The New Model of Fund Company-Advisor Relations

Thought this little tidbit from this weekend’s Barron’s cover story on TIAA was worth passing on. In it, the firm details the type of engagement they’re going to use in order to increase their presence in the portfolios of financial advisors (as opposed to their retirement plan / annuity bread and butter). TIAA acquired Nuveen, a century-old fund shop with some $882 billion invested its products.

This is what all of the successful fund and ETF providers are getting right in the field – it’s the type of relationship my firm has with all of the vendors whose funds end up in my client accounts:

But Nuveen’s sales force can no longer push just one hot fund. Like everyone, financial advisors are pressed for time. Historically, salesmen met advisors seven times a year. That is no longer feasible. Instead they must convince financial advisors of the value of Nuveen’s “solutions,” says Advani, “using data analytics and science.”

For example, an advisor might share her portfolio with the salesperson, who would then run it through Nuveen’s models and demonstrate how particular Nuveen offerings would reduce volatility or increase the chance of outperforming. The variety of offerings, including alternatives, will help. In addition to providing investment consulting, Nuveen’s salespeople will help advisors develop their practice, address family-wealth issues, and provide retirement and tax strategies. Says Advani: “We’re offering the home-theater system: The best speakers under a particular brand, the best amplifier under another, the best TV.”

Advisors, as opposed to brokers, are no longer in the business of selling past performance, now that the ubiquity of data has made the futility of this game blindingly obvious. Instead, we increasingly see ourselves as being in the business of clarity and wisdom. This means the construction of advisor portfolios rooted in evidence and transparency.

To play on this field, fund companies will have to become more consultative and less promotional. The best and the brightest – Dimensional, iShares and Vanguard – have a nice head start. This isn’t to say that JP Morgan Asset Management, Fidelity, State Street, Goldman Sachs Asset Management and, yes, even Nuveen, can’t come in and compete bigly.

The RIA business is a great business to cater to for the asset managers. We are, for the most part, forced to make use of outside fund products like ETFs, even if they’re only being used as building blocks for our internally managed strategies. Because for fiduciaries, creating our own fund products that we would get paid on, and then recommending them for client accounts, represents a conflict that the majority of us aren’t interested in exposing ourselves to.

Source:

TIAA/Nuveen: A Trillion Dollar Startup Is Making Its Move (Barron’s) 

What's been said:

Discussions found on the web
  1. Houston Electricity Plans commented on Sep 24

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  2. bitcoin loophole reviews 2020 commented on Sep 27

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  3. td easy web commented on Nov 26

    … [Trackback]

    […] Here you can find 86316 additional Information to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  4. functional testing solutions commented on Nov 26

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  5. Harold Jahn commented on Nov 27

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  6. DevOps strategy commented on Dec 01

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  7. replicas aquaracer quartz commented on Dec 08

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  8. 안전놀이터 commented on Dec 14

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  9. Managed IT Service Provider in Canada commented on Dec 15

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  10. Regression Testing commented on Dec 22

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  11. 토토사이트 commented on Dec 24

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  12. Sexy commented on Dec 28

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  13. replique rolex cellini commented on Dec 30

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]

  14. Kenwood KR-V990D manuals commented on Jan 21

    … [Trackback]

    […] Here you will find 75820 more Information to that Topic: thereformedbroker.com/2017/04/08/the-new-model-of-fund-company-advisor-relations/ […]