Advisor teams that have more than $500 million in assets under management control 42 percent of advisory market share but account for about only one in seven advisors, according to new research.
Cerulli Associates unveils this finding in the Q2 2014 report of “The Cerulli Edge: Advisory Edition. The survey explores successful attributes of “mega teams,” discusses how advisors and service providers must change to serve their high net worth market and offers insights into, among other things, current practices respecting time management and compensation, organizational structure and portfolio construction.
The survey shows that all mega teams controlling $500 million-plus in assets under management — including registered investment advisors, dually registered advisors, independent broker-dealers, regional advisors, wirehouse reps and bank advisors — control in the aggregate $5.4 trillion in AUM. On a per practice basis, these mega teams account on average for $1.2 billion.