American Funds No. 1, but some surprises on the list as well
Despite some recent bumps, American Funds remains the most well-regarded brand among financial intermediaries.
According to a survey released today by kasina LLC and Horsesmouth's FA Vision service, American Funds received an FA Vision Brand Index score of 25.06, almost three times higher than The Vanguard Group Inc., which came in second place with a score of 8.58. Franklin Templeton Investments came in third at 8.46, followed by BlackRock Inc. and Pacific Investment Management Co. LLC.
American Funds, which is advised by Capital Research and Management Co., has suffered from net outflows over the past several months. Nevertheless, the firm appears to remain top of mind for advisers. “American Funds scored way ahead of the other firms,” said Lee Kowarski, a principal at kasina. “When an adviser thinks of a fund company, it's most likely American Funds.”
Still, a number of fund companies that would not have been mentioned by advisers five years ago are now showing up in the top 10. For example, Vanguard, which has long been a direct-sold player, is now No. 2, which is significant, Mr. Kowarski said.
Also, Dimensional Fund Advisors, which doesn't do any marketing, came in eighth place at 2.63%. “Brand is a lot about the reputation you have,” Mr. Kowarski said. “DFA's interaction with the adviser community has built a positive perception of the firm.”
The survey was based on advisers' ratings of fund firms in seven categories. Those categories included a fund firm's consistency, dedication to advisers, trustworthiness and ethics. Advisers also rated firms based on innovation and the cost of offerings. For each attribute, respondents selected brands from the top 100 asset management companies. More than 3,000 financial intermediaries participated in the survey.
