Report: Advisor Channel - US - February 2008 TOC

Scope and Themes
What you need to know
Scope of this report
Abbreviations and Terms
Terms
Executive Summary
Overview
Changes in the advisor business
Advisors and their clients
The financial advisor market
Alternative investments
Advisors and retirement
New markets for advisors
Advertising
Market Size and Segmentation -- Advisors
Financial services and advisors
- Figure 1: Largest U.S. financial services firms by revenues, 2006
- Figure 2: Change in number and percentage of advisor by type, 2005 and 2007
Advisory firm market
How the advisory business breaks down
Commissions vs. fees
- Figure 3: Fees vs. commissions, 2000-03
Market Size and Segmentation -- Consumers
Use of advisors by consumers
- Figure 4: Investors who use a financial advisor, January 2008
- Figure 5: Use of financial advisor by age, January 2008
- Figure 6: Percentage of advisors' client base, by age, 2008
- Figure 7: Type of advisor used by those who have an advisor, January 2008
- Figure 8: Use of advisor by respondent age group
How advisor-client relationships are established
- Figure 9: How respondent found advisor, by gender, January 2008
- Figure 10: How respondent found advisor, by age, January 2008
- Figure 11: Length of Advisor relationship, by gender, January 2008
- Figure 12: Length of Advisor relationship, by age, January 2008
What are investors looking for from advisors?
- Figure 13: Services provided by advisors, by gender, January 2008
- Figure 14: Services provided by advisors, by income, January 2008
- Figure 15: Services provided by advisors, by marital and employment status, January 2008
Generational Differences in Investing
High-net-worth households
- Figure 16: Breakdown of portfolios by generation, 2007
Baby Boomers
- Figure 17: Ownership of various financial products, January-September 2005
- Figure 18: Attitudes regarding investments and financial planning, January-September 2005
Attracting Gen X and Gen Y Clients
Gen X
Competitors targeting Gen X
Charles Schwab
Fidelity Investments
Thrasher Capital Management LLC
Principal Financial Group
Competitors targeting Gen Y
American Century Investments
Wealthiest Americans and Advisors -- Segmenting by Assets
- Figure 19: Primary investment provider (type of company with largest portion of assets), 2005-06
Why do they go there?
What are their concerns and goals?
- Figure 20: financial goals of millionaires, 2007
Investor understanding
Customer satisfaction
- Figure 21: Advisor strengths, by gender, January 2008
- Figure 22: Advisor strengths, by age, January 2008
Pre-retirees and retirees
- Figure 23: Top rated full service brokerage firms
Competitive Context--Part I
Who are financial advisors?
What kind of financial advisors do investors use?
- Figure 24: Type of advisor, by gender, January 2008
- Figure 25: Type of advisor used, by age, January 2008
How much of the investment portfolio do advisors control?
- Figure 26: Percentage of assets that is with advisors, by gender, January 2008
- Figure 27: Percentage of assets that is with advisors, by age, January 2008
Registered Investment Advisors (RIAs)
- Figure 28: Growth of retail RIA firms and assets, 2005-07
Growth in RIA firms
- Figure 29: Projected growth of RIA firms, 2007-12
What makes a successful RIA?
- Figure 30: Time spent with clients, top firms. vs. all firms, 2007
Challenges to RIAs
RIA service agents
Largest service agents
- Figure 31: Service agents -- Total RIA client assets as of Q1 2007
Charles Schwab
Fidelity
TD Ameritrade
Competitive Context--Part II--How RIAs can Increase Their Business
Financial planners
- Figure 32: Top three reasons for using a financial planner, 2007
- Figure 33: Top three reasons for not using a financial planner, December 2007
Targeting women
- Figure 34: CFPs, by gender, 2007
Other CFP demographics
- Figure 35: CFPs, by age, 2007
- Figure 36: CFPs -- highest degrees earned, 2007
- Figure 37: Credentials held by CFPs, 2007
- Figure 38: CFPs by type of business, 2007
Brokers
- Figure 39: Type of financial institution respondents prefer, September 2007
- Figure 40: Top North American wirehouses, regionals and discount brokers ranked by retail reps
Certified Public Accountants (CPAs)
Market Drivers
Personal wealth
Demographics
- Figure 41: U.S. generations, 2002-12
Baby Boomers
- Figure 42: U.S. population projections, 2002-12
Gen X
Gen Y
Trend toward fee-based management
- Figure 43: Investors using fee-based vs. commission-based advisors, January 2008
- Figure 44: Considered fee-based vs. commission-based as a factor in choosing an advisor, January 2008
Why go to fee-based?
However, brokers need to remain commission-based
Advisor satisfaction and retention
- Figure 45: Most important factors in advisor job satisfaction, 2007
Changing product mix
Trends in product mix
SMAs
- Figure 46: Growth in percentage of advisors who use SMAs, 2007 and 2009
ETFs
How the wealthiest Americans use alternative products
- Figure 47: Reasons for allocation to alternative investments, 2007
Advisors and retirement planning
- Figure 48: Populations of baby boomer cohorts, based on 2005 projections of 2000 U.S. Census Bureau data
- Figure 49: Ownership of various financial products, January-September 2005
Who do investors trust for retirement advice?
- Figure 50: Types of firms trusted togive retirment planning advice, by gender, September 2007
- Figure 51: Types of firms trusted to give good retirement planning advice, by income, September 2007
Advertising and Promotion
- Figure 52: Top ten advertising categories, Jan-Sept 2007 vs. Jan-Sept 2006
Online advertising
- Figure 53: Online ad spending by industry, December 2007
- Figure 54: Top 50 rank and advertising expenditures for financial services companies, 2006
- Figure 55: Top 10 financial services online ad spenders, December 2007
Other advertising
Campaign trends
Thrasher Capital Management
Fidelity
- Figure 56: Fidelity print ad, October 2007
- Figure 57: Fidelity print ad, August 2007
- Figure 58: Fidelity print ad, January 2008
- Figure 59: Fidelity print ad, October 2007
- Figure 60: Fidelity television advertisement, 2007
Schwab
- Figure 61: Schwab television advertisement, 2007
- Figure 62: Schwab print ad, October 2007
- Figure 63: Schwab print ad, November 2007
- Figure 64: Schwab print ad, November 2007
- Figure 65: Schwab print ad, October 2007
- Figure 66: Schwab print ad, October 2007
- Figure 67: Schwab print ad, August 2007
- Figure 68: Schwab print ad, March 2007
- Figure 69: Schwab print ad, September 2007
- Figure 70: Schwab print ad, June 2007
Merrill Lynch
- Figure 71: Merrill Lynch print ad, January 2008
- Figure 72: Merrill Lynch print ad, December 2007
- Figure 73: Merrill Lynch print ad, December 2007
- Figure 74: Merrill Lynch print ad, December 2007
- Figure 75: Merrill Lynch print ad, October 2007
- Figure 76: Merrill Lynch television ad, 2007
TD Ameritrade
- Figure 77: TD Ameritrade print ad, June 2007
- Figure 78: TD Ameritrade print ad, June 2007
- Figure 79: TD Ameritrade print ad, April 2007
- Figure 80: TD Ameritrade print ad, February 2007
Bank of America
- Figure 81: Bank of America print ad, November 2007
- Figure 82: Bank of America print ad, November 2007
HSBC
- Figure 83: HSBC print ad, June 2007
Citigroup/Smith Barney
- Figure 84: Citigroup print ad, March 2007
- Figure 85: Citigroup print ad, March 2007
Wells Fargo
- Figure 86: Wells Fargo print ad, November 2007
Credit Suisse
- Figure 87: Credit Suisse television ad, 2007
UBS
- Figure 88: UBS television ad, 2007
Wachovia Bank
- Figure 89: Wachovia television ad, 2007
Appendix: Industry Associations
Appendix: Additional Consumer Data
Survey results by region
- Figure 90: How respondent found advisor, by region, January 2008
- Figure 91: Length of advisor relationship, by region of the country, January 2008
- Figure 92: Type of investment advisor, by geographical region, January 2008
- Figure 93: Percentage of assets with advisor by region, January 2008
- Figure 94: Types of firms trusted to give good retirement planning advice, by region, September 2007

Advisor Channel - US - February 2008

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