How top-performing advisory firms got there

Best of the best share some of the same attributes; the business is a business

Nov 7, 2012 @ 1:56 pm

By Liz Skinner

+ Zoom

Top-performing financial advisers attribute their success to intensely focusing on the business of the firm, concentrating on the clients they can serve best and using adviser time wisely.

“Professionally managing our business has been a critical component of our growth to date and will be critical as we continue to expand,” Jeffrey Roof, president and founder of Roof Advisory Group Inc., said during an InvestmentNews webcast on Tuesday afternoon.

His firm was one of the top performers of those surveyed in the 2011 InvestmentNews/Moss Adams Financial Performance Study of Advisory Firms, which was sponsored by Pershing Advisor Solutions LLC. Roof Advisory also was a top performer in 2009.

The highest-rated performers among the 436 firms that participated last year fell in the top quartile based on earnings before owner's compensation, 2010-11 annual growth rate of revenue and 2011 revenue per head count.

Roof Advisory examines its performance every month and quarter to quarter to continually develop strategic growth plans, Mr. Roof said. The firm's management also uses industry benchmarking to see how the business is doing compared with other advisory firms.

Additionally, the firm makes sure its customers are those that it can serve better than competitors can, Mr. Roof said.

Another firm identified as a top performer in the 2011 survey is The Colony Group LLC, which has its own full-time professional management team. That includes a president who has no client responsibilities and a full-time business development officer.

“That allows our professionals to bring in new clients, serve clients and oversee staff,” said Robert Glovsky, the firm's vice chairman and senior financial counselor.

Colony's BDO works with all the RIA's senior financial professionals to help them expand the business and “overcome any fear of asking for referrals,” Mr. Glovsky said.

Another top performer, Fox Joss & Yankee LLC, uses interns to help leverage advisers' time, said Jon Yankee, partner and chief financial officer of the firm.

Hiring summer interns also gives the firm the opportunity to try out people who may become future employees of the firm, he said.

“The list of alums from our internships are the first people I think of when it's time to recruit new talent,” Mr. Yankee said.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Will ‘cyborg’ investing models be the perfect combination for investors?

Meb Faber of Cambria Investments is certain that at some point everyone will move towards a robo plus adviser model. Hear how these changes are shaking up the industry.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

Finra ranking brokers in effort to crack down on industry's bad apples

All 634.403 reps have been ranked based on factors such as prior regulatory disclosures, disciplinary actions and employment history.

How to save retirement planning from tax reform

Losing big deductions, even in lieu of a larger standard deduction, may cause taxes to rise in retirement.

Advice firms in a tricky financial position

As revenue growth dips and salaries rise, nearly 90% of firms are at or near capacity.

In a turnaround, Wells Fargo Advisors sees slight bump in headcount

Racked by a scandal in its retail banking unit, Wells still managed to add 37 new advisers in the third quarter, a small number but an improvement nonetheless.

Social Security benefits to increase by 2% in 2018

Largest cost-of-living adjustment since 2012 may be offset for some by higher Medicare premiums.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print