Business Manager Articles

Wading Pool

Is your client’s investment advisor better than average?

Vanguard vs. Client: The Vanguard LifeStrategy Moderate Growth Fund (VSMGX) is (1) well diversified (60% global stocks and 40% bonds), (2) inexpensive (0.15% per year), (3) has a long and...
Kings Clothes

The Emperor Has No Clothes

The investment industrial complex does not want you to know how to evaluate its members. If it did you would have easy access to the following data: Each investment advisor...
Speed Dating

Questions to Ask an Investment Advisor Before They are Hired aka ”The Interview”

At times it becomes necessary to end a relationship with one investment manager and begin a relationship with a new firm. When such a change has been decided upon, it...
Wholesale v Retail

Will ERISA Trustees ever learn? or “I guess they aren't that smart at Princeton”

The Duty: An ERISA trustee is obligated to know who is being paid what by whom and whether the fees being paid are fair and reasonable. This duty is implicit...
Verify

When to Fire an Investment Advisor

Question: When, if ever, should a business manager recommend that their client fire their investment advisor? Answer: It will be time for your client to part ways with their investment...
Above Average

Why the “Passive vs. Active” Investment Debate is the Wrong Issue

The investment industry is embroiled in a "great debate" concerning which investment philosophy is best: active vs. passive management. The debate concerns how the building blocks (asset classes) that make...
Employee Review

Investment Governance Best Practices for Business Managers (How to Watch the Hen House)

The Problem:  You are a business manager(1), and it is either explicitly or implicitly the case that you are responsible for monitoring the activities of the investment managers that have...