How would you characterize your firm's product and client strategy for the next two to five years?

	Client Segment		Number of clients
	HNW*	MM*	Under 100k	Over 100k
More proprietary products	(22) 18%	(16) 25%	(20) 35%	(13) 8%
nded open architecture/more third-party products	(22) 82%	(16) 75%	(20) 65%	(13) 92%
Specialization with focus on a limited set of core product offerings	(21) 33%	(16) 31%	(19) 47%	(13) 23%
Expanded product offering across a wide range of products	(21) 67%	(16) 69%	(19) 53%	(13) 77%
Focus on a single client segment	(22) 23%	(16) 38%	(20) 20%	(13) 46%
Broad client coverage across multiple segments	(22) 77%	(16) 62%	(20) 80%	(13) 54%
Unique servicing model for each client segment	(21) 86%	(16) 62%	(20) 80%	(13) 69%
Single servicing model for all clients	(21) 14%	(16) 38%	(20) 20%	(13) 31%

Source: Greenwich Associates
Note: Number in parentheses represents the number of respondents. Some respondents did not answer this question.

On a 5-point scale, with 5 being "very effective" and 1 being "not effective at all," how effective is the annual product review process at:

Source: Greenwich Associates Note: Number in parentheses represents the number of respondents.

Larger firms are more likely than smaller firms to be focused on open architecture with a wider set of product offerings.

Set goals you can reach. Wealth management firms need to ensure that their processes and technology can adequately support their ambitions.

Keep your strategy simple

Our survey asked wealth management firms how they'd describe their product and client strategy for the next two years.

In general, firms favored a wide offering of products. Yet, the results varied by firm size.

Larger firms — in client number and assets under management — are more likely to be more focused than smaller firms on open architecture with a wider set of product offerings.

Smaller firms — those with fewer than 100,000 clients — appear to be more focused on expanding their client base across multiple client segments.

How would you characterize your firm's product and client strategy for the next two to five years?

Pitfalls of overreaching

When large firms decide to have broad offerings they need to ensure they have the resources to support it. If not, they could face the following pitfalls:

• Diluting management attention
• Making regulatory compliance more complex
• Creating complex technology implementations and upgrades
• Introducing potential for client and channel conflicts

Ask clients what they want

Decide what products to focus on offering by asking your clients.

When asked to identify the selection criteria their clients consider in choosing an investment product, the vast majority of wealth managers report that the risk/return profile of a product is key.

About half would say an advisor's recommendation is important. By comparison, fees are cited by just one in three.

What are the two or three most important criteria for your clients in selecting an investment product?

Source: Greenwich Associates Note: Chart based on 37 respondents.

Review your products

You need to review your products because the risk/return profile of a product is so important. Also, if you are seeking to expand you investment product offerings and introduce more third-party product, you need to know what's working and what isn't.

Does your firm have an annual product review?

Source: Greenwich Associates Note: Chart based on 38 respondents.

On a 5-point scale, with 5 being "very effective" and 1 being "not effective at all," how effective is the annual product
review process at:

Review process

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