Advisers undoubtedly are concerned about their clients in this time of financial crisis, said Charles Goldman, executive vice president of Schwab Institutional, but they probably aren’t doing enough about it.
Given the gravity of the current situation, registered investment advisers have a major advantage over their wirehouse competitors and need to take advantage presented by the meltdown of Wall Street, he said this morning at Schwab’s annual meeting in Atlanta of RIAs who custody assets with Schwab Institutional of San Francisco.
“Are you doing enough to reach out? There’s no time like the present to strengthen your relationship with your clients?” Mr. Goldman asked.
A Schwab survey of advisers conducted early this month found that only 50% said they were escalating their communications with clients.
“Investors need your help now more than ever,” Mr. Goldman said.
His comments followed a subdued welcoming reception on Tuesday night — usually a lively affair.
Sponsors commented that the crowd was sparser than in recent years.
About 1,410 advisers registered for Impact this year, down from 1,639 in 2006 and 1,974 in 2007.
A good number of advisers canceled in recent days.
Mr. Goldman expressed gratitude to those in attendance for taking the time to leave clients to gain new ideas on how to reassure them and better serve their portfolios.
He also assured them they have the competitive edge over the wirehouses, which he said have suffered “long-term” damage to their “reputations and brands.”
In general, clients “have lost
trust,” Mr. Goldman said.
But advisers, too, are feeling the burden of the current market, working harder, making less and fielding increasingly urgent questions from clients about where to invest.
“There’s more work to do, more responsibility on less revenue,” Mr. Goldman said.
His presentation was followed by that of Barbara Novick, vice chairman of New York-based money management firm
BlackRock Inc., who told a reporter she had thrown out her previous notes in light of the current crisis.
She particularly wanted to calm those concerned about Merrill Lynch & Co. Inc.’s upcoming sale to
Bank of America Corp. of Charlotte, N.C.
Merrill, based in New York, owns just under 50% of BlackRock, and many advisers are confused about the effect of the planned sale will have on BlackRock.
“It’s very important for us to maintain our independence,” Ms. Novick said, adding that the deal will not affect BlackRock’s operations or culture.
