Advisers Court the Mega-Rich Investor
Philadelphia Inquirer (02/13/01) Vol. 105, No. 4 p.D1; Khalfani, Lynnette
The super-rich are being wooed by Wall Street advisers who
want to help them manage their millions. Today's market is brimming
with multimillionaires, but more specifically an emerging group known as
"Pentamillionaires," or individuals with at least $5 million in
investable assets. Experts attribute the surplus to the 1990s bull
market, which created a generation of multimillionaires. Managing the
assets of the affluent is not an easy roll to fill. Advisers must
compete against a host of competitors in the wealth-management business,
including insurers, accounting companies, mutual funds, and Internet
firms. What is more, advisers are entering the wealth-management field
at a time when sweeping regulatory changes are underway. There are also
drawbacks to going after wealthy clients. With less than 1 percent of
the American public fitting in this category, keeping wealthy customers
happy may be more difficult. Also, the loss of one well-to-do client
may dramatically affect an adviser's income stream.