by Todd Crawley, Wells Fargo Asset Management
A Colorado practice expands to serve its ultra-high-net-worth clients.
Todd Crawley: This week we learn how an informal team structure helps a Colorado practice serve its ultra-high-net-worth clients. Iâm Todd Crawley and this is The Essential Practice. Matt Lobas is a divisional sales manager with Wells Fargo Asset Management. He joins us once again to discuss best practices of premier advisors and teams. Matt, welcome!
Matt Lobas: Thank you very much, Todd.
Todd: Last week, Matt, you provided a great example of a formal team. This week, weâre talking about informal teams. But real quick, Matt, the data that supports why advisors might consider forming teams is actually pretty staggering. Shed some light on that if you wouldnât mind.
Matt: Absolutely correct, Todd. We went out and did some research with Cerulli Associates, and in the 2015 data we saw on the financial metric of advisors, that we thought was very interesting. And what they did, they looked at advisors at various asset levelsâbelow $50 million, $50 to $100 million, $100 to $250 million, and $250 to $500 million. And what they found looking at advisors who had over $500 million in assetsâ99% were on teams. So there was absolutely no question that the larger practices that control the majority of the assets are in fact on teams.
Todd: Yeah, no kidding! In the materials for best practices of premier advisors and teams, informal teams would be those who expand their services by partnering with COIs and other companies who provide very specific services. And youâve brought with you a case study of an informal teamâso letâs hear about that.
Matt: Sure, Todd. There is a team Iâd bring to your attention in the great state of Colorado. They focus in on the ultra-high-net-worthâthink $10 million and above. And they have a service model for that particular type of client that theyâve gone after. There are only two advisors and one assistant on the team, but theyâve built an informal team for the needs of these particular types of people. They take your chauffeur and teach them defensive driving skills, they can take your car and get it bullet-proofed. They run a golf tournament each year that they also use as a charity event where they provide hickory sticks and old golf ballsâand they all get dressed up in the 1910-, 1920-era golf outfits. And last but certainly not least, they spend a lot of time reaching out to CPAs and attorneysâparticularly trust and estate attorneysâto get referrals and to make referrals, too. They want to do something special and unique.
Todd: Yeah, great example. How do they manage the quality of the service they provide these ultra-high-net-worth clients who they are offering these things to, although they are not offering the service directly through them? Do you know what Iâm saying? How do they control that?
Matt: We talked about that in an indirect way when we were together early on with them. And what they told me was as soon as they get a complaint about one of their service providers, they look into it, and if that provider isnât doing the right thing, they jettison them from the list and they will find somebody else.
They really rely on word of mouth from their clients as to how they are getting served and the quality of it. They only had about 65 clients in their book the last time we spoke to them, so they wanted to make sure that they were providing the premier service that they could. And they were able to do that.
Todd: Great! Matt, thatâs going to wrap it up for this two-part series on formal and informal teams. To our audience: Feel free to connect with your regional partner to gain access to the study Best Practices of Premier Advisors and Teamsâcreated by our very own Matt Lobas and Scott Engroffâto help you learn how to grow your practice in a premier way. Visit wellsfargofunds.com or call them at 1-888-877-9275. For now, Matt, thanks so much for these and the other insights!
Matt: Thank you very much, Todd.
Todd: Until next time, Iâm Todd Crawley, and this is The Essential Practice.
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