Klement on Investing • 3 implied HN points • 05 Feb 26
- Advised private-bank clients tend to have more diversified portfolios with less home bias, lower turnover, and lower volatility.
- Despite lower risk and fewer behavioral errors, advised portfolios often show lower average returns and higher fees, partly because advisers move money into expensive alternative funds.
- Adviser incentives can steer clients toward high-fee products that cut net performance, so getting advice isn’t a guarantee of better outcomes.