Survey Snapshot: Majority of advisors loyal with current PMS

By Amy McIIwain, President, Financial Social Media on Monday, November 1st, 2010

If you are a fan of ByAllAccounts you know that we frequently survey financial advisors to snapshot current trends, advisor sentiment and the impact of regulatory/legislative developments. In our October survey we asked advisors about potential changes to their portfolio management system (PMS) to highlight technology trends in 2011.

What we found is that most advisors (79.5%) are satisfied with their current PMS. And, the majority (70%) is somewhat or extremely unlikely to switch from their current system next year. That’s good news since switching systems can be time consuming and costly. And perhaps it explains why among the advisors that have switched systems in the past, many (36.9%) did it more than five years ago. It isn’t something you do every year.   

If you are one of the few advisors (16%) that said they were somewhat or extremely likely to switch PMS in 2011 (or you don’t currently use one and plan to add a PMS) here are a few tips to help you with your research:

·         Make sure you look carefully at the functionality of the PMS. Two thirds (66.7%) said that “functionality” is the most important contributing factor to their overall satisfaction with their system.

·         Cost is important but don’t underestimate other factors. The top three reasons for switching from one system to another are “system limitations” (56.3%), “too costly” (32.1%) and “customer service/support (22.3%).

·         Consider your options. Of the 16% of respondents who said they were likely to switch systems in 2011, the top vendors of choice for a switch are: 14.4% are considering Morningstar Office, 12.6% are considering Schwab Portfolio Center and 9.9% are considering Advent Axys or APX.

·         Outsource it.   Slightly more than half of survey takers use an in-house platform to report on performance (51.9%). Others work entirely with an outsourcer (25.3%) or use an in-house solution and an outsourcer (17.9%).

Want more insights? Download an executive summary from the survey. Visit our website for a list of the platforms that ByAllAccounts is integrated with.

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