Quantifying the value of advice

09 October 2018 | Topical insights


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Francis Kinniry:

About twenty years ago, my team and I developed Vanguard’s Adviser’s Alpha. Really it was laying out the aspects of what a good adviser is, and how the value from that advice can come about.

We’ve been updating this research consistently over the last twenty years; we’ve made it global, we’ve taken it around the world. We’ve done that in the UK because tax rates and different forms within the Adviser’s Alpha concept really require a local knowledge as well.

So innovation and technology has been around for a very long time, and it’s entering into all aspects of the world, but more recently it’s really sped up within financial services and the advice space. Specifically the investment components now can be outsourced to a best-in-class investment manager, and so the putting together of the portfolio, which used to dominate a lot of advisers’ time, can now be done in a turnkey situation.

So it gives the adviser more time to spend on the human aspects, which is actually a real benefit because these take a lot of time – human aspects such as behavioural coaching – and that is a big part of the value of advice.

Investment Risk Information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important Information

This video is directed at professional investors in the UK only, and should not be distributed to or relied upon by retail investors. It is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

The information in this video does not constitute legal, tax or investment advice. You must not, therefore, rely on the content of this video when making any investment decisions.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.


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