How does the advisor help clients – Key Takeaways:
When working with an investment management advisor, clients can expect to receive personalized financial advice, access to a variety of investment options, and regular monitoring and management of their portfolio. These services are designed to help clients achieve their financial goals and grow their wealth over time.
Facts and Insights
According to recent data, the investment management industry has experienced steady growth in recent years. In 2019, there were over 323,000 investment management advisors in the United States, managing a total of $26.7 trillion in assets under management (AUM). This reflects a 12% increase in the number of advisors and a 14% increase in AUM from the previous year.
Assets Under Management, Number of Advisors and Time in Business:
| Year | Assets Under Management (in trillions) | Number of Advisors |
|---|---|---|
| 2018 | $23.6 | 288,000 |
| 2019 | $26.7 | 323,000 |
Financial Services Offered
Investment management advisors offer a wide range of financial services to their clients, including portfolio management, financial planning, retirement planning, tax planning, and estate planning. These services are tailored to each client’s unique financial situation and goals.
Client Types
Investment management advisors work with a variety of clients, including high-net-worth individuals, businesses, non-profit organizations, and institutional investors. They also serve clients of all ages, from young professionals just starting to save for retirement to retirees looking to manage their wealth.
Fees & Compensation
Investment management advisors typically charge a fee based on a percentage of AUM or based on the services provided. The average fee for AUM-based services is around 1%, while fees for hourly or project-based services can vary. It’s important for clients to understand their advisor’s fee structure and potential conflicts of interest before entering into a relationship.
Background
Investment management advisors are required to have a certain level of education and experience in the financial industry. Most hold at least a bachelor’s degree in a finance-related field, and many also have advanced degrees and certifications, such as a Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP). They also undergo background checks and must have a clean disciplinary record to become licensed as a financial advisor.
Financial Advisor Disclosures to Know
Clients should be aware of certain disclosures that investment management advisors are required to provide. These include conflicts of interest, any legal or disciplinary actions, and information on fees and compensation. It’s important for clients to carefully review these disclosures before making a decision to work with an advisor.