When evaluating investment management firms, two major names often arise – Fisher Investments and Raymond James. Both companies have been around for decades, managing billions in assets. But they have some key differences that investors should consider. This article will provide an in-depth Fisher investments vs Raymond James review, analyzing their fees, investment strategies, reputation, and more. With a proper comparison, investors can better decide which firm aligns more closely with their needs and preferences. Key factors like fees, minimum investment, custodial services, and investment strategies will be covered in detail.
Fisher Investments generally has lower fees than Raymond James
When comparing fees between Fisher Investments and Raymond James, Fisher generally has lower management fees. For reference, Fisher Investments charges a fee of 1.5% for accounts under $1 million. Raymond James’ typical asset management fee starts at 1.2% but can reach over 2% depending on services and account size. However, Raymond James’ inclusion of custodial services can make direct comparisons difficult. Raymond James bundles asset management with custodial services like trade execution and reporting. Fisher Investments charges extra for custodial services through third parties. So Raymond James’ higher fee includes additional services while Fisher’s covers only portfolio management.
Raymond James requires a higher minimum investment than Fisher
The minimum investment required is another area where Fisher and Raymond James differ. Fisher’s minimum to open an account is $50,000. Raymond James’ minimums start at $100,000 for equity portfolios and can reach up to $5 million for fixed income accounts. So Fisher caters more towards regular retail investors. Raymond James targets higher net worth clients that meet account minimums. But for investors with over $100k to invest, the higher minimums at Raymond James may not be an issue.
Both firms use fundamental analysis with a long term focus
Despite different fee structures and minimums, Fisher and Raymond James have relatively similar investment approaches. Both emphasize fundamental analysis research over quantitative models. Their portfolios tend to be actively managed based on research into factors like valuations, earnings growth, macroeconomic trends. Additionally, their strategies generally have a long-term focus. Fisher’s plans are structured with a 5-7 year time horizon. Raymond James also discourages short term trading, keeping the average holding period well over 1 year.
Fisher Investments has faced more scandals and complaints
In terms of reputation, Raymond James holds up better than Fisher Investments. Fisher has a history of client complaints, regulatory violations, and scandals. In 2018, several clients accused Fisher of misleading sales practices, alleging they were misled on fees. Fisher has also faced fines from regulators for noncompliance issues. However, Fisher still manages over $197 billion in assets, so they maintain a large client base. Raymond James has a cleaner history in comparison. While all firms face occasional complaints, Raymond James has avoided major scandals or widespread criticism.
In summary, Fisher Investments and Raymond James take different approaches to investment management. Key differences lie in fee structure, account minimums, and reputation. Fisher offers lower fees but less services and more scandals. Raymond James charges higher fees but bundles more custodial services and has a better reputation. For investors focused strictly on costs, Fisher may be preferable. But those wanting additional services and a clean history may prefer Raymond James.