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T he much-anticipated intergenerational wealth transfer—with trillions of dollars moving from Baby Boomers to Millennials and Gen Z—will reshape the investment landscape. For asset management firms that offer products through custodian platforms, this shift presents an enormous opportunity to engage with a new generation of investors. However, capturing this market requires not only adapting product offerings to the preferences of younger investors but also leveraging technology to make data more actionable and valuable.
This blog will explore how asset management firms can strategically approach this wealth transfer, harnessing the power of platforms like MARS to drive growth and deepen their relationships with financial advisors and custodian firms.

Shifting Investor Preferences

Younger generations of investors have different priorities compared to their predecessors. They are more focused on sustainable and impact-driven investments, technological innovation, and personalized financial strategies. For asset management firms, this means adapting their product lines to include more ESG-focused funds and emerging technology investments that align with these preferences.
However, understanding these preferences in real-time and adjusting product strategies accordingly requires access to clear, actionable data. Asset management firms working through custodian platforms receive valuable information about which products financial advisors are purchasing on behalf of their clients. This data can be instrumental in identifying trends and understanding which funds resonate with younger investors.

The Role of Technology in Enhancing Data Utility

In order to capitalize on the opportunities presented by intergenerational wealth transfer, asset management firms need to be able to make sense of the data they receive from custodian platforms. This is where platforms like MARS can significantly enhance data utility by turning complex, fragmented information into insights that firms can act upon.

1. Data Consolidation Across Custodian Platforms

Asset management firms typically offer their products on various custodian platforms, and the data they receive about fund purchases varies in detail. MARS integrates this data from multiple platforms, consolidating it into a single, comprehensive view. This allows firms to streamline their operations by eliminating the need to manually compile reports from different sources.

2. Sales Tracking and Advisor Insights

One of the key benefits of MARS is its ability to provide asset management firms with detailed insights into which financial advisors are purchasing their funds. By tracking these sales, firms can identify which advisors are driving growth and which products are gaining traction. This data helps firms focus their outreach on advisors who are already engaged or show potential for deeper relationships.
For example, if an advisor is consistently investing in ESG funds, the asset management firm can tailor its communications to highlight additional sustainable investment options, providing relevant materials that strengthen the advisor’s connection to their products.

3. Targeted Outreach and Engagement

With MARS’ ability to transform data into actionable insights, asset management firms can engage in more targeted outreach. By analyzing purchasing trends, firms can identify opportunities for growth—such as advisors who are starting to invest in certain funds or geographic regions where specific products are gaining traction. This data allows firms to engage with financial advisors more proactively, offering personalized support and resources that align with their investment strategies.

4. Simplified Reporting and Compliance

Managing compliance and reporting across multiple custodian platforms can be a complex and time-consuming process. MARS simplifies this by automating report generation and ensuring compliance with regulatory requirements. This enables asset management firms to access clean, standardized reports that help them maintain oversight of their operations without the need for manual effort.

5. Enhanced Product Performance Visibility

Understanding which products are resonating with advisors and investors is critical to staying competitive in an environment shaped by changing investor preferences. MARS provides asset management firms with greater visibility into how their funds are performing across different custodian platforms. With this data, firms can make informed decisions about which products to promote or refine, ensuring that their offerings align with the evolving needs of younger investors.

Engaging Financial Advisors in the Wealth Transfer

As wealth shifts to younger generations, financial advisors play a pivotal role in guiding investment decisions. Advisors are often the ones recommending asset management products to their clients, making it crucial for firms to build strong relationships with them.
The insights provided by MARS enable asset managers to identify which advisors are most engaged with their products and to offer them personalized support, education, and product information that aligns with their clients’ needs. This not only helps deepen the relationship with the advisor but also positions the asset manager as a trusted partner in navigating the evolving financial landscape.

Conclusion

The intergenerational wealth transfer represents a significant opportunity for asset management firms, but success will require strategic adjustments and the effective use of technology. By leveraging platforms like MARS, firms can turn data from custodian platforms into actionable insights, enabling them to engage more effectively with financial advisors and tailor their offerings to meet the changing needs of younger investors.
For asset managers, the key to success lies in understanding the evolving market, using data to make informed decisions, and staying proactive in their advisor relationships. As the wealth transfer continues to reshape the industry, firms that embrace this digital-first approach will be well-positioned for long-term growth.