Advisers under fire for poor investment knowledge

“Advisers should not run money” is a quote from a ‘no holds’ barred’ article that criticises advisers for their lack of knowledge about investment.

The article is based around a recent Platforum survey which revealed there’s a mixed understanding among advisers of the basic concept of value investing, with many not able to define it clearly and accurately.

Huge disservice

While such a message should be music to a discretionary investment manager’s ears, I believe this sort of article does a huge disservice to the majority of advisers I have met.

The advisers who choose to partner with us have a wealth of knowledge about investing – what they lack is the time to give it the focus they recognise it requires while running the rest of their advice and planning services effectively and efficiently.

By out-sourcing the day-to-day management of investments to specialists, they are ensuring their clients get 100% focus on their investment portfolios while at the same time benefiting from the broader advice and financial planning that they expect from their financial adviser.


With us by their sides, our adviser partners are kept informed about investment fluctuations, strategies and events that keep them fully in the loop on all matters relating to investment and they are well placed to pass on relevant information to their clients as and when appropriate.

Sure, there are advisers out there who probably would be better advised to stop running their own investments as they may not be delivering the best results for their clients but to label most advisers as ‘incompetent’ is, I believe, insulting and damaging to the industry.

Outsourcing not code for lack of knowledge

Choosing to outsource investment to a discretionary manager isn’t code for an adviser admitting he doesn’t understand investments – it’s a sensible strategy for a business that is about much more than simply managing investment portfolios.

Having the time to focus on the broader aspects of financial planning (and also having time to see more clients) is the key to running a successful advice business that delivers value to all its stakeholders.