Investors do not always get to compare one advisor against another, but they do form opinions about the advisors with whom they work, and they do share that information.
Spectrem’s study Asset Allocation, Portfolios and Primary Providers asked Ultra High Net Worth investors with a net worth between $5 million and $25 million to rate advisors from different companies based on their overall talent. Vanguard earned the top spot, with 81 percent saying it had talented advisors and staff, followed by Fidelity at 80 percent.
There was a drop-off following the top two. The advisors and staff at Charles Schwab got approval from 74 percent of investors, and 73 percent of investors said Goldman Sachs had talent among its advisors and staff.
T. Rowe Price and Morgan Stanley got approval from 70 percent of investors as well.
The Spectrem report information was segmented according to age, and investors between the ages of 45 and 54 rated Raymond James very highly for talented staff, with 90 percent giving approval to that company’s employees. The oldest segment, over the age of 64, was most improved with Fidelity, with 81 percent giving approval.
Among investors who are advisor-dependent, meaning they have all of their investment decisions made by an advisor, BMO Harris Bank got a 100 percent approval. Eighty-four percent of that age group rated Wells Fargo as having talented advisors and staff.
BMO” Harris also rated highly among managers, with 86 percent giving their approval of the advisors and staff there. Eighty-five percent of business owners said Northern Trust had good staff.
Vanguard also received top marks for having innovative products and services (65 percent of all UHNW investors agreed), and also had an 81 percent approval rating for being a trustworthy and transparent company. Fidelity finished second in both categories among the 28 companies rated.
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