Asset management websites have officially replaced wholesalers and legacy relationships as the primary drivers of engagement with investment advisors. While that’s good news for some of the biggest brands, according to the J.D. Power 2022 U.S. Advisor Online Experience Study,^SM released today, smaller asset managers are struggling to differentiate and showcase their unique value propositions in this increasingly digital-first environment. This is especially troubling as the research clearly establishes a strong connection between the quality of the digital experience and advisor intention to invest more with that asset manager.

The U.S. Advisor Online Experience Study explores how financial advisors interact with asset manager websites as part of their practice of helping clients build and manage optimal portfolios.

"The numbers make it crystal clear: asset managers that provide an exceptional digital experience for advisors drive significantly higher likelihood of increased investment, but just 13% of asset managers are delivering that superior level of service today," said Mike Foy, senior director and head of wealth intelligence at J.D. Power. "The problem is particularly acute among smaller asset managers who have a tremendous need and opportunity to differentiate and highlight their unique strengths on digital, but often miss the mark with sub-par navigation and tools—and little in the way of compelling brand differentiation.”

Following are some key findings of the 2022 study:

• Website satisfaction tied to intent to invest: Among advisors who have overall satisfaction scores of 801 or higher (on a 1,000-point scale) with an asset manager’s website, 91% say they are extremely likely to increase investment during the next three months with that firm. However, just 13% of asset manager websites have earned these high scores. Among advisors who have overall satisfaction scores of 800 or lower with the asset manager’s website, just 40% say they intend to increase investment with those brands.
• Smaller asset managers struggle to compete on digital: The average overall satisfaction score among large asset managers with $1 trillion or more in U.S. non-institutional assets under management is 657. That number falls to 617 among small asset managers with less than $400 billion under management. The gap in website satisfaction between small and large asset managers is widest in the areas of research information and content; availability of client-specific information and material; and researching product offerings and information.
• Opportunities to differentiate: Areas in which smaller asset managers have an opportunity to differentiate include increased tool offerings (such as investment comparison tools); more prominent placement of those tools on website homepage and navigation bars; and more upfront, immediate access to client information.
• Missing the mark on ESG: One area in which nearly all asset managers are falling short on their websites is providing information on environmental, social and governance (ESG) issues. Just 29% of asset managers are currently meeting an advisor’s needs when it comes to ESG reporting.

Individual scores and rankings are not provided in this benchmarking study. Firms included in the study are (in alphabetical order):

AllianceBernstein

BlackRock

Capital Group

Charles Schwab

Columbia Threadneedle Investments

Fidelity Investments

Franklin Templeton

Invesco

J.P. Morgan

MetLife Investment Management

MFS Investment Management

Morgan Stanley

Nuveen

PIMCO

Prudential Financial

State Street Global Advisors (SSGA)

T. Rowe Price

Vanguard

The 2022 U.S. Advisor Online Experience Study evaluates advisor interaction with asset manager websites based on four factors: speed; information/content; visual appeal; and navigation. The study is based on 2,320 total evaluations and was fielded from June through August 2022.

For more information about the 2022 U.S. Advisor Online Experience Study, visit https://www.jdpower.com/business/wealth-management/advisor-online-experience-study.

See the online press release at http://www.jdpower.com/pr-id/2022156.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

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