Forget the Dow. The greatest measure of growth might come from advisors themselves.
TD Ameritrade surveyed 502 RIAs on everything from top initiatives to their investment in technology to how they’re attracting new clients.
The clearing and custodial giant found that advisory firms are gearing up for growth in 2013. The company’s Institutional Advisor Index survey says that 97% of respondents report their total number of clients increased or remained steady over the past six months. Nearly nine in 10 RIAs expect a faster asset under management (AUM) growth rate this year.
Advisors indicated they would implement a variety of planning initiatives to prepare for their firm’s growth over the next six months. Conducting internal strategic planning discussions (67%), using benchmarking studies and white papers for guidance (37%) and conducting workshops sponsored by custodians or other vendors (20%) top the list of tactics advisors are planning.
“RIAs find themselves in an interesting paradigm—a challenging business environment combined with an unprecedented opportunity,” Jim Dario, managing director of product management with TD Ameritrade Institutional, said in a statement. “Many leading firms have seized the opportunity and created dynamic, fast-growing and profitable enterprises by identifying the cost drivers in their businesses. RIAs are able to build long-term value for their firm by leveraging technology that delivers consistent client service and scales with firm growth.”
Advisors’ Top Strategic Initiatives
Advisors surveyed say deploying technology to increase scale (63%), systematizing client service and delivery (58%) and training and developing staff skills (58%) are top strategic initiatives for growth over the next six months.
Investing in Technology