Full-Service Brokers Making a Comeback Thursday, January 19, 2006

Nearly one-third (31%) of affluent investors were using full-service brokers as their primary advisors in 2005, a substantial increase from 24% the year before, according to Spectrem Group's Affluent Study 2005. This is a significant improvement for full-service brokers, who saw their share of the affluent market cut nearly in half from 2002 to 2004. Affluent investors, defined as those with $500,000 or more in investable assets, gave full-service brokers a commanding lead over other types of primary advisors in 2005. Full-service brokers ranked ahead of the following: investment advisors (17%), financial planners (14%), investment managers (10%), accountants (9%), discount/online brokers (7%), trust officers (2%) and private bankers (1%). "Full-service brokers can breathe a little easier now. This segment had a tough couple of years through 2004, as affluent investors moved toward specialists like investment advisors, investment managers, accountants and private bankers. All told, between 2002 and 2004 full-service brokers lost nearly half of their market share as primary advisors to the affluent. So, last year's improvement was sorely needed. Whether this improvement was due to the rollout of enhanced services or market performance, it is clear that full-service brokers need to continue working hard to meet affluent clients' needs in 2006 and beyond," said Catherine S. McBreen, Managing Director of Spectrem Group. Indeed, when asked about overall satisfaction with their primary advisors, full-service brokers (74%) ranked behind financial planners (86%), investment advisors (79%) and investment managers (78%) in combined "satisfied"/"very satisfied" responses. Log Homes Ideal Option for Gulf Coast Reconstruction; Southland Log Homes Develops Tailored Packages for Hurricane-Damaged Region