The financial benefits of a specialised client base

financial advice legal medical clients

18 April 2024
| By Laura Dew |
image
image
expand image

Those financial advisers with client specialisation are likely to manage funds which are 15 per cent larger than those generalists, according to Adviser Ratings.

Data from the research house showed 45 per cent of advisers surveyed said they work with a specialised client base, most commonly being senior managers, medical professionals or blue-collar workers.

Those advisers who have a specialisation, on average, manage funds which are 15 per cent higher than generalists. This is particularly obvious among sectors like legal and medical workers. 

Given both types of advisers manage a similar client volume, Adviser Ratings said the higher funds under advice indicate clients in these professions have a higher volume of investable assets. 

Specialised advisers also charge a higher fee volume, with specialists charging fees that are 18 per cent higher than generalised ones. For advisers working with senior management and legal professionals, fees rise as much as 30 per cent compared to a general adviser. 

When it comes to future growth, 83 per cent of specialised firms said they plan to increase their client numbers in the future compared to 78 per cent of generalised firms. 

More than half of specialised advisers plan to grow their businesses by focusing their expansion on specific client categories. 

Adviser Ratings concluded: “These findings indicate that while generalists may reach a broader audience, specialists manage larger funds and impose higher fees, particularly when targeting specific niches like the legal sector or top-level management. This underscores a clear need for and higher degree of differentiation when it comes to client type.

“The choice between a generalist or specialised approach in financial advice services will depend on the individual needs and preferences of clients, as well as the business strategy of the advisers themselves. Whether aiming to reach a broader audience or focusing on specific niches, the key is to align the approach with the desired growth trajectory and client base.”
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.
 

Recommended for you

 

MARKET INSIGHTS

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

Bradley

Dear CEO and board, It's time to start some VERY HEAVY LOBBYING on behalf of advisers which could save your platform re...

15 hours 31 minutes ago
JOHN GILLIES

He is every thing ASIC said he was BUT How on earth did he expect to get away with it????? . these guy's who dip in...

17 hours 44 minutes ago
Chris Cornish

A tad optimistic from Morningstar. Adviser numbers are somewhat irrelevant; it all comes down to the platform and whethe...

18 hours 50 minutes ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

1 week 1 day ago

Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation....

2 weeks 2 days ago

Iress has announced it is strengthening its security settings after suffering an unauthorised access of its systems over the weekend....

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND