Going INDY...what did you bring over?

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maverick/goose's picture
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Joined: 2007-05-27

For all of you that have moved from a wirehouse to the indy channel in the last 4 years,  please share with the board the percentage of assets and gross production of your trailing 12 that you were able to bring over to the indy side in the first year.
Please be honest, no sense in exaggerating.  And please don't say "I brought over 90% of what I wanted."  Just use hard numbers of what you brought based on AUM and trailing 12. 
Thank you.

PinBroker's picture
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Joined: 2007-06-17

Related to this...
I'd also like to ask how long did it take you to get rolling again with a decent amount of production...rather than most of your day  spent with paperwork/admin stuff of the transition?
Pinn

troll's picture
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Joined: 2004-11-29

maverick/goose wrote:
For all of you that have moved from a wirehouse to the indy channel in the last 4 years,  please share with the board the percentage of assets and gross production of your trailing 12 that you were able to bring over to the indy side in the first year.
Please be honest, no sense in exaggerating.  And please don't say "I brought over 90% of what I wanted."  Just use hard numbers of what you brought based on AUM and trailing 12. 
Thank you.

I didn't bring people based on AUM or T12. I brought them based on whether or not I enjoyed selling to them. I left over 600 accounts behind.

gad12's picture
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Joined: 2006-12-06

I agree with B-Hull.  If you only targeted 70% of your book, that will skew your numbers big time.  I haven't even left yet and I know a lot of accounts I don't want.  % of those you go for is the true measurement.

ezmoney's picture
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Joined: 2004-11-30

I brought over about 55% however 70% was recurring income of about 1.4%. What matters is that you bring over all the assets you can paying a 1% or greater recurring revenue. That will be your base revenue in which to pay the bills for a few months.

FreeFromJones's picture
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Joined: 2006-11-29

I agree with B-Hull (don't let it go to your head).  I left several large accounts because they were pains and provided no income.  I targeted my top 20% which was approximately 1/2 of mu AUM.  I'm happy they all came and continue to be a source of revenue.
 
Choose who you want to bring and leave the rest of the crap for someone else to deal with.

maverick/goose's picture
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Joined: 2007-05-27

Bobby Hull said: I didn't bring people based on AUM or T12. I brought them
based on whether or not I enjoyed selling to them. I left over 600 accounts
behind.

Okay, this sounds great and is exactly what I wanted to avoid.

B-Hull....based on your trailing 12 at your previous firm - what did you
bring over in your first year?

troll's picture
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Joined: 2004-11-29

maverick/goose wrote:Bobby Hull said: I didn't bring people based on AUM or T12. I brought them based on whether or not I enjoyed selling to them. I left over 600 accounts behind. Okay, this sounds great and is exactly what I wanted to avoid. B-Hull....based on your trailing 12 at your previous firm - what did you bring over in your first year?
Your question is not logical. If you must have an answer, the answer is zero. I brought zero clients, based on my trailing 12. Please limit yourself to smart questions, from now on.

nestegg's picture
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Joined: 2007-06-14

Wow the Indy guys sure get touchy lol

troll's picture
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Joined: 2004-11-29

nestegg wrote:Wow the Indy guys sure get touchy lol
On one hand, they aren't answering the precise question that was posed.OTOH, when you change firms and ESPECIALLY when you go indy, it's not really so much about taking ALL of your clients, or some random(and hopefully high) percentage thereof.  It's about making some careful choices about who you want to invite along for the ride depending upon important(assets/revenue), ease of dealing with them and growth potential, and compliance questions, among other various factors.  This is especially important when making the transition to indy because you are responsible for much of your own compliance and an admin heavy client can really drag you down.  Plus, you have higher gross margins on the good clients.

troll's picture
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Joined: 2004-11-29

Oh and as a percentage of my overall book it was about 50% assets and 70% revenues.As a percentage of what I wanted it was closer to 85%.

troll's picture
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Joined: 2004-11-29

Is that what he's asking? What % of my revenues? I don't know, but my production increased fairly dramatically. For some reason, knowing that I got to keep a lot more of my money made me want to produce more than when my payout was 46%. I think that low payout was somewhat of a spirit retardant.

illinoisrep's picture
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Joined: 2007-01-09

Maybe another way to word the original question:
How long did it take you to get back to your pre-indy production?
For instance, if you were doing $500k at your wirehouse, how many months/years did it take to get back to that level of production?

troll's picture
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Joined: 2004-11-29

illinoisrep wrote:
Maybe another way to word the original question:
How long did it take you to get back to your pre-indy production?
For instance, if you were doing $500k at your wirehouse, how many months/years did it take to get back to that level of production?

Immediately.

OldLady's picture
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Joined: 2006-11-19

illinoisrep wrote:How long did it take you to get back to your pre-indy production?
For instance, if you were doing $500k at your wirehouse, how many months/years did it take to get back to that level of production?
The fourth month.

Indyone's picture
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Joined: 2005-05-31

Left summer 2005 with a trailing 12 of about 330K. 1st full year was 211K. Second full year is on pace for 280K.  I took about half of my book, but it was definitely the better half.  Left with $47 million AUM and have built back to about $37K thus far just a bit less than two years out.  I had about $25 million on my wish list and took about $23 million...left the sticky bank-as-trustee assets, as well as almost all the CD rate shoppers, and a couple of clients I just didn't enjoy working with.
I made more net last year on 211K than I did on 330K with my former employer.  This year, I'll give myself a raise of almost 50% over what I made last year.  That's much more important to me than bringing over a bunch of cheap rate-shopping clients.

CIBforeveryone's picture
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Joined: 2005-07-12

90% of total assets, about 95% of what I wanted. Took about 6 months to really get back to where I was.

footsoldier's picture
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Joined: 2006-04-30

I will exceed last year by 20% GDC after 10 months of independence from Jones. I took 65% of assets to date. I expect next year to be up significantly since I have done very little A shares and much C and L share annuities. I am starting to add fee based into the mix now.
An eye opener for me, 9 years at Jones doing A share biz, I had 50K in trails. In the first 3 months of indy, I was able to add 12K of recurring revenue.

bspears's picture
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Joined: 2006-11-08

4 months out...11,527,008.00 aum, left Jones with 33m book.  I had over 600 accounts, now have 146. Relooked at my list this am...18 accts worth 9,452,000 still on the move list.  My goal when I left was to be at 15m by my first year...will blow that number away.  Production in 06, 186k.  I'm a at 91k for the year...money in motion right now of another 47k in gross.   Majority of this is with Hartford L share...NOGGIN your right...I'm just a sad sad person.

maverick/goose's picture
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Joined: 2007-05-27

BobbyHull said: "Your question is not logical. If you must have an answer, the answer is zero. I brought zero clients, based on my trailing 12. Please limit yourself to smart questions, from now on."
I am sorry that you are having such a hard time with the question.  Seems like everyone else understood it pretty clearly.
Thanks to all for the answers.  I appreciate the input.  The reason I asked the question the way I did was because I presumed that everyone has a certain amount of assets and accounts they had no interest in transferring. If all had this same issue, it makes more sense to take a poll based on total AUM or trailing 12 - not of "what you wanted."
I believe the average is approximatley 80-85% of AUM and trailing 12. 
It is good to hear that most of you were able to recoup your trailing 12 by the end of the first year.
Thanks again for the input.

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