12 Reasons Investors Would Move All Their Assets to One Advisor

A highly effective way for an advisory firm to increase assets under management and deepen relationships with clients is simply to ask them to consolidate their assets with the firm, according to a recent report by Spectrem Group.

Some investors, of course, will never put their assets with just one firm, but Spectrem found that there are opportunities available for advisors who will “just ask” their clients to do so.

Spectrem polled a sample of investors with net worths ranging from $100,000 to $25 million about what would most likely prompt them to consolidate assets with one advisor.

The report noted that 78% of investors have only one financial advisor already, while those with more assets are more likely to have multiple advisory relationships; 40% of respondents with $10 million to $15 million in net worth reported having two or more advisors.

More than half of investors who work with multiple advisors said they do so in order to meet different investment objectives.

According to Spectrem, advisors can convince investors to consolidate assets simply by reviewing and discussing the performance of other advisors the investor may be using. Twenty-four percent of respondents said their advisor had discussed their other advisors’ performance. Once that discussion was completed, more than a quarter said they were likely to consolidate their assets with their primary advisor.

Advisors can also raise the myriad benefits of consolidation with investors who work with multiple advisors.

While 35% of those surveyed say they would never consider consolidating their assets, millennials, Spectrem noted, are especially open to consolidation — just 6% are set against the idea.

See the gallery for 12 reasons investors would be open to consolidating assets with their primary advisor.