Captive brokers may be holding their own with middle-market clientele, but more and more high-net-worth and ultra high-net-worth clients are turning toward independent financial advisers, according to two new surveys.
In the
Seventy-three percent defined strong performance track record (up from 60% last year) as an important service their broker provided, while others said monitoring accounts and suggesting changes were important (64% vs. 54%). Still others said keeping clients informed of new investment opportunities (64% vs. 53%) and teaching clients how to make better investment decisions (59% vs. 49%) were the most valuable services offered.
Yet it may be only a matter of time for even these percentages (or at least the base number of brokerage clients) to fall, as more and more independent planners are targeting the mass affluent market. (See
On the other hand, only 30% of those surveyed in the latest
"There was a significant decline there. We saw a big jump in the use of investment advisers, investment managers and a growing interest in financial planners," said Tanya McDonald, director at the Chicago consulting firm. "Investment advisers are used more heavily by the $5-$10 million segment. Financial planners are used most heavily by the $10-$25 million household."
About half of those who use independent advisers wanted what they perceived as more objective advice. Other reasons include: personalized solutions (25%), greater expertise (17%), and access to products and services from multiple providers (6%), according to the report.