24% of advisers are working as part of a team this year

If statistics are any indication, advisers see strength in numbers, according to a recent survey.
JUL 29, 2009
If statistics are any indication, advisers see strength in numbers, according to a recent survey. The number of advisers working in team-based practices has increased 60% in the past two years, a 9-percentage-point increase, according to the 2009 Brandscape Report, published today by Cogent Research LLC of Boston, and reflects the views of 1,500 advisers that were surveyed in April. Moreover, 24% of advisers work collaboratively this year, compared with 15% in 2007, the last time Cogent examined the trend. Practices that are organized in teams assign one adviser to be the key “asset gatherer,” but another adviser will focus on investment analysis or product due diligence. The number of team-based advisers will continue to increase because investors expect help with tax planning, estate planning, trust services and other financial concerns, according to the study. “The growing needs of investors may also result in advisers’ teaming with other experts for tax and legal issues in order to close knowledge gaps and to retain client assets,” the report stated. The study showed that wirehouse advisers have seen the biggest increase in team-based practices, with a 70% increase over the past two years. One in five independent advisers is working in a team-based practice, the report showed. Advisers with more assets under management are more likely to be part of a team, according to the report. For instance, 55% of advisers with at least $100 million in assets are co-managing their books with other advisers. Meanwhile, just 11% of advisers with less than $25 million in assets have collaborative business structures.

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