Elite advisers focused on employees and operations for future growth

Elite advisers focused on employees and operations for future growth
Continued success will require more than marketing focus, top performing firms say.
MAY 18, 2015
The fastest-growing and most profitable financial advisers are focused on improving their internal business operations and their human capital management, a new report found. So-called “elite” advisory firms attributed their top-level performance in the industry to carrying out a marketing strategy that attracted and retained clients better than most advisers, according to a report out Thursday from InvestmentNews Research and BlackRock Inc. But down the road, many high-performing advisory firms believe their success will hinge on additional factors. About 57% of top firms said having the right employees in the right roles will be the biggest driver of their success going forward, “The Study of Elite RIAs” found. (More: Top 10 adviser marketing myths) MARKETING AND STRATEGY ARE KEY About 44% of the top firms said marketing and strategy will be key to growth, and two other important drivers of future success were effective technology use and growth and retention of clients, according to the survey, which was conducted Feb. 6 through March 18. About 61 of the 410 firms that completed the study were identified as “elite,” having more than $250 million in assets under management and ranking in the top 50th percentile in firm productivity. With clients having ever more investment information and advice options at their fingertips, registered investment advisers need to think differently about their businesses going forward, said Mark Bruno, associate publisher at InvestmentNews and head of InvestmentNews Research. “Expecting to succeed on the heels of market appreciation, investment performance and word-of-mouth marketing alone is a recipe for mediocrity, at best,” he said. The report offers short-term and long-term suggestions for advisers seeking growth. Among the survey's findings, elite advisers believe digital investment advisers, commonly called robo-advisers, offer an opportunity to expand their own services and their client base, as opposed to being threatened by these new industry players. (More: 5 ways to protect your firm from robo-advisers)

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.