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How exactly Vanguard Group -- with a dash of robo and lots of mojo -- went from a virtual unknown in wealth management to posing a threat to Merrill Lynch

The fund giant has 250 CFPs on staff for VPAS in Malvern, Charlotte and Scottsdale and virtually no minimum or maximum client size

Author Brooke Southall July 14, 2014 at 12:00 AM
2 Comments
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Karin Risi: To the extent there's conflict, it's always been there.

Robo-Advisors


Stephen Winks

Stephen Winks

July 14, 2014 — 7:32 PM

Will Vanguard assume fiduciary responsibility for each client as an advisor as well act in a fiduciary capacity as a money manager? If so, it is an industry first. A conflict exists in Vanguard acting as an advisor and manager. Will VanGuard advisor ever fire Vanguard manager? Same for Schwab. Isn’t an objective intermediary (the advisor) required?

SCW

Reality_Check

Reality_Check

July 19, 2014 — 2:22 PM
Just some simple math. $50,000 account at 0.30% is $12.50 in monthly revenue. Twelve dollars and fifty cents. Funny to hear Wealthfront talk about Vanguard not having to make a profit given that they still need to triple in size just to get to breakeven. Meanwhile, an advisor with a few connections can get perhaps 20 accounts (at much higher account size) and instantly generate an income without taking outside investment.

Related Moves

December 31, 2020 at 4:37 AM

Karin Risi, who built $170-billion Vanguard Personal Advisor Services, takes new role and Matt Benchener is taking her spot as head of US retail for the $6.3 trillion manager

Risi now heads planning and still directly reports to CEO Tim Buckley and her 34 year-old understudy, Benchener gets her job at year's end.

December 4, 2020 at 2:56 AM

Brouwer & Janachowski gets its rainmaker --the former head of $18-billion Bernstein office -- in a 'grand experiment' to grow from $1.7 billion to $5 billion in AUM

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January 6, 2020 at 6:32 PM

Marty Bicknell buys a second M&A shop 10 years after the first • Advisor360 repeopling includes new people officer, and seven other major hires • By women, for women corporate RIA nets 10th partner

Mariner CEO is again reversing the predatory script • Some 53% of Advisor360's 15-strong senior management joined the firm in the last 12 months • LGBTQIA+-friendly corporate RIA grows AUM to $283 million, after three new partners join.

September 5, 2024 at 3:31 AM

See more related moves

Mentioned in this article:

Wealthfront
Portfolio Management System
Top Executive: Andy Rachleff



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