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PriceMetrix

Research from PriceMetrix Reveals Advisors Continue to Favor Fewer but Deeper Client Relationships

June 20, 2016, Toronto, ON – Research conducted by PriceMetrix, the industry leader in practice management analytics software, found that in 2015 financial advisors worked with fewer clients but managed more of their assets. The findings concluded that advisors have a record high in accounts per household, and a record low of ‘single account’ households. Both indicators have improved steadily over time, suggesting that clients are embracing more comprehensive wealth management solutions from their advisors.

“In 2009, the average advisor managed about 200 household relationships and today that number is closer to 150. On the surface, it might seem that the trend of having fewer clients is a cause for concern for the wealth management industry,” said Patrick Kennedy, Chief Customer Officer at PriceMetrix. “But, in fact, advisors are choosing to deepen their client relationships with fewer clients. They are choosing quality over quantity.”

Using its database of seven million retail investors, 500 million transactions and over $3.5 trillion in investment assets, PriceMetrix also found that these deeper client relationships frequently contain retirement accounts: 74% of retail wealth relationships included a retirement account, up from 69% in 2011. This suggests a higher tendency for clients to consolidate more of their wealth with fewer providers. The presence of these accounts is also an indicator of faster growth. Advisors who grew the most in 2015 have retirement accounts in 80% of their client relationships compared to 69% of relationships for those who grew the least.
“Servicing fewer clients with a more comprehensive offering lets advisors not only better serve their existing clients, but also frees up capacity to prospect the right clients to grow their business” stated Doug Trott, President and CEO of PriceMetrix. “That is an outcome that benefits both advisors and investors.”

About PriceMetrix

PriceMetrix is the first choice in practice intelligence solutions for retail brokerages in North America. We help wealth management firms enhance revenue growth, by enabling advisors to identify and action otherwise lost revenue opportunities. By combining industry know-how with powerful aggregated market data, we help our clients increase overall firm profitability.

PriceMetrix directly measures aggregated data representing 7 million investors, 500 million transactions, 1.6 million fee-based accounts, 7 million transactional accounts and over $3.5 trillion in investment assets. PriceMetrix combines its patented process for collecting and classifying data with proprietary measures of revenue, assets, and households to create the most insightful and granular retail wealth management database available today.

Founded in 2000 and headquartered in Toronto, Ontario, we service a notable range of retail wealth management firms within the United States and Canada. To learn about why our clients love us, please visit www.pricemetrix.com or call and email us at 1-866-955-0514 and info@pricemetrix.com.

Media Contact

Patrick Kennedy
PriceMetrix Inc.
+1 (416) 955 0514 Ext. 227
patrick.kennedy@pricemetrix.com