LOS ANGELES, March 16, 2021 — What does a successful advisory practice look like today? PracticeLab, Capital Group’s new digital destination for financial professionals, with insights and actionable ideas to help build advisory businesses and serve clients, will help answer that question.
The new practice management platform gives financial professionals access to regular webinars with Capital Group specialists, including practice management consultants and wealth strategists, as well as articles, podcasts, and other resources and tools. These cover a wide range of topics, from how best to market your advisory business and client acquisition strategies to tax and estate planning and how to navigate challenging client conversations, such as the recent “how to talk politics with clients.”
The platform content reflects insights from Capital Group’s first comprehensive study benchmarking the practices of over 1,500 financial professionals across the U.S. The study found that practice management choices are often the driving force behind outsized growth of advisory firms.
“We found a compelling and actionable insight,” said Mike Van Wyk, vice president, customer research and insights, Capital Group, home of American Funds. “The average financial professional spent nearly half their time on client management activities, but if they could shift even 1% of that time to activities such as team management, strategic marketing or prospecting, our study showed this boosted their firm's AUM by 3%.”
PracticeLab is designed to help financial professionals focus on higher-value activities they deem important.
“Financial professionals are business owners as well as experts when it comes to understanding their clients’ financial needs and goals,” said Riley Etheridge, president, wealth management client group, Capital Group. “Our benchmark study reinforces that each firm has its own unique pathway to growth. PracticeLab meets advisors where they are and provides them with resources to help them manage and scale their business.”
The benchmarking study also found that deploying sound acquisition strategies, creating “relationship alpha” and achieving strategic scale are crucial to the health and future growth of an advisor’s practice. Van Wyk added, “Our research shows there isn’t a one-size-fits-all way to grow one’s advisory business, yet practices do consistently have better growth outcomes when they are intentional about practice management.”
Additional findings from the Advisor Benchmarking study, available on PracticeLab, include:
This new practice management hub, including regular webinar and podcast series and additional findings of the Advisor Benchmarking Study, can be accessed at practicelab.com.
About Capital Group
Celebrating its 90th anniversary in 2021, Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. As of December 31, 2020, Capital Group manages more than $2.3 trillion in equity and fixed income assets for millions of individual and institutional investors around the world.
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