Portfolio Managment Group

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Sep 8, 2006 10:23 am

If you are an advisor who actually activly manages accoutns (like the private portfolio managers at ML and portfolio managment goup at SB) how much of the fee that you charge do you get to keep?  Because I think normally they charge a little less than a money manager so would that mean less pay and more work?

Sep 8, 2006 10:31 am

Yes, they only get 120 bps on the first 10% of the non-restricked amount, then it goes down by tiers every quarter based on the margin of the account value beyond the cost basis.


Got it?

Sep 8, 2006 10:45 am

Yea, I think so. Do most clients use margin?  It seems like most of the time you make more with a managed account?

Sep 8, 2006 10:54 am
futureadvisor:

Yea, I think so. Do most clients use margin?  It seems like most of the time you make more with a managed account?


I didn't think you'd take the bait.

Sep 8, 2006 11:08 am

Sep 8, 2006 11:56 am

They are having a bit of fun with you.


Very few advisors ANYWHERE pick stocks and manage portfolios.  At least the way you are asking.  That is what mutual fund managers and private managers do.


Financial advisors are relationship managers.  They may pick some stocks, but their job is to help clients meet financial goals.


That may or may not include picking stocks.


Payout varies on how successful you are and if you are a traditional employee or an independent advisor.


If you still seriously want an answer to your question, maybe you should re phrase it.

Sep 8, 2006 12:07 pm
vbrainy:

Financial advisors are relationship managers.  They may pick some stocks, but their job is to help clients meet financial goals.



What is the relationship that is being managed?

Sep 8, 2006 8:33 pm
futureadvisor:

If you are an advisor who actually activly manages accoutns (like the private portfolio managers at ML and portfolio managment goup at SB) how much of the fee that you charge do you get to keep?  Because I think normally they charge a little less than a money manager so would that mean less pay and more work?



As I recall, the ML PIA program had a small haircut, but otherwise the broker gets credit for the entire fee. At SB, the broker nets the whole fee. As I understand it, the "upper level" discretionary program  at SB(requires LOS and production requirements) is the most flexible of all firms. (You can do covered options, use whatever major investment vehicles you want - convertible bonds, etc.)

Sep 8, 2006 8:35 pm
vbrainy:

They are having a bit of fun with you.


Very few advisors ANYWHERE pick stocks and manage portfolios.  At least the way you are asking.  That is what mutual fund managers and private managers do.


Financial advisors are relationship managers.  They may pick some stocks, but their job is to help clients meet financial goals.


That may or may not include picking stocks.


Payout varies on how successful you are and if you are a traditional employee or an independent advisor.


If you still seriously want an answer to your question, maybe you should re phrase it.



Most advisors are "fund monkeys", but there are quite a lot of advisor that run money on a discretionary basis. Both SB and ML offer the title of "portfolio manager" to brokers.