Novarica Report On Top Trends in Wealth Management Highlights Key Changes in Client Expectations, Channel Effectiveness, and Role of Technology

24 June 2009 – NEW YORK – Household assets are down 20% or more, formerly hot products are suddenly unappealing to the market or toxic to the manufacturer, all the major wirehouses have been absorbed by banks, and technology tools are driving customer and distributor acquisition and retention more than ever before. A new report from research and advisory services firm Novarica (, Wealth Management Overview 2009: Top Trends in Client Segmentation, Products, and Delivery Channels outlines and explains these new developments and others, including:

  • The destruction of trust between advisors and investors
  • The coming asset transfer to the Baby Boomers
  • The impact of Generation Y on the investment industry
  • Decline of the mutual funds (and rise of the ETFs)
  • The increasing importance of UMAs for wealthier clients and their advisors
  • The coming domination of self-service
  • The internecine war between RIAs and BDs that may destroy them both
  • The rise of direct selling from asset manufacturers
  • The impact of social networking
  • Consolidation of technology providers

“With the wealth management industry in a massive state of flux due to the combination of long-term demographic and market changes and short-term investment markets turmoil, the key to success for wealth management firms is to understand the trends and position the firm to take advantage of future developments,” comments Robert J. Ellis, principal and head of Wealth Management at Novarica and lead author of the report.

The 29-page report is available from Novarica at Mr. Ellis will also be hosting a webinar discussing the report on July 15 at 2 PM Eastern. Interested attendees may register online at

About Novarica

Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives. The company delivers its service through published research, retained advisory services, and project-based consulting. Novaricas research includes market and trend analyses, best practices research, case studies, and independent analyses of insurance software vendors. Novarica draws its knowledge from the personal experience of its principals, the ongoing information gathering initiatives of dedicated research staff, and regular communication with insurer executives through informal networks and through the Novarica Insurance Technology Research Council.