Hi everyone, this is Pete Secret with your industry update for the month of May. As you navigate the complexities of the financial world, we're here to provide you with the tools, trends, and thought leadership necessary to excel. Monthly, we'll go over business-building ideas, ways to connect with ultra-high net worth, research from top firms, we'll highlight one firm a month, talk about the current deal landscape, and go over some noteworthy moves.
How One Advisor Brought in over $500M In Assets Through Referrals:
On May 3rd, Spartan Advisory hosted a webinar with Pete Secret, where he interviewed a top wealth management coach and one of his most successful wealth advisors who had brought in over $500M in net new assets over the past 10 years: Josh Feinberg and David Greenleigh. In this webinar, attendees discovered the secrets to bringing in referrals and how it could translate to over $30M+ in yearly net assets. They also discussed David's path from Wire to Independent, to starting his own RIA.
Greenleigh, founder and branch manager at LGG Financial, shared insights into financial planning, investment strategy, and his role as an in-house analyst.
Feinberg, with 26 years of experience, discussed his hands-on approach to helping financial advisors and branch managers achieve their goals.
Finally, Secret, CEO and founder of Spartan Advisory Partners, shared his wealth management expertise, focusing on growth strategies, succession planning, and mergers and acquisitions.
The opportunity to learn from these successful professionals was not to be missed. Didn't get to watch it live? Watch the recording here. Don't want to miss the next one? Sign up to get notified here.
Art Prices—Outperforming Wine, Watches, and Stocks—Rose 29% Last Year:
Art was the best-performing luxury asset in 2022, with several blockbuster sales pushing average prices up 29%, according to the Knight Frank Wealth Report released on Wednesday.
Classic cars came in second with prices rising 25%, the largest increase in nine years. A Mercedes-Benz Uhlenhaut Coupé sold for $143 million last year, becoming the most expensive car ever sold.
Half of the 10 luxury investment assets tracked by Knight Frank, which also include handbags, wine, coins, jewelry, furniture, colored diamonds, and rare whiskey, saw double-digit growth.
Overall, the Knight Frank Luxury Investment Index increased 16% year over year, easily beating inflation and outperforming the majority of mainstream investment classes, including equities and even gold, Knight Frank said.
Reliving Its 1900 Heyday, St. Louis Ranks No. 1 on the WSJ/Realtor.com Luxury Index:
“Affordability is not the sexiest thing to talk about, but you know, the average sale price of a home in St. Louis is about 30% lower than the national average,” she said. “Our luxury buyers can have so much more buying power and the quality that they can afford is just so enticing.”
That’s a major reason why St. Louis is the No. 1 metro area on The Wall Street Journal/Realtor.com Emerging Housing Markets Index first quarter of 2023, released Wednesday, shooting up from 16th place the previous quarter.
St. Louis also attracts entrepreneurs, boasting a 200-acre innovation district that provides 45,000 jobs, and the renowned Donald Danforth Plant Science Center also brings scientists to town. There are several regional corporate headquarters in St. Louis, including Enterprise, Boeing and Express Scripts, owned by Cigna Healthcare.
Business-building idea:
As a financial advisor, one of the most powerful growth strategies is focusing on building trust and demonstrating expertise early in the client relationship. By doing so, you not only create satisfied clients, but you also set yourself up to ask for valuable referrals earlier in the engagement process. This proactive approach can significantly impact your ability to expand your network and attract new clients.
When clients trust your expertise and feel that you're genuinely invested in helping them achieve their financial goals, they are more inclined to recommend your services to their peers and coworkers. This word-of-mouth marketing can be highly effective in establishing your reputation as a trusted, knowledgeable financial advisor.
We went over the EXACT script an advisor used to bring in over $500m in assets using this exact referral strategy. Watch the recording here.
May Research from Top Firms:
Morgan Stanley - The S&P 500 is defying bearish predictions of a retest of October lows, up 6.9% YTD and 14.8% since October 12, 2022. However, the market may also frustrate the bulls due to headwinds such as economic uncertainty, tighter bank lending, and Fed action, which push 2023 earnings estimates lower. Despite these challenges, factors such as pre-Presidential year and a bounce back from a bad 2022 suggest potential upside. A defensive positioning could be risky if 2023 proves to be a positive year, and opportunities exist in value cyclicals and growth names. The author suggests a barbell approach, balancing risk-on sectors with earnings stable stocks. Read more here.
JP Morgan - Markets are expecting a slowdown in interest rate hikes as recessionary risks mount. This is bolstering demand for bonds, which are seen as safe-haven assets. However, most central banks in developed markets (DMs) are expected to continue delivering further interest rate hikes in the first half of 2023 before pausing. This ongoing tug-of-war between hawkish central bank messaging and slowing economic growth will likely create choppy conditions for bond markets in 2023, with yields expected to trade within a range-bound environment. Read more here.
Morgan Stanley:
Each month, we highlight a firm revolutionizing the wealth management industry. This month, we're focusing on Morgan Stanley.
Morgan Stanley excels in providing financial advisors a comprehensive range of services, including investment management, financial planning, retirement solutions, and estate planning. Advisors have access to top-tier research, advanced analytical tools, and a vast array of investment products, empowering them to deliver personalized, holistic financial advice to clients.
With a commitment to fostering a culture of innovation, Morgan Stanley invests in technology, training, and professional development. This unwavering support equips advisors to navigate the evolving financial landscape and provide best-in-class service.
In summary, Morgan Stanley's robust platform, exceptional resources, and dedication to innovation make it a standout choice for financial advisors seeking to elevate their practice and deliver exceptional value to clients.
Sound interesting? Want to hear more? Click here to see if this is a viable solution for your business.
Current landscape:
W-2 wirehouses & large regional firms are offering lucrative deals to attract top talent, with >300% of trailing twelve production & Forbes/Barrons teams getting >325% depending on many factors.
If considering going independent, expect 30-100% of annual production. Not all firms pay upfront.
If you're inherently entrepreneurial, consider starting or joining an RIA. While no upfront pay may be offered, the enterprise value built can offset the opportunity cost of taking a check.
Want to see what a deal looks like for your business? Click here to see what specific offers look like for your unique situation.
Noteworthy moves:
Every month we compile a list of some recent advisor moves that we would like to spotlight. Here are some examples:
Rockefeller Scoops up Teams Producing $15.5M Combined
In a wave of departures before the Presidents’ Day weekend, three Merrill Lynch teams that had generated over $15 million in revenue combined joined Rockefeller Capital Management’s private wealth division on Friday, according to a well-placed source.
Morgan Stanley Nabs Teams with $9M
Morgan Stanley went three-for-three in recruiting battles with rivals as it scooped up teams with $9 million in combined production from Merrill Lynch and UBS Wealth Management USA on Friday, according to multiple sources familiar with the moves.
Two $2-Mln UBS Brokers Rejoin Morgan Stanley in Florida
UBS Wealth Management USA on Friday lost two brokers with around $2 million in production each to Morgan Stanley Wealth Management in Fort Lauderdale, Florida, according to sources familiar with the move.
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