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Bringing a New Customized Portfolio to Market

Christine Drummond - photo

by Christine Drummond

Vice President

Insights Objective

A leading investment firm wanted to understand if a new type of customized Direct Indexing portfolio held appeal for financial advisors. 

Custom approach

We designed a robust online survey for financial advisors across the U.S. that explored three key insights areas:

Insight Area 1:
Assess advisors’ familiarity with, and current usage of, direct indexing to better understand the market opportunity

We developed a series of questions to understand advisors’ current engagement with direct indexing including: 

  • Proportion of portfolios dedicated to direct indexing.
  • Client engagement with direct indexing.
  • Planned future use.

The results helped us assess the opportunity for a direct indexing offering within the current market.

Insight Area 2:
Obtain feedback to determine the benefits and barriers related to direct indexing

We evaluated current users to ascertain their satisfaction with direct indexing and asked non-users about barriers to using direct indexing.

Insights from these groups showed where opportunities lay in the market, where the offering could be differentiated, and how to address current barriers.

Insight Area 3:
Explore the competitive landscape to develop a holistic view and gain insights on optimal pricing for a direct indexing solution

We designed questions to understand the competitive landscape and expectations around pricing and fees. Through this analysis we provided recommendations on the most appealing pricing structure for growth without alienating non-users.

Growth outlook

Radius determined that there was a clear, positive opportunity for our client to move forward with a direct indexing solution recommended pricing structure to maximize interest, and identified ways they could differentiate their offering. 

As a result of the research, our client made the decision to acquire a company which specializes in direct indexing, bringing this new capability under their suite of offerings. 

Read a recent best practices article on Identifying Digital Offerings for Investment Accounts.

Reach out to us for more information about our financial services insights.

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