Fund companies are insurers tend to entrust their wholesalers to manage their business independently, according to a Kasina study. In fact, 60% of asset managers fail to provide them with the tools, training or compensation tied to profitability, Kasina says.

In short, most asset managers rely almost entirely on the wholesaler’s experience and judgment to manage the firm’s business.

“Smart territory management is the foundation of profitability for an asset manager,” said Lee Kowarski, a principal and co-founder of Kasina. “Without rigorous territory management, including customer segmentation, account planning and rewards aligned with profitability goals, firms have little control over whether wholesalers are spending the right amount of time on the right activities with the right customers.”

Wholesalers’ most influential activity is meeting face-to-face with financial advisers, and this had the potential to turn the advisers into advocates of the asset management firm, Kowarski said. Thus, wholesalers should be focused on the business development opportunities with the greatest long-term potential for the firm, he said.



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