Biggest RIAs on Path to Nationwide Footprint

Some of the nation’s largest registered financial advisors will achieve nationwide footprints in the next 10 years, according to a market expert.

Fisher Investments, Edelman Financial Services, Mercer Advisors and United Capital Financial Advisors are on that path, said Chip Roame, managing partner of Tiburon Strategic Advisors.

But that will still leave plenty of room for smaller RIAs because huge advisors like Fidelity aren’t going to plant stakes in every small town and city, he said.

That the advisory market can blossom into a dozen nationwide firms, 50 to 60 superregional advisors and the rest made up of hundreds of small practices isn’t far-fetched, Roame said.

Assets are pouring into fee-based advisors faster than any other distribution channel in the wake of new regulatory fiduciary initiatives and as millions of baby boomers and pre-retirees seek financial advice to generate income in retirement.

Fee-based financial advisors managed $4 trillion in assets at the end of last year, up from less than $1 trillion in 2001, Roame said.

But even with rising asset volumes, the number of fee-based SEC-registered RIAs has stayed level at about 30,000 for many years, according to Tiburon research.

Size Not Required for Survival

RIAs don’t necessarily have to be big to survive, but they need a solid marketing plan if they want to grow into a nationwide powerhouse, Roame said.

Indeed, some of the largest RIAs might already be considered nationwide, even if they don’t have the ubiquitous Main Street presence as an Allstate or State Farm.

Founded in 1979, Fisher Investments is a fee-only adviser with $100 billion under management and tens of thousands of clients.

Headquartered in Camas, Wash., Fisher maintains offices in California, Atlanta, Arizona, Texas, Colorado and Pennsylvania, and abroad.

Edelman Financial Services, headquartered in Fairfax, Va., manages more than $21.7 billion in assets for more than 35,000 families across the country, the company said.

The company counts 43 offices coast to coast.

Of the $4 trillion managed by fee-based advisors, $3.6 trillion was managed by SEC-registered advisors and $400 billion was managed by dually-registered financial advisors, Tiburon said.

InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].

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