Do you have any clients below an optimal profitability level? Armed with InvestmentNews data, this tool determines your client's profitability. Complete the information below about your overall client base, as well as individual client/AUM levels and the calculator will return a “score”, providing the benchmark and assessing if you're above or below optimal profitability levels.
After filling out information in the top left table, the table on the right will show how your firm's client profitability metrics compare with competitors of similar size.
A graph will also appear directly below the two tables that demonstrates how different client segments typically contribute to firm profitability for a business your size. The green bars show the typical client composition of similar-sized firms, based on client asset levels. The yellow line shows the contribution each client segment makes to the total percentage of firm profits; this line is also based on industry averages for similar firms.
| Your Firm | Typical Firm | |
|---|---|---|
| Revenue per Client | - | - |
| Total Clients | - | - |
| Profit per Client | - | - |
| AUM per Client | - | - |
| Revenue Yield on AUMFirm revenue divided by firm assets under management | - | - |
| Billings per Client Service HourFirm revenue divided by 1300 hours per year spent with clients divided by "# of professionals" | - | - |
| Average hours per client1300 hours per year spent with clients multiplied by "of professionals" divided by "Clients" | - | - |
This section shows whether an individual client is profitable, and what a firm might need to change to make them profitable. After inputting client information in the table on the left, the table on the right will show how that client compares with the average client at a firm your size, based on several revenue and profitability metrics.
A chart below those tables will then provide a visual gauge of how profitable that client is relative to other clients at firms in the same revenue band. For example, a client in the 90th percentile would be more profitable than 90% of clients at an average firm your size. You can change the client data in the left-hand table to see how altering the client fee or assets will make the relationship more or less profitable.
| Your Client | Average Client | |
|---|---|---|
| Client fee | - | - |
| Client revenue | - | - |
| Client profit | - | - |
| Profit margin | - | - |
| Annual client hours | - | - |
| Hourly client revenue | - | - |
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
