First Research US Industry Profile

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Financial Planners & Investment Advisers
SIC Codes: 6282
NAICS Codes: 523930
Last Quarterly Update: 5/6/2019
Companies in this industry provide customized investment advice and financial planning services. Major companies include US-based Ameriprise Financial and AXA Financial (a subsidiary of France's AXA), as well as AMP Limited (Australia), IGM Financial (Canada), and units of diversified financial services companies such as Morgan Stanley (US).
The value of assets under management (AuM) worldwide, an indicator of demand for financial planning and investment advice services, is about $85 trillion, according to PricewaterhouseCoopers (PwC). Global AuM is forecast to exceed $145 trillion by 2025, a growth rate of 6.2% per year, with stronger performances in Latin America and Asia/Pacific. In North America AuM is predicted to grow at a compound annual rate of 5.7% through 2020 to more than $49 trillion (from a 2012 total of $33.2 trillion), exceeding expected AuM for Europe, Asia/Pacific, the Middle East, and Africa combined.
The US industry includes about 23,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $40 billion.
Competitive Landscape
Aging populations, the shift to defined contribution retirement savings plans, and frothy markets in recent years are fueling growth of assets under management and demand for investment advice. Competing with independent financial planners and investment advisers for clients are Wall Street brokerage firms switching from a sales business model to a fee-for-service business model on retirement accounts, as well as CPAs with Certified Financial Planner designations. The proliferation of free online tools (sometimes called robo advisers) is proving popular among cost-conscious investors. As investors become more comfortable with digital financial advice, some 200-plus providers of digital advice in the financial planning profession in the US are predicted to manage $7 trillion in assets by 2025, according to Deloitte's Global CIO Survey.
The profitability of individual firms depends largely on effective marketing. Large companies have some advantages in providing expertise in a wider range of investment options, and they may be able to charge lower fees. Small companies can compete successfully by providing better service and advice. The US industry is concentrated: the 50 largest companies account for about 55% of industry revenue.
Products, Operations & Technology
The relationships between financial planners, investment advisers, and other professionals in the financial services industry are complex, and their roles ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/04/2019
10/29/2018
07/30/2018
04/30/2018
01/29/2018
10/23/2017
07/24/2017
04/24/2017
01/23/2017
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07/11/2016
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10/12/2015
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01/26/2015
10/27/2014
08/04/2014
05/12/2014
02/17/2014
11/11/2013
08/19/2013
05/27/2013
03/04/2013
11/26/2012
09/03/2012
06/18/2012
03/26/2012
12/05/2011
09/12/2011
06/06/2011
02/14/2011
11/08/2010
08/16/2010
05/10/2010
02/08/2010