Garrett Planning Network Selects IPS AdvisorPro for IPS Platform
The IPS AdvisorPro investment policy statement (IPS) technology platform will be available on a preferred basis to Garrett Planning Network's 300 financial advisers, a release said.
Sheryl Garrett, Garrett Planning Network’s founder, said the company was searching for an easy and comprehensive technology platform for its advisers to use to produce investment policy statements. The release noted the importance of the statements in today’s volatile marketplace in order to educate investors about the ups and downs of the markets, risk tolerance, and what to expect over time—resulting in few phone calls later.
Details of the partnership between Garrett and IPS AdvisorPro include preferred pricing for Garrett Planning Network financial advisors, custom training sessions, ongoing educational communications, and access to the best practices of financial advisers who use an IPS as the foundation for their investing and financial planning process.
The Garrett Planning Network is an international network of independent financial advisers and planners who offer hourly as needed financial planning and advice to anyone regardless of income or net worth, according to the release.
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Mutual Fund Investors Say Stability More Important than Performance
Reflecting investors deep concerns about the volatile markets, fund performance is no longer the main driver of mutual fund company loyalty, according to a study from Cogent Research.
Today, perceptions of the financial stability of a mutual fund company and its breadth of offerings are now the primary driver of investor loyalty, said a release from Cogent about its Investor Brandscape 2009 report about the attitudes and behaviors of affluent and high-net-worth investors.
Cogent found that combined perceptions of a firm’s financial stability and range of products is a more significant driver of customer loyalty than perceptions about short- and mid-term performance, as well as consistency of investment performance, according to the release.
“Everyone understands investors want and expect to see strong investment performance. That’s a given,” said Antonio Ferreira, managing director of Cogent’s Wealth Management Group, in the release. “But in a broad market decline and in such uncertain times, investors are obviously looking for a safe harbor. Frankly, they want assurance that companies they invest with today will still be here tomorrow. And when they find a partner they trust, investors want enough options within a fund family to suit more of their changing investment needs.”
Score Board
The Cogent Research study computed the net promoter scores (NPS) for 38 leading mutual fund companies. The NPS subtracts the percentage of a firm’s “detractors’ from its “promoters,’ Cogent said, in order to produce a net result score. Firms that received the highest ratings from investors on perceived financial stability and product offerings also have the highest NPS.
The overall average NPS for all mutual fund companies included in the study is -29, which means, on average, mutual fund companies have more “detractors” than “promoters.” An 84-point spread exists among firms, ranging from Vanguard which receives the highest positive score of +21 to Calamos, which receives the lowest negative score at -63.
“It’s rather stunning to see that nine out of 10 fund companies have more customers at risk of defecting than remaining loyal,” said Ferreira. “ In times like these, where positive investment performance is difficult, firms must provide or promote other offerings that address the existing mood of the market—thus, smaller or boutique firms with limited options will have a tough time maintaining loyalty due to lack of product or service breadth.”
The top performers across all 38 firms in terms of customer loyalty—those Cogent designates as “Stars”— are Vanguard, Fidelity Advisor Funds, and Fidelity Investments (with NPS Scores of 21, 7, and 6, respectively), according to Cogent. These three firms are the only mutual fund companies to garner positive NPS scores. The bottom performers across all firms—those Cogent designates as “Drifters”—are Calamos Funds, DWS Investments, and MFS Investment Management (with NPS Scores of -63, -62, and -59 respectively).
The rankings are as follows:
Stars
1. Vanguard Group 2. Fidelity Advisor Funds 3. Fidelity Investments
Leaders
4. T. Rowe Price 5. American Funds 6. Franklin Templeton Funds 7. Schwab/Laudus Funds 8. Dodge & Cox Funds 9. RiverSource (formerly American Express Funds) 10. ING Funds 11. Morgan Stanley Investment Advisors Funds 12. JPMorgan Funds 13. Davis Funds 14. American Century Funds 15. Principal Financial 16. Wells Fargo Funds 17. Lord Abbett Funds 18. Janus Funds 19. Columbia Management Funds
