Issue link: https://resources.envestnet.com/i/1527487
Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 14 HOW ADVISORS BENEFIT FROM DELIVERING AN INTELLIGENT FINANCIAL LIFE The survey data quantifies whether the practice of delivering financial wellness to clients benefits the advisors' practices. At the most fundamental level—that of assets under management (AUM)—it is clear that tremendous benefits accrue over the long term to advisors who deliver financial wellness to their clients effectively. Advisors who scored in the top quartile (those with a score of 81 or more) managed client assets of US$194 million on average (Figure 5). By contrast, advisors who scored in the bottom quartile (those with a score of 68 or less) managed just US$146 million—25% less than the average top-quartile advisor. FIGURE 5: MEDIAN AND AVERAGE AUM FOR TOP-QUARTILE AND BOTTOM-QUARTILE ADVISORS Delivering financial wellness provides benefits across a range of areas touching new business, revenue growth, and advisors' satisfaction with their practices. Table A shows the results of this analysis. $150 $75 $194 $146 Top-quartile advisors (Base: 121) Bottom-quartile advisors (Base: 122) Median AUM Average AUM Median and Average AUM for Top-Quartile Advisors and Bottom-Quartile Advisors (In US$ millions; among financial advisors primarily serving individuals/families, with 3 or more years of experience) Source: Aite-Novarica Group's survey of 483 U.S. financial advisors, Q4 2021