Market Overview

Introduction

Dear Colleagues,

We here at RAH Financial would like to summarize Northwest hiring trends we’ve observed among the regions Wealth Managers. In addition, we’ve added our new Washington State Money Manager's Ranking List, ranked by AUM (Assets Under Management), located on our Rankings List page. This list ranks 351 firms, whose home offices are either located in Washington State or who have a significant client presence here. For contrasting purposes, we’ve also made available an archive of our past Ranking Lists under the Rankings List page.

NEW: For our Rankings List from ’06 – present, we’ve now included an alphabetical sort of firm names, making it easier to locate an individual firm’s AUM and ranking.

Note: We’re attempting to ‘tighten up’ our estimated AUM figure by only counting in-state assets for firms who have moved their corporate offices out of state and by attempting to match end-of-year estimates as close as possible to the most recently-filed ADVs. As is usually the case, only a minority of firms respond to our AUM estimate request every December so their most recent ADV figures are used, which may not include asset gains in the remaining portion of the year. We will continue to accept AUM estimates through mid-January.

Some quick facts from our Rankings list:

  • 351 firms (+22 from 12/15)
  • $647 billion in total AUM (+ $10 billion from 12/15)
  • 61 firms with AUM more than $1 billion (-1 from 12/15)
  • 137 firms had a year-over-year increase in AUM (39% of total firms, vs. 56% in 12/15)
  • The AUM figure for firms experiencing an AUM increase over their 2015 levels have their AUM highlighted in bold green

 

Washington State Wealth Management award-winning firms

Barron’s 2016 Top 100 Independent Advisors:

  • Freestone Capital Management, LLC, Seattle (#30, Erik Morgan)
  • Brighton Jones, LLC, Seattle (#61, Charles Brighton, #62, Jon Jones)
  • Pacific Portfolio Consulting, LLC, Seattle (#67, Lawrence Hood)
  • United Capital/Paragon, Seattle (#90, Shari Burns)

 

Financial Advisor Magazine’s 2016 Top RIA Firms ranked by AUM:

  • #66 - Brighton Jones, LLC, Seattle
  • #67 - Freestone Capital Management, LLC, Seattle
  • #119 - Badgley Phelps Investment Managers, Seattle
  • #134 - Coldstream Capital Management, Bellevue
  • #156 - The Pacific Financial Group, Bellevue
  • #158 - Filament, LLC, Seattle
  • #285 - Petersen Hastings Investment Management, Kennewick

Financial Advisor Magazine’s 2016 Top 50 Fastest-Growing Firms:

  • #3 - Financial Insights, Inc. Tacoma
  • #31 - The Pacific Financial Group, Bellevue

 

WA State Money Manager Changes in 2016:

Company name changes, acquisitions/mergers:

  • Davidson Investment Advisors is now D.A. Davidson & Co.
  • SeaCap Investment Advisors, Seattle, is now Davidson Investment Advisors
  • Wurts & Associates is now Verus Advisory, Inc.
  • Columbia River Advisors acquired Evergreen Asset management, Gig Harbor
  • MassMutual Acquired MetLife Premier Client Group, is now called MassMutual Financial Group
  • Bernstein Global Wealth Management is now AllianceBernstein LP
  • Stancorp Investment Advisers, Inc., Private Client Group and Paragon Investment Management was acquired by United Capital Financial Advisers, Standard Insurance, and the Seattle office is now a Standard Retirement Plans office called United Capital Seattle
  • Merriman Capital acquired Summit Capital
  • Coldstream Capital Management, Inc., acquired George R. Pierce & Associates, LLC
  • Evergreen Capital Management is now Evergreen Gavekal
  • Advisory Services & Investments, LLC is now ASI Wealth Management
  • Signator Financial Services, Inc., is now Signator Investors, Inc., owned by John Hancock

 

New wealth management firms launched or newly added to our ‘16 list:

  • Kaizen Financial Advisors, LLC, Bellevue
  • Northwest Investment Advisors, Inc., Spokane
  • Pacific Northwest Asset Management, Seattle
  • Howe Financial Advisory, LLC, Seattle
  • Kiley Juergens Wealth Management LLC, Olympia
  • Cetera Advisors, LLC, multiple offices
  • Blue Moon Wealth Advisory, LLC, Bellevue
  • Verus Advisory, Inc., Seattle (previously Wurts & Associates)
  • Sound Wealth Partners, Gig Harbor
  • Tenere, LLC, Issaquah
  • Investors Portfolio Services, LLC, Puyallup
  • Peters & Company, Inc. PS, Mercer Island
  • Clearbrook Investment Management, Bellingham
  • Lakeview Financial Group, LLC, Seattle
  • The Boyle Group Wealth Management, Seattle
  • Decker Retirement Planning, Inc., Kirkland (spin-off from Absolute Return Solutions)
  • Securian Advisors Northwest, affiliate of Securian Financial Services, Inc. Seattle/Bellevue
  • Commodore Asset Management, LLC, Tacoma
  • Stifel Financial Corp., Seattle/Bellevue/Olympia/Wenatchee
  • Pacific Current Group, Seattle/Tacoma (previously Northern Lights Capital Group, LLC)
  • Kamada Investment Management, Bellevue
  • Sitka Pacific Capital Management, LLC, Edmonds
  • Wright Wealth Management, LLC, Issaquah
  • Fairview Partners Investment Management LLC, Seattle
  • Newground Social Investment, Seattle
  • Boone Wealth Advisors, LLC, Bellevue
  • FIOH Global Asset Management and Strategies, LLC, Seattle
  • Capital Investment Services, LLC, Lynnwood
  • Investor’s Fiduciary Advisor Network, Snoqualmie, LLC
  • Fortis Capital Management, LLC, Seattle
  • Viceroy Investment Advisors, LLC, Mill Creek
  • Raymond James Financial Services, Inc., Seattle/Bellevue, etc.
  • Hart Capital Management, Inc., Spokane
  • Madison Park Capital Advisors, LLC
  • Financial Resources Group, Bellevue
  • Quantum Financial Planning Services, Inc., Spokane

 

Firms dropped from our list, have either closed their doors in '16, have no recent ADV on file, or have no active AUM:

  • GW Capital, Inc., closed in April, 2016
  • WHV Investment Management, Inc.
  • First Washington Corporation, Seattle
  • Madison Park Capital Partners, LLC
  • Jacobs Broel Asset Management, Bellevue, closed their doors on 6/30/16
  • DG Elliott Financial Services, Inc., Seattle
  • Melvin Love Investment Advisor, Longview
  • Summit Asset Strategies Wealth Management, LLC, Bellevue
  • Allegro Wealth Management, Inc., Spokane
  • Advanced Tax & Financial Services, Inc., Buckley
  • Financial & Estate Advisors, Inc., Bothell
  • Bozarth Investment Management, Inc., Spokane
  • CJB Financial Group, LLC, Spokane

 

Top Ten largest AUM increases (min. $100 million in ‘16 AUM)

Firm AUM Increase (in millions)
1. Parametric Portfolio Associates, Seattle +$25,993
2. Financial Advocates Investment Management, Olympia +$2,528
3. Silver Creek Capital Management, LLC, Seattle +$1,090
4. Prime Advisors, Inc. Redmond +$1,060
5. Washington Capital Management, Inc., Seattle +$952
6. Edge Asset Management, Inc., Seattle +$947
7. Pugh Capital Management, Inc., Seattle +$800
8. Merriman Wealth Management, LLC, Seattle +$684
9. KMS Financial Services, Inc., Seattle +$427
10. Brighton Jones, LLC, Seattle +$399

Top Ten largest percentage increase in AUM (min. $1 billion in ‘16 AUM)

Firm AUM Increase (in millions)
1. Financial Advocates Investment Management, Olympia +68%
2. Merriman Wealth Management, LLC, Seattle +45%
3. Washington Capital Management, Inc., Seattle +26%
4. Coldstream Capital Management, Inc., Bellevue +25%
5. Pugh Capital Management, Inc., Seattle +21%
6. The Pacific Financial Group, Bellevue +20%
7. Silver Creek Capital Management, LLC, Seattle +17%
8. D’Annunzio Consulting Group, LLC, Tacoma +17%
9. Parametric Portfolio Associates, Seattle +14%
10. Brighton Jones, LLC, Seattle +14%

Top Ten largest percentage increase in AUM ($100mm - 999mm in ‘15 AUM)

Firm AUM Increase (in millions)
1. Financial Services International Corp., Seattle +74%
2. Vestory, LLC, Bellevue +71%
3. Northwest Asset Management, Mercer Island +48%
4. Oliver Capital Management, Inc., Seattle +45%
5. Garde Capital, Inc., Seattle +44%
6. Kunath Karren Rinne & Atkin, Inc., Seattle +44%
7. Financial Plan, Inc., Bellingham +41%
8. Acuitas Investments, LLC, Seattle +36%
9. The Clarius Group, LLC, Bellevue +30%
10. Smart Portfolios, LLC, Lake Forest Park +29%

 

Company News

Mangan Wealth Management, Seattle - Rick Mangan, President of Mangan Wealth Management, was the recipient of the “AICPA Standing Ovation Award” and named one of America’s Top Financial Planners by Consumers’ Research Council of America

Threshold Group, LLC - The firm’s team building continues to advance Threshold Group’s substantial impact investing capabilities by adding senior staff on both coasts. Article: https://www.thresholdgroup.com/shared-learning/news

Key Private Bank - Another good year for Key Private Bank as they expanded their Wealth Management offerings and were winners of the 2016 PAM Award

 

Asset & Wealth Management Trends in 2016

Top Wealth Managers

Though the size of a Wealth Management Firm is by no means an absolute measure of success, being one of the largest firms is a high recognition. The largest firms typically enjoy a competitive advantage in resources, negotiating leverage, and may possess the ability to attract top talent.

Every year, our Washington State Money Managers Ranking List, is comprised of more than 300 participating firms, ranked by AUM size. This year, the number of firms with AUM of at least $1 billion decreased by one to 61 firms. This prestigious list includes some top firms in the country and the bar to be considered a top wealth manager is being raised higher each year.

In 2016, the top 50 firms on our list had a total AUM of $589 billion, versus $579 billion in 2015, an increase of +$10 billion. On average, the top 50 firms had $11.78 billion in AUM in 2016, as compared to a $11.58 billion average in AUM for the top 50 firms in 2015.

 

RAH Financial Asset & Wealth Management Practice

Wealth managers who are seeking faster asset growth than their internal resources allow, will continue to build via acquisition or lift-out. Lift-outs are typically comprised of senior Advisor/Business Development team moves with significant client assets to follow. We observed more than $2.2 billion in client asset movements in 2016, or as some like to call it, ‘Money With Feet’. We are expecting a continued, strong demand for such ‘Buy Vs. Build’ activity in 2017, especially since the markets are closing strong in 2016. Subsequently, we expect competition for the HNW or Ultra-HNW client accounts to be ratcheted up even further in 2017.

Similarly, the demand is very strong for HNW Business Development professionals and asset gatherers with portable relationships, extending this trend into its eleventh year. Senior advisors and their wealthy clients who may be recovering from market-related losses or low returns may be seeking a more stable, safe haven and, perhaps, a larger, more diversified platform. We also expect the demand to continue for individuals with demonstrated relationships with the stickier money of endowments, foundations and pension plans. Due to this year’s chaotic markets, the needs of asset and wealth management organizations have grown increasingly complex. We here at RAH Financial strive to remain uniquely positioned to anticipate and satisfy their evolving requirements. Our Asset and Wealth Management Practice has an established track record of success in partnering with institutional and retail investment firms, private wealth managers and hedge funds.

Positioned well for 2017, our Asset and Wealth Management Practice has an established track record of success in partnering with institutional and retail investment firms, private wealth managers and hedge fund clients to assess and recruit:

  • Executive leadership teams or turnkey solutions;
  • Seasoned analysts and portfolio managers across all asset classes;
  • Marketing, sales and client service professionals;
  • Infrastructure, technology and systems managers;
  • Risk management, legal and compliance, finance and human resources executives.

Stay tuned.


View Washington State Money Managers Rankings List

Finding Top Talent

"The key for us, number one, has always been hiring very smart people."

- Bill Gates, Microsoft

Contact

Email: Roger@RAHFinancial.com
Phone: (253) 277-3731
Mobile: (206) 679-5955
Fax: (253) 981-4939