In regard to your article on the Tiburon CEO Summit XIV, I would like to share with you some observations from my participation in the event.

Chip Roame, the founder and principal of Tiburon, is widely recognized and respected as a strategic consulting resource to financial service firms.  Chip and I worked together years ago at Schwab and I continue to work with him (voluntarily) to organize and execute the CEO Summit. 

While there were many interesting topics to summarize, allow me to “bottom-line” the most salient points to for financial advisors.

The commercial opportunity for the trusted advisor serving the high net worth client is big and getting bigger.  Chip’s research points to several overarching trends:

1.  The baby boomer demographic continues to be a dominant force.  Investable assets now approach $23 trillion and more are on the way much of it due to boomers selling their businesses and rolling over retirement plan assets into IRA Rollover accounts.

2.  The fee-based model of serving clients is winning.  The high net worth client is looking for a trusted advisor relationship that offers their services on a fee basis.

3.  These clients are choosing advisors that offer a comprehensive set of services, not just portfolio performance.  Clients are just as concerned about how their advisor can help them with health care, estate planning and philanthropy issues and retirement planning.

Competitors, such as wirehouses and bank trust departments with millions to spend on advertising and brand management, are no longer asleep. They are adapting to seize the opportunity as well.  However, independent advisors are in a unique position to maintain and improve market share.  Based on Chip’s research, your strategy should be to continue emphasizing those activities that build client trust.  Clients value and reward those advisors they perceive as a trusted resource – delivering what was promised, providing a high level of communication, and simply matching their financial liabilities with an appropriate risk profile in an asset allocation plan.  I believe outsourcing non-core competencies and dedicating resources towards relationship management, with the goal of building trust with clients, is part of the winning strategy. 

Dennis Clark
CEO
Advisor Partners 

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