Affluent Investors Want Better Advisor Performance
This entry was posted on 2/28/2008 11:52 AM and is filed under wealth marketing.
February 27, 2008: A new report for affluent
investors takes the wealth management community to task for unjustified
high fees and inadequate services. It urges high net worth investors to
become more active in measuring and managing their advisers and estate
plans.
According to the report, Managing Your Wealth Wisely: Six Proven
Strategies, "Many high net worth individuals (HNWs) feel that their
traditional providers do not offer top tier solutions when it comes to
strategic asset allocation, hedge fund manager selection, due diligence
services, integrated tax planning, etc. Others feel that their advisers
aren't bringing them the highest quality investment products available
because their own firms don't sell these funds and/or have proprietary
house funds that they're trying to push."
Among some of the other major findings of the report, now available free of charge, and published by Wealth Management Exchange:
— Many high net worth individuals feel that their advisers do not clearly benchmark and communicate to clients their relative performance statistics - and few advisers beat their comparable indexes on a risk adjusted, after-fees basis over the long run;
— Many advisers fail to fulfill their promise to customize individual portfolios.
— Too many advisers push portfolios comprised solely of stocks and bonds and do not provide a sufficient range of "alternative investments" to increase diversification and reduce risks;
— Many affluent investors now believe U.S. markets are more risky than international investments;
— Advisers overall know they need to do a better job of educating investors on estate and legacy planning issues; many investors do not have sophisticated estate plans and even fewer understand the key tradeoffs and issues.
"It's not just about investing in stocks and hedge funds. Affluent
investors must also deal with risk mitigation strategies (e.g., more
diversification into non-correlated alternative investments),
transferring wealth to heirs, tax minimization, and effective
charitable giving," says Wayne Cooper, founder of Wealth Management
Exchange, and publisher of the report.
Among the key topics covered by the report: assuming accountability
for your portfolio; selecting and monitoring advisers; solidifying your
asset allocation plan; taking a global approach to stock and bond
investing; expanding estate and legacy planning; and preparing for the
challenges and enjoyment of retirement.
Managing Your Wealth Wisely: Six Proven Strategies may be obtained free of charge by clicking on http://www.wealthmanagementexchange.com/emails/SpecialReport.html
Source: Exchange Networks and PR Newswire
