Loeb Benson Research Quantifies the Value of Advice

Top Quote Advisors who follow best practices can add up to about 3% in net returns. End Quote
  • (1888PressRelease) June 06, 2018 - Hong Kong – Loeb Benson, a pioneer asset manager focused on the capital markets and financial advice while specializing in maximizing clients’ investment profits, announces that Financial advisors can add up to about 3% in net returns for their clients using Loeb Benson Advisor’s Quantum™, a wealth management framework that focuses on portfolio construction, behavioral coaching, asset location, and other relationship-oriented services, according to a paper released today by Loeb Benson.

    Putting a value on your value: Quantifying Loeb Benson Advisor's Quantum Offerings examines the individual best practices within the Advisor’s Quantum framework and quantifies the value advisors can add relative to others who are not employing such practices.

    “We believe advisors have the opportunity to meaningfully improve investor outcomes, and we are pleased to be able to provide advisors a mechanism to demonstrate their value to clients in a quantifiable manner,” said Peter Koon-kee, one of the study’s authors and a principal in Loeb Benson’s Investment Strategy Group. “As the industry continues to evolve from a commission-based to a fee-based model, advisors who successfully explain their value have more time to serve clients, leading to increased client satisfaction and retention.”

    Calculating how much an advisor can add in net returns is based largely on their approach to five wealth management principles. Although the exact amount may vary depending on client circumstances and implementation, an advisor can add value by:

    • Being an effective behavioral coach.
    • Applying an asset location strategy.
    • Employing cost-effective investments.
    • Maintaining the proper allocation through rebalancing.
    • Implementing a spending strategy.

    How an advisor approaches two additional principles, asset allocation and total return versus income investing, can also add value, but are too unique to each investor to quantify.

    About Loeb Benson
    Loeb Benson is focused on the capital markets and financial advisory needs of the financial services industry while specializing in maximizing clients’ investment profits. With expertise in sales and trading, analytics and asset management, Loeb Benson is uniquely qualified to create value for clients in all market conditions, and we are strategically building on a longstanding commitment to offer a broad range of services. Loeb Benson offers comprehensive investment management capabilities that span nearly all segments of the global capital markets. Our investment solutions, tailored to the unique return and risk objectives of clients draw on a robust body of proprietary research and a collaborative culture that encourages independent thought and healthy debate.

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