'Ludicrous': Consultant savages Vanguard value-of-advice research

'Unbelievable, flawed, ludicrous': Clive Waller savages Vanguard research on value of advice

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Advisers could be worth up to 3% a year in net returns to clients, compared to what they could achieve on their own, according to research by Vanguard Asset Management. But the figures don't add up, says Clive Waller...

In the late 1980s, at the outset of the HIV/AIDs epidemic, the Institute of Actuaries produced a paper that resulted in term premiums increasing by around 150%. The paper consisted of page after page of Greek letters in long formulae. However, the whole case was based on one, finger in the air, assumption. This was that 25% of the ‘at risk' population would contract the disease. The assumption was, thank goodness, hopelessly wrong. The Vanguard paper [which argues financial advisers could be worth up to 3% a year in net returns to clients, compared to what they could achieve on the...

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