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You’re not considering that a lot of active managers are helping clients define bespoke investment strategies that suit their assets and liabilities. They set a
by wsostt 4y ago
You’re not considering that a lot of active managers are helping clients define bespoke investment strategies that suit their assets and liabilities. They set a strategy, pick a benchmark, and invest. In some cases, a portion of those investments may be passive instruments and other portions may be research-driven asset allocation by the manager.
- m3nu 4y agoThat sounds like a financial adviser, not a manager of an active fund.
- SkipperCat 4y agoThere are actively managed funds that hold stocks, bonds and other instruments and constantly balance those ratio on a daily basis to give investors a steady state of returns (think 4% to 6%). A lot of folks who want fixed income returns instead of cap gains growth purchase these funds. Retirees and pension funds are big consumers of these product. This requires complex daily work and would be nearly impossible for a financial advisor to perform.
- 55555 4y agoCan you give any examples of these which can be bought via brokerage account?
- wsostt 4y agoNot OP, but I doubt it. These are individual mandates with mandatory minimums in the tens of millions of dollars for a small shop.
- SkipperCat 4y agoVanguard targeted retirement funds. VTTHX is their 2035 target fund. They are constantly readjusting their balance of stocks/bond/cash to meet a stable return in the year 2035. Virtus AZNAX is another fund that blends a bunch of financial instruments to achieve a targeted return. There's plenty others and they're all available from any retail brokerage firm.
- deleted 4y ago[deleted]
- the_cat_kittles 4y agoi think its all just bullshit to make the client feel like they are heard / in charge. its like a mutual agreement to make eachother feel important.
- wsostt 4y agoClients are heard and in charge. These are smart people who will terminate the relationship if their goals aren’t being met. This isn’t your retirement account. These are accounts in the 9+ figure range.
- deleted 4y ago[deleted]