FT SPECIAL REPORT

Sharp focusWhat does it takefor an adviceprofessional tomake the FT list?Page 2

New directionsInvestors exploreonce-exotic areas.Plus: switching onto social mediaPage 4

Looking aheadExperts predicthow the rest of2014 will shapeup for stocksPage 3

Teams add upWhy few of theFT 400 are solo.Plus: are femaleadvisers different?Page 6

Inside »

US industry elite shows the wayThe FT’s 2014 list recognises excellence among America’s leading professionals Pages 9 to 14

Tuesday March 25 2014 www.ft.com/advisers | @ftreports

Wise wordsExperience meansexpert advice.Plus: preparingfor life after workPages 16-17

Another angleWealthy clientsare looking foralternativesPage 18

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FT 400Top Financial Advisers

2 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 3

FT 400 Top Financial Advisers FT 400 Top Financial Advisers

Melissa J AndersonReporter, Agenda

Thomas CoyleAssociate editor,Financial Advisor IQ

Morgan M DavisReporter, FundFire

Loren FoxDirector of research,Money-Media

Emile HallezReporter, Ignites

Chris LathamReporter, Financial Advisor IQ

Tom StabileSenior enterprise reporter,Fundfire Alts

Laura SuterAssociate managing editor,Fundfire Alts

Danielle VerbriggheReporter, Gatekeeper IQ

Joan WarnerManaging editor,Financial Advisor IQ

Jerry AndrewsCommissioning editorSteven BirdDesignerAndy MearsPicture editor

For advertising, contact:Dennis Asselta,dennis.asselta@ft.com,(001) 917-551-5157.

All FT Reports are available atwww.ft.com/reports. Follow uson Twitter at: @ftreportsAll editorial content in thissupplement is produced bythe FT. Our advertisers haveno influence over or priorsight of the articles.

Contributors »

After a strong 2013 for USequities, this year got off toa shaky start. But despite achoppy first quarter, advis-ers remain bullish about USstocks and expect highsingle-digit returns in 2014.

“[2013] was a phenomenalyear,” says Harold Elish,managing director at UBSPrivate Wealth Advisor. “Idon’t think anyone expects2014 to be similar.” Whileoptimistic, he predicts themarket will see returns ofabout 6 per cent this yearoverall as attitudes aboutUS stocks remain guarded.

Many economists believethat this year will be cru-cial for markets still suffer-ing from the blows of thefinancial crisis, says MrElish. Employment and rev-enues are still growingslowly. While there ispotential for consumer con-fidence to pick up in theUS, along with the housingmarket and manufacturingjobs, “the next couple [of]months will be watchedwith great interest”, headds.

Stephanie Ackler, manag-ing director at Wells FargoAdvisors also expects highsingle-digit returns, butthinks 2014 will bring morevolatility than last year.

Ms Ackler acknowledgesthat there are always pock-ets of market unrest, butsays the foundations of theeconomy look positive forgross domestic product, networth and job growth asconsumers now have moremoney to spend and appearready to do so. She seespositive signs in many sec-tors, from healthcare tomanufacturing.

Despite optimism now,

says David Joy, chief mar-ket strategist at AmeripriseFinancial, the latter part of2014 may not be as promis-ing for investors. But hefinds stock valuations arefairly priced at the moment.

Changes in the FederalReserve policy unsettledinvestors last year, and arelikely to do so again, headds. By Labor Day in Sep-tember, the market maybegin to anticipate changes,pushing some people totake their profits and runrather than wait and seewhat happens.

Mr Elish agrees that thetapering of quantitative eas-ing will cause some anxiety,but says it should notadversely affect markets.Instead, more attentionshould be given to whetherthe gap between the stockmarket’s success and theeconomy’s more gradualrecovery narrows.

Some advisers warn thatwhile value can still befound in the market, it isnot there as broadly as in2013, and requires carefulstock selection. There is arange of other factors toweigh up, too.

The snow storms drivingAmericans inside put afreeze on consumer spend-ing this winter, causingsome market uncertainty,advisers say. “Once [thecold] goes away, the datawill firm and stocks will gohigher,” says Mr Joy. Thesecond quarter of 2014 islikely to see a boost for thestock market as consumersstart to spend again he says.

Harvey Kadden, manag-ing director at MorganStanley Wealth Manage-ment, says that problemsabroad, particularly the cri-sis in Ukraine, could helpsupport the continued suc-cess of the US markets.“With the turmoil in theworld today, you see a lot ofmoney flow coming to theUS,” he says.

Mr Kadden notes thatemerging markets should

be approached individuallyand not just as one assetclass, but he remains scep-tical. “There’s a little toomuch uncertainty at thispoint,” he says, adding thatdeveloped European mar-kets and Japan offer betteropportunities akin to thosein the US.

“You really ought tothink in regional termsinstead of across theboard,” agrees Mr Joy.

Emerging markets can bedivided into categories ofattractiveness for investors,he says. The politically vol-atile countries, such asArgentina or Turkey,should be avoided, he says,while the most attractivemarkets are those in thePacific Rim.

However, temporaryunrest in one Euro-pean country doesnot mean the wholecontinent must beavoided.

It is importantto remind clientsthat hiccups

occur, and that they need tothink long term, says MsAckler.

There is growth to befound in internationalequities, she says. Shefavours a cautious approachin emerging marketsbecause of the greater vola-tility, but says that inves-tors should look carefully atthe potential in specificcountries.

Most good advisers wouldrecommend their clientsdiversify and invest anamount in internationalequities, says Mr Elish –but the US market’s successstory in 2013 meant inves-tors who diversified toomuch lost out.

Global growth potentialleaves advisers hoping thatinternational equities willbe more successful thisyear, but emerging marketsin particular remain diffi-cult, says Mr Elish. “It’s cer-tainly testing the patienceof investors that want to bediversified,” he adds.

Mr Joy adds: “Advisersare mindful of the full valu-ations of the US.” Apartfrom Ukraine, there is a lot

of interest inEurope. Japan isalso attractive,although MrJoy says heremains moreagnostic aboutthe countrythan others.

View from the top: cautiousoptimism after a choppy startStocks

Experts share theirthoughts on how2014 will shape up.ByMorganMDavis

StephanieAckler: expectsmore volatility

‘With the turmoilin the world today,you see a lot ofmoney flowingto the US’

Last year was one of transition forUS investors. Volatility in thefinancial markets moderated andthe stock market soared – the keyS&P 500 benchmark rose 30 per

cent in 2013 – while the bond marketdeclined as investors shifted money out offixed income. Forecasts coalesced aroundmoderate US economic growth.

But at the same time, the needs of inves-tors have become more complicated. Retire-ment security seems less attainable, evenfor the affluent. Investors are confrontedwith a wave of sophisticated new retailinvestment products inspired by the morerarefied hedge funds. Inflation and taxeshave risen on many people’s lists of finan-cial worries.

The investing world continues to evolve,and with it the qualities that a wealthyinvestor should be looking for in a financialadviser. Advisers must be unflappable andable to keep their clients focused on long-term financial goals, rather than on thelatest tweets.

A good adviser should have one eye onglobal trends and another on his or herclient’s household. Top advisers take aholistic view of a client’s financial needs,looking beyond just investments. As far asthe investment portfolio is concerned,while no one expects an adviser to have a

crystal ball, he or she ought to haveinformed views on where stocks may beheading or the best ways to generateincome when interest rates are low.

These characteristics are reflected in the2014 edition of the Financial Times 400 TopFinancial Advisers. The tables provide asnapshot of the best advisers to be found attraditional broker-dealer firms in the US.Only 40 per cent of the previous year’s FT400 are on this year’s list, which is one signof how difficult and competitive the job offinancial adviser has become.

The team at the FT’s sister publication,Ignites Distribution Research, set a base-line for advisers of $200m in assets undermanagement (AUM) plus 10 years of experi-ence, then assessed more than 1,500 quali-fied advisers drawn from leading broker-dealer firms. The team used a combinationof brokerage data, survey responses fromadvisers and its own research to score thecandidates on attributes such as AUM,AUM growth and experience. The method-ology is explained fully on page 14.

The researchers used verified AUM fromthe brokerages’ home offices, so that appro-priate comparisons could be made. Advis-ers were awarded bonus points for havingearned any of the top industry certifica-tions – chartered financial analyst, certifiedfinancial planner, certified public account-

ant or certified investment managementanalyst. Of the FT 400 advisers, 47 per centhave one of these credentials, and 9 percent have two or more.

Advisers whose information is easilyaccessible online were awarded bonuspoints in recognition of their transparency.One sign of a top adviser is commitment toengagement with clients: three-quarters ofthe FT 400 have profiles on LinkedIn, thenetworking site.

The list is presented as a grouping of 400.There is no attempt to rank the advisersfrom one to 400, as the differences betweentwo adjacently listed advisers are oftenvery minor. Many advisers narrowlymissed the list this year, edged out bypeers with very slightly better profiles.Sometimes the difference was a few moreyears of experience or an additional profes-sional designation.

The FT 400 is listed state by state; thosewith higher populations, and higher con-centrations of wealth, understandably havemore advisers in the tables. Advisers from36 states, plus Washington DC, areincluded.

By city, New York, not surprisingly, isagain top, represented by 47 advisers –more than double any other municipality.But in an era that has seen big advances intechnology and energy, it is notable that

San Francisco and Houston tied as the cit-ies with the second-highest number of FT400 advisers, ahead of Boston and othermore traditional centres of wealth.

The final FT 400 is a highly experiencedgroup. The “average” adviser on the listhas 25 years in the business and managesjust over $1.3bn. A sizeable proportion hasbeen advising clients since before thethree-decade bull market in bonds that isnow winding down, and can draw on theirexperience of managing money throughmultiple stock market cycles.

In keeping with the trend towards spe-cialisation in wealth management, some 86per cent of the FT 400 work in teams – upfrom 81 per cent in the prior year. Of those,the average team has 10 client-facing pro-fessionals, including partners and relation-ship managers.

The FT 400 is at the forefront of severaltrends in the investment managementindustry. For the sake of efficiency, the bigbrokerages have been focusing on wealthier

Leading advisersshow the wayin a rapidlychanging world

What does it take for aUS advice professional tomake the Financial Times list?LorenFoxexplains

clients in recent years, and the listed advis-ers definitely lean toward a wealthier clien-tele. Some 83 per cent of the FT 400 servehigh net worth investors – those with$1m-$10m in investable assets. But 92 percent of the FT 400 serve ultra-high networth investors (with $10m or more).

As the articles in this report reflect, morethan a quarter of FT 400 members serveretirees, a population of growing signifi-cance as the baby-boomer generation ages.Some three-quarters of the advisers useexchange traded funds, the increasinglypopular vehicles akin to index-trackingfunds that trade like stocks.

As these numbers suggest, few invest-ments or specialities draw universal agree-ment from these top professionals. Just aseach client has differing needs and aspira-tions, the leading financial advisers offer adiverse array of skills, opinions and back-grounds.

Investors, then, must ensure they areworking with an adviser who is genuinelylistening and understands their concerns.Investors need to take responsibility fortheir interests and, even after picking afinancial adviser, should reassess the rela-tionship every few years.

That is a universal rule in picking anadviser, even if an investor is starting offwith a list as impressive as the FT 400.

A good adviser should haveone eye on global trends andanother on a client’s household

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FT 400 Top Financial Advisers

Nearly three-quarters of FT400 advisers have profiles onnetworking site LinkedIn, butsome top performers doubtwhether using social mediasites such as Facebook orTwitter improves business.

That is understandable,given the average client isover 50 and unconcernedabout online “friend” counts.

Investors tend to see postslimited to economic trendsand corporate marketingcampaigns, largely becausecompliance guidelines prohibitadvisers from recommendingstock purchases or solicitingclient endorsements via socialmedia, while requiring firms tostore communications forrecord keeping.

Morgan Stanley began toexplore the use of websites in2010, says ValentinaChtchedrine, who runs thebank’s adviser social mediaprogrammes. That is when theFinancial Industry RegulatoryAuthority issued guidelines.

“I don’t think every adviserwill be using social media, butwe will see growth in the nextcouple of years,” she says.

“Clients are increasinglydigitally savvy, so many willprefer to communicate[through] these media.”

About 5,800 of MorganStanley’s 17,000 advisershave full access to LinkedIn.On Twitter, some 1,000advisers can follow users andpost from a library ofpreapproved content, while100 advisers in a pilot

programme can post theirown original content, MsChtchedrine says.

Financial institutions havebeen expanding their socialmedia presence since theUS Securities and ExchangeCommission clarified lastApril that companies can usesuch outlets to announcematerial information. Butleading brokerages still

maintain tight control overhow advisers can use thesewebsites.

Wells Fargo Advisors is themost popular brokerage onFacebook, with more than170,000 “likes”, while MerrillLynch carries the mostadvisory weight on Twitter,with some 130,000 followers.

The potential for onlinepopularity inspired JPMorgan’sill-conceived plan in Novemberto let the public postquestions to a Twitter account.#AskJPM soon garneredsubversive musings aboutwhales and who is allowed intoheaven, among other topics.

Merrill Lynch allows itsadvisers to create LinkedInpages, but not to postfinancial content on them.

Advisers can follow othersand message clients throughthe site. Investment andeconomic information comesfrom Merrill Lynch’s corporatepage and a pilot programmeis in the works for selectadvisers to share preapprovedcontent on LinkedIn.

Many advisers atindependent firms run rings

around their bank-based peerson almost every portal.

For example, Michael Kitceswrites a popular blog andtweets about financialplanning to his 13,000followers while serving asdirector of research atPinnacle Advisory Group in

Columbia, Maryland, whichmanages more than $1bn.

A 2013 study by PutnamInvestments found 29 percent of 408 advisers surveyedhad used Facebook and 21per cent used Twitter forbusiness during the previousyear. Some 31 per cent usedGoogle Plus, a less popularportal. Although the study didnot mention it, scores ofadviser photos can be found

Social media Firms remain cautious about engaging clients online

Plain vanilla is simply not on themenu any more, as advisers scanthe markets in search of ways togenerate yield in their clients’portfolios. Advisers have set aside

the standard Treasury bond in favour of awider range of fixed income and equityoptions that can produce income, oftenswirling several flavours together.

The scramble for yield has led advisersinto areas previously considered exotic,turning foreign bonds and master limitedpartnerships (MLPs) into more mainstreaminstruments, and boosting the use of divi-dend stocks to levels once found only in theportfolios of one-dimensional investors.

With persistently low interest rates asthe one certainty in the post-2008 crashmarketplace, generating yield is now “fore-most on people’s minds”, says David VanAcker, an adviser for UBS Wealth Manage-ment Americas in Westlake Village, Califor-nia. While baby boomers entering retire-ment amid low interest rates have drivenmuch of the yield-seeking phenomenon,longer-term factors are also at work.

“The world has changed, with peoplemore aware that retirement might lastlonger than we expected,” Mr Van Ackeradds.

While not all very wealthy investorsclamour for yield, low rates certainly havedriven “mom and pop” investors to chaseit, with some pulling out of traditionalequity markets at the wrong time, saysBrad DeHond, a Morgan Stanley WealthManagement adviser in Chicago.

“You have to really take what the marketgives you,” says Mr DeHond. “History islittered with stories of people whostretched for yield and got burnt trying to

get 100 or 200 basis points more and insteadtaking a 5 or 10 per cent capital loss.”

Many investors also fail to evaluate the“give-up” for yield, with common trade-offs– longer duration or higher-risk bonds – notworth the cost today, Mr DeHond adds.

US investors have nonetheless been bulk-ing up on some income investments. Forinstance, bank loan funds leapt from$72.9bn in assets in 2012 to $138.8bn in 2013,while non-traditional bonds jumped from$67.6bn to $123.1bn, according to datafrom Morningstar and Cerulli Associates,the research companies.

MLPs – publicly traded securities of spe-cially chartered companies intended toboost US energy sector investment – havealso been surging, with assets tracked byInforma PSN, the financial research com-pany, jumping from less than $18bn in 2012to more than $30bn in 2013.

“Last year saw a tidal wave of activity,”says Steve Chun, director of marketing andproduct development at Miller/HowardInvestments, an MLP manager that nearlydoubled assets to $2bn last year. “Thesearch for income is a key reason.”

Advisers say many clients are still adjust-ing to the wider yield menu.

Margaret Starner of the Starner Group ofRaymond James in Coral Gables, Florida,says: “The most important change for a lotof clients [is looking] for yield beyond justfixed income.”

The breadth of options on the table ishelpful, says David Harris, chief invest-ment officer of Rockefeller & Co, the wealthmanager, citing real estate investmenttrusts (Reits), MLPs, municipals and emerg-ing market debt.

Emerging market bonds are becoming

more popular but may not be for the “faintof heart” because of currency and country-specific risks, Mr Harris warns. There arebig rewards for investors who make theright choice, such as those who boughtIndonesian bonds last year, he says.

“We are not making a strong endorse-ment for all emerging markets fixedincome, but there are markets where thereis a premium for currency risk,” says MrHarris. Another steady yield generator ismunicipal bonds, especially for investorsmanaging significant tax burdens, he adds.

Ms Starner says her yield strategy tapsmodel portfolios of bond-focused closed-endfunds, one targeting municipal bonds andthe other a basket of credit opportunity,long-short, duration-managed and otherbond strategies.

She is also increasing her use of“strategic income funds” that “can goanywhere for income”, includinghigh-yield debt and dividend stocks.

Another fixed income outlet islimited partnership-style fundsfocused on senior bank loans andmezzanine debt. These are suitablefor high-end “qualified” investorswho can handle illiquidity in theirportfolios, says Mr DeHond. Some ofthose funds provide steady income bypaying out on coupons.

On the equity side, MLPs arepopular, especially in separateaccount format, but comewith considerable taxadministration compli-cations that put offsome clients, MrHarris says.

For high-end

clients, some private equity funds, particu-larly in the energy sector, have gained trac-tion as income options, according to MrVan Acker.

Investors in high income stocks, Reits,MLPs and other equity-like investmentsshould nevertheless be wary that theseholdings may be expensive in today’s mar-ket and subject to capital loss in a risinginterest rate environment, says MrDeHond.

Ms Starner says she also looks beyond thepublic markets for yield in structured certif-icates of deposit and indexed annuities,which generally are structured with guar-anteed payouts or principal protection and

appeal to clients seeking safetyabove all.

Even then, however,investors shoulddiversify theiroptions. “You can’tjust use one strat-egy,” she says. “Ithas to be a combi-nation.”

Income seekers enter exotic territoryYield Low interest rates are prompting advisers tomove into non-mainstream vehicles, reportsTomStabile

Leading brokeragesstill maintain tightcontrol over howadvisers can usethese websites

Driving force: thesearch for yieldboosted activity,says Steve Chunof Miller/Howard

on Pinterest, which hostsimage galleries.

But even successfulindependent advisers oftenplay it safe. Adam Estes is anFT 400 adviser whose EstesGroup at Hilliard Lyons, thewealth manager, manages$800m from Bloomington,Indiana.

He has landed a couple ofclients who found him onLinkedIn, but he uses the siteto keeps abreast of who looksat his page, rather thanseeking connections.

Estes is less keen toengage with “labour-intensivesites” such as Facebook andTwitter. A more urgent taskis to beef up the teamLinkedIn page, his own andthose of two colleagues withtheir awards and valueproposition.

“Typically, the mostsuccessful advisers work witholder people. That is where themoney is,” Estes says. “Mostof those people aren’t takinghold of the Twitter or Facebookpart of the world – yet.”

Chris Latham

6 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 7

FT 400 Top Financial Advisers

Women still make up only30 per cent of financialadvisers, and even fewerhave made it to the top, butit seems that number willhave to grow as the investorbase evolves.

The industry faces apersonnel shortage of240,000 over the nextdecade, according to researchby Pershing, the consultancy.

Meanwhile, the researchshows, more women, alongwith Generation-X andGeneration-Y investors, willenter the market, bringingwith them expectations of amore collaborative adviserrelationship.

Investing in female advisersmay be the answer if firmswant to keep serving oldcustomers while bringing innew ones, says KimDellarocca, global head ofsegment marketing andpractice management atPershing. “Women haveinherent traits about how theybuild relationships and listen,”she says – and top femaleadvisers say those skills makea big difference to clients.

Debbie Jorgensen,managing director andwealth management adviserat Merrill Lynch, is listed inthe FT 400.

“When you think aboutwhat makes a successfuladviser, it is the skills thatencourage clients to be openand help them articulatewhat is important to them,”she says.

Ms Jorgensen says manymale advisers display thesetraits too. But on the whole,the Pershing research shows,people tend to associateconsultative and relationship-building behaviours withwomen.

Theresa Chacopulos, asenior vice-president andprivate wealth adviser atMorgan Stanley, left WellsFargo after 29 years, takingclients with whom she hadbuilt strong relationships.

Ms Chacopulos, who isalso in the FT 400, saysinvestors want to work withan adviser who feels likefamily. “I am seeing fromreferrals that it is about thefollow-through and thefeedback. I take the time toexplain things,” she says.Women, especially, seem toappreciate her approach.

In fact, according to astudy by Spectrem Group,the consulting and researchcompany, most affluentwomen prefer to workwith a financial adviser.Sixty per cent of womensay they would ratherwork with a femaleadviser, according tothe Pershing study.For women over 65,that share increased to79 per cent.

“It is indicative of a beliefthat women may be moreopen to a woman’s needs ordesire for more education,”says Ms Jorgenson.

A 2013 study by MerrillLynch revealed femaleinvestors were almost twiceas likely as men to say theyhad below-averageknowledge about investing,with the result that womentend to want educationalmaterial more than men,Ms Jorgensen says.

“Women want to dobusiness in a different way,”agrees Margaret Starner ofthe Starner Group ofRaymond James, and anotherFT 400 adviser. In the 1980s,she built her business bygiving seminars for womenwho wanted to be included intheir family’s financialdecision making. This desireto be educated and includedis still the case, she says

Ms Starner co-foundedRaymond James’s women’sadvisory board in 1992 andsays the group has helpedthe firm retain more femaleadvisers. Besides being atraditionally male-dominatedindustry that has not alwayswelcomed women, theround-the-clock nature of thejob does not always suitwomen, who tend to take onmore parenting duties.

“The barrier to entry isnot high, but the barrier tosurvive is,” Ms Starner says.But that is changing, as theteam-based structure foradviser businesses gainsground, enabling advisers tobe a big part of a businesswithout carrying all of it.

Establishing workplaceflexibility programmes,promoting coaching initiativesand putting more successfulsenior women in the spotlightcan help firms recruit andretain more female advisers,Ms Dellarocca says.

Of course, she adds, it isup to firms to spend themoney on these programmes– and that can require someconvincing. “How do we getthe recognition that thereare different strengths thatwomen bring and, most ofall, these strengths are whatcustomers want,” she asks.

Melissa J Anderson

Women More female experts can help theindustry meet a looming personnel shortfall

Debbie Jorgensenof Merrill Lynch

When it comes to teamwork,top financial advisers arefinding that two heads – orseveral – are better than one.Fewer than 15 per cent of the

FT 400 advisers are solo practitioners. Therest work in teams, either vertical (with alead adviser guiding other client-facingprofessionals) or horizontal (with severalequal partners).

These wealth managers say the teamstructure allows them to specialise in theareas they know best and exploit resourcesfor maximum efficiency.

Mike Klein, an FT 400 adviser with Rob-ert W Baird in Milwaukee, Wisconsin, leadsa team of 21 people. His group, which hasbeen working together since the 1990s,serves very wealthy individuals with anaverage account of $30m. It also works withinstitutions. Each account is assigned aportfolio manager, a relationship managerand a service manager. “We look at clientsand try to match their needs and personal-ity with the right combination of teammembers,” says Mr Klein.

The team’s size allows quality serviceeven during peak demand, Mr Klein says.Over the years, the group has added expertadvisers who can cater to specific needs.One, a former corporate executive, is agood fit for small business owners. Anotheris a tax expert who used to work at ArthurAndersen and is just right for “accounting-minded” clients such as chief financialofficers. The team also includes a lawyerwho specialises in trust and estate work.All this experience, says Mr Klein, “meansa broader base of services for our clients,lower error rates and higher quality of theoverall product”.

Large brokerages increasingly encouragetheir advisers to work in teams. For exam-ple, Merrill Lynch recently revamped itsadviser training, placing rookies withestablished teams. Part of the rationale isto address what some industry observerssay is a succession crisis at the big firms –an impending exodus of older, experiencedadvisers who may not have groomed ayounger partner to take over.

But Sharon Oberlander, an FT 400 MerrillLynch adviser who leads a team of six inChicago, thinks adviser teamwork hasevolved in response to a changing industry.Giving financial advice has become morecomplex. With ever more asset manage-ment choices, and a multitude of clientgoals, including legacy and philanthropicplanning, “one person couldn’t possiblydeliver it all”, Ms Oberlander says.

In surveys, Merrill’s clients report thatadviser teams offer better performance andservice. “Clients get their questions ans-wered promptly,” says Ms Oberlander. Andgreater client satisfaction means higherretention rates. For the advisers them-selves, she says, the team structure offersflexibility and better work-life balance.

Rather than assigning a single relation-ship manager to each client, Ms Ober-lander’s group collaborates on accounts,with all six advisers working together.

They document client conversations and

update one another at weekly meetings.“Clients like being served by a group wherethey are known – where their goals and alltheir family information are shared acrossthe team,” Ms Oberlander says.

A private banker from Bank of America,Merrill’s parent company, is pulled in sooften to help clients with mortgage andother lending needs that Ms Oberlanderconsiders her a virtual team member.

Of course, teams need not be large. DavidKron, an FT 400 adviser with Wells FargoAdvisors who works with another principal,a financial consultant and two sales assist-ants in Philadelphia, offers comprehensiveplanning to clients consisting mostly of pro-fessionals, many of whom have inheritedwealth. Mr Kron hands day-to-day portfoliomanagement to his financial consultant sothat he and his partner can focus on big-picture planning. He works with clients’lawyers and accountants as necessary.

Mr Kron and his partner have consideredadding people, but he says: “The moreemployees you have, the more you have tomanage them.” Indeed, even advisers in largeteams say there is a point – though it is hardto pinpoint exactly – beyond which a teambecomes more like a small company, need-ing its own management structure.

Still, industry experts see a trend towardlarger teams. More than 10 per cent of thisyear’s FT 400 advisers work in teams of 10or more client-facing professionals. “This isa trend driven by advisers,” says RudyAdolf, chief executive of Focus FinancialPartners, a partnership of independent reg-istered investment advisers with offices inNew York and San Francisco. “They knowlike-minded colleagues in the same locationand say: ‘If we team up and share ourresources and experience, we can ulti-mately provide better advice to clients.’”

A billion- or multibillion-dollar team, MrAdolf says, has the marketing cachet toposition itself in front of high net worthand ultra-high net worth clients.

Finally, Mr Adolf says, large teams arebetter equipped to leave a big brokerageand set up an independent firm if they wish.Many do not, of course, but it is one moreway in which teamwork can add flexibilityand growth potential to an adviser’s practice.

Pooled resources makethe numbers add upTeams Firms look foreconomies and blend oftalents, says JoanWarner

Stronger together: morethan 85 per cent of FT 400advisers work in teams Alamy

‘We try to matchclients’ needs andpersonality with theright combinationof team members’

8 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 9

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ARIZONA

Bancroft, Robert J. Morgan Stanley Scottsdale √ √ √

Chacopulos, Theresa E. Morgan Stanley Scottsdale √ √

Marten, James P. Merrill Lynch Phoenix √ √ √

Transue, Ruth L. Wells Fargo Advisors Tucson √ √ √

ARKANSAS

McDonald, Don R. Merrill Lynch Fort Smith √ √ √ √

CALIFORNIA

Abrams, Michael L. Wells Fargo Advisors Palo Alto √ √ √

Balog, Anouchka M. Morgan Stanley Laguna Niguel √ √ √

Barry, Robert J. Wells Fargo Advisors Palo Alto √ √

Basch, Andrew B. Morgan Stanley Los Angeles √ √ √

Benedetti, Marie Merrill Lynch San Francisco √ √

Blanchfi eld, Tom Merrill Lynch – Private Bank & Investment Group Newport Beach √

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Blosser, Richard UBS Private Wealth Management Los Angeles √ √

Blotner, Bernard S. Morgan Stanley San Diego √ √ √

Bradshaw, Michael W. Merrill Lynch San Diego √ √ √

Burbank, Mike Morgan Stanley San Francisco √ √

Burford, Lon E. Genovese Burford & Brothers/Royal Alliance Sacramento √ √ √

Chase, Andy L. Morgan Stanley Menlo Park √ √ √

Cody, John P. Merrill Lynch Century City √ √ √

Curtis, Mark T. Morgan Stanley Palo Alto √ √ √

Fagersten, Marcus C. UBS Financial Services San Francisco √ √

Feinstein, Paul L. UBS Private Wealth Management Los Angeles √ √ √

Fourcade, Renee M. UBS Financial Services Los Angeles √ √ √ √

Garcia, Jennifer L. Wells Fargo Advisors Encino √ √

Genovese, Michael T. Genovese Burford & Brothers/Royal Alliance Sacramento √ √ √ √

Gray, Eric A. Merrill Lynch – Private Bank & Investment Group Los Angeles √ √

Griepp, Troy Morgan Stanley San Francisco √ √

Guimarin, Alma Morgan Stanley San Jose √ √ √ √

*High net worth (clients with $1m-$10m in investable assets) **Ultra high net worth (with $10m or more in investable assets)

The FT 400 Top Financial AdvisersWhomade the final cut?We present the leadingUS professionals, listed by state, plus themethodology on p14

10 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 11

FT 400 Top Financial Advisers FT 400 Top Financial Advisers

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Hogan, Richard Aloysius Merrill Lynch – Private Bank & Investment Group San Francisco √

Hulburd, James E. Merrill Lynch – Private Bank & Investment Group San Francisco √

Inbody, Robert Morgan Stanley La Jolla √ √ √ √

Jankiewicz, Michael S. UBS Financial Services San Francisco √ √

Jones, Richard B. Merrill Lynch – Private Bank & Investment Group Los Angeles √ √

Jorgensen, Debbie Merrill Lynch San Francisco √ √ √

Kelly, Inna L. Morgan Stanley San Francisco √ √

Khouri, Dorian UBS Private Wealth Management Los Angeles √ √

Lee, Grant W. Morgan Stanley San Francisco √ √

Maher, Michael J. Merrill Lynch Carlsbad √ √ √ √

Malone III, Francis X. Morgan Stanley Los Angeles √

McCabe, James D. Wells Fargo Advisors Beverly Hills √ √ √

McKelvy, J. Dorian Morgan Stanley Menlo Park √ √ √

McNamee, John C. Merrill Lynch – Private Bank & Investment Group Los Angeles √ √

Morgan, Mark S. Morgan Stanley Folsom √ √ √

Munster, Bruce Morgan Stanley Woodland Hills √ √ √ √

Murphy, Daniel W. Morgan Stanley Menlo Park √

Palmer, Larry Morgan Stanley Los Angeles √ √ √

Pence, Laila Laila Pence Newport Beach √ √

Rothstein, Rebecca Merrill Lynch – Private Bank & Investment Group Beverly Hills √ √

Schulten, Mark E. Wells Fargo Advisors Long Beach √ √ √ √

Scott, Kevin Merrill Lynch Los Angeles √

Shadden, John T. Morgan Stanley Long Beach √ √ √

Sievers, Taryn A. Morgan Stanley Oakland √ √

Smith, Lawrence E. UBS Financial Services Brea √ √ √ √

Van Acker, David J. UBS Financial Services Westlake Village √ √ √

Van Hoorickx, Emily W. UBS Financial Services San Jose √ √ √

Waitrovich, David J. Merrill Lynch – Private Bank & Investment Group San Francisco √

Whitman, Alan B. Morgan Stanley Pasadena √ √ √ √

Yu, Sean Morgan Stanley Pasadena √ √ √

Zanolli, Greg Wells Fargo Advisors Roseville √ √ √

COLORADO

Brown, Mark R. Brown & Tedstrom Denver √

Fowler, Shawn Morgan Stanley Denver √ √ √

Smith, Mark J. M.J. Smith and Associates/Raymond James Greenwood Village √ √ √ √

Sogge, David B. RBC Wealth Management Greenwood Village √ √ √

CONNECTICUT

DesRochers, Stephen UBS Financial Services Stamford √ √ √

Dolgins, Ivan Merrill Lynch Stamford √ √ √ √

Fiore, Phil UBS Financial Services Stamford √ √ √

Gaugler, Dean H. UBS Financial Services Stamford √ √ √

Goldberg, Gerald B. Wells Fargo Advisors West Hartford √ √ √

Goodwin, Richard T. Merrill Lynch Madison √ √ √

Gourd, William C. UBS Private Wealth Management Stamford √ √ √

Hetherington, Brian J. Merrill Lynch – Private Bank & Investment Group New Canaan √

Jacobsen, Teresa A. UBS Private Wealth Management Stamford √ √ √

Kampf, Andrew S. Merrill Lynch New Haven √ √ √

Mattson Kenworthy, Mary UBS Private Wealth Management Stamford √ √ √

Noble III, Charles J. Janney Montgomery Scott New Haven √ √ √

Outtrim, Jr., Robert W. Merrill Lynch New Haven √ √ √

Trischman, Jr., Harold J. Morgan Stanley Greenwich √ √ √

Vacheron, Thomas E. Merrill Lynch Fairfi eld √ √

Yolles, Jonathan S. Wells Fargo Advisors West Hartford √ √ √

DISTRICT OF COLUMBIA

Caron, Jr., Donald A. Morgan Stanley Washington √ √

Haffner, Barry M. UBS Financial Services Washington √ √ √

Legg, Jonathan R. Morgan Stanley Washington √

McIntyre, Marvin Morgan Stanley Washington √ √ √

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O’Neill, Michael J. Morgan Stanley Washington √

Rietano III, Thomas J. Merrill Lynch Washington √ √ √

Shaffer, Sheila S. Janney Montgomery Scott Washington √ √ √ √

Stuart, David A. Morgan Stanley Washington √ √ √

Williams, John M. Morgan Stanley Washington √ √ √

FLORIDA

Aitken, Christopher C. Merrill Lynch – Private Bank & Investment Group Ponte Vedra Beach √ √

Bain, Diane J. Merrill Lynch Palm Beach Gardens √ √

Camp, Gray A. Merrill Lynch Jacksonville √ √ √ √

Chiavacci, Louis J. Merrill Lynch – Private Bank & Investment Group Coral Gables √

D’Adesky, Don Anthony Morgan Stanley Boca Raton √ √ √

Dwyer, Patrick James Merrill Lynch – Private Bank & Investment Group Miami √

Gomez, Jorge L. UBS Financial Services Coral Gables √ √

Green, Meg Meg Green & Associates Miami √ √ √

Jacoby, Keith M. Wells Fargo Advisors Naples √ √

Jaffe, Barbara Morgan Stanley Jacksonville √ √ √ √

King, William W. Merrill Lynch Vero Beach √ √ √

Loos, Randolph M. Wells Fargo Advisors Clearwater √ √ √ √

McCain, Michael A. Wells Fargo Advisors Naples √ √ √ √

Merriam III, William H. Merrill Lynch Jacksonville √ √ √ √

Moran, Thomas M. Wells Fargo Advisors Naples √ √

Rubin, Barry E. Merrill Lynch Delray Beach √ √ √

Starner, Margaret C. The Starner Group of Raymond James Coral Gables √ √ √

Sylvia, Kurt F. UBS Private Wealth Management Palm Beach √ √ √

Valdes, Michael J. Merrill Lynch – Private Bank & Investment Group Tampa √ √ √

GEORGIA

Frank, Brian Morgan Stanley Atlanta √ √ √

Hansberger, James C. Morgan Stanley Atlanta √ √

Hart, Ronald Morgan Stanley Atlanta √ √ √ √

Higginbotham, Kevin Merrill Lynch Atlanta √ √ √ √

Higgins, David P. Merrill Lynch – Private Bank & Investment Group Atlanta √

Kaufman, Jim Merrill Lynch Atlanta √ √ √ √

Mack, David F. Merrill Lynch Atlanta √ √ √

Mericka, Keith A. UBS Private Wealth Management Atlanta √ √

Neumeyer, Jeff Merrill Lynch Atlanta √ √ √ √

Prediletto, Steve Merrill Lynch Atlanta √ √ √ √

Price, Vandyke G. UBS Private Wealth Management Atlanta √ √ √

Rosenberg, Mark D. Morgan Stanley Atlanta √ √ √

Wallace, James Merrill Lynch Atlanta √ √ √ √

Westmoreland, Rod Merrill Lynch – Private Bank & Investment Group Atlanta √

Wiley III, Buck Merrill Lynch – Private Bank & Investment Group Atlanta √ √

ILLINOIS

Becker, Bruce M. Morgan Stanley Chicago √ √ √

Bhatia, Raj Merrill Lynch – Private Bank & Investment Group Chicago √ √

Brandt, Carol Merrill Lynch Chicago √ √ √

Chudom, Kyle Morgan Stanley Oak Brook √ √ √ √

Ciesemier, Michael D. Morgan Stanley Chicago √ √ √

Covey III, F. Michael UBS Private Wealth Management Chicago √ √

Davis, Ted UBS Financial Services Oakbrook Terrace √ √

DeHond, Brad T. Morgan Stanley Chicago √

Desai, Ajay UBS Private Wealth Management Chicago √ √ √

Easom, William H. Morgan Stanley Chicago √

Held, Richard M. UBS Financial Services Chicago √ √ √

Hickey, Thomas M. Merrill Lynch Chicago √ √ √

Kane, Thomas UBS Private Wealth Management Chicago √ √

Kartheiser, Joseph Morgan Stanley Chicago √ √

Lee, Bruce K. Merrill Lynch – Private Bank & Investment Group Chicago √

Leshem, Benjamin Wells Fargo Advisors Deerfi eld √ √ √

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Magnesen, Scott K. Morgan Stanley Oak Brook √ √ √

McLean, Russell James G. Wells Fargo Advisors Oak Brook √ √

Meyer, Douglas L. Wells Fargo Advisors Deerfi eld √ √ √ √

Oberheide, James L. Morgan Stanley Chicago √ √

Oberlander, Sharon F. Merrill Lynch Chicago √ √ √

Raihle, Maureen M. Merrill Lynch – Private Bank & Investment Group Chicago √

Rice, Thomas E. UBS Financial Services Northbrook √ √ √ √

Roeser, Kathy R. Morgan Stanley Chicago √ √

Silich, Joseph N. Morgan Stanley Chicago √

Stenger, Ronald Morgan Stanley Oak Brook √ √

Stevenson, Jr., John G. Wells Fargo Advisors Quincy √ √ √ √

Ver Bockel, John P. Merrill Lynch – Private Bank & Investment Group Chicago √ √

Wiktor, Mark UBS Private Wealth Management Chicago √ √

Wright, David C. Merrill Lynch – Private Bank & Investment Group Chicago √

INDIANA

Buck, Thomas J. Merrill Lynch Indianapolis √ √ √ √

Cooke, Brian F. Wells Fargo Advisors Indianapolis √ √ √ √

Cooke, J. Christopher Wells Fargo Advisors Indianapolis √ √ √

Estes, Adam Hilliard Lyons Bloomington √ √ √ √

Stscherban, Paul Robert W. Baird & Co. Mishawaka √ √ √ √

IOWA

Fryar, Matthew Wells Fargo Advisors Des Moines √ √ √ √

KANSAS

Freeman, Sr., Thomas H. UBS Financial Services Leawood √ √ √

KENTUCKY

Foutch, Dan J. Hilliard Lyons Glasgow √

Mahurin, Pete Hilliard Lyons Bowling Green √ √ √ √

Settle, Mitch Hilliard Lyons Owensboro √ √ √ √

LOUISIANA

Frayard, Rick UBS Financial Services Lafayette √ √ √ √

Spiro, James M. Morgan Stanley New Orleans √ √

MAINE

Burns, Jr., Jeremiah S. Morgan Stanley Portland √

MARYLAND

Baum, Patricia P. RBC Wealth Management Annapolis √ √ √ √

Charkatz, Ross P. Morgan Stanley Potomac √ √ √

Etergino, Ann Marie RBC Wealth Management Chevy Chase √ √ √ √

Fishbein, Ronald L. Morgan Stanley Rockville √ √ √

Orr, William F. Merrill Lynch Frederick √ √ √

Pearce, Kent V. Merrill Lynch Towson √ √ √

Scherer, Robert S. Morgan Stanley Potomac √ √

Wagener, Richard H. Wagener-Lee Wealth Advisors/Raymond James Columbia √ √ √

MASSACHUSETTS

Armstrong, Christine Morgan Stanley Boston √ √ √

Atwood, James Merrill Lynch – Private Bank & Investment Group Boston √ √ √

Bryan, Douglas E. Morgan Stanley Boston √ √ √

Connolly, Jr., Richard F. Morgan Stanley Boston √ √ √ √

Corbett, L. O. Patrick Morgan Stanley Boston √ √ √

Dillon, Sean V. UBS Financial Services Boston √ √ √

Gillan, Duncan W. Wells Fargo Advisors Boston √ √ √ √

Javaheri, David Morgan Stanley Wellesley √

Kaplan, Susan C. Kaplan Financial Services Newton √ √ √

Livingstone, Victor T. Morgan Stanley Boston √

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Mulvey, Brian Patrick UBS Private Wealth Management Boston √

Nabhan, Edward G. Morgan Stanley Boston √ √

Princi, Peter B. Morgan Stanley Boston √ √ √

Principe, Steven R. Morgan Stanley Boston √ √ √

Sharma, Raj Merrill Lynch – Private Bank & Investment Group Boston √ √

Simmons, Gregory W. Merrill Lynch Quincy √ √ √ √

Strachan, Brian S. Morgan Stanley Boston √ √ √ √

Sugar, Alex M. Morgan Stanley Boston √ √

Sullivan, William J. UBS Private Wealth Management Boston √ √

Swett, Jeffrey A. UBS Financial Services Boston √ √ √ √

Traino, Jason M. Morgan Stanley Middleton √ √ √ √

Wilson, Daniel Ameriprise Financial Auburndale √ √

Winthrop, Mark Winthrop Wealth Management Westborough √ √ √ √

Zimmerman, Andrew H. Morgan Stanley Boston √ √

MICHIGAN

Ballard, Bruce K. Morgan Stanley Bloomfi eld Hills √ √ √

Bernecker, Scott D. Merrill Lynch Grand Rapids √ √ √

Kulhavi, John G. Merrill Lynch Farmington Hills √

Locniskar, Dana M. Merrill Lynch – Private Bank & Investment Group Troy √

Long, Timothy J. Merrill Lynch Grand Rapids √ √ √

Lund, David A. Merrill Lynch Grand Rapids √ √ √

Mackay, William S. Merrill Lynch Grand Rapids √ √ √

Rogers, Mark J. Morgan Stanley Farmington Hills √ √ √

Veldheer, James D. Merrill Lynch Grand Rapids √ √ √

Zhang, Charles C. Zhang Financial Portage √ √ √

MINNESOTA

Adamski, Mary RBC Wealth Management Edina √

Baker, Todd D. Wells Fargo Advisors Bloomington √ √ √

Bengtson, Jesse Merrill Lynch Stillwater √ √

Close, Louis D. UBS Private Wealth Management Minneapolis √ √

Drees, Tom Morgan Stanley Bloomington √ √ √ √

Eckerline, Peter Merrill Lynch Wayzata √ √

Howe, Aaron M. RBC Wealth Management Wayzata √ √

Major, Charles L. UBS Private Wealth Management Minneapolis √ √ √

Swenson, Michael Merrill Lynch – Private Bank & Investment Group Wayzata √ √ √

MISSISSIPPI

Mosby III, Bill Rush UBS Financial Services Jackson √ √ √ √

MISSOURI

King, Bernard J. UBS Financial Services St Louis √ √ √

Mistler, Richard UBS Financial Services Kansas City √ √ √ √

Moore, John W. Morgan Stanley St Louis √ √ √

NEBRASKA

Beukelman, Jonathan UBS Private Wealth Management Lincoln √ √ √

Dworak, Jason M. UBS Private Wealth Management Lincoln √ √ √

Garlock, John “Buzz” RBC Wealth Management Omaha √ √ √ √

Kelley, Richard W. RBC Wealth Management Omaha √ √ √

Robinson, Andrew C. Morgan Stanley Omaha √ √ √

NEW JERSEY

Barry, James R. Merrill Lynch Princeton √ √ √ √

Berkery, Jr., Joseph W. Merrill Lynch Summit √ √

Cook, Christopher G. Merrill Lynch Florham Park √ √

Fendrick, Mark D. UBS Financial Services Mount Laurel √ √ √ √

Hakim, Nina UBS Financial Services Westfi eld √ √ √ √

Heavey, John W. Morgan Stanley Red Bank √ √ √ √

Kreshpane, Karl L. Morgan Stanley Ridgewood √ √ √

12 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 13

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Kugel, Elliott Merrill Lynch Bridgewater √ √ √

Lippman, Mark J. Wells Fargo Advisors Linwood √ √ √ √

Liss, Andrew R. Merrill Lynch Short Hills √ √ √

Malamut, Charles Merrill Lynch Egg Harbor Township √ √ √ √

McLaughlin, James M. Princeton Wealth Advisors of Raymond James Princeton √ √ √ √

McPeak, Neil Wells Fargo Advisors Linwood √ √ √ √

Ricca, Michael J. Morgan Stanley Florham Park √ √ √

Schwartz, Daniel UBS Private Wealth Management Paramus √ √

Shegoski, L. Marc UBS Financial Services Princeton √ √ √

Spierer, Alan UBS Financial Services Westfi eld √ √ √

Walker, Ira A. UBS Private Wealth Management Red Bank √ √

Weinerman, David S. Morgan Stanley Florham Park √ √ √

Zangari, Christopher UBS Financial Services Westfi eld √ √ √

NEW YORK

Addessi, Mark A. UBS Financial Services New York √ √ √ √

Basu, Ron Morgan Stanley New York √ √

Beyer, David Morgan Stanley New York √ √ √

Bickler, Eric UBS Financial Services White Plains √ √ √

Bieber, David Morgan Stanley New York √ √ √

Bodner, Eric Scott Merrill Lynch – Private Bank & Investment Group New York √

Bryan, Jeffrey M. Merrill Lynch – Private Bank & Investment Group New York √ √

Carter, Kenneth W. Wells Fargo Advisors New City √ √ √ √

Cohen, Leigh E. Merrill Lynch – Private Bank & Investment Group New York √ √

Cohen, Robert D. UBS Financial Services Uniondale √ √ √ √

Coyle III, John F. Morgan Stanley Garden City √ √ √

Detterick, James J. Morgan Stanley New York √ √ √ √

Einstein, William UBS Financial Services New York √ √

Elish, Harold UBS Financial Services New York √ √ √ √

Filone, Jeffrey Morgan Stanley Garden City √ √ √

Hart, D. Andrew Morgan Stanley New York √ √

Hersch, Gregory A. UBS Financial Services New York √ √ √ √

Hollenbaugh, David Merrill Lynch – Private Bank & Investment Group New York √ √

Kadden, Harvey B. Morgan Stanley New York √ √ √

Kass, Jonathan E. Merrill Lynch New York √ √ √

Katz, Jason UBS Financial Services New York √ √ √

Kavallieratos, Nick Morgan Stanley New York √ √ √ √

Kazazes, Tom Morgan Stanley New York √ √

Keegan, Thomas J. Merrill Lynch – Private Bank & Investment Group New York √ √ √ √

Kleiner, Scott Morgan Stanley New York √ √ √

Klingman, Gerard A. Klingman and Associates/Raymond James New York √ √ √

Kobernick, Jeffrey M. UBS Private Wealth Management New York √ √ √

Kraus, Andrew P. Merrill Lynch – Private Bank & Investment Group New York √

Lewis, Ryan C. Morgan Stanley New York √ √

Liebers, Lawrence C. Merrill Lynch New York √ √ √

Maddalena, Tony Morgan Stanley Purchase √ √ √ √

Mahoney, Christopher J. Merrill Lynch West Nyack √ √ √

Malof, Christopher F. Morgan Stanley Buffalo √ √ √

Mark, Ira H. RBC Wealth Management New York √

Marvin, Paul J. Merrill Lynch New York √ √ √ √

McGinty, Bob Merrill Lynch – Private Bank & Investment Group New York √

Mellert, Douglas M. Merrill Lynch New York √ √ √

Millman, Ira M. UBS Financial Services New York √ √ √

Moeder, Alyssa C. Merrill Lynch – Private Bank & Investment Group New York √

Morgan McReynolds, Erna Morgan Stanley Oneonta √ √ √ √

Nocon, Nannette Ameriprise Financial Rochester √ √

O’Connell, Daniel T. Merrill Lynch Garden City √ √ √

Olson, John D. Merrill Lynch New York √ √ √

Pastolove, Craig Morgan Stanley New York √ √ √

Perkins III, E. Howard Morgan Stanley Purchase √ √ √

Piniros, Fotios Morgan Stanley New York √

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Pluff, J. Daniel Morgan Stanley Syracuse √ √ √ √

Rabito, Russell A. UBS Financial Services New York √ √ √

Sabia, Frank J. UBS Financial Services White Plains √ √ √ √

Sager, Sharon T. UBS Private Wealth Management New York √ √ √

Salvino, Richard Merrill Lynch – Private Bank & Investment Group New York √

Sauro, Christopher Wells Fargo Advisors White Plains √ √ √ √

Sechan II, Robert J. UBS Private Wealth Management New York √ √ √

Seruya, Mark Morgan Stanley New York √ √ √

Sobocinski, David P. Morgan Stanley Melville √ √ √

Spector, Gary M. UBS Financial Services New York √ √ √ √

Stackman, Scott L. UBS Private Wealth Management New York √ √

Steden, Heliane Merrill Lynch New York √

Sullivan, Thomas E. Merrill Lynch Garden City √ √ √

Svarre, Peter L. Merrill Lynch New York √

Talish, Joel Wells Fargo Advisors White Plains √ √

Temel, Charles S. UBS Financial Services New York √ √ √

Terzioglu, Ahmet Morgan Stanley Rochester √ √ √ √

Vinder, Ron UBS Financial Services New York √

Weil, Noel L. Merrill Lynch – Private Bank & Investment Group New York √

Wilson, Scott C. Morgan Stanley New York √ √ √

NORTH CAROLINA

Cash, Gregory M. Merrill Lynch – Private Bank & Investment Group Charlotte √

Davis, Christopher W. Wells Fargo Advisors Davidson √ √ √ √

Knott, Bruce W. Wells Fargo Advisors Chapel Hill √ √ √

Miles, Pamela P. Wells Fargo Advisors North Wilkesboro √ √ √

Murchison III, John Reid Wells Fargo Advisors Wilmington √ √ √ √

Oliver, William M. Wells Fargo Advisors Charlotte √ √

Wickham, R. Mitchell Merrill Lynch – Private Bank & Investment Group Charlotte √

OHIO

Edwards, Brian J. Morgan Stanley Columbus √ √ √ √

Evelo, Joseph H. Merrill Lynch – Private Bank & Investment Group Cincinnati √ √ √

Keidan, Robert S. Keidan Financial Consultants Columbus √ √ √ √

Knowles III, Harvey C. Merrill Lynch Cincinnati √ √ √

Myeroff, Kevin NCA Financial Planners Cleveland √

Sarran, William R. Morgan Stanley Cincinnati √ √

Schwartz, Walter S. Merrill Lynch Pepper Pike √ √ √ √

Shane, Jon R. Merrill Lynch Pepper Pike √ √ √ √

Singer, David L. Merrill Lynch – Private Bank & Investment Group Cincinnati √ √ √

Torbeck, Dan L. UBS Financial Services Cincinnati √ √

Washburn, Todd Morgan Stanley Cincinnati √ √ √

OKLAHOMA

Cary III, John W. Morgan Stanley Tulsa √

OREGON

Clemans, Glen A. CGC Financial Services Lake Oswego √ √ √ √

McGee, Judith A. McGee Wealth Management/Raymond James Portland √ √ √

PENNSYLVANIA

Blumenthal, Edward S. Janney Montgomery Scott Philadelphia √ √ √ √

Brown, Jr., William H. Merrill Lynch Sewickley √ √

Duckworth, Michael D. Merrill Lynch – Private Bank & Investment Group Pittsburgh √ √ √

Gallagher, John W. Morgan Stanley Bryn Mawr √ √ √

Hayes, Gregory Merrill Lynch Yardley √ √ √ √

Kron, David J. Wells Fargo Advisors Philadelphia √ √ √

Richman, Marc S. Morgan Stanley Philadelphia √

Rimmel, James W. UBS Financial Services Pittsburgh √ √ √ √

Rohr, Peter A. Merrill Lynch – Private Bank & Investment Group Philadelphia √ √

Solis-Cohen, John A. Wells Fargo Advisors Jenkintown √ √ √ √

FT 400 Top Financial Advisers

14 FINANCIAL TIMES TUESDAY MARCH 25 2014 FINANCIAL TIMES TUESDAY MARCH 25 2014 15

FT 400 Top Financial Advisers

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RHODE ISLAND

Makin, Malcolm A. Professional Planning Group/Raymond James Westerly √ √ √ √

SOUTH CAROLINA

Covington III, J. Preston Wells Fargo Advisors Columbia √ √ √ √

Ellison, Jr., J. Hagood Merrill Lynch Columbia √ √ √

Kibler, E. Robertson Merrill Lynch Columbia √ √ √

Vingi, Jr., Robert E. Wells Fargo Advisors Charleston √ √ √ √

TENNESSEE

Eskind, William H. Wells Fargo Advisors Nashville √ √ √ √

Hepner, David E. Merrill Lynch Germantown √ √ √ √

Kinney, Raymond A. Merrill Lynch Memphis √ √ √ √

Pettey III, John H. Pettey Moore Advisory Group of Raymond James Memphis √ √ √

TEXAS

Blonkvist, Kevin M. RBC Wealth Management Midland √ √ √ √

Bollinger, J. Michael Morgan Stanley Houston √

Carlson, Randy Merrill Lynch Dallas √

Caryl, Ted L. Merrill Lynch Houston √

Coffee, Jr., James L. Merrill Lynch Houston √ √ √

Crocker, J. Dow Crocker Prince & Blackford Group of Raymond James Dallas √ √ √

de Groot, Frederick A. Merrill Lynch The Woodlands √ √ √

Frisco, William Morgan Stanley Houston √

Gouldin, William “Bill” W. Morgan Stanley Houston √ √ √

Hardin, Rob C. Wells Fargo Advisors Houston √ √ √ √

Holstead, Thomas Scott Merrill Lynch Houston √

Johri, Anupam Morgan Stanley Plano √

Kever, Mark UBS Financial Services Addison √ √ √ √

Klenke, Gregory UBS Financial Services Houston √ √ √ √

Lockwood, Elizabeth G. UBS Financial Services Houston √ √

Metzger, Lewis Morgan Stanley Houston √ √

Miller, Shott F. Merrill Lynch Fort Worth √ √ √ √

Moldawer, Palmer Morgan Stanley Houston √ √

Moore, Mark A. UBS Financial Services Austin √ √ √

Neuhaus, Charles E. Wells Fargo Advisors Houston √ √ √

Newton, Jeremy Charles Morgan Stanley Houston √ √

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Pearcy, Van M. Van Pearcy’s Wealth Services Team/Raymond James Midland √ √ √

Piatas, Richard W. Merrill Lynch Dallas √ √

Pickle, Jan D. UBS Financial Services Austin √ √ √ √

Sammons, Joseph Morgan Stanley San Antonio √ √ √

Sauer, Brian C. UBS Financial Services Houston √ √

Schroeder, Ralph Ameriprise Financial The Woodlands √ √ √

Smith, Reed H.B. Merrill Lynch – Private Bank & Investment Group Houston √

Tiras, Scott Ameriprise Financial Houston √ √ √ √

Walsh, Marc P. Merrill Lynch Houston √ √ √

Warren III, Champ D. Merrill Lynch – Private Bank & Investment Group Houston √

Young, Barry UBS Financial Services Houston √ √

UTAH

Runia, Raymond Scott Merrill Lynch – Private Bank & Investment Group Provo √ √

VIRGINIA

Cassaday, Stephan Q. Cassaday and Company McLean √

Gill, John A. BB&T Scott and Stringfellow Virginia Beach √ √ √ √

Montgomery, Joseph W. Wells Fargo Advisors Williamsburg √ √ √

Salomon, Dalal Maria Wells Fargo Advisors Richmond √ √ √

Smith, Gregory S. Robert W. Baird & Co. Reston √ √ √

WASHINGTON

Braun, Dean Morgan Stanley Seattle √

Cook, Terry L. UBS Private Wealth Management Bellevue √

Geri, Michael A. RBC Wealth Management Seattle √

Hampson, Wayne C. Merrill Lynch Seattle √ √ √

Mash, Jeff Morgan Stanley Bellevue √ √ √ √

Miller, Dale T. Morgan Stanley Bellevue √ √

Nelson, Robert A. Morgan Stanley Seattle √

Reveley, Thomas L. Merrill Lynch Bainbridge Island √

WISCONSIN

Berg, Gregory G. Wells Fargo Advisors Milwaukee √ √ √ √

Burish, Andrew D. UBS Financial Services Madison √ √ √ √

Epstein, David S. Robert W. Baird & Co. Milwaukee √ √ √

Klein, Michael G. Robert W. Baird & Co. Milwaukee √ √

*High net worth (clients with $1m-$10m in investable assets) **Ultra high net worth (with $10m or more in investable assets)

The guiding principle behindthe FT 400 is to focus oninvestors. We assessedfinancial advisers from theperspective of current andprospective clients.

The methodology isquantifiable and objective. Inautumn 2013, the FTcontacted the largest USbrokerage firms to solicitadvisers’ practice informationand data for the firms’ mostelite advisers. Thus, wecould obtain verified adviserdata on assets undermanagement, rather thanrelying on adviser self-reporting, thereby increasingthe list’s credibility. We askedthe broker-dealers for

advisers with 10 or moreyears’ experience and $200mor more in assets undermanagement; the brokerageshad no subjective input.

The FT invited the 1,500advisers who qualified to fillout a short questionnairethat gave us moreinformation about theirpractices. We augmentedthat information with ourresearch on the candidates,including data fromregulatory filings.

The formula the FT uses tograde advisers is based onsix broad factors andcalculates a score for eachadviser. Areas consideredinclude adviser assets under

management, asset growth,years of experience, industrycertification, FinancialIndustry Regulatory Authoritycompliance record and onlineaccessibility:

Assets under managementSignals experience managingmoney and client trust

Assets under managementgrowth rateDeveloping assets is a proxyfor performance, as well asfor asset retention and abilityto generate new business

Years of experienceIndicates experience inmanaging assets in different

economic and interest-rateenvironments

Compliance recordProvides evidence of pastclient disputes – a string ofcomplaints can indicatepotential problems

Industry certificationsShows technical and industryknowledge. Designations suchas CFA (chartered financialanalyst) or CFP (certifiedfinancial planner) signal aprofessional commitment toinvestment skills

Online accessibilityIllustrates commitment toproviding investors with easy

access and transparentcontact information

Assets under managementand asset growth comprise80-85 per cent of eachadviser’s score. Additionally,to provide a diversity ofadvisers, the FT places a capon the number from any oneUS state that is roughlycorrelated to the distributionof millionaires across the US.

We present the FT 400 asan elite group, not rankedfrom one to 400, since eachadviser takes a differentapproach to their practice andhas different specialisations.

Loren Fox

Methodology How the FT 400 Top Financial Advisers list was compiled

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FT 400 Top Financial Advisers FT 400 Top Financial Advisers

Financial adviser SusanKaplan sees herself asmuch as a life planner as afinancial professional.

Her retiree clients, whorepresent a large portion ofher roughly $1.3bn practice,come with the usual ques-tions any other customermight.

“Should I invest moreheavily in stocks or bondsin the current market?”;“How much can I afford tospend, and when can I stopworking?” But they haveother, often more pressing,concerns.

“One of the biggest vul-nerabilities of my clients isgifting to their children,”says Ms Kaplan, whose cus-tomers’ accounts often facemore risk from grandchil-dren’s summer campexpenses than from marketvolatility. “Unless the kids

are desperate, it’s best toleave the assets to the kidswhen you pass away, ratherthan gifting.”

Medical costs, long-termcare, inflation and housingchanges are uppermost inretirees’ minds, say adviserswho serve this population.

Many of their customersstill work part time, fearfulof losing income after real-ising that they have under-estimated how much itcosts to live to 100.

“Of my retirees, probably85 per cent of them aredoing some type of consult-ing or part-time work. Itgives us some time to comeup with what the number isthat is necessary to supporttheir lifestyle,” says MsKaplan, whose Newton,Massachusetts practiceserves clients with at least$1m in assets.

“I urge them to step downgradually for just that rea-son,” she says.

At Charles Zhang’s fee-based advisory business inPortage, Michigan, person-alisation is the theme. Toooften, people think they willneed retirement incomeequal to 80 per cent of their

final working salary, a fig-ure that does not fit every-one, he says.

Mr Zhang constructs com-prehensive plans for clientsthat include anticipatedmedical and long-term careexpenses. He advises adrawdown rate of 3-4 percent a year – though thedollar amount increasesevery year in order toaccount for inflation.

“Once you retire youpretty much live on fixedincome,” Mr Zhang says.“We always tell clients tobe conservative and take 3per cent out.”

Inflation impacts on liv-ing expenses more thanmost people think, he adds.While inflation might riseby 2 per cent or less peryear, food costs rise fasterthan infrequently pur-chased items, such as con-sumer electronics, whichoften decrease in cost.

The transition into retire-ment can be psychologi-cally jarring, and thechange from accumulationto decumulation of wealthrequires substantial guid-ance, says adviser LailaPence, whose California-

based business works withhigh-net-worth clients.

“It is quite a transition.Psychologists say it’s thesecond most serious thingto happen to people after[someone close] dying,”says Ms Pence. “You’reused to working. You’reused to having income, andnow you’re in retirementhaving to live off of yourinvestments.”

When a person stopsworking, their assets needto go to work instead, MsPence tells clients.

In the current market,that can mean investing individend-paying stocks, realestate investment trusts,master limited partnershipsor other financial productsthat can generate cash flow.

Life expectancy is con-stantly increasing, and therisk of running out ofmoney in retirement fol-lows, she says.

“We have many clients intheir 90s – our oldest maleclient died at 101. The daysof thinking you’re going toretire [at 65] and die at 76,78 or 80 are gone,” she says.

The majority of adviserJohn Gill’s client base can

afford to stop workingentirely at retirement, butsome realise on approach-ing pension age they havesaved too little.

“A small minority of myclients don’t have the assetsto accommodate their life-style,” says Mr Gill, seniormanaging director at theVirginia Beach office ofBB&T Scott & Stringfellow.

“You try to educate themabout how long [theirassets] will last. Since youcan’t predict whenyou’re going to passaway, you have to becareful with thatnumber.”

Long-term carecan cost retirees$5,000 or more amonth, and manyend up sellingtheir homes tofund theexpense.

It is anumber MsK a p l a nbrings upwhen cli-ents askwhethert h e ys h o u l d

buy a home when relocat-ing.

“People need a financialadviser who will co-ordinateall those pieces, even to theextent of, if they want tomove to be near theirgrandchildren, whetherthey should buy or lease,”she says.

“The odds of one at leasthaving to go into assistedliving are high. Do youreally want to buy a housethat you’re going to need to

liquidate?”

Personalisation is key to planning for life after workRetirement

Guidance for clientswill vary dependingon circumstances,writes Emile Hallez

Long term:Susan Kaplansays many ofher clients stillwork part time

The financial advice industry’sobsession with the age of its pro-fessionals is misplaced. True, atover 50, the average US adviser isolder than his or her counterparts

in most other businesses. But it is also asector that holds grey hair in esteem.

“It shows you’ve been through a few mar-ket cycles,” says Laura Pierson, generalmanager of Peak Advisor Alliance, anadviser-coaching firm in Omaha, Nebraska.“If anything, younger advisers tell us pros-pecting is a challenge because they don’thave the age, the experience of some of theothers they’re up against.”

The FT listing of the top 400 US financialadvisers is a monument to experience. Themedian adviser in its ranks has been in thejob for 26 years. And these long-tenuredadvisers have learnt a trick or two for keep-ing sometimes skittish clients on track andfocused on long-term outcomes.

“That’s why clients value them,” says MsPierson. “If you’re looking for another kindof service – such as advertising – you reallymight want younger professionals, and peo-ple in that business know it.” But “advisersare usually eager to play up” their timeand experience in the business.

FT 400-listed Joseph Montgomery ofWells Fargo Advisors in Williamsburg, Vir-ginia, agrees there are benefits to havinggone a few rounds – both in terms of clientperception and reality. The first thing hetries to tell prospective clients is somethinghe feels he learnt the hard way. “There’s nofree lunch,” says Mr Montgomery, whodraws on 38 years of experience.

In other words, if a scheme promises a lotof gain for little risk, it is probably not forreal, or at least not sustainable. What’s left,he says, is careful groundwork in the form

of rigorous investment diversification.This, accompanied by a firm grasp of thefact that markets are volatile by nature,can help investors make the most of theirmoney without going crazy in the process,says Mr Montgomery, whose team managedabout $880m last year.

William Sarran, an FT 400 adviser withMorgan Stanley in Cincinnati, says 37 yearsin the business has taught him the value ofa long-term perspective. Clients respondpositively to advisers who can translate thisinto “being the voice of reason” by “helpingthem stay focused on their goals”, he says.

Mr Sarran and his team, who managedabout $385m last year, mix long tenures inthe business with a hands-on approach toasset management and an appreciation ofstock valuation not just stock price. Thiscombination, and a prudent portion ofalternative-investment products in his cli-ents’ portfolios, “helps us to be not souptight about the market”, he says.

The alternative products come courtesyof what Mr Sarran calls an “evolution ofthe investment process” that lets advisersbring traditionally institutional strategies –embodied in things such as real estateinvestment trusts and managed futures – toretail-client portfolios. A prudent allocationof such investments, which typically havelow correlations to broad markets, will notnecessarily “make you well” in downturnslike the one we saw five years ago, “but itcan give you some brakes”, he says.

“Early in my career, being diversifiedwas using 12 companies,” adds Mr Sarran.“Now we use 12-25 managers with hun-dreds of positions in each of our clients’portfolios.”

Three or four decades in the business canmake an adviser more attuned to clients –

and a better communicator for it, says FT400 adviser Judith McGee of McGee WealthManagement in Portland, Oregon, whichmanaged $370m in 2013.

“You learn how to listen. And you knowthat when a client asks a question, evenwhen it seems very straightforward, there’salways another question behind it, andmaybe it’s the more important one.”

Ms McGee has gleaned other client-relation tips in her 35 years she has beenan adviser. For instance, she has learnthow to help clients who seem to be hesitat-ing on the verge of an important disclosure.“I’ll tell them a similar story” – drawn fromreal life but with no identifying detailsshared – “to get them to continue” withtheir own confessions, she says.

And when dealing with couples, MsMcGee makes sure less talkative partnersget included in all discussions. “You’re notjust working with the person who signsthe cheques,” she says. “You have toengage the other person.”

Experience can also help an adviserspot clients they want to work with.“That really helped us in 2008,” says MsMcGee. “We didn’t have clients whoweren’t a good fit for us.”Mr Montgomery has little time for bad

fits either. He will give prospects all thetime they need to understand how he andhis colleagues handle planning and invest-

ments, but will politely show them thedoor if it seems they are look-

ing for quick fixes or falseassurance. “I’d rathernot work with peoplewho are looking forsomething we can’tgive them,” he says.“I’m too old for that.”

Why experience can pay dividendsAge The depth of knowledge built up over a long career gives older advisers an advantage, saysThomas Coyle

Long-tenured advisers havelearnt a trick or two for focusingclients on long-term outcomes

Joint venture: when dealing with couples, advisers need to ensure that the less talkative partners get included in all discussions Alamy

Long-termperspective:WilliamSarran

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FT 400 Top Financial Advisers FT 400 Top Financial Advisers

Very wealthy investors increasinglyare moving into the liquid alterna-tives market, looking to gain apiece of the traditional hedge fundand private equity action, but at a

fraction of the cost and illiquidity.Liquid alternatives (also known as “retail

alternatives”) package alternative strate-gies such as long/short or hard-asset invest-ing inside heavily regulated mutual funds.Advisers are leading the shift as clientssearch for diversification and uncorrelatedreturns in their portfolio.

Still scarred by the plummet of almost allassets in the 2008 financial crisis, investorsare looking for less volatile, uncorrelatedreturns from their existing holdings. Whilehedge funds and private equity strategiesare open to those that meet the “accreditedinvestor” definition of having a net worthof at least $1m or who earn at least $200,000

a year, those who fall short of theserequirements have previously been lockedout of the alternatives market.

A survey by MainStay, a New York Lifecompany, found high-net-worth individualson average have one fifth of their portfolioin alternatives, with most (65 per cent)investing through mutual funds, followedby 40 per cent using exchange traded funds(ETFs) and 38 per cent managed funds.

The market has grown in recent years tohit $270bn at the end of 2013, according toStrategic Insight. The MainStay researchfound that financial advisers were the mainway very wealthy investors discoveredmore about liquid alternatives.

Alternatives are being used to gain diver-sification and investment growth in high-net-worth investors’ portfolios, but 60 percent are also using alternatives to protectprincipal capital, according to MainStay.

“Advisers and clients are looking for toolsfor risk management; they are looking foradditional sources of returns outside of thestocks-bond-cash traditional asset matrix,and they are looking for additional diversifi-cation to build better portfolios,” says RickLake, portfolio manager of the Aston/LakePartners Lasso Alternatives Fund.

As the market has seen a flood of assets,managers have responded with a flood ofproducts. Brian Strachan, a managingdirector of private wealth at MorganStanley, says the number of liquid alterna-tive products grew from 400 at the start of2013 to 800 at the end of the year. Thatfigure is expected to double again this year.“You have to really do your research tomake sure you are in the right investmentand asset class,” he says.

This proliferation of products means theselection process for advisers is not easy.

Pedigree matters a lot, say the experts.“Liquid alternatives run by experiencedhedge fund managers outperform the rest,”says Mr Lake. Academic studies supportthis, with a paper from London BusinessSchool finding that experienced hedge fundmanagers running mutual funds outper-form their competitors by up to 4.1 per centper year, net of fees.

Wealthy investors takea different direction

Liquid alternativesProduct choices doubled in 2013, reportsLaura Suter

Certain alternative strategies lend them-selves better to a liquid structure than oth-ers, says Jason Katz, a managing director ofprivate wealth at UBS Wealth Management.“Long/short equity, managed futures andglobal macro strategies fit better in a liquidalternative than private equity, distressedassets and fixed income arbitrage.”

While track records are scrutinised in the

world of traditional investments during theselection process, they cannot always beused for liquid alternatives, says Mr Katz.“The challenge is that many of these vehi-cles have a fairly short lifespan of five, sixor seven years at best,” he says.

Instead, one way to assess managers is tolook at the record of any previous fundsthey ran, the experience of the portfoliomanagers and how long the portfolio man-ager has been with the asset manager.

One benefit of liquid alternatives, com-pared with their more illiquid counterparts,is that the fees are lower. While not as lowas traditional mutual funds and ETFs, theyare offered at a fraction of the cost of“true” alternatives, which typically chargea 2 per cent upfront management fee and 20per cent of any performance generated.

However, these fees can be justified if theperformance backs them up, says Mr Stra-chan. “The fee issue goes away based onperformance – people are willing to pay forgood performance,” he says. “I don’t reallyget a big fee objection [from clients],because it is part of a total portfolio, but asmore products come into the market, lowerfees are going to come,” he says.

Mr Lake predicts more mutual fund prod-ucts will come from the private fund world.Hand in hand with this will be a steeplearning curve for advisers to better under-stand the market, he says. “We will see theadviser world linking with outsideresources and expertise to help navigatethe world of liquid alts.”

Calmer waters: the Ohio River at Pittsburgh.Scarred by the rapid depreciation of assetsin the financial crisis, investors are lookingto diversify their approach Dreamstime

On FT.com »

A slice of the actionDanielle Verbrigghe on theadvisers investing heavilyin exchange traded fundswww.ft.com/advisers

‘The fee issue goes away withperformance – people will payfor good performance’

20 FINANCIAL TIMES TUESDAY MARCH 25 2014