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AMK - AssetMark Financial Holdings Inc News Story

$23.63 -0.9  -3.5%

Last Trade - 26/02/21

Mid Cap
Market Cap £1.23bn
Enterprise Value £1.22bn
Revenue £310.1m
Position in Universe 2302nd / 6715

AssetMark Issues its 2021 Predictions for the Financial Advisory Industry

Thu 21st January, 2021 2:00pm
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CONCORD, Calif., Jan. 21, 2021 (GLOBE NEWSWIRE) -- AssetMark
(NYSE: AMK) today announced its 2021 outlook for the financial advisory
industry. While the advisor-client dynamic has undergone a dramatic
transformation in the past year, many in the industry agree the pandemic
merely accelerated many of the trends that were already contributing to this
shift prior to 2020. In many ways, 2021 will see a continuation of those
* Investors Will Continue to Demand More
One of the biggest factors that will continue to transform how advisors serve
clients are investors themselves. Demand for advice is growing--40% of
investors say they need more advice than ever before--but advisors will still
have to be extra savvy in demonstrating their value to generate and convert
leads into clients.¹ Trustworthiness will increasingly matter, with
transparency rated as a top factor in choosing an advisor.² Investors will
choose advisors who employ technology to create digital experience, holistic,
goals-based information, and relevant insights that clients can access
whenever and wherever they need it.
* Advisors Should Expect Some Client Turnover
After a year in which advisors had to manage client expectations through high
volatility while pivoting to serve clients digitally, clients will grade their
advisors on how well they’ve done by either sticking with them or going
elsewhere as the pandemic begins to subside in 2021. While some advisors will
experience bigger client losses than they’re used to, others will find
themselves gaining new clients like never before. The focus on “generating
alpha” has been superseded by truly understanding the client's goals and
dreams--and continuously demonstrating that understanding. Even advisors who
struggled to pivot during 2020 can rebound by embracing technology, constantly
looking for new and better ways to digitize their services to create deeper
interactions, and aggressively marketing their new capabilities.
* Technology Will Continue to Transform the Advisor-Client Relationship 
Digital-first capabilities will continue to power more advisor-investor
interactions, fanned by growing investor and advisor comfort levels as well as
technologies that will continue to deliver new capabilities for greater
engagement, trust, and success. Static quarterly reports, for instance, will
give way to interactive, goal-based discussions supported by dynamic reporting
* Advisor Practices Will Continue to Grow
Despite nearly a year of high volatility, many advisor practices have grown
and will continue to do so with independent broker dealers, hybrid/independent
RIAs, large $1B+ firms, and independent/hybrid RIA channels leading the
charge. Fee-based revenue will contribute 69% of total advisors’ gross
production³, but the growth of individual practices will also depend on their
ability to specialize, differentiate, and embrace digitization throughout the
business--particularly in client servicing, marketing and lead generation.
* More Advisors Will Break Away from Their Brokerages
Expect the journey toward independence to accelerate as hybrid and fee-only
RIAs continue to demonstrate the benefits of breaking away and the success of
evolving business models, giving more advisors the confidence to step out on
their own. While well-known brands have provided comfortable cover, the
freedom to make their own technology decisions and create their own brands
will likely prove a more attractive offer for more entrepreneurial advisors.
* Investor Interest in ESG Will Grow Despite Advisor Reluctance
While the Biden Administration is likely to try to roll back the Labor
Department’s rule implemented this year to discourage environmental, social,
and governance investing in retirement plans, the dramatically accelerating
flows suggest a larger trend towards impact investing, though advisor interest
remains relatively low. With growing investor demand for ESG investment
opportunities--sustainable index mutual funds and ETFs doubled in assets under
management over the last three years to $250 billion⁴--we think this is an
area that advisors should not ignore with investors.
AssetMark provides customized, end-to-end technology solutions and expertise
to support and guide advisor businesses at every stage for increased value,
growth, and performance. To request a consultation, click her

¹Cerulli U.S. Retail Investor Advice Relationships (2020
²Cerulli US Retail Investor (2019
³PriceMetrix State of Wealth Management (2020
⁴Morningstar Passive Sustainable Funds: The Global Landscape
(Sept. 2020)

About AssetMark Financial Holdings, Inc.

AssetMark is a leading provider of extensive wealth management and technology
solutions that help financial advisors meet the ever-changing needs of their
clients and businesses. Through AssetMark, Inc., its investment adviser
subsidiary registered with the U.S. Securities and Exchange Commission,
AssetMark operates a platform that brings together fully integrated
technology, personalized and scalable service, and curated investment
solutions to support financial advisors and their businesses. For more than 20
years, AssetMark has focused on offering the solutions and services that help
financial advisors grow. AssetMark had $67 billion in platform assets as of
September 30, 2020. For more information visit

Media Contact:
Chris Blake
MSR Communications for AssetMark, Inc.

Source: AssetMark, Inc.


GlobeNewswire, Inc. 2021
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