Fisher Investments is a large and well-known investment advisory firm based in the United States. With over $197 billion in assets under management, it serves a wide range of individual investors and institutions around the world. As one of the giants in the investment industry, Fisher Investments has naturally attracted both praise and criticism over the years. In this article, we will take an in-depth look at the pros and cons of Fisher Investments to help investors make an informed decision about whether to use their services.
Fisher Investments’ diverse investment strategies and asset management capabilities
One of the biggest advantages of Fisher Investments is their diverse set of investment strategies and asset management capabilities. The company offers a range of equity, fixed income and tactical asset allocation strategies to meet the needs of different investors. For example, Fisher Investments has value-focused equity strategies that look for undervalued stocks with growth potential. They also offer more conservative fixed income strategies for investors looking for stable income and capital preservation. With expertise across major asset classes, regions and investing styles, Fisher can construct customized portfolios tailored to each client’s investment objectives.
Fisher Investments’ large research team and rigorous investment process
In addition to diverse capabilities, Fisher Investments also stands out for its large in-house research team and rigorous investment process. With over 100 research analysts and portfolio managers around the world, Fisher conducts extensive qualitative and quantitative research to identify investment opportunities and risks. The company follows a highly structured process involving idea generation, fundamental analysis, portfolio construction and risk management. This research-driven approach provides the basis for Fisher’s investment strategies and recommendations to clients. However, some feel the company’s focus on top-down economic analysis may miss company-specific insights.
Customized services and communication for individual investors
Unlike many large asset managers, Fisher Investments places a strong emphasis on serving individual investors. Clients have access to personalized services like financial planning, tax management and estate planning to meet their specific needs. Fisher also maintains an extensive client service team and provides education to help investors understand their investment strategy. For example, the company publishes the popular MarketMinder newsletter and hosts special events for clients. While some clients may want even more customization and access to portfolio managers, Fisher Investments provides individualized services uncommon among most big firms.
High fees relative to other automated investment platforms
The biggest criticism often leveled against Fisher Investments is their relatively high fee structure compared to other investment firms and robo-advisors. For instance, the company’s fee schedule starts at 1.5% for smaller accounts under $1 million. While fees are tiered and decrease for larger accounts, they remain well above the sub-1% fees charged by most robo-platforms. Fisher justifies the higher fees based on live advisor access, customization and their active management approach. But for investors just seeking simple, low-cost indexing, Fisher’s fees can be hard to swallow.
High account minimums and potential conflicts of interest
In addition to higher fees, Fisher Investments also has high minimum account requirements that start at $250,000. This puts the company’s services out of reach for many retail investors. Some also criticize Fisher’s practice of investing client assets in affiliated mutual funds and ETFs, which generates additional revenue for the firm and poses a potential conflict of interest. However, Fisher discloses these affiliated products and states the investments are in clients’ best interest.
Fisher Investments is one of the largest investment advisors serving individual investors. Their diverse capabilities, rigorous process and client services are major advantages. However, relatively high fees and account minimums are notable drawbacks. Overall, Fisher Investments is most compelling for investors seeking active management and personalized guidance.