It is well known that publicly traded firms are legally bound to put their shareholder’s interest ahead of their clients.  Therefore it is no wonder that these same conglomerates see their clients as a cross-sales opportunity, selling them proprietary funds and funds where the firm can make the most money for their firm through lucrative revenue sharing contracts.  Since we are paid by our clients and through no other channels we can avoid this conflict of interest.

One of our favorite international investment managers and friend, Charles de Vaulx at International Value Advisors, was recently interviewed in an article by Barrons.  The article pointed out that private fund companies tend to outperform their peer group while public fund companies are less likely to do so.  Moreover, public firms typically gooble up smaller funds and get rid of their worst performers making their performance appear to be better than it is. 

According to Charles, “being public introduces horrible short-term considerations for a money manager.”  He also said “at the end of the day, one has to decide whether one is, first and foremost, in the assert-gathering business, or in the money management business.” 

At Global View, we are proud to offer our clients our low cost fundamentally driven stock portfolios powered by Morningstar and independent, private international investments like at Grandeur Peak and International Value Advisors that are simply not available at the financial conglomerates.  We believe we can give our clients a lower risk and aspire for high returns.  Please contact me to discuss! 

Read the entire article here.