Our focus is to grow Edelman Financial Services and our high net worth businesses.
Houston, TX (PRWEB) October 11, 2011
The Edelman Financial Group today announced that it intends to exit the independent representative business at year-end 2011. It may purchase a majority interest in some of the independent practices for which it now serves as broker-dealer, and will permit the remainder to stay until the end of the first quarter of 2012 to provide each with ample time to relocate.
The Edelman Financial Group made this strategic decision at its Management Committee meeting in July following a review of the revenue, costs, profit margins, risks and growth prospects in the independent representative segment. The company anticipates little or no impact on its earnings from the move.
“Our focus is to grow Edelman Financial Services and our high net worth businesses,” said George Ball, Chairman and co-CEO. “The independent representative sector does not generate a return on sales equivalent to that which we enjoy in our core operations.”
Ric Edelman, co-CEO and President added, “Our stated goal is to increase the already strong brand awareness which we enjoy in both the affluent investor and household markets. We have enormous opportunities in those sectors and do not want to divert our attention from them. Our decision to concentrate our efforts will help us maximize the potential for those gains.”
About The Edelman Financial Group
The Edelman Financial Group is a wealth management company that manages approximately $18.8 billion in client assets. Client assets include the gross value of assets under management directly or via outside managers and assets held in brokerage accounts for clients by outside clearing firms. The Edelman Financial Group has approximately 530 employees in 21 states. Additional information is available at http://www.edelmanfinancial.com.