Redefining the Role of Index Providers
March 6, 2025
Index providers play a foundational role in the index-based products and asset allocation model portfolios now widely used in retail wealth management, yet they remain underutilized.
Download your copy
Download Our White Paper
Index-based products are experiencing organic growth, with assets in index-based products (exchange-traded funds, mutual funds, and direct-indexing separately managed accounts) crossing $16 trillion, as of year-end 2024. Increasingly, index methodology is becoming an important differentiator along with cost, performance, and brand, according to new research issued by Cerulli Associates and sponsored by S&P Dow Jones Indices.
For asset and wealth manager executives building index-based products and asset allocation model portfolios, this white paper provides a roadmap for how investment professionals can better leverage the set of solutions, in support of the underlying indices, that index providers offer.
Key Takeaways
Go Beyond Index Data
Asset and wealth managers can take advantage of the index providers’ additional offerings, in support of the underlying indices, including consultation during the product development process, white label and custom index creation, thought leadership and educational content, and coordinated advisor engagement and educational meetings.
Leveraging Brand and Content Strength for Product Marketing and Distribution
The index provider brands, especially those built upon high-quality index design and methodology, are often additive and works in conjunction with the asset manager brand to strengthen the overall positioning of the product.
Enhancing Intelligence for Asset Allocation Model Portfolio Construction
While the data (e.g., index performance data, factor analyses) available has improved in recent years, there is still an opportunity for firms to improve the depth of coverage (incorporating fixed income, international equities, and alternatives) and improve access and delivery.
For S&P Dow Jones Indices' information, visit: www.spglobal.com/spdji/en/disclaimers/
Download your copy
Submit your information to download a PDF of the paper
SUBJECT MATTER EXPERTS
Meet Our Team
Brendan Powers, CFA
Director
Bio →
Brendan Powers, CFA
Director
Brendan is co-head of Cerulli’s Product Development and Institutional practices.
The Product Development practice focuses on trends related to asset managers’ product strategy, development, and management functions. This broadly includes assessing the opportunity for product line expansion, evaluating emerging product trends, assessing optimal pricing strategy, and understanding distribution and product positioning for investment products across retail and institutional channels.
The Institutional practice specializes in research and consulting related to institutional asset owners, including defined benefit plans, endowments, foundations, insurance companies, and healthcare organizations as well as third-party allocators including consultants and outsourced chief investment officers (OCIOs).
Full biography here.
Related Resources
May 2024
M&A in Wealth Management
Access Cerulli’s latest insights on the drivers shaping merger and acquisition (M&A) activity in wealth management and the way that M&A will impact how advice is delivered across channels.
May 2024
Wealth Management Technology: Financial Advisor Adoption, Utilization, and Performance
Cerulli's Michael Rose shares insight into what technologies are having the most impact on advisor productivity and growth and the challenges blocking adoption.
You may also be interested in
- Annual report
- The Cerulli Edge
