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Six Trends for Advisors to Watch for 2013

Six Trends for Advisors Watch for 2013 Six Trends for Advisors 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.
Yet even in a globally compressed economy, there are pockets of underlying opportunities and underserved investors.


Here are six trends for advisors and their clients to watch in 2013.


Source: Cerulli Associates

1. Think Alternative Products 1. Think Alternative Products

In the United States, advisors and investors are increasingly eager to tap into alternative products in order to mitigate risk in volatile markets.

2. U.S. Retirement Funds Concern Over Fiduciary Risk 2. U.S. Retirement Funds Concern Over Fiduciary Risk

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.

3. In Europe, Capital Protection is King 3. In Europe, Capital Protection is King

An intense need for investors to protect their current wealth will prompt increased bank deposits, as well as an appetite for guaranteed wrapped products.

4. In Latin America, Strong Flows into Individual Retirement Account Vehicles 4. In Latin America, Strong Flows into Individual Retirement Account Vehicles

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.

5. In Asia, It's All About Risk Aversion 5. In Asia, It's All About Risk Aversion

General conservatism in Asia is leading to simpler products. These include - Asia-focused bonds, guaranteed funds, income products, and unit-linked insurance products.

6. Social Media 6. Social Media

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.

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. Yet even in a globally compressed economy, there are pockets of underlying opportunities and under-served investors. From our friends at Ceruilli, here are trends for advisors (and their clients) to watch in 2013.

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