Fees - Merrill vs. Smith Barney

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May 25, 2005 1:02 pm

Hi all -



I am a student conducting a project for one of my finance classes.
Trying to explore the maximum, minimum, and average fees of the SMA
programs at Merrill vs. Smith Barney.  Would any of you be able to
speak to me regarding this?



thanks.

May 25, 2005 3:18 pm
luv2kik12:

Hi all -

I am a student conducting a project for one of my finance classes. Trying to explore the maximum, minimum, and average fees of the SMA programs at Merrill vs. Smith Barney.  Would any of you be able to speak to me regarding this?

thanks.


All depends on the size of the account and the broker involved (how much he/she will discount). Aside from those two items, I think you'll find their rate sheets look identical.

May 25, 2005 4:18 pm

Maybe you should compare fees from the wirehouses to the Indies as an indie I can usually get the same money managers the wirehouses have and charge less in fees! Usually about a third less in over all cost.  We also have more of them then the wirehouses they may have 30 to 40 an indie may have access to 130 or more.

May 25, 2005 4:48 pm
Greenbacks:

Maybe you should compare fees from the wirehouses to the Indies as an indie I can usually get the same money managers the wirehouses have and charge less in fees! Usually about a third less in over all cost.  We also have more of them then the wirehouses they may have 30 to 40 an indie may have access to 130 or more.


The wirehouses have far more than 30 to 40. My firm overs well over 100. Also, I'd be surprised if you can offer the same managers, starting at $100k, for less as the wirehouses are buying fleets of Hondas, while indies are buying individual Accords.

May 25, 2005 5:10 pm

We have managers @ $100,000  and some less, 3 or 4 different mangers @ $250,000 as far fees remember I can cut my fee down as far as I want. I control that figure.

May 25, 2005 6:06 pm
Greenbacks:

We have managers @ $100,000  and some less, 3 or 4 different mangers @ $250,000 as far fees remember I can cut my fee down as far as I want. I control that figure.


True, you can cut YOUR fee (as can the guys at wirehouses, they can work for fee, if they like, but their firm will get paid), but I'm be very much surprised if the managers involved were charging YOU as little as they charge the wirehouses. They’re buying fleets, you’re buying individual cars.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


 


I’ve reviewed several of the SMA programs available to indies and haven’t seen a price advantage. Lockwood seems like a decent deal, for example, but not a real price advantage. If you could cut out the due diligence costs you might have a price advantage, buy then you wouldn’t have due diligence.