Cerulli Sees Even More High-Net-Worth Investors Splitting Their Assets Among Multiple Advisors

 

Cerulli just released its latest look at concentration of assets among the wealthy and compared to previous studies, there was little surprise: yes, the rich are splitting their allocations among multiple advisors.

 

What is interesting, however, is that Cerulli says the recent jolt to investor confidence will encourage even greater fragmentation of accounts as "fear is outweighing confidence" among the wealthy.

 

I don't know. On one hand, clients who feel burned by their existing advisory relationships may be looking to move some of their money to greener pastures. 

 

But that takes active effort and confidence in your ability to find a better advisor than the one you previously had. Those don't seem like fear-driven behaviors to me. 

 

If anything, it sounds more like the behavior of self-directed investors, only applied toward individual advisors rather than favorite mutual funds or hot stocks. And that, in turn, sounds more like bull market exuberance.

 

We'll just have to see where the assets go. Meanwhile, if your clients are happy with your relationship and your results, probably a good idea to keep prospecting for those held-away accounts.

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