U.S. Retail Investor Products and Platforms 2017

Transcription

1 U.S. Retail Investor Products and Platforms 2017 Retooling for the Modern Investor Overview & Methodology In its eighth iteration, this annual report focuses on retail investors product use, preferences, and awareness. The report sizes the addressable retail opportunity for each product covered, including mutual funds, annuities and insurance, banking, managed accounts, exchange-traded funds (ETFs), hedge funds, and retirement accounts. Attention is given to channels through which investors purchase products, the age and asset levels of investors who purchase various products, and other key investor profiles. Data from this report comes from an ongoing survey of more than 10,000 U.S. households annually in partnership with Phoenix Marketing International, an annual survey of the largest providers in the direct-toinvestor market, and interviews with executives across the industry. Benefits: y Comprehensive sizing of the direct-to-investor channel y Review how providers are rethinking their client engagement lifecycle to address the goal-focused advice demands of investors y Assess how the growth of the retail direct segment will outpace that of traditional advisor segments as these firms evolve from brokerage platforms to wealth management providers y Gain insight into young investors preferences for engagement and future financial advice y Understand how providers better align themselves with investors primary portfolio goals Questions Answered: y What are the dynamics that are affecting service offerings in high-networth markets? y Is the availability of more resources encouraging investors to take a do-it-yourself approach? y Which direct platforms are having the most success attracting new investors? y How can providers better assist investors who are approaching their expected retirement age? Subscription details $19,000 Purchase Includes y Digital copy and hardcopy in color y Online access to 12 related reports y Unlimited online firm-wide access y Exhibits in Excel y Key findings y Analyst support y Interactive Report Dashboards NEW y Executive Summary Video NEW Research Included with Subscription y Seven years of The Cerulli Report U.S. Retail Investor Products and Platforms y Navigating the Emerging Affluent Marketplace 2006 y Retirement Income: Positioning for Success 2005 y Wealth Transfer: Product and Advice Solutions 2004 y Mass Market Advice: Challenges and Opportunities 2004 y Funding Retirement Income: Impact on Managers and Distributors 2002 For more information, contact us: ``info@cerulli.com Annual 153 PAGES 113 EXHIBITS cerulli Interactive Report Dashboards Experience Cerulli s digital analytics platform and explore interactive data from this report The following interactive dashboards are included with your subscription: NEW 1. Attitudes and Sentiments: Understand investors attitudes and sentiments by primary provider type, age group, investable assets, and advice orientation. 2. Direct Online Trading: Compare investors use of direct accounts and trading account features over the past three years. 3. Current Product Use: Gather insight into investors current product use, exploring data by investor age, investable assets, and advice orientation. Cerulli Associates info@cerulli.com

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3 Chapter 3 The Retail Investor Mindset Exhibit 3.04 Household Outlook Dashboard, 2016 Sources: Phoenix Marketing International, Cerulli Associates Household Goals or Concerns Short-term personal goals Economic concerns Long-term financial goals All Households Protecting current levels of wealth Cost of healthcare Assuring a comfortable standard of living for retirement 48 The Cerulli Report U.S. Retail Investor Products and Platforms 2017

4 Table of Contents: Expanded Key Questions Answered How can providers better align themselves with investors primary portfolio goals? What dynamics are affecting service offerings in high-net-worth markets? Is the availability of more resources encouraging investors to take a do-it-yourself approach? Which direct platforms are having the most success attracting new investors? How can providers better assist investors who are approaching their expected retirement age? Chapter 1: Retooling for the Modern Investor...21 Communication...22 Exhibit Evolution of Direct-to-Investor Segments, 1997 vs Exhibit Wealth-Protective Investors by Age Range and Investable Assets, Exhibit Primary Provider Channel of Younger Investor Households, Exhibit Investors Using or Likely to Use an Investment Professional by Age Range, Exhibit Investors Level of Satisfaction with Primary Provider by Age Range and Advisor Interaction, Cost...28 Exhibit Willingness to Pay for Financial Advice, Exhibit Clients Preferred Fee Structure by Investable Assets, Exhibit Investors Estimates of Mutual Fund Expenses by Age Range, Conscience Exhibit Investor Interest in Social or Environmental Impact Investing by Age Range and Investable Assets, Exhibit Social Media Use in Guiding Investments by Age Range and Investable Assets, Implications Chapter 2: Market Sizing Exhibit Cerulli Wealth Tiers, 2016E...35 Exhibit Distribution of Households and Investable Assets by Investable Assets and Age Range, 2016E...36 Exhibit Distribution of Household Investable Assets by Type of Asset and Investable Assets, 2016E...37 Exhibit Distribution of Household Investable Assets by Type of Asset and Age Range Databank, 2016E...38 Exhibit Distribution of Household Investable Assets by Generation, 2016E...39 Exhibit Household Nonfinancial Assets by Investable Assets, 2016E Exhibit Household Nonfinancial Debt by Investable Assets, 2016E...41 The Cerulli Report U.S. Retail Investor Products and Platforms

5 Chapter 3: The Retail Investor Mindset...42 Exhibit 3.01-Part 1. Households Economic Outlook in the Next Three Months, Exhibit 3.01-Part 2. Households Economic Outlook in the Next Three Months Databank, Exhibit Households Wanting More Control Over Investment Decisions by Age Range, Exhibit Households Wanting More Control Over Investment Decisions Databank, Exhibit Household Outlook Dashboard, Exhibit Household Concerns, Exhibit Part 1. Households Most Important Financial Goals by Investable Assets, Exhibit Part 2. Households Most Important Financial Goals by Age Range, Exhibit Households Expected Changes to Financial Investments in the Next Three Months, Exhibit 3.08-Part 1. Household Risk Tolerance, Exhibit 3.08-Part 2. Household Risk Tolerance Databank, Exhibit 3.09-Part 1. Interest in New Investment Ideas by Primary Provider Channel, Exhibit 3.09-Part 2. Interest in New Investment Ideas Databank, Exhibit Households Preferring Environmental and Socially Responsible Investing, Exhibit Households Employing Buy-and-Hold Investment Strategy by Investable Assets, Exhibit Households Employing Buy-and-Hold Investment Strategy Databank, Exhibit Investors Willing to Take Calculated Investment Risks by Investable Assets and Age Range, Chapter 4: Primary Provider Profiles...61 Exhibit Distribution of Core Retail Investor Assets by Primary Provider Channel, Exhibit Primary Provider Channel by Region of the United States, Exhibit Primary Provider Channel by Investable Assets, Exhibit Primary Provider Channel of Investor Households by Age Range, Exhibit Reasons for Beginning Relationship with Primary Provider by Primary Provider Channel, Exhibit Provider Satisfaction Attributable to Specific Advisor/Representative by Primary Provider Channel, Exhibit Percent of Investors Assets Held at Primary Provider by Primary Provider Channel, Exhibit Private Bank Investors Profile, Exhibit Wirehouse Investors Profile, Exhibit Independent Advisor Investors Profile, Exhibit Other Full-Service Investors Profile, Exhibit Bank Advisor Investors Profile, Exhibit Bank Deposit Investors Profile, Exhibit Direct Investors Profile, Exhibit Retirement Plan Provider Investors Profile, The Cerulli Report U.S. Retail Investor Products and Platforms 2017

6 Chapter 5: Direct Platforms...78 Exhibit Direct Provider Assets and Growth, Exhibit Top-10 Direct Firms by Assets, Exhibit Direct Assets by Product and Growth Rate, Exhibit Direct Provider Projected Assets, 2017E-2022E...83 Exhibit Direct or Online Trading Account Balance by Investable Assets, Exhibit Direct or Online Trading Account Balance Databank, Exhibit Features Used in Direct or Online Trading Account by Age Range, Exhibit Features Used in Direct or Online Trading Account Databank, Exhibit Reason for Establishing Direct Account by Investable Assets, Exhibit Reason for Establishing Direct Account Databank, Exhibit Expected Disposition of Direct Account in Next Five Years by Investable Assets, Exhibit Expected Disposition of Direct Account in Next Five Years Databank, Chapter 6: Digital Preferences Exhibit Investors Comfortable Using Online-Only Investment Advisors, Exhibit Investors Who Want 24/7 Access to Investments, Exhibit Investors Who Want Access to Investments Through Multiple Channels, Exhibit Top-10 Most-Used Services or Features Used in Online Trading Accounts by Age Range, Exhibit Top-10 Most-Used Services or Features Used in Online Accounts Databank, Exhibit Investor Familiarity with Digital Advice Firms, Exhibit Assets Held at Robo-Advisors by Age Range and Investable Assets, Exhibit Likeliness of Non-Robo Users to Use Robos by Age Range and Investable Assets, Exhibit Reasons for Using Robo-Advisors by Age Range and Investable Assets, Exhibit Reasons for Considering Using Digital Advice Provider by Age Range, Exhibit Reasons Investors Are Unlikely to Use a Digital Advice Provider by Age Range and Investable Assets, Exhibit Retail Direct Firms: Views on the Impact of Digital Advice Providers, 2015 vs Chapter 7: Managed Account Platforms Exhibit Managed Account Definitions, Exhibit Managed Account Assets and Growth, Exhibit Managed Account Industry Net Cash Flow by Program Type, Exhibit Managed Account Assets by Distribution Channel, Exhibit Direct Channel Mix of Managed Account Assets by Program Type, Exhibit Total Number of Managed Accounts by Program Type, The Cerulli Report U.S. Retail Investor Products and Platforms

7 Exhibit 7.07-Part 1. Households with Advisor Interaction: Desired Account Features by Investable Assets, Exhibit 7.07-Part 2. Households without Advisor Interaction: Desired Account Features by Investable Assets, Exhibit Retail Investors Views on Time Management Needed for Investments, Chapter 8: Mutual Funds and ETFs Exhibit Active versus Passive Mutual Fund and ETF Assets, October 2016 March Exhibit Open-End Mutual Fund Assets by Type of Fund, Q Exhibit Mutual Fund Ownership by Type of Mutual Fund and Primary Provider, Exhibit Mutual Fund Ownership by Type of Mutual Fund Databank, Exhibit Factors Considered When Purchasing a Mutual Fund by Primary Provider Type, Exhibit Factors Considered When Purchasing a Mutual Fund Databank, Exhibit 8.07-Part 1. Top-25 Mutual Fund Managers by AUM, 1Q Exhibit 8.07-Part 2. Top-25 Mutual Fund Managers: Firm Allocation by Asset Class, 1Q Exhibit ETF Assets and Number of ETFs, Q Exhibit ETF Assets and Marketshare by Asset Class, Q Exhibit Top-15 ETF Sponsors by Assets, 1Q Exhibit ETF Ownership by Age Range and Investable Assets, Exhibit Investor-Reported Type of ETFs Owned, Exhibit Reasons Household Purchased ETF by Primary Provider Type, Exhibit Reasons Household Purchased ETF Databank, Chapter 9: Retirement and Income Planning Exhibit Ownership and Expected Changes to Retirement Accounts by Investable Assets, Exhibit Ownership and Expected Changes to Retirement Accounts by Age Range, Exhibit IRA Assets by Traditional and Nontraditional Assets, E Exhibit Top-15 IRA Providers by AUA, 4Q Q Exhibit Top-25 Recordkeepers: DC Assets, Plans, and Participants, Exhibit Retirement Households Income Sources by Age Range, Exhibit Retirement Households Income Sources by Investable Assets, Exhibit Distribution of RIO Households Investable Assets by Investable Assets and Age Range, 2016E Exhibit Net Worth of RIO Households by Investable Assets and Age Range, 2016E Exhibit 9.10-Part 1. Retiree Households Desired Features of Retirement Income Plans and Products by Investable Assets, Exhibit 9.10-Part 2. Retiree Households Desired Features of Retirement Income Plans and Products by Age Range, Exhibit Breakdown of Retiree Investors Most Desired Features of Retirement Income Plans Databank, The Cerulli Report U.S. Retail Investor Products and Platforms 2017

8 Exhibit 9.12-Part 1. Ownership of Fixed Annuities by Age Range and Investable Assets, Exhibit 9.12-Part 2. Ownership of Variable Annuities by Age Range and Investable Assets, Exhibit Retiree vs. Non-Retiree Households: Opinion of Annuities by Investable Assets, Exhibit Retiree vs. Non-Retiree Households: Reason for Purchasing a Variable Annuity by Investable Assets, Index of Companies The Cerulli Report U.S. Retail Investor Products and Platforms

9 Index of Companies Index of Companies Ameritrade... 79, 81 AON Hewitt Betterment... 92, 99 BlackRock/iShares , 131 Charles Schwab...19, 42, 52, 78-80, 99, 101, 107, 112, 113 Dimensional Fund Advisors Edward Jones...110, 111, 113 Empower Retirement Envestnet Fidelity...42, 52, 79, 81, 101, 107, 112, 134, 139, 140 FutureAdvisor... 92, 99 J.P. Morgan John Hancock Merrill Lynch , 110 MFS Morgan Stanley...26, 107, 110 Personal Capital... 92, 99 Principal SigFig... 92, 99 T. Rowe Price TD Ameritrade... 79, 81 TI... 31, 140 Transamerica Vanguard... 19, 42, 52, 78-81, 90, 99, 125, 131, 140 Wealthfront... 92, 99 WisdomTree Xerox The Cerulli Report U.S. Retail Investor Products and Platforms 2017