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John Waggoner: 10 Most Popular Fund Companies With Financial Advisers
FYI: he trend towards fee-based practices is pushing low-priced fund groups to the top of the list of funds most popular with advisers. While consistency of fund performance and having a distinctive company investment philosophy remain critical, fees and expenses offer the greatest potential to enhance loyalty among users who are predominantly fee-based, says Market Strategies International. Here’s the list of the 10 companies most popular with financial advisers. Regards, Ted http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH
These surveys are disappointing in a number of ways. First, they point out that there are still more than a few so-called "advisors" who stick to one or two fund families, no matter what. The survey confirms the inability or laziness of many commission brokers to think outside a small box. This is often encouraged by broker/dealers that have more attractive commission payouts for fund companies who pay the BDs to get on their "A" list of funds. Shameful? Yes, but it happens a lot.
Second, it shows that lower-cost funds are starting to appear in the survey, but just barely. Considering all the news and emphasis on fiduciary responsibility, load funds still make up the majority of of the list.
Third, it shows that despite the commission industry's talk about how a fiduciary rule will keep them from providing service to smaller accounts, there is very little difference in investment advice from one client to the next among their salespeople. The order of the top 5-6 companies shown might change from year to year, but there is not much change in the names of that group.
Fourth, and very promising, is the actual showing of Price, Vanguard and DFA in the list. This means two things: A. the survey is actually being sent to and answered by a segment of the RIA community, and B. this segment of the advisory industry is growing, while the sales/commission side is losing market share every year.
I must confess, too, that all of the commission fund companies offer no-commission funds, funds at NAV, or institutional-class shares to the RIA industry. That has not always been the case, and that is also something for which I am thankful.
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Second, it shows that lower-cost funds are starting to appear in the survey, but just barely. Considering all the news and emphasis on fiduciary responsibility, load funds still make up the majority of of the list.
Third, it shows that despite the commission industry's talk about how a fiduciary rule will keep them from providing service to smaller accounts, there is very little difference in investment advice from one client to the next among their salespeople. The order of the top 5-6 companies shown might change from year to year, but there is not much change in the names of that group.
Fourth, and very promising, is the actual showing of Price, Vanguard and DFA in the list. This means two things: A. the survey is actually being sent to and answered by a segment of the RIA community, and B. this segment of the advisory industry is growing, while the sales/commission side is losing market share every year.
I must confess, too, that all of the commission fund companies offer no-commission funds, funds at NAV, or institutional-class shares to the RIA industry. That has not always been the case, and that is also something for which I am thankful.