Discussions with management, peers, competing peers.Credentials (years of service in some cases can serve as proxy).~ Breadth of services, including extensive use of Firm's platform and resources (eg, liabilities) ~ Fee structure (higher % of fee-based assets earns more points) Advisors that provide a full client experience:.Since there are many gray areas, the SHOOK team is willing to listen to a Firm that is willing to stand behind the Advisor with written support from leadership. Some "dings" can be overlooked (e.g., firm or product failure beyond the scope of an Advisor's due diligence the older a ding, the less we look). Telephone, Zoom and in-person meetings with Advisors (if an in-person meeting cannot be accomplished, exceptions are considered in which the interview will occur after a ranking has been published).Mathematically, each Advisor is indexed against all other Advisors, and an algorithm assigns ratings for each Advisor, and a ranking is modeled. The quantitative and qualitative criteria we measure are assigned numerical values. Our deep due diligence and attention to data verifications is especially vital because data for all rankings are self-reported.Įvery Advisor is assigned values on key quantitative and qualitative metrics, including a SHOOK Impact rating. (For FSPs, we also look at premiums, persistency rates and death benefits on the books.) Quantitative factors include revenues, revenue trends, and assets under management. And while portfolio performance is important, this is not a criterion due to varying client objectives and lack of audited data-almost every client has different objectives, risk profiles and, consequently, portfolio performance. There are countless ways we have found in which Advisors are impacting their clients’ lives. That’s a pretty big responsibility! So we believe Advisors will be ultimately valued based on how they are impacting their clients’ lives. In short, every client and family is entrusting their Advisor with their family’s wealth and even health. But most importantly, we are measuring impact, which we call “SHOOK Impact.” It’s not easy visiting thousands of Advisors, but there’s no substitute for looking someone in the eyes, meeting teams and better understanding the client experience. We may be old-fashioned, but there’s nothing like in-person meetings. We are measuring best practices, such as client service models, investing process and team structures. The next step is understanding business models and measuring best practices through telephone, Zoom and in-person meetings. After receiving 33,000 nominations-from banks, securities firms, custodians, insurance companies, clearing firms and others-based on our high thresholds, we check compliance records and review every 140-question survey, paying attention to such details as team structures, credentials, expertise and community involvement. We interview Advisors by telephone, Zoom and in-person, in the Advisors’ offices. Evaluating Advisors is a similar process, whether Wealth Advisors or Financial Security Professionals (FSPs).
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