Asset Manager Underperformance Drives ‘Broker-as-Portfolio-Manager’ Programs

spiva_scorecard_active_passiveMore than 80% of active managers have failed to beat their benchmarks for the past 10 years. Data for the previous 1-, 3-, and 5-year periods yielded similar results. Many advisors have responded to the lackluster performance of asset managers by deciding to run client portfolios themselves. “Broker-as-Portfolio-Manager” programs have been growing explosively since the 2008 market crash. As one advisor tartly put it, ” I don’t have to pay someone else to lose money.” Advisors who manage money ¬†themselves aren’t locked into a narrow style box format. Especially in volatile markets, that may be better for clients.