Many financial advisors who saw their businesses survive the global financial crisis intact did so, in part, because of the support they had received from their firms. Now that many advisors are experiencing better days, they’re still relying on the same support from their firms to help grow their practices.
In 2009 and 2010, advisors surveyed for Investment Executive’s Report Card series were asked to rate their “firm’s support during the market downturn” in a supplemental question in all four Report Cards. This year, reflecting the changing economic conditions, that question was tweaked: advisors were asked to rate their “firm’s support for you and your business in coming out of the recession.”
Despite the changing nature of the question, it is evident that advisors are looking for the same marketing support, client communication material and business coaching from their mentors.
“Coming out of the recession, leadership was paramount,” says an advisor in Ontario with Toronto-based Richardson GMP Ltd. “We had it, and it allowed me to get back to my clients.”
In fact, during the recession — when many other firms were scaling back costs — Richardson GMP had launched its Creative Business Builder program, which continues to offer practice-management coaching and workshops to advisors to this day.
Says Andrew Marsh, Richardson GMP’s CEO: “I wanted to have that infrastructure and support for advi-sors who wanted to come out of the downturn stronger than when they went into it.”
For advisors who ply their trade with Toronto-based Macquarie Private Wealth Inc. , the support they received was quite different but no less successful. In late 2009, during the latter part of the recession, Australia-based Macquarie Group acquired Blackmont Capital Inc.’s retail arm from Toronto-based CI Financial Corp. And many of the Blackmont advisors joining Macquarie were appreciative of the new parent firm’s commitment to both existing clients and prospects.
“They held great client events,” says a Macquarie advisor in Ontario. “They brought in economists from Australia and did a cross-country blitz.”
Adds a colleague in the same province: “They focused on training and encouraged us to get out there. There was marketing support during difficult times.”
Macquarie recently improved its client-oriented focus with an online broadcast for clients comprising presentations and forums with fund managers and analysts.
“It’s been amazingly well received,” says Earl Evans, CEO and head of Macquarie Private Wealth. “To be forward-thinking and proactive when the markets are miserable, it’s not the easiest thing to do. But we worked at it and we worked out of it.”
Advisors with Mississauga, Ont.-based Investment Planning Counsel also thought highly of management’s continual involvement and client-oriented focus in coming out of the recession. Says an IPC advisor in Ontario: “I think they were very helpful; they sent out lots of materials for clients.”
IPC president Chris Reynolds stresses that the firm did not shy away from supporting its advisors during this difficult time: “We did conference calls, we had newsletters, we had seminars.”
That type of outreach had served advisors well as they emerged from the recession. Such communication not only helped restore clients’ confidence, it also encouraged advisors to look for more business.
“We received literature and conference calls,” says an advi-sor in Alberta with Toronto-based Bank of Montreal, “to discuss concerns and risks for clients as well as trends, new products and investment strategy for [financial] planners.”
Advisors with Toronto-based RBC Dominion Securities Inc. were also grateful for their firm’s continuous focus on helping them build their practices, not only through the recession but after it as well.
“There was a lot of coaching; no burying of their heads,” says a DS advisor in British Columbia. “They did lots of research and put out tons of information to make prospecting easier.”
Says David Agnew, DS’s CEO and national director: “Even through the rough markets, we were reinvesting back into our business to focus on our two priorities: our clients and advisors.” IE