Affluent Investors Give Their Advisers a ‘C’ Grade


I like this.


An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Robert Frank, WSJ,

What grade would you give your bank or wealth manager?

If you said a “C” you aren’t alone. According to the new PNC Wealth Management Investors’ Outlook Survey, 44% of affluent investors surveyed gave their financial institutions that middling grade, meaning “They didn’t make much difference one way or another.”

Fully 15% gave them an “A,” meaning “they really made a huge positive difference. The survey found that 9% gave them a “D,” meaning that “they made my financial situation worse,” while 2% gave them an “F,” meaning “their actions really hurt us.”

Alas, there was no option for “Suspended For Bad Behavior.”

“This should serve as a wake-up call in the financial advisory business,” said Thomas P. Melcher, executive vice president and managing director of Hawthorn, the division of PNC Wealth Management that serves clients with $20 million or more in investible assets.

When asked how their financial institutions could help them more, the respondents said better information and technology, more transparency and more comprehensive solutions.

I’ll add a few more:

1 – Bankers who actually understand the products they are selling.
2 – Account statements that tell you clearly and in English how much you have earned, lost and paid in fees.
3 – Advisers who explain the risks and conflicts behind the products they are selling.
4 – Better bill-paying and budgeting software.

Is that so much to ask?

What grade would you give your adviser and why?

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