The desire to structure and manage client portfolios is oftentimes part of the advisor's value proposition. Selecting investments and being responsible for those decisions can be a worthwhile endeavor. But how effective is it in the long run?
Given that a major portion of industry managed account assets are in advisor-managed programs (APM)—some $1.5 trillion—we thought it would be useful to look at the performance of these portfolios, not only year to date as of 7/31/18, but over one-year and three-year periods, as well.
We dug into the data held on the ENV Analytics platform to answer a few fundamental questions:
- What percentage of advisors are outperforming their benchmarks and delivering alpha?
- What percentage of advisors are generating negative returns for their clients?
- What differentiates top-performing vs. bottom-tier advisors?