Fisher Investments is a global money management firm that heavily advertises its services to attract new clients. However, a closer look at the company’s advertising reveals some concerning practices that prospective clients should be aware of before investing their money. With multiple occurrences of questionable ad claims and marketing tactics, Fisher Investments’ ads point to potential risks for those considering entrusting their wealth to the firm. Understanding these advertising practices can help investors make a more informed decision.
Misleading statements about Fisher Investments’ expertise and performance history
Fisher Investments advertisements often tout the firm’s decades of experience and ability to navigate any market environment successfully. However, the fine print reveals that past returns do not guarantee future results – a standard disclaimer, but one at odds with the bold claims made elsewhere in the ads. Furthermore, while Fisher Investments states that it has been in business since 1979, it does not mention that the firm has changed investment strategies multiple times over the decades. The firm also claims to have experts across all asset classes, but a review of employee backgrounds reveals some key investment categories lacking seasoned portfolio managers.
Aggressive marketing and sales tactics described by former employees
While company ads portray Fisher Investments as a reputable adviser, accounts from former employees describe an intense sales culture focused on signing new clients regardless of their actual need for services. This includes targeting older investors with scare tactics about having enough money in retirement. Former employees also report hard-sell tactics like cold calling lists of prospects 100 times per week. These aggressive marketing ploys cast doubt on whether new clients are actually a good fit for Fisher Investments’ services.
Lack of transparency around fees charged to clients
Fisher Investments ads claim the firm is fee-only and acts in clients’ best interests. However, the company faces ongoing criticism over failing to fully disclose the various fees charged to clients. While the ads mention the standard management fee, they provide little detail on additional administrative, trading, and custodial fees that can add up. The concerns prompted a lawsuit in 2020 alleging Fisher Investments buried fees deep in contracts to obscure the total costs paid by clients.
Regulatory issues and settlements contradict sterling image
For an established firm, Fisher Investments has faced an unusual number of regulatory sanctions and fines over its history. These include settlements with regulators in multiple states over misleading sales practices and failure to properly register certain investment personnel. While minor compliance issues occur at times in the investment industry, the pattern of sanctions raises questions about the culture and priority placed on regulatory matters within Fisher Investments.
In summary, a detailed look behind the cheerful Fisher Investments ads reveals several concerns for prospective clients. From exaggerated performance claims to aggressive sales techniques, the advertising aims to attract new money under questionable pretenses. By understanding these potential warning signs, investors can make a more prudent choice about entrusting their savings.