1. Firing On All Cylinders: Fueling Growth with Benchmark Insights
John Hill, CFP
Chief Executive Officer

2. 2014 Fidelity RIA Benchmarking Study
Over 85% of RIAs in The 2014 Fidelity RIA Benchmarking Study (the “study”) cited growth as being highly important to their firms, with 87% of their focus on organic growth.

3. Study Sample

4. Study Findings
A majority of firms reported a clear desire to improve their marketing and business development activities, and to be more disciplined in their approach to growth.

5. Focus on growth Recognize weaknesses Lack roadmaps
Key Study Findings
Focus on growth Recognize weaknesses Lack roadmaps

6. Need better firm stories May be showing improved client mix
Key Findings
Need better firm stories
May be showing improved client mix
Need enhanced referral processes

7. Miss feedback opportunities Have new marketing channels to explore
Key Findings
Miss feedback opportunities
Have new marketing channels to explore
Can learn from High-Performing Firms

8. Lessons from High-Performing Firms
First Criterion
Pass eligibility screen
Practice established prior to December 31, 2010
Assets under management (AUM) of $50 million or more as of December 31, 2010
Two or more full-time equivalents (FTEs) as of December 31, 2013
Not more than 25% of new 2011–2013 AUM generated from M&A activity in any year
Second Criterion
Rank in the top 25% of eligible survey respondents, based on a composite ranking across three areas
Three-year AUM compound annual growth rate (CAGR) as of December 31, 2013
Earnings before owners’ compensation (EBOC) margin for the calendar year ending December 31, 2013
Revenue per FTE for the calendar year ending December 31, 2013

9. High Performing Firm Significantly Outperform Their Peers
SOURCES OF 2010–2013 AUM CHANGE (MEAN)
HIGH- PERFORMI NG FIRMS
ALL OTHER ELIGIB LE FIRMS
DIFFERENCE
New Assets from Existing Clients
6.5%
5.4%
+1.0%
Assets Withdrawn by Existing Clients
–3.0%
–4.4%
+1.4%
New Assets from New Clients
9.9%
7.9%
+2.0%
Assets Withdrawn by Departing Clients
–1.8%
–3.8%
Net Asset Change from M&A
0.5%
0.1%
+0.4%
Market Performance
8.4%
7.1%
+1.3%
Total 3-year CAGR (2010–2013)
20%
12%
+8%

10. High-Performing Firms are more likely to:
Tell their firm story consistently.
Communicate their target client profiles.
Establish stronger COI referral processes.
Close business faster.
Manage talent proactively, and hire selectively.
Drive incremental growth in a balanced fashion.

11. Improve the Firm’s Marketing Efforts
Top Strategic Initiatives
75% Improve the firm’s marketing and business development efforts
47% Invest in new or existing technology
40% Improve strategic business planning and execution
38% Improve client satisfaction
32% Develop or enhance a succession plan

12. Marketing and Business Development Framework
CLIENTS
CENTERS OF
INFLUENCE
PROSPECTS
PLAN
You have a disciplined process and plan in place.
STORY
Your story is consistent and differentiates your practice.
RELATIONSHIP QUALITY
You “know“ your relationships and build promoters.
COMMUNICATIONS
PROGRAM
You create awareness through proactive programs.
Adapted from Building an Action Plan to Drive Growth within Your Practice: A Business Development and Marketing Planning Toolkit. Fidelity Investments

14. Actions to Consider
Track where all new business comes from, especially referrals.
Survey your clients to help understand their experiences with your firm, their willingness to make referrals, and their referral history.
Make it easier for clients to spread the word about your firm.
Train associates on best practices in driving referrals.
Hone your COI messaging and materials to demonstrate your commitment to shared success.

15. Other Benchmark Samples
Growth and Income Medians for Standout Firms vs. Others, 2014