Real Talk with RIAs: Considering moving upmarket? Here are some issues to consider

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Disclosures

These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.

This material is not an offer, solicitation or recommendation to purchase any security.

Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Personalized Managed Accounts (“PMA”) is a program of Russell Investment Management, LLC (“RIM”) and offers customized portfolio management services.

Each Personalized Separately Managed Account is a product of Russell Investment Management, LLC (”RIM”) and offered through RIM’s Personalized Managed Accounts (“PMA”) program. It represents a model portfolio provided by RIM. For active SMAs, it reflects a composite of third-party investment advisors selected by RIM. When the model is implemented, PMA is a separately managed account program of individually owned securities that can be tailored to meet investor’s investment objectives. RIM offers diversified, single or multi-asset managed accounts that can be customized to the investor’s investment objectives, circumstances and preferences, such as (but not limited to), market exposure, risk management, tax management, category and theme-based restrictions and return objectives. Excluding any allocations to pooled investment vehicles, if any, each investor’s account is managed separately from other investor accounts, allowing for a personalized experience to deliver unique investment outcomes.

The decision to use PMA in investors’ portfolios and related investment advice are provided through financial advisors and other financial intermediaries that are independent of RIM and its affiliates. Investors should consult with their financial advisor to determine which services and programs are appropriate to meet their investment objectives.

Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management L.P., with a significant minority stake held by funds managed by Reverence Capital Partners L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.

The Russell logo is a trademark and service mark of Russell Investments.

Copyright © 2025 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty.

RIM-03727

Executive summary:

  • Many Registered Investment Advisors aspire to target wealthier clients
  • These clients often have unique needs that require more than simple asset management
  • Your strategy and service model needs to evolve to meet their more complex situations

Many independent firms and Registered Investment Advisors aspire to move upmarket, targeting wealthier clients who demand more sophisticated financial solutions.

It is a highly desirable segment of the population. According to the USA Wealth Report 2024 by government advisory firm Henley & Partners1, the U.S. has more than 5.5 million millionaires with at least $1 million in liquid investable assets.

But the challenge is that few advisors have been able to capture that business. On average high net worth (HNW) individuals represent only 14% of investment advisors’ practices.2

The issue is that HNW clients have greater needs, more complex portfolios and most of all, appreciate personalized service. This represents a huge opportunity. Surveys have found that only 30% of HNW investors are satisfied with the level of personalization they currently receive in their wealth management relationship.3

That leaves a big opening for RIAs or boutique firms to attract high-net-worth investors.

So a good question to ask yourself if you want this business is: Has your investment philosophy and service model evolved to meet their expectations; or are you still operating with the same approach that worked for mass-affluent clients?

If you want to attract and retain more HNW clients, your strategy needs to reflect their unique needs. Here’s how to ensure your value proposition and investment philosophy are aligned with the clients you truly want to serve:

High-net-worth clients have different needs and expectations

Affluent clients expect more than just solid investment performance. Their priorities extend far beyond basic asset management:

Your value proposition needs to speak their language

If your messaging is still centered around “retirement planning” or “401(k) rollovers,” you may not be resonating with the clients you aim to attract. Consider these questions:

  • Does your brand position you as a true wealth strategist or just another advisor managing assets?
  • Does your client experience feel “high touch”, exclusive, and tailored to affluent individuals?
  • Are you articulating the deeper value you provide beyond investment management?

Moving upmarket requires a shift in how you communicate your expertise and the level of service you provide.

Evolving your solutions and services

If you want to work with wealthier clients, your service model must evolve to match their expectations:

  • Enhance Your Service Model:
  • Offer a concierge-level experience with proactive planning and white-glove service.
  • Consider a family office-style approach to provide comprehensive wealth management.
  • Build Strategic Partnerships:
  • Either bringing in house or partnering with estate attorneys, tax professionals, insurance and health care providers, and business consultants to deliver a full-service wealth strategy.

Is your investment philosophy aligned with these expectations?

Advisors often talk about moving upmarket, but many continue using the same investment strategies designed for mass-affluent clients. Here’s where you might be falling short:

  • Are you offering personalized solutions that go beyond a one-size-fits-all portfolio?

Are you still relying on standard mutual funds, Exchange-Traded Funds (ETFs) and Separately Managed Accounts (SMAs) when HNW clients seek access to private equity, hedge funds, and alternative investments and the ability to customize their passive strategies?  Some turnkey strategies will remain very relevant to your high-net-worth clients, but understanding how more complex strategies might offer a specific solution to a particular life problem.

  • You might consider enhancing your investment philosophy and approach:
  • Does your approach consider advanced risk management, tax-efficient investing, and capital preservation strategies and cash management strategies that provide leverage and agility?

If the answer is no, it may be time to rethink your approach.

Chart of Financial decisions: Complexity comes with wealth

Are you actually ready for wealthier clients?

The desire to move upmarket is common, but the execution is what sets successful advisors apart. If your investment philosophy, service model, and value proposition haven’t evolved, you may not be as ready as you think.

The most successful advisors don’t just declare their intent to serve wealthier clients—they transform their entire approach to match.

So, ask yourself: Where do you need to evolve? What changes will you make to truly align with the clients you want to attract?


https://www.henleyglobal.com/publications/usa-wealth-report-2024

(Disruptors: Deloitte Study. Chart: Source: Statista- May 2023)

As the high-net-worth seek out new wealth managers, how do you retain clients and capture money in motion (PWC Dec 2022)

Disclosures

These views are subject to change at any time based upon market or other conditions and are current as of the date at the top of the page. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.

This material is not an offer, solicitation or recommendation to purchase any security.

Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Personalized Managed Accounts (“PMA”) is a program of Russell Investment Management, LLC (“RIM”) and offers customized portfolio management services.

Each Personalized Separately Managed Account is a product of Russell Investment Management, LLC (”RIM”) and offered through RIM’s Personalized Managed Accounts (“PMA”) program. It represents a model portfolio provided by RIM. For active SMAs, it reflects a composite of third-party investment advisors selected by RIM. When the model is implemented, PMA is a separately managed account program of individually owned securities that can be tailored to meet investor’s investment objectives. RIM offers diversified, single or multi-asset managed accounts that can be customized to the investor’s investment objectives, circumstances and preferences, such as (but not limited to), market exposure, risk management, tax management, category and theme-based restrictions and return objectives. Excluding any allocations to pooled investment vehicles, if any, each investor’s account is managed separately from other investor accounts, allowing for a personalized experience to deliver unique investment outcomes.

The decision to use PMA in investors’ portfolios and related investment advice are provided through financial advisors and other financial intermediaries that are independent of RIM and its affiliates. Investors should consult with their financial advisor to determine which services and programs are appropriate to meet their investment objectives.

Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management L.P., with a significant minority stake held by funds managed by Reverence Capital Partners L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.

The Russell logo is a trademark and service mark of Russell Investments.

Copyright © 2025 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty.

RIM-03727