Fisher Investments Review: Hands-On Portfolio Management
Product Name: Fisher Investments
Product Description: Fisher Investments is a wealth advisory firm that offers managed investments for individuals and families with at least $500,000 to put into a Private Client Group account. Not publicly listed but fees are reportedly in 1% – 1.5% per year range, but only for assets under management (the fee is tiered and gets lower with higher balances).
Summary
Fisher Investments was founded in 1979 by Ken Fisher. They are an independent fee-only registered investment advisory firm with more than 135,000 clients and over $210 billion in assets under management. They cater to individuals, institutional investors, as well as small to mid-sized businesses.
Pros
Cons
Founded in 1979, Fisher Investments is a well-known investment advisory firm. However, many investors are unaware of its services and whether its money managers can improve their portfolio performance.
Good wealth managers can provide the hands-on support that high-net-worth households need to manage their investments properly. They can also help investors who want personalized investment strategies.
In this Fisher Investments Review, I’ll cover everything from services and fees to account minimums and wealth management options.
Fisher Investments is good for those who have at least $500,000 in assets to invest and want to hire a financial advisor to manage those assets on their behalf. Fisher charges a percentage of assets under management as its fee. The financial advisors do not earn commissions.
Fisher Investments is an independent, fee-only registered investment advisory firm offering virtual and in-person private wealth and business 401(k) services.
Ken Fisher founded the company in 1979. Its headquarters were originally in Camas, WA, but they moved to Plano, TX, in the summer of 2023.
Fisher Investments has regional offices and investment representatives in several states across the U.S. and several international offices around the world. It has more than 135,000 clients and $276 billion in assets under management (AUM).
Approximately $38 billion of the $276 billion under management comes from institutional investors and U.S. small—to mid-sized businesses. The remaining client base consists of individual investors.
The minimum investment threshold for most portfolios is $500,000, making Fisher’s service best-suited for high-net-worth investors. You don’t need to be an accredited investor to join.
Ken Fisher is the founder of Fisher Investments and is currently its Executive Chairman and Co-Chief Investment Officer. He comes from a family of investment professionals. Before starting Fisher Investments, Ken was well-known for helping pioneer the Price-to-Sales ratio, one of today’s widely used investment metrics.
Fisher also wrote one of Forbes Magazine’s longest-running columns, “Portfolio Strategy,” which ran monthly for 37.5 years through December 2016. He continues to make recurring national media appearances and write monthly investing columns.
Unlike most wealth management services, which take a passive investing approach with index funds, Fisher Investments practices active management and aims to outperform the market.
Most investment strategies are measured against the MSCI World Index, which tracks the performance of stocks in 23 developed international markets.
According to Fisher, the company’s philosophy is based on a “set of financial principles that guide all of our investment decisions, rooted in our belief in capitalism and the power of free markets.”
Fiduciary advisors help build tailored portfolios, looking for domestic and global opportunities that fit clients’ goals and beliefs. Your portfolio may hold equities, bonds, ETFs, cash, and other securities that can produce long-term wealth.
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Fisher Investments doesn’t publicly disclose its average portfolio performance, but you can speak with a regional representative to inquire about a specific strategy.
The firm is transparent and states that its money managers don’t always get it right. Investment performance is calculated using the Global Investment Performance Standards (GIPS®), the industry standard for measuring investment managers’ performance.
You must invest at least $500,000 to open a Private Client Group account. The annual management fee is reportedly between 1% and 1.5%, although individuals must schedule an appointment to review the fee structure.
However, Fisher Investments states, “We bill only on assets under management – we do not sell products or earn commissions on trades.”
Like most wealth management services, it has a tiered fee structure with smaller percentages for higher balance tiers.
Reports indicate that with account balances of $500,000 or less, pay a 1.5% fee. A multi-million-dollar portfolio is necessary to qualify for the 1% advisory fee. This fee structure is competitive with hiring a financial advisor but is more expensive than hybrid and robo-advisor platforms.
Fisher Investments is a discretionary money manager. That means that when you sign up, you give your portfolio manager the authority to make buy and sell decisions on your investments.
Of course, Fisher bases these decisions on your overall investment objectives, which take into account your risk tolerance, time horizon, financial goals, etc. They meet with their clients regularly to revisit their objectives and make changes if necessary.
A fee-only advisor will help oversee your investment portfolio and personalize it to satisfy these factors:
Your investment counselor will also consider your outside income and assets to build a diversified portfolio and help you track each investment.
You can have discussions during the planning and implementation process. Your advisor and the investment team will strategically place trades. While you are assigned a primary counselor, a team of professionals will service and manage your portfolio.
Your investment options include the following:
Fisher supports both taxable brokerage and tax-advantaged retirement accounts. Your personalized investment plan will implement tax-optimization strategies to optimize your investment potential while minimizing the tax penalty.
As Fisher Investments doesn’t partner with a particular fund provider and adheres to the fiduciary rule, you won’t be steered towards a specific fund company.
Some of the allocations Fisher may incorporate include:
Fisher Investments employs an in-house research team to provide top-down research into the various sectors. Your advisor will use these findings to help make informed, curated recommendations.
Wealth management goes beyond picking the best investments for your short-term and long-term goals.
You can receive help with the following tasks:
Working on these goals with your investment manager will help them analyze your financial picture. You’ll benefit from a reduced probability of outliving your wealth and a more precise personalized investment plan.
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All members receive quarterly reviews from the Fisher Investments Investment Policy Committee. This report discusses the recent market performance, global investment conditions, and future market outlook.
The committee records a Capital Markets Update video twice a year that dives into more detail about how portfolio decision-makers currently interpret market conditions to adjust their investment philosophy.
Additionally, Founder Ken Fisher provides regular insights by column or video in addition to these quarterly reports.
One advantage of investing with Fisher is that you get access to interactive programs in 60 cities. With other services, you may have an annual portfolio review but rarely speak with your financial advisor during the rest of the year.
Some of Fisher’s resources include:
There are no additional fees for these events.
Fisher Investments doesn’t sell annuities but provides a complimentary consultation for clients who already have one. To gather information, an initial conference call will involve you, Fisher Investments, and the annuity plan insurance company.
After this initial discussion, your investment advisor will decide how Fisher Investments can potentially produce similar or better results. There is no obligation to convert your annuity if you believe it’s in your best interest to keep it.
Choosing a discretionary management firm to oversee a six or 7-figure investment portfolio is a big decision. Before you sign up with Fisher Investments, consider the following platforms. None of these alternatives do exactly what Fisher does, as most online platforms encourage a more passive investing approach.
The Empower Personal Dashboard (previously Personal Capital) provides managed portfolios and access to a financial advisory team with as little as $100,000 in investable assets.
Empower also offers several free financial planning tools for all members, even if you don’t meet the $100,000 minimum or choose to manage your portfolio. Some tools include a net worth tracker, investment fee and asset allocation analyzer, retirement planner, and a basic budget.
An Empower Personal Cash account also earns a competitive interest rate and offers up to $2 million in FDIC insurance. This cash management account offers unlimited withdrawals, which you can use to pay bills.
Read our Empower Investment review for more information.
Betterment provides managed accounts with no minimum balance requirements. The robo-advisor invests in traditional stock and bond index ETFs for a fee of 0.25% annually. You can also pursue customized strategies such as socially responsible funds, crypto, and target income. Tax-loss harvesting is free with all plans.
If you qualify for the Premium plan, you can get on-demand financial advisor access with a minimum $100,000 account balance. It won’t be at the same level as Fisher Investments offers, but the annual fee is only 0.40% for all balance tiers.
Basic users also have access to several online retirement planning tools and financial calculators, which can effectively replace hiring an advisor.
The platform also offers a free checking account and high-yield cash management accounts that make it easier to avoid banking fees while enjoying many banking benefits.
Learn more in our Betterment review.
Wealthfront is a robo-advisor offering managed portfolios and automated financial planning tools. Unfortunately, it doesn’t offer access to a human advisor, which is a dealbreaker for some.
The minimum initial investment is $500; advanced portfolio options unlock with a higher balance. Two options include U.S. Direct Indexing ($100,000 minimum) and Smart Beta ($500,000 minimum). A 0.25% fee applies to all stock investing plans.
In addition to the low-cost investment options, the automated financial planning tools can help you develop a plan to save for pivotal life events, including college, retirement, and buying a home. You can try them first to decide if they provide the financial advice you seek.
The online brokerage offers banking products, too. One feature is the Wealthfront Cash Account, which has a competitive interest rate, unlimited transfers, no monthly fees, and up to $3 million in FDIC insurance (through partner banks).
A portfolio line of credit is also available when your assets can be more productive in other investment vehicles for a limited time.
Read our Wealthfront review for all the details.
Fisher Investments is suitable for wealthy individuals who want access to financial planning services and a fully managed investment portfolio. Professional management becomes more valuable when you have a substantial portfolio, and the fees can be worthwhile.
Individuals should consider services like what Fisher offers when they no longer want to manage their portfolios. The ideal investor will prefer an active investing style that looks for more opportunities to build wealth but must be comfortable with an adaptive portfolio that’s more likely to exit positions and rebalance as market conditions change.
This service isn’t for new investors and investors who wish to manage their portfolios for a lower cost. You will pay fewer fees with a passive investment approach of buying and holding low-cost ETFs or index funds.
The $500,000 minimum will filter out small investors, and several robo-advisors offer basic portfolio management and financial planner access at a lower price.
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Fisher Investments is a good fit for high-net-worth investors who don’t need to be involved in the day-to-day decision-making and are willing to pay a slightly higher fee for professional advice and hands-on portfolio management.
The most significant hurdle is meeting the $500,000 investment minimum, and you must also be comfortable with an asset management fee as high as 1.5%. If you don’t meet the minimums or the fees are too high, robo-advisor platforms like the ones mentioned above may be a good compromise.
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