'Lower value' clients
Hi everyone, I hope you are all keeping well. One of the advantages of this lockdown is that there seems to be more time available to ponder things like processes and efficiencies. With this in mind, I am interested to know how you and your firms deal with ‘lower value’ clients? i.e. those with less than £100K of assets. They might be children of clients, or ‘builders’ such as young lawyers/doctors etc, who may become big clients in future.
Do you have a separate proposition for these, or do you not deal with these clients at all, as they aren’t profitable? Or is there a minimum fee applied?
What do they get? It is basic investment management i.e. a Managed fund, or something more complex.
Do they get financial planning or is that extra?
Sometimes it is a good idea to take these clients on long term, as they have a lot of potential but to give them the full service would mean making a loss on them, which might be good in the long run, but not always.
I think this is what is commonly referred to as the 'advice gap!'