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Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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High Net Worth Investors Trust Banks Again

The recession affected the reputation of banks for several years but they are coming back into favor now with high net worth investors.

With the improved economy, high net worth investors are looking to banks again as their main financial provider for offering stability, according to Spectrem’s Millionaire Corner research.

After suffering a hit to its reputation following the market collapse of 2008, banks now top the list of financial providers among Ultra High Net Worth investors with a net worth between $5 million and $25 million, the study shows. Seventy-four percent of investors indicated they considered banks to be a stable financial provider, an increase of 2 percent over last year’s percentage.

Full service brokers took a large leap from the previous year, going from 66 percent approval as a stable financial provider in 2012 to 73 percent in 2013. Accounting firms also made gains in terms of reputation, going from 67 percent approval to 71 percent approval from 2012 to 2013.

The two previous leaders in the category took slight dips. Private banks went from 73 percent approval to 72 percent and mutual fund companies dipped from 73 percent to 71 percent.

Stability is one characterization of financial providers. But some high net worth investors want their providers to offer innovative products and services and for that, more investors are turning to independent investment advisors (69 percent). Sixty-eight percent look to independent financial planners or full service brokers for innovative products and services, and 67 percent look to investment management companies. In all cases, the percentages were marked increases from 2012.

Many high net worth investors frequently look for new ways to invest and new people to work with. Asked to name the type of firm they are likely to increase their usage of, 26 percent said they would have more involvement with independent financial providers, and 25 percent said they would increase usage with mutual fund companies.

Other types of businesses that could see 20 percent plus increases in usage are full service brokers (25 percent), independent investment advisors (24 percent), online brokerage firms (23 percent), law firms (22 percent), and accounting firms (22 percent).

Taking into consideration all of their financial needs from a financial provider, Ultra High Net Worth  investors chose accounting firms (66 percent) above all other choices.