NU Online News Service, Oct. 15, 9:50 a.m. – Seventy-eight percent of registered investment advisors serving affluent clients are wealth managers rather than money managers or market timers, finds a new study by the Financial Research Corporation, Boston.
FRC defines wealth managers as advisors who do comprehensive financial planning for clients, sometime with the aid of allied financial specialists who complement their financial expertise.
In contrast, money managers and market timers are mostly concerned with managing portfolios and assets for individuals as well as institutions.
Nineteen percent of the studied firms were money managers, and 3% were market timers.
The RIAs in the study managed a total of $974 billion, of which $728 billion were in accounts over which the advisor had investment discretion, and the remainder in accounts over which the clients retained investment discretion.
Wealth managers controlled 73% of all high-net-worth advisors assets, followed by money managers, with 25%, and market timers, with 2%.
“Wealth managers are applying various aspects of the traditional family-office model to meet the needs of multiple affluent families, whether they are technically a ?family office,’” according to the FRC study, entitled “The 2002 Advisors to the Affluent Report.”