The IMCA 2009 Practice Management Survey, led by Stephen A. Saenz, reveals significant challenges faced by advisors in the financial markets amidst recent dislocations, with many expressing diminished client confidence. Key concerns include the impact on portfolio values and the necessity for rebuilding trust while identifying opportunities for growth in their practices. Looking ahead to 2009, advisors prioritize increasing net new assets and addressing economic uncertainties as they navigate the evolving financial landscape.

1. IMCA 2009
Practice Management Survey
How to Capitalize On A
Once-In-A-Lifetime Opportunity
Stephen A. Saenz
IMCA 2009 Practice Management Survey, Designed Administered by Steve Saenz | SteveSaenz.com

2. Advisor Sentiment
Question 1
To what extent do you agree
with the following statements?

3. I am surprised at the magnitude of dislocation we have seen in the financial markets
35%
30% 29%
25%
20%
20% 19%
15%
12%
10%
5% 5%
5% 4%
2% 2% 2%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

4. I am surprised at the magnitude of dislocation we have seen in the financial services industry
30%
27%
25%
22%
20%
20%
15%
10%
8%
7%
6%
5% 4% 4%
1% 1%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

5. Recent events have caused my clients to lose confidence in me
40%
36%
35%
30%
25%
23%
20%
15%
12%
10%
7%
6%
5% 4% 4% 4%
2%
1%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

6. Recent events have caused my clients to lose confidence in my firm
25%
23%
20%
15%
12%
11%
10% 10%
10%
8%
7%
6% 6% 6%
5%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

7. Recent events have led me to question if the principles
of modern portfolio theory and capital market assumptions still hold true
20%
19%
18%
18%
17%
16%
14%
12%
10% 10%
10%
8%
8%
6%
6%
5% 5%
4%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

8. Going forward, the financial markets will be better off
as a result of going through this period of dislocation
20%
19% 19%
18%
18%
16%
15%
14%
12%
10%
8%
8%
6%
5% 5%
4% 4%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

9. Going forward, the financial services industry will be better off
as a result of going through this period of dislocation
18%
16%
16%
14% 14%
14%
12%
12%
10% 10%
10%
8%
7%
6% 6%
6%
5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

10. When it comes to the financial markets, I am very optimistic about 2009
30%
25% 24%
20%
15%
15% 14%
13%
12%
10%
10%
6%
5% 4%
2%
0%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

11. Recent events have presented me with a significant opportunity to grow my business
25%
23%
20%
19%
18%
15%
14%
10%
8%
6%
5%
5%
2% 2%
1%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

12. I am confident that I know how to capitalize on that opportunity
25%
23%
20%
18%
15%
14%
13%
11%
10%
8%
5%
5%
4%
2%
1%
0%
1 2 3 4 5 6 7 8 9 10
STRONGLY DISAGREE STRONGLY AGREE

13. Recent Challenges
Question 2
How challenging have the following
issues been for you during
the past six months?

14. Helping my clients deal with declining portfolio values
25%
23%
20%
19% 19%
17%
15%
14%
10%
5%
4% 4%
0% 0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

15. Preventing my clients from abandoning their investment plans
25%
21%
20%
15% 15%
15%
13%
12%
11%
10%
5%
5%
4%
2%
0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

16. Deciding what changes to make in my clients’ portfolios
18%
16%
16%
14%
13% 13%
12%
12%
11%
10%
10%
8%
8%
7%
6%
6%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

17. Getting my clients to act on my investment recommendations
16%
15%
14%
14%
13% 13%
12%
11%
10%
8%
8%
7% 7%
6%
5%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

18. Making sense of the underlying factors that led to recent events
18%
17%
16%
15%
14%
12%
11%
10% 10% 10%
10%
8%
8%
7% 7%
6%
5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

19. Explaining to clients the underlying factors that led to recent events
18%
17%
16%
14% 14%
14%
13%
12%
10%
10%
8% 8%
8%
6%
6%
5%
4%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

20. Dealing with “headline risk” (bad news about your firm or the industry)
30%
25% 24%
20%
15%
11% 11% 11%
10% 10%
10%
8%
7%
6%
5%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

21. Managing my own stress
20%
18%
18%
16%
15%
14%
14%
12%
12%
10% 10%
10%
8%
7% 7%
6%
4%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

22. Helping my team members deal with stress
14%
13%
12% 12% 12%
12%
11%
10%
8% 8%
8%
7% 7%
6%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

23. Dealing with the financial impact on my personal wealth
20%
18%
18%
16%
15%
14%
12% 12%
12%
11% 11%
10%
8%
8%
6%
5%
4% 4%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

24. Maintaining a positive attitude
20%
19%
18%
16%
14%
13% 13%
12%
11%
10% 10%
10%
8%
8%
7%
6%
6%
4%
2%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

25. Helping my team maintain a positive attitude
18%
16%
16%
14%
12% 12%
12%
11% 11% 11%
10%
10%
8%
7%
6%
5%
4%
2%
0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST CHALLENGING MOST CHALLENGING

26. Future Priorities
Question 3
Looking ahead to calendar year 2009,
how important are the following
objectives to your business?

27. Significantly increasing net new assets
50%
46%
45%
40%
35%
30%
25%
20% 19%
15%
12%
10%
8%
6%
5%
5%
1% 1%
0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

28. Rebuilding client confidence in the markets
35%
31%
30%
25%
20%
17% 17%
15%
12%
10%
10%
8%
5% 4%
1%
0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

29. Rebuilding my own confidence in the markets
18%
17%
16%
14%
13% 13%
12%
12%
11%
10%
8%
8%
7% 7%
6%
6%
5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

30. Making adjustments to my investment philosophy
18%
17%
16%
14%
13% 13%
12%
11% 11%
10%
8% 8%
8%
7%
6%
5% 5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

31. Making adjustments to my investment process
16%
15%
14%
13%
12%
12%
11%
10% 10%
10%
8%
8%
7% 7%
6%
5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

32. Rebuilding my clients’ wealth
40%
37%
35%
30%
25%
20%
18%
17%
15%
15%
10%
5% 5%
5%
1% 1%
0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

33. Rebuilding my personal wealth
30%
25%
25%
20%
17%
15%
13%
11%
10%
10%
8%
7%
5% 4%
2% 2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

34. Fully adopting the wealth management business model
16%
15%
14%
13%
12%
12%
11% 11%
10%
8%
7%
6% 6% 6%
6%
5%
4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

35. Bringing on a new partner(s)
40%
36%
35%
30%
25%
20%
15%
12%
11%
10%
10%
7%
6%
5% 5%
5%
2%
0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

36. Hiring additional staff
40%
37%
35%
30%
25%
20%
15%
12%
10%
7% 7% 7%
6% 6%
5%
5% 4%
2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST IMPORTANT MOST IMPORTANT

37. For 2009, what is your
#1 business goal?
7%
6%
Increase assets/revenues/new clients
8%
Maintain/Retain/Stregthen Client Relationship
46% Change business model/strategies/process
11% Strengthen Team/Marketing/Partners
Counset clients/Restore confidence
Education
22%

38. For 2009, what is the greatest
challenges you face in your
6%
6%
business?
30% Client confidence / Stability of firm
8%
Economic / Political expectations in the market
New business/Gathering new assets/loss of assets
Lack resources/firm limits/team changes/time mgmt
13%
Own fear/uncertainty in mkts/firm
Staying with business model/process
Client communication/marketing
15% 23%

39. What question would you like
to have answered in future
5%
3%
surveys?
8%
Business Model/Practices/Theories/Firms
34%
Economy/Effects of Meltdown
9%
Regulatory Envir/Industry Future/Corp Goverence
IMCA
Maintainging/Growing Business
Client's Looking for
18%
Personal confidence/stress
23%

40. Future Plans
Question 7
How likely are you to take
the following actions in
calendar year 2009?
STRONGLY DISAGREE STRONGLY AGREE

41. Sell my investment advisory practice
90%
82%
80%
70%
60%
50%
40%
30%
20%
10% 8% 7%
0% 1% 0% 0% 1% 0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

42. Buy an investment advisory practice
60%
56%
50%
40%
30%
20%
11%
10%
10%
6% 6%
5% 5%
1%
0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

43. Go out on my own
70%
60% 59%
50%
40%
30%
20%
10%
10% 9%
7%
6%
4% 4%
2%
0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

44. Change firms
60%
55%
50%
40%
30%
20%
10%
10%
6% 6%
5% 5% 5%
4%
2% 2%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

45. Change careers
90%
80% 77%
70%
60%
50%
40%
30%
20%
11%
10%
6%
4%
2%
0% 0% 0% 0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

46. Retire
100%
89%
90%
80%
70%
60%
50%
40%
30%
20%
10%
6%
2% 1% 1% 0% 0% 0% 0% 0%
0%
1 2 3 4 5 6 7 8 9 10
LEAST LIKELY MOST LIKELY

47. Which of the following BEST
describes the channel you
6%
currently work in?
12%
Bank Brokerage
Bank Trust Department
Independent Broker-Dealer
46%
14% Independent RIA
Insurance Broker-Dealer
Regional Brokerage Firm
Wirehouse (incl merged or acquired)
14%
6%
1%

48. How long have you been a
financial advisor?
4% 5%
11%
16%
Less than 5 years
6 – 10 years
11 – 15 years
16 – 20 years
25% 21 – 25 years
14%
26 – 30 years
More than 30 years
25%

49. Which of the following BEST
0% describes what you do for
6%
clients?
20%
Financial Planning
Investment Advisory
Investment Management Consulting
Wealth Management Consulting
56% Run a Family Office
18%