Top 5 dealer groups: 2010

Macquarie Private Wealth's Eric Schimpf says a client-centered appr​oach has paid off for Macquarie Equities despite the challenging environment.

1. Macquarie Equities

According to the Money Management Top 100 Dealer Group survey, compiled by DEXX&R, Macquarie Equities came out on top in terms of funds under advice (FUA) with $38.96 billion as at 31 March, 2010, up from $32 billion as at 31 March, 2009.

This was despite only adding seven advisers over the same period. In terms of adviser numbers, Macquarie Equities came in at number 14 with 387 advisers, one place down from 2009.

In discussing the group’s strengths over 2010 earlier this year, head of Macquarie Private Wealth, Eric Schimpf, said a client-centered approach stood the group in good stead.

“Our advisers have been focused on supporting clients during what has been a challenging few years and this has paid off in terms of both client retention and client growth,” he said.

2. AMP Financial Planning

AMP Financial Planning only just missed out on the top FUA position, with $38.6 billion as at 31 March 2010, compared to $32.816 billion in 2009.

AMP Financial Planning managing director Michael Guggenheimer attributed the growth in FUA to increasing adviser numbers and improving markets.

According to the Top 100 Dealer Group survey, AMP was the third fastest growing dealer group, with adviser numbers jumping by 75 over the year (to bring it to a total of 1,423 advisers).

Guggenheimer said AMP’s strengths over 2009-2010 lay in communicating its value proposition to advisers.

“From our perspective, the more people we talk to, the more they understand the level of support we can offer are things that people feel are important,” he said.

3. Commonwealth Financial Planning

The Top 100 Dealer Group survey placed Commonwealth Financial Planning at third place according to FUA, with $25.203 billion as at 31 March 2010, compared to $20.886 the year before.

It was also among the top 10 fastest growing dealer groups by adviser numbers, having experienced a jump of 56 advisers in 2010 to 738 — to be placed fifth in terms of adviser numbers.

General manager of the Colonial First State Advice Business, Paul Barratt, said innovation would underline the success of the advice arm in the future, referring to its drive towards a segmented advice model. He asserted that the days of a one-size-fits-all advice model were over.

4. Professional Investment Services

Professional Investment Services (PIS) was placed fourth in terms of FUA in 2010, despite losing 130 advisers in the 12 months before April 2010 following what managing director of Professional Investment Holdings Graham Evans described as a “weeding out” process.

He said PIS’s success lay in its business model, which encouraged activity and led to getting “investment flows in on a weekly basis of substantial amounts”.

PIS remained in the top five by adviser numbers and Evans explained that the group’s focus would be taking advantage of consolidation in the industry, which would provide the group with opportunities to rebuild adviser numbers by attracting “independently minded” advisers.

5. RBS Morgans

RBS Morgans experienced another serious drop in FUA, from $25.9 billion in 2009 to $19 billion in 2010, and fell from third place in 2009 to fifth, according to the Top 100 Dealer Group survey.

RBS Morgans saw marginal growth of adviser numbers, but still remained among the top 10 dealer groups by adviser numbers with a total of 496 advisers.

Following Royal Bank of Scotland’s purchase of a 50 per cent stake last year, RBS Morgans managing director Brian Sheahan stated that the bank’s involvement would mean advisers and clients would benefit from a “broader, international reach”.

He admitted that the deal and the rebranding process meant that RBS Morgans had held back on growth. But in 2010 it has made a number of key appointments in its research and markets business.