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2001 PLANNERS’ REPORT CARD |
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How do you rate: advertising … |
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2001 |
2000 |
1999 |
|
Dundee |
7.5 |
4.7 |
n/a |
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Investors Group |
7.5 |
6.5 |
7.7 |
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Money Concepts |
7.1 |
4.9 |
5.6 |
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Manulife |
6.9 |
4.7 |
n/a |
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Berkshire |
6.0 |
5.5 |
n/a |
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Regal Capital |
5.8 |
6.4 |
7.1 |
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Assante |
5.7 |
n/a |
n/a |
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TWC Financial |
5.4 |
4.5 |
6.2 |
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IPC Financial |
5.3 |
n/a |
n/a |
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W.H. Stuart |
4.9 |
3.5 |
4.7 |
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Sun Life |
4.7 |
n/a |
n/a |
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Balanced Planning |
3.6 |
3.6 |
3.2 |
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Primerica |
3.1 |
4.1 |
6.0 |
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CMG Worldsource |
2.5 |
2.4 |
3.7 |
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… marketing support … |
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Primerica |
8.8 |
6.2 |
8.2 |
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Investors Group |
7.7 |
7.2 |
7.7 |
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Dundee |
7.4 |
5.9 |
n/a |
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Money Concepts |
7.1 |
5.8 |
6.4 |
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IPC Financial |
6.9 |
n/a |
n/a |
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Manulife |
6.8 |
6.4 |
n/a |
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Berkshire |
6.7 |
6.7 |
n/a |
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Sun Life |
6.6 |
n/a |
n/a |
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TWC Financial |
6.6 |
6.1 |
6.5 |
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Assante |
6.1 |
n/a |
n/a |
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Regal Capital |
5.6 |
6.3 |
7.6 |
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W.H. Stuart |
5.3 |
5.2 |
n/a |
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Balanced Planning |
4.4 |
5.2 |
4.4 |
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CMG Worldsource |
4.2 |
4.2 |
5.0 |
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… sales support |
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Primerica |
8.9 |
8.3 |
8.3 |
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IPC Financial |
8.7 |
n/a |
n/a |
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Investors Group |
8.2 |
8.4 |
9.2 |
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Dundee |
7.5 |
8.1 |
n/a |
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Sun Life |
7.5 |
n/a |
n/a |
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TWC Financial |
7.5 |
6.3 |
7.5 |
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Balanced Planning |
7.3 |
8.9 |
5.4 |
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Berkshire |
7.1 |
9.0 |
n/a |
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Money Concepts |
7.0 |
7.6 |
6.0 |
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Manulife |
6.7 |
8.2 |
n/a |
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Assante |
6.4 |
n/a |
n/a |
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W.H. Stuart |
6.2 |
9.0 |
6.9 |
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Regal Capital |
6.1 |
7.0 |
7.0 |
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CMG Worldsource |
6.0 |
6.3 |
6.5 |
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SOURCE: INVESTMENT EXECUTIVE RESEARCH |
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Investment Executive chart |
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When it comes to sales and marketing, financial planners tend to be an independent bunch, sometimes by choice, and sometimes because the parent company is leaving them out in the cold.
Despite the fact the industry is becoming more regulated and consolidated, planners are increasingly unhappy with the sales support from their employers. That’s one conclusion based on the falling ratings in that category in this year’s Planners’ Report Card.
In fact, the rating for sales support for seven of 14 national firms dropped by more than half a point from last year’s standings. The rating remained relatively unchanged for only two firms, and only two others — Primerica Financial Services Ltd. and TWC Financial Corp. — experienced an increase.
The ratings for marketing support show a different story: six firms — Dundee Private Investors Inc., Investors Group Inc., Manulife Financial Corp., Money Concepts (Canada) Ltd., Primerica and TWC Financial — showed increases. Regal Capital Planners Ltd. and Balanced Planning Financial Group showed significant drops.
FundEX Investments Inc. does not provide marketing or sales support for its planners.
An Alberta-based planner for Primerica gave her firm top marks for its marketing material. “Our brochures are very professional, clear and easy to understand,” she says.
TWC planners in British Columbia and Alberta say they’ve received a boost from the company’s new coaching program. It has helped planners to understand the company and marketing objectives, they say.
At Dundee, the firm sitting in the middle of the pack in seventh place, the rating for sales support dropped since last year, down to 7.5. Marketing support, however, increased.
But marketing support at Assante Corp., the firm rated 11th, is almost non-existent, say two planners from southern Ontario. The firm’s penchant for continued consolidation may be to blame, notes one Ontario planner, resulting in a client services department that is “lousy.” Sales support scored 6.4 at Assante, while marketing support rated an even lower 6.1.
Balanced Planning is also going through a metamorphosis. It is part of the BRM stable that is soon to be consolidated and renamed Cartier Planners. The firm scored the lowest of all — 4.4 for marketing support and 7.3 for sales support. It seems that planners with this firm are left to their own devices; indeed, a frequently heard refrain during our research interviews was: “I do all that myself.”
At Regal Capital, opinions on marketing support vary widely. One planner from Ontario says: “It’s available, but not useful.” Another planner based in Alberta held the opposite view. “There’s good material available — videos, brochures.” Another Alberta planner counters: “Regal is weak on that.” Some support comes from the fund companies, says another Ontario-based planner with Regal. “There’s a newsletter and a Web site, but it’s not updated.”
How planners rate the level of support they receive is often seen to be a reflection of the percentage of their payouts, but the data is not consistent on this point.
At Manulife, at which the payout is 69% — the third-lowest — sales support rated only 6.7, and marketing support only slightly higher at 6.8. The biggest gap is at W.H. Stuart & Associates Inc., at which the payout percentage is highest among the 14 firms at 81%, but sales support ranks 6.2 and marketing support scrapes in at 5.3.
Planners at Manulife seem to be isolated from their large, institutional parent. “We do virtually everything in-house,” says an Alberta planner. Most of what the company provides “is inappropriate to what we do,” adds a B.C. planner. “I would like to see a lot more concern directed toward the independent broker. They have definitely been cut loose.”
A planner with W.H. Stuart expressed a common concern that planners get nailed with client fees for the provision of back-office support. But with such a high payout, sympathy is not likely to come soon.
The payout is lowest at Primerica (57%), yet sales support rated 8.9 and marketing support 8.8. At IG, where the payout is 62%, sales support rated 8.2 and marketing support rated 7.7.
Established infrastructure seems to have brought benefits. “The back-office technology is state-of-the-art, Windows-driven, Internet-based,” says an Ontario planner with IG.
“There is toll-free support and somebody assigned to you in the first few months to help you with technical support,” says an IG planner in Nova Scotia. IE