As the landscape of product offerings—and the rates of adoption—evolve in the coming years, it is crucial for advisors to receive comprehensive education on the latest strategies. Asset managers that equip advisors with the confidence and technical insights needed to navigate investments will not only improve the advisor experience, but also position themselves as trusted partners, according to the latest Cerulli Edge—U.S. Advisor Edition.

Advisors continually seek innovative ways to enhance their investment portfolios and introduce new options that can differentiate their practice from competitors while aligning with investors' changing expectations. Exchange-traded funds (ETFs) and separate accounts are rapidly becoming the preferred investment vehicles for advisors, thanks to their unmatched flexibility, transparency, and tax advantages. By 2027, advisors expect their allocations to mutual funds to fall 4.2 percentage points, as ETF allocations are expected to increase 3.7 points over the same period. Meanwhile, illiquid alternatives are expected to make up 3.3% of advisor asset allocations by 2027, up from 2.4% in 2025.

“To capitalize on potential opportunities to bring in new assets, asset manager distribution teams regularly should reassess their coverage strategies, especially when engaging with independent advisors, and consider adopting a product-focused approach to significantly boost sales in these channels,” says Andrew Blake, associate director. “Moreover, deploying dedicated advisor-facing product specialists can be a game-changer—helping asset managers elevate client service, share compelling competitive product information, and attract more assets through their specialized expertise,” he adds.

Cerulli’s research shows more than half of advisors (58%) believe it is important to speak with a wholesaler before investing in an asset manager's strategy, yet only 38% find conversations with portfolio managers to be equally important. Conversely, just 13% of advisors think it is not necessary to speak with a wholesaler, suggesting they can gather sufficient investment information without a meeting. Although many advisors can obtain product details without engaging an asset manager, they often value the ongoing benefits of maintaining personal relationships.

“As investment patterns continue to evolve, advisors must delve deeply into new products to make informed, confident decisions that maximize client outcomes,” says Blake. “By fostering strong relationships between wholesalers and product specialists, firms can effectively deliver services that help attract and retain assets, securing their position in a competitive market,” he concludes.