New York, NY - Sept. 5, 2012 — The independent wealth management industry is bigger, more profitable and marked by new forms of ownership, but its very success is leading to a tipping point that revolves around challenges on productivity and competition.
Those are the high-level findings of the 12th annual Top Wealth Managers survey and rankings released today by AdvisorOne, in which more than 280 wealth management firms participated. The 100 participating RIA firms that ranked highest in average assets under management (AUM) per client were named as the 2012 Top Wealth Managers, and are listed on AdvisorOne’s Top Wealth Managers home page. The top-ranking wealth management firms as measured by total AUM, along with key metrics of all participating firms, can also be found on AdvisorOne.com.
As the three-part analysis on AdvisorOne of the findings of the 2012 Top Wealth Managers survey by Philip Palaveev and Jonathan McQuade of The Ensemble Practice reads, “The criteria for being a top firm are rising, the expectations of clients are growing and the competition is intensifying. Our industry is changing, and the top wealth management firms find opportunity in that change.”
This is the 12th year that AdvisorOne and Investment Advisor magazine (and its predecessor publications) have surveyed the wealth management industry, defined as registered investment advisory firms that provide wealth management services to individuals. The average participant in the 2012 Top Wealth Manager Survey has $978 million in AUM, employs a team of 52 people and works with a client who has an average $4.7 million in assets. Illustrating how the industry has grown, nine years ago the average participant had $371 million in AUM and a staff of 13.
Information for the 2012 Top Wealth Managers survey was self-reported by the firms online at AdvisorOne this summer, with all data as of Dec. 31, 2011; profiles of the top 10 wealth management firms, along with criteria for inclusion in the rankings can be found on AdvisorOne.
“Our 12th annual survey not only celebrates independent wealth managers’ success, but suggests how the ‘Top’ wealth managers achieved their status,” said James J. Green, editorial director of Summit Business Media’s Investment Advisory Group. “Moreover, these firms told us what services they provide clients, what they worry about and what their custodians and other partners can do to help them grow—all valuable information for successful wealth managers and those advisors who want to emulate that success.”
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