Bill McNabb declares 'bull market' for RIA advice then downplays role of Vanguard Personal Advisor Services
The Vanguard CEO sees new era of 'advisor alpha' facilitated by software and low costs
Brooke, I just wanted to add a little extra definition of terms that your readers may find empowering.
True Advisor Alpha has less to do with market returns and more to do with the authentic value an advisor can offer his or her clients. And that authentic value becomes relevant once it has been customized and designed for delivery as Tangible Alpha® Advisors who misconstrue the elements of the business over which they have the least amount of control, Portfolio Alpha, with the critical components of the business over which they have the most control, Advisor Alpha, will be adding undue risk and inviting commoditization of their services by allowing the perception of their authentic value to be defined simply by market returns. Bottom line, don’t confuse Advisor’s Alpha with Advisor Alpha if you truly want to differentiate yourself from your peers. (Reference: AdvisorAlpha.com)
Vanguard’s Personal Advisor Services is an advisory model which will be greatly emulated by the brokerage industry. It is not encumbered by high OSJ and product management cost of b/ds which adds little value but can document 300 bps in value added above indices—something Wall Street is not about to do. There is weakness in prudent process, yet for the mass market VPAS is difficult to beat..
Jason Wenk raises $50 million from Vanguard Group and others, and Altruist may soon overtake Pershing's No. 3 RIA custodian spot, the Altruist founder asserts
The Los Angeles founder's disruption blitz involves a mobile-first Robinhood feel and a plug-and-play outsourcing one-stop-shop -- a sweet combination, except that it may not lure many big RIAs, analysts say.
May 20, 2021 at 3:22 AM
Oisín's Bits: Betterment now a robo roll-up with Canadian IPO as catalyst • Insurers risk regulation for COVID-19 coverage delays • Vanguard shifts Asia focus to China's vast mom-pop retail market
Betterment rolls up a robo • The CFA warns insurers over COVID-19 life polices • Vanguard names Chinese fund head to pursue $6 trillion market.
March 5, 2021 at 1:16 AM
Karin Risi, who built $170-billion Vanguard Personal Advisor Services, takes new role and Matt Benchener is taking her spot as head of US retail for the $6.3 trillion manager
Risi now heads planning and still directly reports to CEO Tim Buckley and her 34 year-old understudy, Benchener gets her job at year's end.