Wealth Management

It’s the End of the Road for Commissions

 |  Wednesday, 12 October 2016 07:59  |  Published in Wealth Management
It’s the End of the Road for Commissions
(New York) The old model of commission-based brokerage appears to be starting to come to an end. Though they contain a caveat allowing commission based fees for retirement accounts, the new fiduciary rules put forth by the government have started to make brokers large and small very nervous about retaining commission-based models. The regulations aim to eliminate conflicts of interest by legally obliging brokers to put clients’ interest first, but some are disappointed about the new rules. For instance, for some investors who trade rarely and simply maintain a basic portfolio, “ad valorem” fees, or annual charges, will be much…
86% of Active Funds Underperform
(New York) Here is a reality for you: nearly “every actively managed equity fund in Europe investing in global, emerging and US markets has failed to beat its benchmark over the past decade”. The S&P Dow Jones Indices undertook the study, which looked at 25,00 active funds, and found the following—“98.9 per cent of US equity funds underperformed over the past 10 years, 97 per cent of emerging market funds and 97.8 per cent of global equity funds”. The results show that managers are able to outperform for a year, but over the long haul have a very hard time…
Wealth Management: Clients are Sticking to Human Advice
(New York) Some financial workers, especially those in wealth management, might be fretting over the potential that they could be replaced by robots. However, this article, which is based on a new survey by Gallup and Wells Fargo, shows there is reason for hope. The survey, which was conducted amongst 1,012 US investors, shows that “49%, continue to prefer having a strong relationship with a personal financial adviser, while 24% say digital tools are their top investing resource”. The study contained other results, such as, “When given four options for how to receive financial advice, about 40% want their advice…

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