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Shared Decision-Making is Key to the Success of FA Teams

By Alex Padalka December 12, 2017

The more assets advisors manage, the more likely they are to be working in a multi-advisor team, according to a recent report from Janus Henderson Investors. But the study also suggests that team interaction has a correlation to assets under management: those that share in the decision-making tend to oversee more, Janus found.

Overall, more than 60% of advisors work on teams but only a third are involved in collaborative decision-making, according to a study of 2,800 practices operating both as teams and as solo practitioners conducted for Janus by Cerulli Associates.

“Shared decision-making could be a lost opportunity for some practices, with teams sharing in the decision-making process overseeing more AUM,” Janus claims.

Regardless of how an advisor team sets up its hierarchy, the biggest advisors are part of teams, the study found. More than 60% of advisors managing $100 million to $250 million work on a team, but the figure rises to 77% for advisors managing $250 million to $500 million and to 90% for those managing $500 million or more, Janus found.

Meanwhile, the top-performing advisor teams offer more specialized services and are more likely to hold quarterly in-person meetings with their clients, the study found. In addition, the top teams put an emphasis on educating junior advisors, according to Janus.