Almost half of US financial services firms rank the ability to acquire and retain clients as their number one business challenge in 2008, according to a survey by Cerulli Associates. Forty-nine per cent of respondents expressed concern about getting and keeping clients, according to the subscriber survey published in The Cerulli Edge - US Asset Management Edition December 2007 Year-end Issue. Salesforce issues - with 15 per cent - and product rationalisation - with 10 per cent - were second and third on the list of business concerns respectively. With client acquisition and retention as the number one business challenge, it is understandable that the top two firm watchwords chosen by poll participants were sales at 39 per cent and relationships at 38 per cent. Those were followed by brand awareness and retirement with 26 per cent each. Last year’s top firm watchword - advice - dropped to fifth place in the 2008 survey. Coverage and economics was chosen by 21 per cent of survey participants as the salesforce issue they anticipate will be their most complicated in 2008. Consistent customer experience and integration between institutional and retail sales were each chosen by 20 per cent of firms Open-end mutual funds remain the primary product focus in 2008, the survey found. About 79 per cent of respondents chose open-end funds as the major focus, and 53 per cent gave it the highest priority. But the survey also showed the growing popularity of alternative investments, as 77 per cent of financial services firms chose hedge funds/private equity to be their main product focus for 2008. “These vehicles, previously used by high net worth investors or institutional investors, have moved downmarket, which creates more opportunities for firms interested in this arena,” said Cerulli. Cerulli Associates is a Boston-based research and advisory firm specialising in trends in financial services affecting institutions and advisors. The survey participants were subscribers of The Cerulli Edge - US Asset Management, Managed Accounts or Advisor editions. They represent a variety of financial services firms, including asset managers, distributors, insurance companies, banks and vendors.