Financial advisers interested in making more money may want to partner up at work.
According to a
Fidelity Investments survey of 1,207 advisers and brokers, those who are part of a team earn, on average, 32% more than their colleagues who work alone.
Advisers on a team earn about $296,210 annually, while solo advisers average $223,859.
Teams also manage more client assets — about $86 million, compared with solo practitioners' $45 million. Of course, that is to be expected, given that the figure for teams includes assets that are managed by more than one adviser.
Nevertheless, the results are something of an eye-opener.
“For the first time, there's hard data to show how effective teams are,” said Alexandra Taussig, senior vice president of National Financial Services LLC, Fidelity's clearing arm.
Advisers on teams also are doing more to expand their businesses, with more of them shedding clients who aren't profitable, and networking more to attract new clients, according to the survey.
Teams, however, still are relatively uncommon.
About 52% of advisers work alone, while 13% are part of a team, the survey found. The other 35% work as a team sometimes, meaning with certain clients, they team up; with others, they remain solo.
The study, Fidelity's sixth annual Broker and Advisor Sentiment Index, found that advisers on teams are slightly less content with their firms than solo advisers, probably because those who are part of a team have to compromise on certain issues, whereas solo advisers make their own decisions, Ms. Taussig said.
Teams of advisers are most likely to be found at registered investment advisory firms and wirehouses, and least likely at independent broker-dealers and regional brokerages, the survey found.
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