FOR RELEASE
Thursday, June 18, 2009

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Beau Ballinger
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IMCA Unveils Three New Studies
Investments & Wealth Monitor and IMCA Research Quarterly highlight surprising new trends in institutional investment consulting and behavioral finance

DENVER—June 18, 2009—IMCA released three new studies relating to the delivery of financial services to individual and institutional clients through the May/June 2009 issue of Investments & Wealth Monitor and the Quarter II 2009 issue of IMCA Research Quarterly.

This issue of IMCA Research Quarterly, produced in partnership with Cerulli Associates and titled “Institutional Consulting and Institutional Asset Allocation Trends,” focuses on product, client, and practice trends of many of the nation’s most successful institutional investment consulting practices. The average assets under advisement of IMCA institutional consultants is $5.1 billion, and Cerulli analysts believe the nimble nature of smaller consulting firms allows them to be more reactive to the rapidly changing dynamics of institutional asset management and thus serve as a bellwether for the investment consulting industry as a whole. The report details how these consultants segment clients, staff their practices, allocate their time, assess fees, and offer services. You may download an executive summary of the report by clicking here.

IMCA’s May/June 2009 issue of Investments & Wealth Monitor focuses on behavioral finance and features “Behavioral Investor Types: A Research Study and a New Concept in the Practical Application of Behavioral Finance,” authored by Michael M. Pompian, CFA^®, CFP^®. In his study, Mr. Pompian explores irrational investor behavior across various levels of wealth and discusses how investment advisors from 28 countries apply behavioral finance in their practices. “Understanding how to apply behavioral finance in real-world client situations can help financial advisors create appropriate investment programs for clients and build successful long-term relationships,” said Mr. Pompian. His research offers a diagnostic process for classifying investors by their investor behavior.

Drawing upon results of a survey conducted with IMCA in January 2009, authors Steve Saenz, Irene Marom, and Kathleen Ferguson discuss advisor sentiment, business challenges, and strategic initiatives for 2009 in “From Pain to Gain: How to Capitalize on the Opportunity of a Lifetime.” Eighty percent of survey respondents said they were surprised or very surprised by the magnitude of dislocation they have witnessed in the financial markets and 77 percent felt the same about the financial services industry. Ninety-two percent of respondents agreed that helping clients deal with declining portfolio values is a major business challenge. Other high-ranking challenges include preventing clients from abandoning their investment plans (76 percent), and managing personal stress (69 percent). Rebuilding clients’ wealth and confidence in the markets both are popular strategic initiatives for 2009. The authors offer nine tips for better-serving clients in this tumultuous environment.

IMCA’s Investments & Wealth Monitor is a bimonthly educational magazine that features professional and academic contributors addressing everyday issues. Each issue focuses on a specific topic, like alternative vehicles, global issues, retirement planning, or industry trends. IMCA members may download I&WM articles for free at any time by clicking here. IMCA Research Quarterly is a proprietary, in-depth quarterly publication for IMCA members. The research is analyzed and reported by industry leader Cerulli Associates and details how IMCA members deliver best practices around topics like portfolio construction, institutional consulting, managed accounts, and alternative investments.

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Note to media—if you are interested in receiving the full research reports or a complimentary subscription to IMCA’s Investments & Wealth Monitor, please e-mail Beau Ballinger.