2017 Advisor Perceptions in Canada - environicsresearch.com

1 2017 Advisor Perceptions in Canada : A FOCUS ON ADVISORS. AND THE FUTURE. In its 22nd year, the annual Environics Advisor Perception Study is the most comprehensive study of Canada 's mutual fund and insurance advisors. In 2017, we listened to 2,904. advisors to get the inside scoop on current industry trends. TO P 10 M U T UA L F U N D C O M PA N I E S. BY O V E RA L L RAT I N G. FIDELITY CONTINUES TO LEAD WITH STRONG. PERFORMANCE ON ALL DIMENSIONS THAT #1 FIDELITY INVESTMENTS. MATTER TO ADVISORS. #2 EDGEPOINT WM. MACKENZIE SEES STRONG GAINS IN. PROVIDING EXCEPTIONAL SUPPORT TO. ADVISORS. IN PARTICULAR, IT SEES STRONG #3 MACKENZIE INVESTMENTS. RATINGS FOR PERSONAL RELATIONSHIPS. (INCLUDING WHOLESALERS), COMPREHENSIVE. MARKETING SUPPORT AND EXCELLENT BACK. OFFICE SERVICE. #4 PIMCO. #5 CI INVESTMENTS. MANULIFE DOES WELL AMONG IIROC. ADVISORS GIVE MANULIFE STRONGER MARKS FOR.

2 ITS COMPREHENSIVE PRODUCT RANGE, AND FOR. THEIR STRONG CONFIDENCE THAT MANULIFE CAN #6 RBC GLOBAL ASSETS. PRODUCE TOP-TIER PRODUCT PERFORMANCE. #7 MANULIFE MUTUAL FUNDS. SOME RELATIVELY SMALLER FIRMS . NOTABLY EDGEPOINT AND PIMCO . SIGNIFICANTLY GROW THEIR FOOTPRINTS. #8 SENTRY INVESTMENTS. ADVISORS GIVE BOTH FIRMS STRONG RATINGS FOR. THEIR UNIQUE PRODUCTS AND EXCELLENT. PRODUCT PERFORMANCE. #9 TD ASSET MANAGEMENT. #10 INVESCO/TRIMARK. WHAT MAKES ADVISORS MORE LIKELY TO SUPPORT MUTUAL FUND COMPANIES? Unsurprisingly, At all levels from customer Advisors are becoming more performance continues service to wholesalers, PMs fee conscious. Their behaviour to dominate as the most and senior execs advisors increasingly bears this out critical area where are looking for quality people as they increasingly look for companies need to and supportive personal value and avoid high MERs score well to achieve relationships.

3 In many cases in serving clients. sales success. supportive relationships are just as important as performance in building relationships with advisors. APPROPRIATE MERS APPROPRIATE. MERS. ATTRACTIVE COMPENSATION ATTRACTIVE. 2011 2012 2013 2014 2015 2016 2017 COMPENSATION. While quality of people and fees are becoming more important, providing marketing materials and impressive events, are becoming less critical to advisors. TO P 10 I N S U RA N C E C O M PA N I E S. BY O V E RA L L RAT I N G. MANULIFE CONTINUES TO BE THE LEADING. #1 LIFE, LIVING BENEFITS AND SEGREGATED MANULIFE. FUND COMPANY BY SALES AND BY. OVERALL RATINGS. #2 IA FINANCIAL GROUP. IA FINANCIAL RISES TO 2ND PLACE, BEING. SEEN AS PROVIDING A COMPELLING RANGE #3 SUN LIFE. OF LIFE AND LIVING BENEFITS OFFERINGS. AS WELL AS HIGH-QUALITY SERVICE. FOR ADVISORS. #4 SSQ FINANCIAL GROUP. SUN LIFE PERFORMS WELL IN TERMS OF #5 CORPORATE REPUTATION AND EFFECTIVE Canada LIFE.

4 MARKETING MATERIALS, AS WELL AS IN. TERMS OF SEG. FUND PRODUCTS MEETING. #6 FINANCIAL EXPECTATIONS. EMPIRE LIFE. #7 BOTH Canada LIFE AND GREAT-WEST IVARI. LIFE RETURN TO HIGHER RATINGS IN 2017, WITH IMPROVING UNDERWRITING AND. SERVICE TO ADVISORS. #8 GREAT-WEST LIFE. #9 EQUITABLE LIFE. #10 RBC INSURANCE. INSURANCE COMPANIES: ADVISORS CHANGING NEEDS. Advisors are looking for insurance companies to offer high quality products backed by high quality service. At the same time, advisors have little patience for firms that cannot offer fast and efficient underwriting or flexible solutions. Like the mutual fund industry, advisors selling insurance are becoming more fee-sensitive and there is increasing importance placed on competitive pricing. TO P RAT E D E T F P RO V I D E R S. ISHARES BY BLACKROCK IS THE MOST. #1 FREQUENTLY USED ETF PROVIDER, BMO GAM. HOWEVER, BMO ETF'S HAS BEEN.

5 STEADILY CLOSING THE GAP OVER. THE LAST FIVE YEARS. #2 VANGUARD. BMO GAM SEES STRONG RATINGS. ACROSS ALL RATED METRICS. BMO #3 SCORES PARTICULARLY WELL FOR STRONG ISHARES BY BLACKROCK. SALES RELATIONSHIPS AND SUPPORT FOR. Advisor PRACTICES, AS WELL AS ITS FULL. #4 RANGE OF PRODUCTS (INCLUDING PASSIVE POWERSHARES INVESCO. AND ACTIVE ETFS AS WELL AS MUTUAL. FUND-BASED ETFS). #5 RBC GAM. ISHARES AND VANGUARD ARE SEEN TO BE. STRONG ETF BRANDS OFFERING A RANGE. OF TRADITIONAL PASSIVE INDEXES WITH #6 COMPETITIVE EXPENSES AND FEES. PURPOSE INVESTMENTS. MACKENZIE ETFS SEES SIGNIFICANT #7 GAINS IN USAGE SINCE LAUNCHING IN CI / FIRST ASSET. 2016. MACKENZIE OFFERS SOLID. VALUE-ADDED SERVICES FOR ADVISORS AND A RANGE OF PRODUCTS THAT #8 HORIZONS ETFS. INCLUDES A VARIETY OF ETF PRODUCTS IN. A MUTUAL FUND STRUCTURE. DOES. MACKENZIE'S SUCCESS SHOW THAT. TRADITIONAL MUTUAL FUND PROVIDERS.

6 #9 MACKENZIE INVESTMENTS*. CAN ACHIEVE SUCCESS IN THE ETF SPACE? * SMALL BASE SIZE. ETF PROVIDERS: THE FUTURE OF BRAND SUPPORT? Unsurprisingly, low fees are the most However, an ETF provider's ability to offer important attribute when selecting an ETF newer rules-based factor or smart beta provider. This is followed by a strong overall strategies is quickly becoming an important brand and a broad range of traditional driver of advisors' sales support for passive products. individual brands. In addition, newer entrants are increasingly providing strong wholesaler support that advisors say is valuable and impacting their brand choices. ADVISORS FUTURE PERSPECTIVE ON THE INDUSTRY. THE INDUSTRY REGULATION. CONTINUES TO FACE Advisors continue to see the growing regulatory burden as a critical threat to their practices. PRESSURES AS ADVISORS. CONTINUE TO ADAPT TO BOOMERS.

7 NEW REALITIES. They also see growing threats from overvalued equity markets and the imminent transition of boomer clients from asset accumulation to decumulation phases. MILLENNIALS. Interestingly, the growth of the millennial generation follows as the fourth greatest percieved threat among advisors. TOP 5 FUTURE THREATS FOR THE NEXT 3-5 YEARS. ADDITIONAL COMPLIANCE &. REGULATORY INITIATIVES 68%. OVERVALUED EQUITY MARKETS. & RISK OF A CORRECTION 63%. TRANSITION OF BOOMER CLIENTS FROM. ACCUMULATION TO DECUMULATION 63%. GROWTH OF MILLENNIALS. AS INVESTORS 54%. GLOBAL ECONOMIC DISRUPTION. ( BREXIT, NAFTA, ETC) 52%. CLIENT BASE: CURRENT & FUTURE TARGET GROUPS. WHILE THREATS. DO EXIST, 64% 30%. ADVISORS ALSO. SEE SIGNIFICANT. OPPORTUNITIES. GEN X REPRESENTS A GROWING. SEGMENT THAT ADVISORS ARE. GEN Y REPRESENTS A. SIGNIFICANT NEW OPPORTUNITY. FREQUENTLY TARGETING FOR ADVISORS.

8 NEW OPPORTUNITIES. ADVISORS SAY. 30%. 19%. THAT WHILE GEN X. 14%. 10% CLIENTS ARE AN. OPPORTUNITY. AGED. 21-36. AGED. 37-50. AGED. 51-70. AGED. 71+ RIGHT NOW. 23%. MILLENIALS 30% MANY ARE. PRE- BOOMERS BEGINNING TO TURN. THEIR ATTENTION TO. 64%. GEN X. 70% MILLENNIALS AS. BOOMERS. THE FUTURE OF. GROWING PORTION OF BOOK, ALREADY TARGETING. THE INDUSTRY. WOMEN ADVISORS AND INVESTORS. INCLUSION OF WOMEN HAS BECOME AN. INCREASINGLY IMPORTANT DISCUSSION TOPIC. WITHIN THE FINANCIAL SERVICES INDUSTRY. The industry is increasingly focusing more attention on women as a critical part of the financial services industry. In this years' study, we asked the minority (holding steady at 18% for the past 10 years or more) of women advisors in our study what challenges or barriers they feel that women face in the industry. They raised some very interesting issues, including responses that ranged from work life balance to the challenges of working in a commission-based role to dealing with limited resources and educational opportunities.

9 If the goal of the industry is to be more inclusive of women, both women advisors' and investor's needs will need to be better understood and addressed. Have thoughts or comments on this article? Let us know at.