Financial Planners & Investment Advisers
Companies in this industry provide customized investment advice and financial planning services. Major companies include US-based Ameriprise Financial and AXA, and units of diversified financial services companies such as Morgan Stanley, as well as AMP Limited (Australia) and IGM Financial (Canada).
The value of assets under management (AuM) worldwide, an indicator of demand for financial planning and investment advice services, is about $110 trillion in 2021, according to Statista. 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, according to PricewaterhouseCoopers (PwC).
The US industry includes about 20,000 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 providers of digital advice in the financial planning profession in the US are predicted to manage $5 trillion in assets by 2027, according to Statista.
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 60% 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
,
Finance & Regulation
,
Regional & International Issues
,
Human Resources
Also includes the following chapters:
Quarterly Industry Update
,
Industry Indicators
,
Business Challenges
,
Trends and Opportunities
,
Call Preparation Questions
,
Financial Information
,
Industry Forecast
,
Industry Websites
,
Glossary of Acronyms