News, Vision & Voice for the Advisory Community


Russell Investments and Fidelity both see disconnect between HNW investors and RIAs in separate studies

Mere millionaires prefer fixed income and ultra-wealthy Tiger 21 members also edge toward perceived sleep-at-night investments

Thursday, June 23, 2011 – 2:32 PM by Lisa Shidler
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Kristin Gibson: Clients will really force your hand out of fear.

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Vanguard Group shows up as 'alpha' disciple with two new fixed-income fund launches as it surpasses PIMCO's $2 trillion with ex-Goldman Sachs partner now calling the shots

The $8 trillion Malvern, Pa. manager owns beta investing, but RIAs are demanding higher income -- hence market timing and cherry picking -- from their fixed-income allocation.

August 10, 2021 – 11:46 PM

Fidelity Investments loses Kathleen Murphy who largely caught up Fido to Schwab (near $4T) on the retail side by reversing net promoter scores

The 'no whining allowed' leader of the Boston giant's retail business, who oversaw $2 trillion in net new assets, was ready to exit but hung in through a year dominated by COVID-19 challenges

January 23, 2021 – 2:02 AM

Fidelity Institutional looks like a big TAMP after Mike Durbin removes last internal walls between products and advisors after 'meteoric' 2019 leap; two Fido RIA sales legends depart amid the shift

Rich Policastro and Tom Valverde are out after Fidelity Custody & Clearing assets leap to $2.6 trillion AUA, restructuring gets the credit -- and so restructuring gets extended.

March 13, 2020 – 10:36 PM

TD Ameritrade's board suddenly pushes out Tim Hockey after his big misread of RIAs; Tom Bradley name-dropped as successor

The CEO broke the TD promise never to compete with RIAs, took it back and got sent packing

July 23, 2019 – 4:30 AM

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Mentioned in this article:

Russell Investments
Top Executive: Jennifer Tice

Savant Capital Management
RIA Serving Endowments/Foundations
Top Executive: Brent Brodeski, CEO

Elmer Rich III

Elmer Rich III

June 24, 2011 — 4:12 PM

This is a huge, growing problem and threat to advisors — clients engaging in self-harming investment behavior. Brain science and the advanced social sciences have PROVEN that our instincts, reactions and emotions are unerringly bad guides to long-term investing and protecting our own assets. The same is true for professionals as well.

All professionals, including attorneys, accounts and doctors now face this same critical problem: – The client (patient) does not follow the best professional advice – The client insists, often, on doing the opposite recommended by the professional (as this article points out) – Based only on some current emotional moods — mainly fear – However, when and if bad results happen, the advisor is blamed and sometimes sued

So the advisor ends up in legal jeopardy because of client’s “irrational,” usually fear-driven, behaviors. As clients age both their susceptibility to these mistakes and self-harming investment behaviors and the consequences get worse.

In fact, there are ways to address these behaviors and the psychology driving them. We can learn from other professions. We post on this topic regularly. As marketers, we have studied this problem for years and are experts in the topic. It complicated but remedial action can be taken by advisors. Here are some recent posts on the topic:

“Can One Bad Investment Experience Cause Lifetime PTSD and Scaring? Sometimes” —http://wp.me/p167Bf-9P

“Why Smart People Defend Bad Ideas” — http://wp.me/pXvvI-ac

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