $100,000 in investable assets. To understand their financial and psychological experiences, FRC creates a detailed portrait based on consumer’s wealth, age, retirement status, gender, and other key metrics. This segmentation analysis is critical for firms to successfully compete in the retirement income market as well as increase wallet share of baby boomer assets.
In the aftermath of the credit crisis, the landscape for distribution and product development has changed dramatically. With massive mergers in the financial services industry, distribution of products has changed. This study takes an in-depth look at what has happened and how it has and will continue to impact VA manufacturers. Does this spawn a golden opportunity for VA manufacturers, or does the pressure to alter products to mitigate insurer risk limit the opportunity? This study addresses those questions, and provides actionable information to capitalize on the unique opportunity presented by this market.
Defined contribution plans remain the primary retirement savings vehicle for workers, but they have suffered deep market losses in the closing months of 2008. This study examines how steep market declines, legislative and regulatory activity, and other key trends are impacting investment-only defined contribution (IODC) asset managers. Market sizing, updated from our 2007 study, will allow managers to benchmark their current market participation against their peers. FRC also explores the impact on product development, organizational structure, profitability metrics, and other key business metrics.
This study serves as a reference source for investment management firms to understand the changing dynamics of the key distribution channels with regard to mutual fund sales. In this study, FRC provides its latest model of the fund distribution landscape, and forward-looking projections for mutual fund sales and assets under management, as well as analyst commentary explaining the trends and business activities shaping these projections. FRC also provides a detailed cross-channel analysis of gross sales, redemptions, net sales, assets, and growth rates for national broker/dealers("wirehouses"), regional broker/dealers, independent broker/dealers, banks, insurance companies, and RIAs. Forecasts are also provided for sales and assets for the other "macro" channels, direct-to-investor and retirement/institutional.
In an increasingly mature investment market, how an asset manager communicates its “investment process” – those specialized analyses, behaviors, and philosophies utilized by a firm for portfolio creation and ongoing management – is quickly emerging as a key element of competitive differentiation. In this study, based on detailed primary surveys of asset managers and manager research teams, FRC reveals the components of effectively developing and communicating an investment process. The study provides an assessment – with perspectives from both sides – of the importance of investment process, and how effectively asset managers communicate that process. The study also provides profiles on asset managers that are seen as best-in-class in the industry.
In this study, FRC explores the future of actively managed ETFs, the next frontier in the continuing evolution of ETFs. From the launch of SPDR in 1993 to the introduction of the first active ETFs in 2008, FRC tracks the evolution of the ETF structure and evaluates the competitive advantages of ETFs over open-end mutual funds and other investment products in the delivery of active strategies. FRC also identifies the roadblocks ETFs still face in their evolution toward true active management, and the factors that firms considering the build out of an actively managed ETF business must address, including regulatory, operational, and trading considerations, as well as potential distribution opportunities.
In this study, FRC provides a 360-degree view of the evolving variable annuity (VA) distribution landscape using three sources of primary research—surveys of VA manufacturers, broker/dealers, and financial advisors. FRC also delivers a unique examination of each viewpoint with an emphasis on how manufacturers can utilize these findings to evaluate and tailor product and distribution strategies to position for future growth. FRC focuses on areas of change and future trends in the VA market, the rise of living benefits, and channels for growth, as well as effective ways to gain access to broker/dealers, insights into advisor perspectives on VA product strengths and weaknesses, and changes in product and distribution dynamics.
As several investment vehicles grow from nascent markets to accepted alternatives, FRC believes actively managed funds will experience increased competition for assets. In this study, FRC examines the evolution of actively managed mutual funds and alternative investment vehicles to identify areas of opportunity and vulnerability in the rapidly changing world of retail portfolio construction. The study is based on two comprehensive surveys—one of financial advisors and one of asset managers. The advisor survey reveals product usage trends and attitudes about portfolio construction, while the asset manager survey provides product development strategies and insights into the perceptions of competition among investment vehicles. The views of both parties are compared and contrasted to examine whether asset manager strategies are in line with actual advisor needs.
