Bringing you live news and features since 2006 

Advisor commitment to mutual fund companies is shifting


 A new report recently released by Cogent Research reveals shifts among advisors in their level of commitment to the fund companies they currently use.


Compared to last year, across two dozen leading firms, T Rowe Price and Legg Mason experienced the biggest gains in overall advisor commitment. Meanwhile, The Hartford, Dodge & Cox, and Eaton Vance all lost significant ground relative to their respective 2010 rankings.

JP Morgan Funds ranked second overall this year behind Dimensional Fund Advisors (DFA), which once again placed first. These and other findings are contained in the 2011 Advisor Brandscape, an annual report on advisor trends and product usage by Cogent Research which is based on a nationally representative sample of 1,643 retail investment advisors across all major distribution channels.

The mutual fund provider commitment scores and rankings compiled by Cogent Research are based on a combination of two separate measures; advisor Loyalty to current providers and their anticipated future investment with those providers. Individual results across all 24 providers included in the ranking are indexed, and then separated into four groups; “Stars,” “Leaders,” “Players,” and “Drifters.”

According to John Meunier, Cogent Research Principal and co-author of the report, these results not only reflect where providers stand today among the advisors they serve, but point to how momentum is shifting across the provider landscape. “Last year, DFA and BlackRock were the only Stars in our mutual fund company commitment ranking,” says Meunier. “This year, a total of four firms made it into the top tier, and the gap between DFA and the rest of the pack has narrowed substantially.”

The study also shows that, after several years of declining interest, use and dependence on mutual funds has grown over the past year. The percentage of users is up from 95% to 97%, and the overall average advisor allocation to mutual funds (as a percentage of total book) rose from 35% to 39%. However, while these results may appear encouraging, half (50%) of all the advisors currently using mutual funds report that they expect their dependence on these products to decline over the next two years.

“It’s obvious, the competition for market share and advisors’ attention will only intensify over time,” says Meunier. “So, building loyalty and momentum today is a simple matter of survival.”

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by