For decades, the asset management industry revolved around a single essential function: investment management. Councilors built their own proposal on the division of assets, the choice of security and the portfolio re -establishment. However, today's investors of high net value and ultra-high value expect more than investment expertise. They require a comprehensive wealth management experience that integrates financial planning, tax efficiency, asset strategies and pension revenue solutions.
To meet this requirement, advisory firms are changing their organizational structures and offers in different ways to better serve customers and follow new growth opportunities. In the midst of this shift, the following three main trends are converging to form the next era of wealth management.
Raising teams
For many years, the model of solo advisers has given way to the team structures. Two main forces are running this change.
The first is the increasing complexity of customer needs. HNW individuals often require advanced planning strategies that include numerous disciplines, from asset planning to business success. No single counselor can provide deep expertise in all areas.
The second is the demand for a smooth, high touch experience. Wealthy investors increasingly expect an integrated approach where their taxes, investments and assets are in line with an advisory team.
The research underlines the advantages of this model. By Cerulli AssociatesTeam -based advisers significantly exceed their single counterparts, managing an average of $ 100m per advisor, compared to $ 72 million for single practitioners. Team -based practices also serve the largest customers, with an average customer size of $ 1.6 million versus $ 1 million for solo advisers.
As firms go through team -based models, specialization is the main differentiation. Advisors with advanced determinations, such as Cycle, Cpwa AND Rma, Demonstrate higher Aum, stronger customer retention and increased income than their non -certified peers.
A recent study of CEG Insights Of the 1,093 financial advisers found that trusted councilors significantly exceed their non -credit counterparts:
-
On average, councilors holding Cima, CPWA or RMA certificates manage $ 267 million more in wealth than those without these determinations.
-
Certified councilors earn 33% more than non -certified councilors, with those holding numerous advanced names on average $ 762,000 in annual net income.
-
A higher percentage of certified councilors manage most of their clients invested, compared to only 66% of non -certified councilors.
As firms move towards team structures, three main models have appeared.
-
Vertical – A leading advisor manages client relationships, while associate councilors and support staff handle execution and operations. This model provides continuity, but may limit deep specialization.
-
Horizontal teams – Many elderly associates cooperate, each specializing in a particular area such as taxes, assets planning or investment strategy. This promotes expertise but requires strong internal coordination.
-
Hybrid team– A leading adviser operates as a “CEO” of practice, while old specialists run service divisions. This structure balances scaling with deep expertise, often including external partners for increased flexibility.
Despite the approach, firms that invest in advanced specialization and reliable expertise are better positioned to provide high, multidimensional touch service that sophisticated investors expect.
Moving beyond prices based on Aum
Many advisory firms are re -evaluating the traditional AUM -based price model as they expand their services. While assets under management tariffs remain dominant, they do not always match the increasingly complex services that clients require.
The AUM model assumes that investment management is the main driver of the value of an advisor. However, clients require comprehensive planning, tax strategies, business success guidelines and multi-generational wealth solutions in today's wealth management landscape. Because these services are not always related to the size of the portfolio, firms that rely solely on AUM fees may not be able to fully make money with the value they offer.
To overcome this gap, advisers increasingly adopt hybrid or alternative tariff structures that provide high value planning while maintaining flexibility for different customer profiles. The most common approaches include:
-
Flat – Customers pay an annual or quarterly fee based on the services provided rather than the size of the assets.
-
Prices based on reconciliation -An accession fee approach that matches level service levels.
-
Project -based fees -The tanks once made for specific planning services, such as wealth or pension planning.
-
Hybrid tariff models – a combination of AUM fees and other approaches, such as:
This flexibility enables councilors to expand their extension, improve benefit, and approximate the best prices with the full width of the services they offer. Cerulli Associates has followed how many different service fees advisers load their clients. The number of tariff structures applied by HNW practices has increased 12% since 2020.
Model portfolios that go to the overall flow
As wealth managers shift their focus from choosing investment in holistic planning, many external portfolio construction through model portfolios. These centrally managed investment strategies increase efficiency, create scaling and save time for more valuable client conversations.
Historically, councilors have built custom portfolios for each client, but this approach is both time and difficult to escalate. Model portfolios offer some advantages:
-
Improved investment results – Centralized models are often built and managed by professional investment teams, leading to the most sustainable and disciplined wealth allocation.
-
Improved tax efficiency -Many portfolio models integrate direct indexing and harvesting tax loss, providing HNW clients personalized, tax optimized solutions.
-
More time for holistic planning – By transferring investment management, councilors can devote more time to assets, taxes and financial planning, areas that customers increasingly prioritize.
According to the global advisors of the state roadAdvisors now share 39% of their management assets to model portfolios, from 32% three years ago. This increase is driven by efficiency gains, enabling councilors to focus on customer relationships rather than daily portfolio management.
However, research on councilor clients has repeatedly reported that investment management is the most important technical competence they expect from their advisers. Changes made to the CIMA certification program in 2024 now require practitioners to demonstrate knowledge competencies regarding the assessment of model portfolios based on the realities of the client, assets and obligations and objectives desired. Candidates need to make the right difference between applicable investment management models and help customers make the right choices to meet their goals.
Wealth management is undergoing a fundamental change. While high -value net customers require more comprehensive planning and specialized expertise, the most successful firms will embrace team -based advisory models, approve the value -driven tariff structures and portfolios of lever models to increase efficiency. Councilors who rely solely on the risk of selecting investment that fall back on an increasingly complex landscape. Firms that prioritize specialization, integrate expert teams and implement scaled solutions will be best positioned to meet customer development expectations and promote long -term success.