Accelerating Evolution by The Ensemble Practice
16
ACCELERATING EVOLUTION RESULTS OF THE INVESTMENTNEWS 2014 FINANCIAL PERFORMANCE STUDY OF ADVISORY FIRMS THE ENSEMBLE PRACTICE Sponsored by Pershing Adviser Solutions LLC
-
Upload
inresearch -
Category
Economy & Finance
-
view
1.445 -
download
1
description
Philip Palaveev and Brandon Odell of the Ensemble Practice, partners of InvestmentNews Research on the InvestmentNews 2014 Financial Performance Study of Advisory Firms, detail key findings of the newly released survey. In this exclusive deck, they explore what the largest, most successful financial advisory firms are doing to sustain the never-before-seen growth the industry is currently experiencing. For more information visit: http://www.investmentnews.com/section/in-research and http://www.ensemblepractice.com/
Transcript of Accelerating Evolution by The Ensemble Practice
ACCELERATING EVOLUTIONRESULTS OF THE INVESTMENTNEWS 2014 FINANCIAL PERFORMANCE STUDY OF ADVISORY FIRMS
THE ENSEMBLE PRACTICESponsored by Pershing Adviser Solutions LLC
Key Findings
• The advisory industry is prosperous and thriving
• The top firms in the industry are growing very aggressively and taking the top clients
• Much of the growth is fueled by contributions and market performance – firms need to emphasize new business development
• Productivity in the industry is very high but the largest firms are more than twice as productive as the smaller ones
• Many firms are underinvesting in human capital and harvesting profits at the expense of the future
• Everyone is a buyer – sellers wanted
Asset Growth in the Last 5 Years
Revenue and Income Growth by Size of the Firm
The P&L Results
$500,000 $2,000,000 $5,000,000 $10,000,000
Revenue 100% 100% 100% 100%
Direct Expense
37% 36% 41% 37%
Overhead 39% 40% 36% 36%
Profit 27% 24% 23% 27%
EBOC $ $392,000 $1,129,000 $2,596,000 $5,991,000
Sources of New Assetsby Firm Performance
Revenue and AUM per Clientby Size of the Firm
Revenue per Clientby Firm Performance
How Firms Market Themselves
Why Top Firms Have The Top Clients
Astonishing Productivity
Strategic Priorities
Elusive Economies of ScaleOverhead Percentage by Size of the Firm
Under Investing in Staff?
Mergers and Acquisitionsby Size of the Firm
ensemblepractice.com
