New Advisor Monitor Research: Cultivating Ultra-Wealthy Books of Business

by on Nov 03, 2014

financial_advisorThis month, our Advisor Monitor team will publish a new report – Advising the 1% ­– that examines various client segmentation and referral cultivation resources that help advisors seek out and service high net worth investors. For the most part, high net worth issues are mentioned as just one part of a firm’s approach to a larger issue, such as client segmentation or referral cultivation. Firms offered a diverse mix of materials to support these topics, such as worksheets, prospecting letter templates, commentaries, and focused consulting programs.


Excerpt from Eaton Vance’s Galvanized Advisor Pricing Workbook

One major theme of our findings was that client segmentation advice is the main locus of high net worth prospecting information available in our coverage group. Eight firms offer materials related to advisors’ client segmentation strategies, which can ultimately help them focus their prospecting efforts on high net worth investors. These resources employ a generally similar set of concepts and strategies, proposing a three-step process of first evaluating each client’s quantitative and qualitative value to the advisor, identifying an ideal niche to serve, and then creating a stratified service model that focuses on the advisor’s most valuable relationships.


BlackRock Client Segmentation Criteria

Despite growing industry interest in intergenerational wealth transfer issues, we found relatively limited discussion of the topic. Still, the examples that do exist within our Advisor Monitor coverage group are highly illustrative of the concept. For example, Eaton Vance’s “The Charismatic Advisor” series helps advisors understand how to engage more effectively their wealthiest clients when it comes to estate planning discussions, which can often be fraught with emotion and personality conflict. Meanwhile, Lord Abbett’s A Smart Way to Connect with Clients’ Heirs commentary offers more practical advice about why and how to establish a formal financial educational program to serve the younger members of their clients’ families, with the hopes that better informed and more actively engaged heirs would be more likely to keep their assets with the same advisor in the future.


Lord Abbett – Intergenerational HNW Prospecting

For more about our high net worth service report, as well as recent months’ research about estate planning and client review resources, contact Grace Lei at 646-929-5148 or