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Study Uncovers Myths in Selling to RIAs


NEW YORK, NY, July 6, 2015 -- Kasina, a DST company providing data-driven insights and distribution solutions to financial companies around the world, today released its report on asset managers' distribution efforts with Registered Investment Advisors.

Based on a survey of 150 RIAs and interviews with selected asset management distribution executives, the study -- "Debunking 4 Myths of Selling to RIAs - Strategies to Prospect and Serve them More Effectively" -- challenges common misconceptions many asset managers face when selling to RIAs. The report offers strategic and tactical recommendations for firms seeking to deepen their relationships with RIAs and optimize their customer journey.

According to Tracy Needham, Senior Research Analyst for Kasina, the report is particularly timely given that asset managers are dedicating more and more resources to the fast-growing RIA channel at the same time that RIAs are actually doing business with fewer asset managers than before.

"Diversity within the RIA channel has long made it a challenge to prospect, and the disparities continue to increase," says Needham. "Practices now range from one-man shops to firms large enough to rival the wirehouses while investment approaches run the gamut. Meanwhile, there's no home office to serve as a conduit and the ranks of breakaway and dually-registered advisors continue to swell."

With a specific eye toward helping asset managers more effectively prospect, the report tackles four popular assumptions about this channel that derail the ability of the distribution team at some firms to effectively connect with RIAs:

  1. Models are not a driving force with RIAs.
  2. Multi-asset funds are the best antidote for active managers.
  3. Meeting with RIAs equals investments from RIAs.
  4. RIAs don't want to hear a product pitch.

Key findings from Kasina's RIA study include:

  • The average RIA sales team is 11 people (internal and external), and growing
  • When asked what asset managers could do to increase the likelihood of the RIA choosing their products, suggestions overwhelmingly (40%) focused on providing more detailed information on the investment process and fund management.
  • 31% of RIAs cited some action a wholesaler had taken, like offering helpful info or a service or meeting them at an event, as the reason they granted a meeting.
  • 40% of RIAs suggested that more detailed information on the investment process and fund management could increase the likelihood of an asset manager's products being selected.

Intended to assist asset management leadership and distribution executives -- particularly RIA channel heads -- succeed in the RIA space, the Kasina report includes evidence to support the need for more resources and new strategies, insight into how other asset managers are pursuing the RIA market, and actionable recommendations for more effectively prospecting and serving RIAs.

For more information on Kasina's "Debunking 4 Myths of Selling to RIAs" report, contact Myra Bartalos, Head of Marketing, at mbartalos@Kasina.com.

About Kasina

Kasina helps leading companies in the financial services industry manage data, gain insight, and ignite change in their business. A wholly-owned subsidiary of DST Systems, Kasina enables companies to transform the way they grow market share through the use of data, research, and advanced analytics in the design, marketing, and distribution of their products. For more information on Kasina's distribution intelligence technologies, advanced analytics and research, and strategic advisory services, visit www.Kasina.com.

About DST

DST Systems, Inc. is a leading provider of sophisticated information processing and servicing solutions to companies around the world. Through its global enterprise, DST delivers strategically unified transactions and business processing, data management, and customer communications solutions to the asset management, brokerage, retirement, and healthcare markets. Headquartered in Kansas City, MO., DST is a publicly-traded company on the New York Stock Exchange. For more information, visit www.dstsystems.com.


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