The RIA Zombie Survival Guide


Registered Investment Advisor Zombie Guide - Niemann Capital ManagementHow to avoid the walking dead on Wall Street

Zombie Traps

  1. Avoid the temptation of becoming a portfolio manager.
    • Zombie Investment Advisors (ZIAs) fail to beat the best money managers and benchmark indices. So, don’t get lulled into portfolio management for extra fees! It’s one of the most potent zombie traps that can kill your practice faster than you can say “Zap a Zombie!”
    • Solid performance leads to more doomsday supplies (AUM). Making allies with the best money managers could give you the performance firepower you need to stave off zombie infiltration.
    • Portfolio management is a distraction from raising assets, servicing clients and retaining your clientele. You are most vulnerable to a bite attack when you are distracted. Zombies love to distract you with dreams of being the next portfolio manager superstar.
    • If you underperform as a portfolio manager, YOU GET INFECTED by zombies and fired by your clients. If a hired money manager underperforms for long, they get bitten and you keep the AUM.
  2. Avoid “shiny object syndrome” performance
    • Shiny object syndrome, or “SOS,” is a classic sign that an RIA has been infected. It’s only a matter of time before he or she becomes a ZIA.
    • A popular strain of SOS is known as “back-tested” performance numbers. Zombies enjoy fooling you with back-tested bait. Focus on authentic performance.
    • Many ZIAs chase short-term performance that turns out to be a flash in the pan. Chase for too long and your clients will loose confidence and think you have joined the living dead.

Zombie Prevention

  1. Be a better communicator than a zombie
    1. The strongest RIAs tend to be great communicators and many of them use their allies to spread the word. Solid communication with your clients will help your servicing efforts become more efficient, effective and ultimately bring more referrals. Here are a few examples how money managers can help keep your clients informed:
      • Weekly, Monthly and Quarterly Updates
      • Blogs and Social Media (Twitter, LinkedIn, Facebook)
      • Videos, podcasts, webcasts and emails

Zombie Defense Solution
Niemann Capital Management
Antidote Hotline: 877.643.6222

 

 

 

Short-term Zombie Kills*

Niemann’s Morningstar Rankings*

ETF Managed Portfolios database (613 strategies in universe)
Niemann Dynamic: Ranked #1 trailing 12 mos. (as of 5.31.13)
Niemann Dynamic: Ranked #6 trailing 24 mos. (as of 5.31.13)
Niemann Risk Managed: Ranked #3 YTD (as of 4.30.13)
Niemann Risk Managed: Ranked #11 trailing 12 mos. (as of 5.31.13)
Niemann Dynamic Sector: Ranked #4 trailing 12 mos. (as of 5.31.13)
Niemann Dynamic Sector: Ranked # 12 trailing 24 mos. (as of 5.31.13)

Niemann’s PSN Informa Rankings*

Niemann Dynamic: Top 5 “ETF U.S. Equity” 2013 Q1
Niemann Dynamic: Top 5 “ETF U.S. Equity” trailing 1-yr (as of 3.31.13)
Niemann Risk Managed: Top 5 “ETF U.S. Equity” 2013 Q1
Niemann Global Opportunity: Top 5 “ETF Global Balanced” 2013 Q1
Niemann Tactical Global Bond: Top 5 “Global Fixed Income” trailing 1-yr (3.31.03)

Long-term Zombie Kills

Niemann Capital Management - Risk Managed Portfolio

Niemann Capital Management - Global Opportunity PortfolioNiemann Capital Management - Dynamic PortfolioNiemann Capital Management - Foundation Portfolio's during Bear Markets

Niemann Capital Management
Antidote Hotline: 877.643.6222

About Niemann
Niemann Capital Management provides ETF Managed Portfolios that seek to outperform major indexes over a complete market cycle. Founded in 1991, Niemann has navigated clients through some of the most challenging markets in history with a Risk-Balanced Opportunity™ approach to investing that has generated long-term, market-beating results. Our strategies are not trapped in style boxes that typically go out of favor at various phases of a market cycle. They are unconstrained and free to roam wherever opportunities exist. Niemann’s ETF portfolios feature single- and multi-asset class strategies in global, domestic, international and emerging markets. We offer traditional fully invested strategies for investors with significant diversification and risk managed strategies for those seeking more decisive downside protection.

*Disclosure
Although the Morningstar and PSN rankings have been obtained from and is based upon a source Niemann believes to be reliable, we do not guarantee their accuracy and the information may be incomplete or condensed. Niemann’s performance results in the rankings are based on the composite averages of all clients within a particular strategy. As such, some clients might have performed better or worse than the composite averages.

The returns in the Morningstar database are calculated monthly. Some managers in the Morningstar database might not report returns as frequently as others. This could impact the overall rankings. To be a PSN Managed ETF “top gun” performer, a strategy has to be in the top 5 of its category. PSN Top Guns performance rankings (within the Informa Investment Solutions’ PSN manager randing database) are tabulated for thousands of strategies across 58 peer groups.

Past performance does not guarantee future results.

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