Cerulli finds only 7% of advisers at right scale to do portfolio construction themselves

Cerulli finds only 7% of advisers at right scale to do portfolio construction themselves
Research firm says advisory firms need at least $250 million in AUM to do proper job.
OCT 17, 2019
While 62% of advisors and 55% of all practices rely on their own investment research and portfolio construction, Boston-based research firm Cerulli Associates believes that only 7% of those advisory practices are at an optimal scale to perform those functions. [More: Technology can help balance adviser portfolio discretion with firm controls] That rarified group says, Cerulli says, typically have an average account size of at least $2 million and assets under management greater than $250 million, although practices that can genuinely customize portfolios skew closer to the $500 million range, the firm said in a release based on a recent survey of advisers. [Recommended video: Advisers should discuss ESG with wealthy clients before someone else does] The firms most suited to do their own research and portfolios also tended to have a team-based environment, "staffed with layers of stakeholders and asset-gatherers supported by the resources needed to customize portfolios, retain existing relationships, attract new clients, and build rapport with families' beneficiaries and outside advisors," Cerulli said. Don't miss our Women Adviser Summit — coming to San Francisco.

Latest News

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.