Advisers Court the Mega-Rich Investor
Philadelphia Inquirer (02/13/01) No. 3719 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 role 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.