Asset Manager Underperformance Drives ‘Broker-as-Portfolio-Manager’ Programs

spiva_scorecard_active_passiveMore than 80% of active managers have failed to beat their benchmarks for the past 10 years. Data for the previous 1-, 3-, and 5-year periods yielded similar results. Many advisors have responded to the lackluster performance of asset managers by deciding to run client portfolios themselves. “Broker-as-Portfolio-Manager” programs have been growing explosively since the 2008 market crash. As one advisor tartly put it, ” I don’t have to pay someone else to lose money.” Advisors who manage money  themselves aren’t locked into a narrow style box format. Especially in volatile markets, that may be better for clients.

About Mark Elzweig

I am an executive search recruiter with an inside track on financial advisors, the asset management industry, and Wall Street. My work has appeared in numerous publications including On Wall Street,AdvisorOne, and Fund Fire. Journalists regularly seek me out, so you catch my bon mots in The Wall Street Journal, Research Magazine, Reuters, and more. You can follow me on Twitter @elzweig or you can reach me directly at 212-685-7070 or
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