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Alternative Market Briefing

Investment advisors enjoy higher revenue, says study

Wednesday, October 03, 2018

Laxman Pai, Opalesque Asia:

The registered investment advisor (RIA) revenues have improved compared to 2015, said a study.

However, according to the study published by BNY Mellon, the assets under management (AUM) growth is predominantly driven by market performance. Further, even as firms have gone on a hiring spree, they have yet to realize meaningful productivity gains from new hires.

The 2018 Study of Pricing & Profitability, which is conducted by InvestmentNews and sponsored by BNY Mellon's Pershing Advisor Solutions, includes responses from 385 advisory firms.

A press note from BNY Mellon's Pershing Advisor Solutions quoted Gabriel Garcia, managing director and head of relationship management saying that: "The main growth driver for RIAs is the overall performance of the market should be a flag for our profession. With the economy still running high, now is the time for firms to take a critical look at their business and identify areas of investment and improvement."

Garcia added that first and foremost, firms have to find ways to maximize their investments in new hires. Training is critical in that respect, he said.

Further, firms need to increase their focus on developing marketing and client experience strategies to help differentiate themselves in a demanding economy and increasingly competitive marketplace, he said.

Pointing to intensifying competition in the marketplace, the study reveals that the distance in performance......................

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