The average 2020 “through” series was down 10.6% in the first quarter, compared to a loss of 8.4% for “to” funds. “For investors with a $1 million nest egg who plan to retire in 2020, that’s a difference of more than $20,000 in losses,” Morningstar said.
To try and solve the fee issue and the related implications of current fee constructs, asset managers must offer a well-aligned fee structure to create demand and compete with passive products.
If M&A transactions and the financing behind them are handled like widgets on a conveyor belt, an advisor’s ‘partnership’ with their broker/dealer may not be as strong as they thought.
