Spectrem’s Wealth Segmentation Series examines the relationship between an investor and an advisor in Advisor Relationships and Changing Advice Requirements, an extensive look at investors of different wealth segments, ages, genders, occupations and advisor dependency.

Among Ultra High Net Worth investors with a net worth between $5 million and $25 million, Fidelity was listed as the primary advisor for 10 percent, while Morgan Stanley was listed as the primary advisor for 9 percent of investors.

Merrill Lynch was selected by 8 percent of UHNW investors, and Wells Fargo is the primary advisor for 7 percent. Charles Schwab is the primary advisor for 6 percent and was the only other company to garner at least 5 percent of the UHNW investors.

Looking at investors based on age, there are some dissimilarities with the overall totals. For instance, younger investors are more likely to use different advisors as their primary than the entire population of investors. Fifteen percent of investors under the age of 48 are more likely to use Merrill Lynch and 13 percent of investors between the ages of 48-54 are more likely to use Fidelity. Vanguard also has 8 percent of UHNW investors under the age of 48.

Among the wealthiest investors - those with a net worth between $15 million and $25 million - 12 percent use Fidelity as their primary advisor. Ten percent use Morgan Stanley, while 8 percent use Wells Fargo and 6 percent use Edward Jones.

Fifteen percent of Business Owners use Morgan Stanley and another 15 percent use Merrill Lynch. Another 11 percent use Wells Fargo. Twelve percent of Managers use Charles Schwab.

 

Sixty-two percent of UHNW investors said they are likely to recommend their advisor to someone they know.

 

For more information on the UHNW investor, click here