Editor’s Note: We want to remind all RIA firms that the annual Top Wealth Managers survey is open.. Participation in the annual edition is the first step to inclusion in the Top Wealth Managers annual rankings. The AdvisorOne Top Wealth Managers rankings are used extensively throughout the industry by clients and professionals alike. We announce the Top Wealth Managers surveys in the Inside Wealth Management newsletter. Subscribe (at no cost) here, to see when they are underway so you can participate.
Click here to participate in the annual survey.
In Part 2 of our special report,“Top Wealth Managers Quarterly Pulse Part 2: Recruiting Picks Up,” Philip Palaveev and Jonathan McQuade report on recruiting and client acquisition trends evident in wealth management firms.
See the quarterly rankings of the Largest 100 Top Wealth Managers.
For one Top Wealth Manager’s view on training new advisors, please see “What’s Your Plan for Training New Financial Planners?”—Kate McBride
Optimism and enthusiasm are the most fragile of feelings. They arrive slowly, flee quickly at the first sign of trouble and it takes a long time to entice them back. If statistics show anything, optimism has every reason to return and enthusiasm should already be back.
The overall results from 2010 as indicated in the AdvisorOne Top Wealth Managers Quarterly Pulse Survey, Fourth Quarter 2010, indicate that wealth management firms experienced strong growth, renewed flow of new clients and productivity levels that are close to or exceeding the pre-crisis levels. Still, firms are cautions when it comes to recruiting staff, and conservative with marketing and technology budgets.
Memories of 2008 and 2009 are still evident, and political and natural disasters still keeping owners of wealth management firms awake at night.
One-hundred and sixty-two of the nation’s premier wealth management firms submitted information for the fourth quarter Top Wealth Managers Pulse survey. Registered investment advisor (RIA) firms that have their own SEC or state registration, and $50 million or more in assets under management (AUM) may participate in the surveys, which are conducted quarterly and annually and are the first step in eligibility for the Top Wealth Manager rankings.
(The annual Top Wealth Managers survey, now in its 11th year, will be available this week on AdvisorOne. Subscribe (at no cost) here, to the Inside Wealth Management newsletter to see when they are underway so you can participate.)
Best Annual Growth Rate Since 2007
On average, wealth management firms recorded a 20.1% growth in AUM in 2010. This growth consisted of new client additions of 13% of the total AUM and 12% growth from market performance. This was offset by 5% decline from clients lost or client distributions.
These results mark the first time since 2007 that this survey is reporting double-digit percentage growth in new client additions and the first time in which new client additions are outpacing market performance in a year when the firm is experiencing net growth. The strength of new business development across the wealth management industry speaks to the optimism of individual investors as well as the systematic marketing effort of the firms during the last two years.