TOP INVESTMENT ADVISORS FOR THE HIGH NET WORTH
Who are the top investment advisors for the High Net Worth? A recent survey conducted by Spectrem’s Millionaire Corner indicates that the top investment providers for wealthy households vary somewhat by level of wealth. While there is definitely overlap between the wealth segments, some providers are stabilizing a niche with the wealthier households.
Leading providers in the various segments of high net worth households display differing product and service offerings from each other. Additionally, how each company services individuals may varies based upon the investor’s net worth (or amount of assets held at that firm). Spectrem Group conducts research with high net worth households every month. The margin of error is +/- 4 percentage points. The firms identified in the chart are based on research with 500 households with $5 million to $25 million of net worth, 1,000 households with $1,000 to $5,000 of net worth and 1,500 households with $100,000 to $1,000,000 of net worth. Over 200 interviews were conducted with the $25 Million Plus households.
Wells Fargo is clearly a winner with high net worth individuals of all segments. Ranking the highest with the $5 million plus, it is also the investment provider of choice with the $100,000 to $1,000,000 segment. It rates in the middle of the pack with the $25 million segment. Wells Fargo includes the previous Wachovia clients as well as clients of the former A.G. Edwards, which was acquired by Wells Fargo several years ago.
Fidelity is used by many of the high net worth investors in the $100,000 to $1,000,000 segment as well as the $1,000,000 to $5,000,000 segments. Fidelity generally services many of its clients through individuals located in its branches as well as phone based service centers. Additionally, many independent advisors or registered investment advisors hold customer accounts at Fidelity. This may lead individuals to believe that their advisors are “Fidelity” advisors. Also note that Fidelity appears near the top of the list for those with more than $25 million of net worth.
Almost five years after the financial collapse, those banks that merged with brokerage firms (either by choice or not) seem to be maintaining market share among the high net worth. Fidelity, a mutual fund provider, was identified shortly after the crisis as one of the most trusted financial institutions.
A significant number of high net worth individuals use advisors that are not affiliated with a brand-name provider. For that reason, no one investment advisor holds significant market share as the “primary investment advisor” for the high net worth.