Fisher Investments is a large investment management firm catering to individuals and institutions. With billions under management, it has become one of the most prominent names in the industry. For individual investors considering Fisher Investments, it is crucial to perform due diligence by reviewing its investment strategy, performance track record, fees charged and customer service. While Fisher Investments review pdfs provided by the company paint a rosy picture, independent third-party reviews reveal a more nuanced perspective on the pros and cons.
Long-term performance trails benchmarks
Multiple third-party analyses of Fisher Investments’ performance show that it lags behind market benchmarks over the long run. For example, CXO Advisory Group found that Fisher’s flagship Private Client Group strategy returned 7.9% annually from 2000-2009 versus S&P 500’s return of 9.1%. Another report by Backend Benchmarking found Fisher’s Equity/Balanced Composite underperformed S&P 500 by an average of 1.20% annually from 2000-2011. Underperformance vis-à-vis benchmarks raises questions on Fisher’s oft-repeated claims of superior returns.
High fees eat into net returns
Fisher Investments charges expense ratios of 1% to 1.5% for assets under management, which is on the high side for the industry. Several class action lawsuits have been filed alleging Fisher’s failure to fully disclose the total cost to clients. High fees can significantly erode net gains over time. Investors are often unaware of the long term impact of fees on their portfolio.
Aggressive marketing raises eyebrows
Fisher Investments is known for its aggressive marketing through cold calls, mailers and online ads. Some advisers have accused it of misleading marketing practices preying on unsuspecting seniors. Fisher settled with a state regulator in 2012 on charges of misleading seniors. However, Fisher maintains its marketing practices are straightforward.
Better options among low-cost players
While Fisher Investments has built up an impressive AUM base, its performance and fees have come under greater scrutiny in recent years. With the rise of low-cost investment leaders like Vanguard and BlackRock, investors have access to better-performing funds at a fraction of the cost of Fisher’s offerings.
In conclusion, while Fisher Investments has positives like experience and scale, independent reviews reveal high fees and mediocre returns compared to benchmarks. Investors should thoroughly research before entrusting their life savings.