= Client Project



Private Banks: What COVID-19 Means for Product Choice

Private banks around the world are having to review their product offerings in response to the great uncertainty caused by the combination of COVID-19, U.S.-China tensions, and Brexit. This white paper provides an overview of the changes underway in Europe, the U.S., and Asia.

Advice in Adversity

Whether they prefer to be self-directed or are heavily reliant on financial services providers, retail investors of all types tend to seek out more advice during times of adversity. In this white paper, Cerulli explores how advice providers can best equip their advisor-clients to quell the worries of investors and ensure they adhere to their still-relevant long-term investment goals in the wake of the COVID-19 crisis.

Communications with Institutional Clients in a New, Virtual, World

The outbreak of COVID-19 has presented a multitude of challenges to the institutional asset management industry, but many asset managers are adapting to new strategies to keep the status quo.

 Individual Investors’ Use of Financial Advisors

Financial advisors play a crucial role in helping investors identify and pursue their financial goals. The goal of this research, conducted jointly with the Securities Industry and Financial Markets Association (SIFMA), is to better understand the size and scope of the relationships between financial advisors and individual investors with between $100,000 and $1,000,000 of investable assets. Cerulli has determined that over three-quarters of investors in this segment report using and relying heavily on a professional financial advisor for advice, especially as it relates to assuring a comfortable standard of living in retirement. These relationships encompass, 33 million US households who in aggregate hold $6.5 trillion with securities firms, with an average relationship size of $135,000.

Private Assets: Cause for Both Celebration and Caution

Investor demand is set to keep rising, but so too is competition. European managers of private equity and debt saw their assets under management (AUM) reach significant highs last year. Fundraising momentum has passed its peak for private equity, but European private debt managers had a record-breaking year in 2019. While the market environment remains favorable, managers are accumulating assets for the expected downturn.

Global Alignment Around the "E" of ESG Takes Form

Exposure analysis—especially relating to an investment portfolio’s carbon footprint—is rapidly becoming a staple metric for institutional investors and may represent the most logical focal point for firms in the early phases of building out processes in response to client demand. Cerulli’s latest white paper examines asset owners’ efforts to stem the negative impact of climate change on investor portfolios through increased scrutiny of asset managers’ business practices and investment processes.

Asset Management in China 2020

China’s asset management industry is changing rapidly, following a series of reforms and market liberalization policies. In the post-“super guidance” era, more players are deepening their participation in asset management, such as banks and foreign firms. Managers must be aware of the intense competition lying ahead, arm themselves with niche capabilities, and explore new business models to stand out from their peers.

  Advisor Portfolio Construction: Building Risk-Conscious Portfolios

After a long run-up in equity markets and given low yields, advisors are focused on risk management—and specifically ensuring that clients avoid a permanent impairment of capital. Strategic asset allocations are increasingly important to these advisors, and they become less likely to make meaningful “tactical” shifts. Cerulli’s research finds that advisors may not be fully appreciative of the active nature of some of their decisions, and that their ETF use may be overly reliant on their trust in a couple of the largest firms. Cerulli believes that advisors have the opportunity to expand product use to access more thoughtful exposures in a capital-efficient manner.


 Subtract, Add, Multiply – The Formula to Efficiency: Optimizing Advisor Productivity Through Technology

Wealth management providers are experiencing an increased demand for comprehensive advice while their most productive advisors approach retirement. Overcoming these constraints will require the deployment and adoption of enhanced wealth management technology platforms.

 OCIO at an Inflection Point: Strong Growth Ahead, but Institutions Are Demanding More

This is Cerulli’s first dedicated research initiative covering asset owners using the support of an OCIO provider. This study is an outgrowth of and complement to Cerulli’s annual survey of OCIO providers and decade-long syndicated research on the OCIO industry.

The Role of Behavioral Finance in Advising Clients

This white paper provides practical guidance on how advisors can better understand and manage their clients’ and their own behavioral biases and suggests best practices to help advisors strengthen relationships and potentially achieve better investment outcomes for their clients.

Responsible Investment in Hedge Funds: The Growing Importance of Impact and Legacy

To get a sense of where the hedge fund industry is currently positioned in terms of ESG, during January and February 2019 Cerulli partnered with the UN-supported Principles for Responsible Investment to launch two unique surveys for hedge fund managers and asset owners globally.

The State of the ETF Industry in Europe 2019

ETFs have been available for almost three decades, but have only recently started to gain traction among European investors. 

Derisking DB Plans in Flux

U.S. corporate defined benefit (DB) plans probably would rather forget this past winter. Significant volatility in financial assets and interest rates whipsawed these institutions just as underfunding concerns were beginning to ease early in the fourth quarter of 2018. As the pension industry weathered these challenging conditions, Cerulli sought to gauge the sentiment of mid-sized corporate DB plans—a cohort in the midst of the liability derisking trend, but without the resources of large plans—to assess how these institutions were managing through the volatile period.

The Neglected Generation: Generation X

Due to the aging population of the U.S. industry’s most heavily targeted clients, developing relationships with the next generations of potential investors is paramount. This is not only important to recruiting new clients, but also to ensuring firms will retain assets during existing clients’ wealth transfers. For good reason, firms are hyper-focused on the Millennial generation, but many are overlooking Generation X.



The Disruptive Effects of Free Model Portfolios

Large asset management firms are aggressively promoting free asset allocation models, threatening to disrupt the market position of third-party strategists and turnkey asset management providers (TAMPs).

Setting the Stage for Prudent Growth in China

China’s asset management industry is going through a sea change, triggered by regulations focussing on financial stability and market liberalization. Probably the most far-reaching yet is the super guidance, introduced in April 2018, with the potential to alter various market segments in the coming years. Relaxation of rules on foreign ownership of financial services companies, as well as pension reforms, will also create opportunities for positive change. We examine the key market trends these reforms are igniting.

Design Matters: Plan Distribution Options

Supporting data on the availability of various distribution options is sourced from a 2017 Cerulli survey of DC plan recordkeepers, conducted in partnership with The SPARK Institute. The participant perspective is also explored, referencing data from a 2017 Cerulli survey of 401(k) plan participants related to topics considered most important when planning for retirement.

Regulation Propels Subadvisory to New Highs in Europe

The European subadvisory market is growing rapidly, totaling approximately €485 billion (US$581 billion) at the end of 2017.

Distribution Channels Key as Europe's Hedge Fund Revival Continues

Hedge funds have come to realize that launching UCITS versions of their strategies can dramatically increase their standing--globally as well as in Europe--and the past three years have seen many enter the alternative UCITS space with great success. These new entrants, equipped with a wealth of expertise and specialist strategies, have driven up the quality and choice of UCITS funds available to investors.

The Twilight of the Product Acronyms: Emerging unified advisory platforms will simplify the taxonomy of managed accounts and usher in important changes to the industry

Several large managed account sponsors have combined their disparate managed account products into unified advisory platforms (UAPs). This trend will alter the way asset managers and sponsors categorize and analyze the industry, and it will accelerate significant changes already happening in the managed account space.



Educating U.S. Advisors to Practice What They Preach: Increasing Adoption of Risk-Managed Strategies

U.S. advisors may not always be protecting their clients sufficiently from downside risk. It may be that advisors don’t understand alternate options/strategies outside of fixed income and cash to manage portfolios in down markets. Therefore, advisors need to learn alternative ways to manage downside risk for their clients. Asset managers should seize this as an opportunity.

Tapping Asian Consultants for Mandates

Notwithstanding investment consultants' changing business models, Cerulli believes it will be critical for managers to remain on consultants' radars. With the persistent uncertain macro environment, institutions will be forced to look for consultants' expertise in selecting managers for sophisticated, exotic, and low-cost strategies to boost returns on their investment portfolios.

Rethinking Risk for U.S. Millennials

Engaging with Millennials in the U.S. has become a major strategic priority among financial services providers, but firms could be undermining their long-term opportunity with this cohort by defaulting them into unsuitable investments.

U.S. Broker/Dealer Product Consolidation: Shrinking Asset Manager Opportunities

B/Ds have used the DOL Conflict of Interest Rule as pretext to cut back the number of investment products available in their systems. This compounds the secular trends of fee compression and increased competition for asset managers. Asset managers must dispassionately evaluate their existing product lines to reposition their organizations for future success.

Partnering for Success in Asia

Product partnerships are gaining traction across Asia, as fund houses wake up to the fact that they can no longer be a one-trick pony in terms of investment strategies. Having a broad suite of products matters in volatile and unpredictable markets, and is necessary to meet ever-changing investor needs. However, not all firms can excel in everything—which is where partnerships come in.

Europe's IFA Markets Post-MiFID II

Having been reshaped significantly by various pieces of regulation over the past few years, Europe’s independent financial advisor (IFA) markets now face the implementation of MiFID II in January 2018. Many industry players and commentators are branding the updated version of the directive counterproductive, warning that it will hurt IFAs. Cerulli, however, is more positive, in keeping with our optimistic view of the industry’s long-term prospects.

A Multi-Asset Approach to the U.S. Multiemployer Pension Challenge

The current situation for multiemployer plans (MEPs) is acute and demands immediate action. Declining MEPs need a specialized investment and asset allocation approach to their portfolios. The first benefits reductions for an individual plan were approved by the U.S. Treasury Department in late 2016. With the decline of multiemployer plans, the investments and particularly the costs incurred by plans are coming under increased scrutiny.

Bond ETFs: Financial Advisors Drive Use with Specialized Applications

This study was completed to better understand how the financial advisor community is using bond ETFs, and was designed to help advisors share ideas and learn from their peers.

How Financial Advisors Use and Think About Exchange-Listed Options

The goal of this study was to understand the behavior of advisors who use exchange-listed options strategies with clients and those who do not. Important components of this behavioral study are advisors' practice characteristics, key influences of their behavior, and perceptions about exchange-listed options.