Asset managers aim to gain an edge through digital content: report

Asset management companies are stepping up their use of digital media, such as video and podcasts, to engage directly with investors, according to a new report from research firm Cerulli Associates.

Citing trends ranging from regulators’ growing demands for transparency to the need for more retail investor engagement, Cerulli reported that asset management firms are increasingly developing content to communicate directly with investors.

“Fund firms now operate in a climate in which regulators and investors are demanding greater transparency and clearer information, while active managers are under pressure to justify fees in the face of increasing competition from passive managers and non-traditional competitors,” it said.

In this climate, asset managers are increasingly seeking to develop their brands too, Cerulli noted.

“With the needs and demands of investors evolving and advances in digital technology opening new possibilities around communication and engagement, the need for firms to differentiate their brands has become more significant and challenging,” André Schnurrenberger, Cerulli’s managing director, Europe, said in a statement.

“This has taken on an extra urgency as younger investors increasingly handle their own affairs through broker platforms and robo-advisors,” he added.

To meet these demands, Cerulli said that filmed content and podcasts are increasingly popular, driven by investor preferences.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.