Top o’ the Heap
The highly desirable, highly demanding high-wealth client
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Expertise and an extremely high level of service are other differentiating factors that can define the practice of an advisor with highwealth clients.
Expertise is cited not just in terms of the advisors’ years of experience or level of knowledge, but in the partnerships they form and the services they make available to their clients. Some advisors to high-wealth investors hire lawyers from top law firms, research analysts from nationally known investment consulting firms, and sales and relationship managers from advisory practices—as opposed to hiring all of the above from large broker/dealer firms.
Other practices work to create a top-notch, white-glove service experience. Focused on the belief that wealth management is a service business, their goal is to create a service model similar to the Ritz-Carlton or Four Seasons hotels. They hope to increase referrals and build a strong brand based on service, not advertising budget.
Cerulli believes that despite the maturity of the high-wealth marketplace, there is still opportunity. Total investable assets within this group grew at a compound annual growth rate of 11.5% since 1989. Marketshare of investable assets—a gauge of future asset growth—grew roughly 153% over the same period.
The level of expertise, speed, and service necessary for success in the HNW market requires constant review of the big picture.