What is the top region for advisers?
New data from Adviser Ratings has crowned Geelong, Victoria as the top suburb by opportunity for financial advisers.
The research firm examined the top 10 regions for advisers in Australia, which factor in population growth, adviser density, household income and region affluence.
Victoria’s Geelong topped the list, followed by Brisbane (inner city), ACT, Moreton Bay, Sydney (Baulkham Hills to Hawkesbury), Tasmania (excluding Hobart), Bendigo, Sunshine Coast, Melbourne (North) and Bunbury (Mandurah).
Looking at the market size, 190 advisers work in Geelong alongside the 74 practices and 17 licensees located there.
Average adviser experience in years is 14.2 in the city, narrowly less than Australia’s 14.6 years experience.
The population per adviser sits at 1,765, compared to 1,626 for the rest of Australia.
Funds under administration (FUA) per adviser is $51 million, trailing behind Australia’s average of $82 million.
In April 2023, Adviser Ratings revealed that only two states have seen their average FUA increase by more than 40 per cent since 2018: South Australia (41 per cent) and Western Australia (45 per cent).
The average FUA per adviser for these states in 2022 was 88 million and 87 million, respectively.
Diversified is the most popular type of firm in Geelong, with 27 per cent of advisers in this category in 2022. Just 17 per cent work at diversified institutions across Australia.
Privately owned firms sized between 11 to 100 advisers is the next biggest model at 25 per cent in Geelong, compared to 20 per cent for the national average.
The city has a population growth of 2 per cent and a mature median age of 40 years old, two years above the national average.
Moreover, 31 per cent of Geelong’s population is over the age of 55, up from the national average of 29 per cent, presenting an attractive market for older clients.
However, recurring clients per adviser are less than the national average, with Geelong having 88 compared to 91 for Australia.
The case is similar for one-off clients, with Geelong having 20 clients compared to 28 for the national average.
Adviser Ratings also investigated the key tools used in the city. AMP North is the most used investment platform, alongside XPlan being the most used software.
Morningstar has taken the crown as the most used research house and TAL is the chosen life insurer. InvestSense is found to be the most popular investment consultant.
AUTHOR
Jasmine Siljic
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
