FYI: The value proposition of advice is changing. The nature of what investors expect from
advisors is changing. And fortunately, the resources
available to advisors are evolving as well.
In creating the Vanguard Advisor’s Alpha concept in 2001, we outlined how advisors
could add value, or alpha, through relationship-oriented services such as providing cogent
wealth management via financial planning, discipline, and guidance, rather than by trying
to outperform the market.
Since then, our work in support of the concept has continued. This paper takes the
Advisor’s Alpha framework further by attempting to quantify the benefits that advisors
can add relative to others who are not using such strategies. Each of these can be used
individually or in combination, depending on the strategy.
Regards,
Ted
https://www.vanguard.com/pdf/ISGQVAA.pdf
