Advisers who double down on client niches stand to multiply assets: Study

Focusing on a specific client niche can help advisers increase their business, according to Cerulli Associates
OCT 10, 2013
Financial advisers who are looking to multiply their assets under management may want to focus on a more specific group of clients. Advisers who take on clients in a specific niche area, such as high-net-worth investing or retirement planning, are in charge of double the amount of assets per adviser than the industry average, according to a new study from financial services research firm Cerulli Associates Inc. Only about 15% of all advisers are specialist advisers. But this group manages 29% of overall adviser assets, according to the study, which measured assets through the end of June 2013. The study focused on specialist advisers whose practices have zeroed in on the areas of defined-contribution plans and retirement plans, small to midsize institutions and high-net worth clients. “They have chosen to focus on a specific type of client and that tends to breed itself,” Bing Waldert, a director at Cerulli, said of specialist advisers. “Rather than trying to be all things to all people, they really develop something within a specific market. It starts to take on a life of its own.” Advisers who aim to boost their growth by specializing in these areas need to know that steep levels of due diligence are often required, according to Mr. Waldert. Focusing a practice specifically on one niche also decreases the number of potential clients, according to the study, but it gives an adviser a greater chance of earning business. However, Mr. Waldert said, specializing isn't for all advisers and he doesn't expect every generalist to become a specialist. “I think every adviser would tell you they want to work with fewer, wealthier clients,” Mr. Waldert said. “It takes a careful examination of whether they're set up to do so.”

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.