How RIAs took one approach to Brexit and asset managers another -- and why only the latter group has egg on its face

Two Comments- one question
Comment- seems odd to criticize the asset management industry for trying to communicate with their constiutents (advisors in this case).
Comment#2- also seems odd to draw the conclusion that Brexit is much ado about nothing…see the markets traded back – no one really knows what the impact will be over the next year/two years and beyond.
Question- how do you know what advisors did? Maybe some found some of the information useful. Maybe some fielded panic calls from their clients and reacted by liquidating positions. Many some didn’t answer their phone? Who knows?
Tough to draw conclusions on limited information and a limited time frame.

Yes, we have painted with a broad brush here! That said, we get bombarded with communications
both on the marketing and PR side — and Sanders and I read dozens of articles — and we came away
with a strong impression. Maybe RIAs were running scared liquidating positions while assets managers
and broker-dealers were acting like grown-ups. We didn’t see much sign of that.

Totally get that. Everyone is trying to get the ear of the client- 'add value’, 'distinguish oneself’, 'provide perspective’ yada yada. Some do, some don’t and many fall in the middle. Also agree with Michael Kitces- being a resource to the advisor or client is an always not sometimes thing. It doesn’t work if the only communication you have is either during some perceived crisis or if you want to sell 'em something.

As an aside- markets go up or down based on supply/demand imbalances. When they go down that means that someone is liquidating. It is possible the asset manager decided to raise cash independently. It is also possible investors in a mutual fund for example put in redemption notices forcing the manager to raise cash. It is also possible investors and/or their advisors decided to sell and raise cash. You just don’t know. From my network of 'asset managers’ or professional investors- they did not independently panic and sell. If anything- the dip provided an opportunity to buy assets cheaply.

I call asset managers every day and ask them to REPLY to information requests and RFP’s from RIA’s and advisors who are looking for new ideas. Most of the asset managers I talk to would rather focus on “selling a story” to advisors who don’t want to hear about it.