Market Overview

Cogent Reports: Vanguard, Fidelity and PIMCO Attracting RIA Interest


Vanguard, Fidelity and PIMCO earn the strongest purchase consideration
from RIAs, one of the only advisor segments that's growing, again this
year. Managing larger books of business compared to their peers, RIAs
now control more than half of advisor-managed mutual fund dollars,
making them an attractive target for asset managers. However, despite a
heightened industry focus on targeting this elite group, Charles Schwab
Investment Management is the only firm to achieve a significant increase
in purchase consideration. These and other findings are from Advisor
, a Cogent
study released by Market
Strategies International-Morpace.

Vanguard continues to earn the strongest consideration in the RIA
channel, followed by Fidelity, PIMCO, DFA and T. Rowe Price. The top 10
providers remain the same compared with 2016, with a few notable changes
in rank: DFA overtakes T. Rowe Price and American Funds, while Charles
Schwab Investment Management advances past BlackRock and DoubleLine.


Top 10 Mutual Fund Companies in Purchase Consideration* among

2018 2016
1 1 Vanguard
2 2 Fidelity Investments/Fidelity Advisor Solutions
3 3 PIMCO Funds
4 6 DFA (Dimensional Fund Advisors)
5 4 T. Rowe Price
6 5 American Funds
7 9 Charles Schwab Investment Management▲‘16
8 7 BlackRock Funds
9 8 DoubleLine
10 10 Dodge & Cox Funds

* Purchase Consideration measures respondents' investing intentions by
combining mentions from unaided consideration and top
responses on aided consideration (non-users are asked about likelihood
to start investing; users are asked about likelihood to make additional
▲= Significant increase in rating from stated year
Market Strategies International. Cogent Reports™. Advisor Brandscape®.
June 2018.

"Firms should seek to strengthen engagement with RIAs through more
effective segmentation, enhancing CRM systems to better understand and
serve individual advisor needs," said Meredith Lloyd Rice, vice
president at Market Strategies-Morpace and author of the report.
"Custodian service providers such as Schwab and Fidelity may already
have a leg up here, posing a competitive threat to challenger brands."

In marketing to RIAs, firms should note that RIAs over-index in their
use of business and financial news websites when compared with their
peers in other channels. Additionally, business and financial news
websites reach more RIAs than the leading TV networks—a finding that
does not hold true for advisors in other channels. This means that to
reach the expanding group of RIAs, it is critical for asset managers to
focus media strategies on industry websites.

"This can be both good and bad news for firms looking to target RIAs,"
said David Keen, a senior director at Market Strategies-Morpace and head
of the company's media measurement practice. "While RIAs visit a wider
array of websites compared with their peers and are, therefore,
theoretically easier to reach, their broad preference for website
browsing may mean a larger media spend or a greater need for targeted
messaging that speaks directly to their needs."

About Advisor Brandscape®

Cogent Reports conducted an online survey with 1,504 financial advisors
from January to March of 2018. In order to qualify, respondents were
required to have an active book of business of at least $5 million and
offer investment advice or planning services to individual investors on
a fee or transactional basis. Cogent Reports sets quota targets and
weighted the data to be representative of the overall advisor universe
using the Discovery Data Financial Services Industry database as a
sample source. Market Strategies will supply the exact wording of any
survey question upon request.

About Market Strategies International-Morpace

Leading market research firms Market
Strategies International
and Morpace
bring clients closer to their customers through exceptional insights,
which includes deep expertise in financial services, specifically among
wealth, banking, payments and insurance organizations. The firms
specialize in brand, customer experience, product development and
segmentation research, and are known for blending primary research with
data from syndicated, benchmarking and self-funded studies to help
clients succeed. The syndicated products, known as Cogent Reports, help
clients understand the market environment, explore industry trends and
monitor their brand within the competitive landscape. Market Strategies
and Morpace have earned the trust of many of the world's top brands
across the automotive, consumer & retail, energy, financial services,
health, technology and telecommunications industries. They are combining
into one firm, as part of an acquisition of both firms by STG, and will
be rebranded under a new name to be announced later in 2018. With more
than 450 research professionals, the collective firm is now the 15th
largest market research firm in the US and top 25 globally.

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