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American Funds, Franklin and BlackRock Have Top Advisor Mind Share as “Active Managers”
Recent fund flows reveal a competitive environment that has become increasingly favorable for passive investment strategies. That said, according to this year’s Advisor Brandscape® report, advisors continue to invest the majority of client assets in actively-managed investments (69%). With all of these actively managed dollars up for grabs, which firms are advisors most likely to consider?
In addition to our ability to track advisors’ overall allocations to actively- vs. passively-managed investments on a monthly basis in Cogent Beat™ Advisor, we now measure advisors’ unaided consideration of leading providers as “active” or “passive” investment managers.
In Q2, American Funds was cited most frequently (35%) as an “active” manager, followed by Franklin Templeton (26%), BlackRock (24%) and Fidelity (22%). Interestingly, 1 in 10 advisors (11%) identified Vanguard as a firm he or she would likely consider for actively managed investments, placing the firm ahead of key competitors focused on active management. That said, Vanguard was mentioned even more frequently as a “passive” investment manager (42%), as the firm is in a virtual tie with iShares in that category.
We look forward to continuing to monitor this trend in the coming months through our continuous data collection. It will be critical for asset managers to evaluate how recent market volatility is impacting advisors’ active/passive preferences as well as brand perceptions