Anne Mortera is the director of advisor growth and engagement at Private Advisor Group, a leading wealth management firm supporting 750+ advisors nationwide. With over $28.5 billion in advisory assets under management as of June 30, 2023, the firm leverages its resources to deliver strategies positioned to improve financial outcomes for individual investors and to inspire growth, fiduciary adherence, succession, and a client-centric approach for independent financial advisors’ practices.
Russ Alan Prince: What are the key components and considerations that factor into growing an advisory business?
Anne Mortera: One crucial aspect essential to growth is effective time management. This involves not only making the most of one’s time but also embracing outsourcing as a tool. It goes beyond just managing investments; it encompasses various administrative aspects of an advisor’s practice that could be handled more efficiently by others.
We see reluctance on the part of some advisors to outsource investment management because they feel their clients expect them to handle it and believe it is their value-add. Advisors don’t always recognize that they are the face of the client relationship. We remind them that they could have more time in their day if investment management was outsourced to a professional whose knowledge, expertise, and day-in, day-out focus make them a specialist.
The challenge is to encourage advisors to let go of the mindset of having to do it all. In our conversations with advisors, we often draw a parallel between their practice and that of a primary care physician. The physician, despite having the ability, doesn’t personally conduct every test; they leverage specialized labs for that purpose. Rather than doing a little bit of everything, by outsourcing more work, both advisors and physicians can free up capacity to provide expanded value to their clients.
Another trend we are seeing is advisors using centers of influence to attract more clients, such as CPAs and other professionals who can refer business. The next generation is another popular topic these days, and developing a focused plan to attract and retain those clients is a notable growth area for many advisors.
Finally, we see a growth trend where advisors incorporate holistic wealth management advice into their service offerings, investment management, and financial planning. A high-demand value-add to clients, holistic advice considers all aspects of a person’s financial life, which includes areas such as estate planning and long-term care, and involves supporting clients with those different components from setting up trusts to utilizing gift tax exemptions and charitable giving strategies for the tax deductions.
Prince: What are some of the ways Private Advisor Group supports firms that join its community? What resources are most in demand for high-growth advisors?
Mortera: We are laser-focused on the advisor experience and have developed several resources to meet their needs. One such offering is the Advisor Alignment and Equity Program, AAEP, which aligns Private Advisor Group’s interests with participating advisors and gives them an opportunity to invest in our collective success while retaining full operational control of their practice.
Succession planning is also a hot topic, and we recognize the importance of having resources to support this business planning component. Our Advisor Protection Program guides the creation of a continuity and protection plan for advisors who don’t have a written succession plan in place yet. It protects them should something occur that makes them have to exit the practice. It has no cost to sign up, and it can be terminated at any time.
Our size and scale at Private Advisor Group allow us to negotiate pricing and discounts for our advisors, which can be important to their bottom line. For example, we rolled out WealthSuite as an option for our advisors to outsource their clients’ investment management. The multi-custodian platform provides competitively priced bespoke model portfolios, along with custom indexing and tax-optimized solutions.
Even if advisors choose not to participate in our proprietary programs, we have other customizable solutions available to help them solve for their unique needs. We have relationship managers dedicated to guiding advisors to obtain the resources they need, whether that is helping them navigate the resources available through our partnership with LPL Financial, finding different third-party providers, or getting conversations started with other advisors so they can make informed decisions.
For example, an advisor may be thinking about starting a podcast and requesting an introduction to another advisor who is already doing one, and we will make this introduction happen. We build more hands-on, personal connections with our advisors by getting to know them and understanding the nature of their practice and what they need to succeed. This white-glove level of service is valuable, especially to high-growth advisors.
In addition, we have an internal business development team to help advisors recruit to their offices, and they are more than willing to jump on a call with a prospect to support the advisors. There are many ways to grow, and Private Advisor Group strives to be a helping hand through them all.
Prince: How do you work to increase adoption of the services Private Advisor Group offers the firms in its community? What are the sticking points, and how do you overcome them?
Mortera: To drive adoption of the services Private Advisor Group provides, we’ve established dedicated resources aimed at educating advisors within our community. These resources encompass a range of methods, including in-person meetings, webinars, one-to-one consulting, and conferences. We strive to continuously engage with advisors, fostering connections and relationships through collaborative efforts.
Our team doesn’t just inform; we focus on building rapport and establishing a trusted relationship. By acting as confidants, we guide advisors on their journey, understanding their needs and aligning our support to their specific goals and at the right stage for their unique practice model. As we deepen our relationships with advisors and gain a comprehensive understanding of their businesses, we’re better equipped to offer tailored advice, ultimately facilitating the growth of their firms.
Russ Alan Prince is the executive director of Private Wealth and a strategist for family offices and the ultra-wealthy. He has co-authored 70 books in the field, including Making Smart Decisions: How Ultra-Wealthy Families Get Superior Wealth Planning Results.
