Hall Private Wealth Reports On Need for Asset Management

San Diego, CA, Oct. 11, 2022 (GLOBE NEWSWIRE) — Hall Private Wealth Advisors (HPWA) recently highlighted several industry conflicts that investors should be aware of with regard to the fees and performance of their portfolios. The findings highlight how ‘Big banks’ monetize investors’ lack of awareness of how certain funds are marketed, sold, and managed. Investors are simply unaware that banks are being compensated by mutual fund companies and asset managers to be on their distribution platform.  

In the report, HPWA urged investors to take a closer look at their portfolio holdings to identify whether they are being taken advantage of. One of the first places an investor should look is at the types of holdings they own. For example, mutual funds and limited partnerships carry costs that can be some of the highest in the industry (potentially eroding returns) for often mediocre performance.  

Investment advisors can still be compliant with their fiduciary obligations while placing these high-fee, low-return securities inside client portfolios. “Banks, RIA’s, and other asset managers can and do get compensated by the fund providers that they include in client portfolios. In other words, many of these investment companies are soliciting investment advisors, inviting them to fancy conferences and golf outings, as well as paying for portfolio management software as a way to angle for their business” outlined Clark Evans, an advisor at HPWA.

HPWA believes in reducing or eliminating fees wherever possible and chooses not to utilize high-cost securities such as mutual funds or private limited partnerships. Regulators are starting to catch on as noted in a recent Barron’s article.

Another hot topic is how mutual fund companies promote their performance. A recent Wall Street Journal article highlighted how as many as 40% of mutual fund managers move the goal posts to mask underperformance Mutual funds are incentivized to show…