Advisors Balance Independence and Business Development
The intense competition in the investment management market has put pressure on asset managers and distributors alike. Asset managers work to justify their management fees in a commoditized market, while the challenges of managing and growing a practice encourage financial advisors to orient their value proposition around tasks other than investment management. This pressure, together with a long-term shift toward independent channels and an aging advisor workforce, could work to the benefit of both parties, as asset managers seeking distribution partners find themselves in contact with advisors looking to outsource more.
Growing advisors’ business
ISS MI examined practice management issues facing advisors in the latest edition of its Advisor Pulse Series, which surveyed over 500 advisors in February 2025. The greatest challenges facing advisors will be familiar to those working across a variety of industries. Advisors were most likely to cite “new client/business development” when asked about their top challenges in managing their practice. 26% of them cited this as their top challenge, with 52% citing it as one of their top three. The table below displays the five highest-ranked challenges. Compliance and asset growth followed as the next highest-ranked hurdles at 14% and 12%, respectively.
By: Alan Hess, Vice President, ISS Market Intelligence
