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Thursday, October 17, 2019

MUTUAL FUND USAGE REMAINS A INTEGRAL PART OF FINANCIAL PLANNERS' INVESTMENT CHOICES


Date: Monday, June 7, 2004

75% of current users plan to increase or maintain their usage of mutual
funds in the next 1-2 years......

Vancouver, BC, June 8, 2004 - Despite predictions to the contrary,
mutual funds are still the investment of choice for Canadian advisors
who hold their Certified Financial PlannerT designation. At the same
time, these planning-oriented advisors expressed widespread and
substantial interest in products such as separately managed accounts and
hedge funds. These are just two of the fourteen key findings from a
recent survey conducted by Credo Consulting Inc., in conjunction with
Financial Planners Standards Council (FPSC), in its investigation of
the preferences of CFPT professionals. The survey findings, as well as
findings from follow-up interviews, and Credo's recommendations for how
to market to planning-oriented advisors are offered in a new study
entitled "The Support, Tools and Services Financial Planners Value Most
- Understanding the CFP Professional,"

"Even though alternative products have been at the forefront of the
marketing parade for the past number of years, we were interested to
note that financial planners are by no means abandoning mutual funds.
With the market turnaround, clients have a renewed interest in the
equity markets and mutual funds are comfortable for both investors and
advisors," says Cynthia Enns, the study author and partner at Credo
Consulting Inc. Of the 529 CFP professionals that completed the survey,
89% use mutual funds (outside of wrap programs). What's more, these
advisors hold an average of 54% of client assets in mutual funds, which
is substantially greater than the average allocations to other types of
investments. Looking forward, a significant 44% of current users
indicated plans to increase their usage of mutual funds and a further
31% plan to maintain their current usage level.

According to Enns, "For planning-oriented advisors, it's less about the
specific investment choice and more about helping a client achieve their
goals. However, both traditional investment products like mutual funds
as well as more alternative product choices play a role in this process.
It's still an advisor driven process with clients trusting their
advisors to make the appropriate investment product recommendations
based on the larger financial planning picture. "

"The Support, Tools and Services Financial Planners Value Most -
Understanding the CFP Professional," represents a comprehensive analysis
of what planning-oriented advisors really want from asset managers and
distributors today. In addition to investment usage trends, the study
also examines the biggest challenges planning-oriented advisors are
facing today, and the types of asset manager capabilities, wholesaler
support and other services that CFP professionals value the most.

For more information contact:
Cynthia Enns, MBA
Credo Consulting Inc.
ph.1.866.535.4230 Toll-free
*** Joint Marketing Partner in Canada for Financial Research Corporation