Pricing and Productivity

Industry Research

Pricing Vol. 2: Driving Superior Realization

For many firms, improving pricing practices is one of the highest-potential levers for strengthening financial outcomes. Our team recently completed a two-part, comprehensive review of pricing, fees, and discounting practices. The goal of Volume 2 is to understand how firms might improve fee realization outcomes and to provide participants with a customized assessment of their practices. Our goal is to give managers tactical ideas for strengthening internal practices and ultimately, fee realization.

Specific areas of inquiry:

  • What is the incidence and magnitude of sales and other discounts? What types of controls do firms have in place to reduce the number of discounts?
  • At the industry- and firm-level, what is the relationship between discounting practices on the revenue return on average assets? Why are revenue returns on assets under management so much lower than stated fees?

View a sample executive summary here.

Pricing Vol. 1: Stated Fees and Pricing Methodologies

The goal of Volume 1 is threefold:

  • Provide customized, comparative data for your firm’s stated fee schedules for investment management and trust.
  • Document your pricing methodologies for high-interest services such as SMAs, UMAs, third-party mutual funds, and financial planning, and compare your methodologies to those of other firms.
  • For scores of attributes, quickly identify areas of positive or negative variance in instances where your firm departs from industry norms in ways that have either favorable or adverse revenue implications.

This research is available to WISE Members.

Case for Change: Team Productivity

Wealth managers are under pressure. Faced with financial pressures, evolving client expectations, new delivery technologies, and shifting demographics, wealth managers must adapt their service models with limited resources. In many respects, today’s manager’s mandate seems unfair. It’s to do more—improve the service and grow—while not spending a lot of money. And in some cases, it’s to do more with less.

In our study of team productivity, we looked at what separates high-performing firms from others­­. We conclude that efficiency gains are well within reach, and develop an action plan for improving productivity.

Download an executive summary of our research to learn more about our findings and the five things we think firms need to do today.