As Asset Managers Expand Into Alts, Product Specialists Seen as Trusted Partners

Engaging financial advisers has become a significant challenge for asset managers across all sizes and product lines. As the demand for detailed product insights increases, along with the use of alternative investments and shifting adviser investment preferences, the role of the product specialist has become essential. Asset managers that lack product specialists risk losing a competitive edge to those that do. This is according to the latest Cerulli Associates research.

“Wholesalers typically excel in being accessible to advisers while providing strong support for client events and building strong personal relationships,” says Andrew Blake, associate director at Cerulli.

The product specialist has become an important secondary relationship as asset managers expand distribution. Cerulli’s research finds the ability to discuss competitive product information (40%), communicate complex investment topics (38%), and demonstrate a deep understanding of capital markets (31%) are among the most valuable skills a product specialist offers.

“Product specialists excel in different ways, and the capabilities that advisers value in product specialists strongly complement the capabilities of wholesalers, providing a prime opportunity for a successful wholesaler-product specialist partnership,” added Blake.

As demand for detailed product insights across all investment types, especially alternatives, continues to rise, asset managers must prioritize integrating dedicated product specialists into their teams, according to Cerulli. Currently, among firms offering alternative investments, more than half (54%) use a strategy involving a generalist wholesaler supported by adviser-facing product specialists. Just more than one-quarter (26%) rely solely on a generalist wholesaler, while an additional 15% use only an alternative-specific wholesaler.

Asset managers can ensure they stay at the forefront of client service excellence by dedicating additional resources and adopting practice-specific coverage strategies.

“With 79% of Tier-I asset managers using adviser-facing product specialists, firms that do not leverage this role to boost distribution efforts may be perceived as lagging in client service quality,” said Blake. “Wholesalers who collaborate with product specialists can strengthen their relationships with advisers by demonstrating exceptional performance and dedication to client satisfaction. These strategies not only help in mitigating existing concerns, but also foster long-term trust and loyalty among advisers, ultimately contributing to a more resilient and collaborative investment environment,” he concludes.

Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business.

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