Quantifying the value of advice
09 October 2018 | Topical insights
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.
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