Six Trends for Advisors to Watch for 2013
In 2013, asset managers will face the challenges of volatile markets, ramped up regulations, increased need for capital preservation, and a general tendency towards risk aversion.
Here are six trends for advisors and their clients to watch in 2013.
Source: Cerulli Associates
In the United States, advisors and investors are increasingly eager to tap into alternative products in order to mitigate risk in volatile markets.
With regulations ramping up, U.S. retirement funds are becoming increasingly concerned over their use of beneficiaries' resources. This will prompt sponsors to review vast stable value and target-date holdings.
An intense need for investors to protect their current wealth will prompt increased bank deposits, as well as an appetite for guaranteed wrapped products.
Strong flows into individual retirement account vehicles are powering demand for long-term product, creating new opportunities for asset gathering in the channel. This demand for long-term products could make investors (in Latin America and beyond) hungry for U.S. products.
General conservatism in Asia is leading to simpler products. These include - Asia-focused bonds, guaranteed funds, income products, and unit-linked insurance products.
The ability to pinpoint a social media strategy is key globally. In 2013, social media will be a way to nurture young investors and an increasingly technologically savvy population.