Data & Research May 24, 2011

B/Ds, RIAs Focused on Hiring in 2011

Seventy-five percent of U.S. broker/dealer (B/D) and independent registered investment advisory (RIA) firms are planning to hire in the next 12 months. 
Reported by

According to a poll from Fidelity Investments, the primary staffing objective of B/D and RIA firms in 2011 is to recruit new advisers/brokers that have existing books of business (43%), followed by those who plan to mentor and help existing staff transition to a broker or adviser role (19%).  Nearly one-third (32%) of B/Ds and RIAs say that ongoing industry consolidation has made it easier to recruit, while 62% say it has had no impact.

“A strong focus on recruitment, especially as a component of a broader client acquisition strategy, is extremely good news for the industry and speaks to an overall confidence for its continued growth and success,” said Scott W. Dell’Orfano, executive vice president, sales, Fidelity Institutional Wealth Services.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Adding new clients is still the primary driver of profitability this year (60%), a 17 percentage point increase over 2010. Firms expect adding new brokers and advisers will be their second biggest driver of profitability at 21%, up from 14% in 2010.  While B/D and RIA firms see client acquisition and broker recruiting as their two biggest drivers of growth in 2011, these are also their top two areas for concern this year.

“There is no doubt money is in motion, whether from investors moving firm relationships or brokers and advisers going independent and bringing client assets with them,” said Bobbi Masiello, executive vice president, relationship management, National Financial.   

The Fidelity poll also explored succession planning and found that more than half (53%) of B/D and RIA firms do not have a long-term succession plan for their business in place. Thirty percent state they have an agreed upon succession plan to pass their business on to senior team members, while 15% are currently exploring opportunities with a potential merger partner.   

The poll was taken of firm executives at approximately 335 B/D and RIA firms, most of whom are clients of Fidelity’s custody and clearing units.

Deals & People May 24, 2011

JPMAM Hires Retirement Chief Marketing Officer

J.P. Morgan Asset Management has hired Benji Baer as Managing Director and Chief Marketing Officer.  
Reported by

Baer will report to Richard Chambers, Chief Marketing Officer for J.P. Morgan Investment Management Americas, as well as serve as a member of the senior management team for Michael Falcon, Head of Retirement for J.P. Morgan Asset Management.She joins J.P. Morgan from Legg Mason, where she was Head of Americas Marketing.   

In this new position, Baer will define and develop J.P. Morgan Asset Management’s retirement client experience, “leveraging the vast intellectual capital and resources of the firm to create tailored solutions that address the specific needs of each client segment,” according to the announcement.She will also be responsible for developing a retirement brand and positioning and integrating this brand with other lines of business across J.P. Morgan Chase.   

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

“Providing a new generation of retirees with options that will strengthen retirement security has never been more important, and having a dedicated, veteran marketing executive like Benji on our team will be a tremendous advantage as we increase our visibility in this market,” said Falcon.  

Prior to her time at Legg Mason, Baer held a series of senior marketing roles at AllianceBernstein, where she led marketing strategy, global marketing communications, public relations and campaign planning from 1993 through 2004. She has a B.A. in Economics from Tufts University, and studied at L’Institut d’Etudes de Politiques in Paris.  She currently serves on The Center for Corporate Reputation Management’s Advisory Council at Drexel University’s LeBow College of Business. 

«