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For Institutional / Wholesale / Professional Clients

The content on this website is intended for institutional and professional investors in the United States only and is not suitable for individual investors or non-U.S. entities. Institutional and professional investors include pension funds, investment companies registered under the Investment Company Act of 1940, financial intermediaries, consultants, endowments and foundations, and investment advisors registered under the Investment Advisors Act of 1940.

TERMS AND CONDITIONS OF USE

Please read the information below. By accessing this web site of Thornburg Investment Management, Inc. ("Thornburg" or "we"), you acknowledge that you understand and accept the following terms and conditions of use.

Disclaimers

Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be licensed or available in all jurisdictions and there may be restrictions or limitations to whom this information may be made available. Unless otherwise indicated, no regulator or government authority has reviewed the information or the merits of the products and services referenced herein. Past performance is not a reliable indicator of future performance. Investments carry risks, including possible loss of principal.

Reference to a fund or security anywhere on this website is not a recommendation to buy, sell or hold that or any other security. The information is not a complete analysis of every material fact concerning any market, industry, or investment, nor is it intended to predict the performance of any investment or market.

All opinions and estimates included on this website constitute judgements of Thornburg as at the date of this website and are subject to change without notice.

All information and contents of this website are furnished "as is." Data has been obtained from sources considered reliable, but Thornburg makes no representation as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg disclaims, to the fullest extent of the law, any implied or express warranty of any kind, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement.

If you live in a state that does not allow disclaimers of implied warranties, our disclaimer may not apply to you.

Although Thornburg intends the information contained in this website to be accurate and reliable, errors sometimes occur. Thornburg does not warrant that the information to be free of errors, that the functions contained in the site will be uninterrupted, that defects will be corrected or that the site and servers are free from viruses or other harmful components. You agree that you are responsible for the means you use to access this website and understand that your hardware, software, the Internet, your Internet service provider, and other third parties involved in connecting you to our website may not perform as intended or desired. We also disclaim responsibility for damages third parties may cause to you through the use of this website, whether intentional or unintentional. For example, you understand that hackers could breach our security procedures, and that we will not be responsible for any related damages.

Thornburg Investment Management, Inc. is regulated by the U.S. Securities and Exchange under U.S. laws which may differ materially from laws in other jurisdictions.

Online Privacy and Cookie Policy

Please review our Online Privacy and Cookie Policy, which is hereby incorporated by reference as part of these terms and conditions.

Third Party Content

Certain website's content has been obtained from sources that Thornburg believes to be reliable as of the date presented but Thornburg cannot guarantee the accuracy, timeliness, completeness, or suitability for use of such content. The content does not take into account individual investor's circumstances, objectives or needs. The content is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services, nor does it constitute investment advice and should not be used as the basis for any investment decision.

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No determination has been made regarding the suitability of any securities, financial instruments or strategies for any investor. The website's content is provided on the basis and subject to the explanations, caveats and warnings set out in this notice and elsewhere herein. The website's content does not purport to provide any legal, tax or accounting advice. Any discussion of risk management is intended to describe Thornburg's efforts to monitor and manage risk but does not imply low risk.

Limited License and Restrictions on Use

Except as otherwise stated in these terms of use or as expressly authorized by Thornburg in writing, you may not:

  • Modify, copy, distribute, transmit, post, display, perform, reproduce, publish, broadcast, license, create derivative works from, transfer, sell, or exploit any reports, data, information, content, software, RSS and podcast feeds, products, services, or other materials (collectively, "Materials") on, generated by or obtained from this website, whether through links or otherwise;
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  • Probe, scan, or test the vulnerability of any Materials, services, systems, networks, servers, or accounts related to this website or attempt to gain unauthorized access to Materials, services, systems, networks, servers, or accounts connected or associated with this website through hacking, password or data mining, or any other means of circumventing any access-limiting, user authentication or security device of any Materials, services, systems, networks, servers, or accounts related to this website; or
  • Modify, copy, obscure, remove or display the Thornburg name, logo, trademarks, notices or images without Thornburg's express written permission. To obtain such permission, you may e-mail us at info@thornburg.com.

Severability, Governing Law

Failure by Thornburg to enforce any provision(s) of these terms and conditions shall not be construed as a waiver of any provision or right. This website is controlled and operated by Thornburg from its offices in Santa Fe, New Mexico. The laws of the State of New Mexico govern these terms and conditions. If you take legal action relating to these terms and conditions, you agree to file such action only in state or federal court in New Mexico and you consent and submit to the personal jurisdiction of those courts for the purposes of litigating any such action.

Termination

You acknowledge and agree that Thornburg may restrict, suspend or terminate these terms and conditions or your access to, and use, of the all or any part this website, including any links to third-party sites, at any time, with or without cause, including but not limited to any breach of these terms and conditions, in Thornburg's absolute discretion and without prior notice or liability.

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An Advisor’s Value: Bridging the Behavior Gap

A growing body of research shows that financial advisors help investors make better decisions, which increases their investment returns.

Those of us who have chosen a career in the financial services industry believe in the value of financial advisors. We know that financial experts are important for any individual who is trying to achieve a financial goal, and we firmly believe that working with an advisor improves the client’s life. But not everyone agrees with us.

Too often financial advisors are dismissed as a costly luxury by those who believe that a computer program can do what an advisor does for much less money. It’s been difficult to prove those people wrong because most of the stories describing an advisor’s value are anecdotal and situational, until now.

As fortune would have it, there’s actually a healthy body of quantitative research that proves that individuals who work with a financial advisor actually earn better investment returns. Often these improved investment returns aren’t the result of great investment recommendations. Instead, they’re an indication that the client has avoided falling into the behavior gap, a term coined by author Carl Richards that describes the difference, or gap, in investment performance between analytical and emotional investment decisions.

While the amount of the gap differs from study to study, it appears that emotional decision-making is costing investors somewhere between -1.17% and -4.33% per year.

In a 2013 Vanguard white paper titled, “Advisor’s Alpha”, authors Bennyhoff and Kinniry estimated that working with a financial advisor added 3% per year to an investor’s returns. In their paper they stressed that this advisor premium is not earned in a linear fashion; instead, more is earned during periods when investors are particularly fearful or greedy.

In their 2013 white paper, “Alpha, Beta, and Now…Gamma”, Morningstar’s David Blanchett and Paul Kaplan defined gamma as “the extra income an investor can earn by making better financial decisions” and quantified that amount to be an extra 1.82% per year. Then, taking it a step further, the famously advisor-neutral organization attributed the improvement in decision making to be the result of working with a financial advisor.

In its 2012 “Value of Advice Report”, the Investment Funds Institute of Canada found that “investors who purchase financial advice are more than one-and-a-half times more likely to maintain a long-term investment strategy compared to investors who do not purchase financial advice.”

Finally, Dalbar, an organization that has studied investor behavior for 25 years, reports that during 2018 investors continued to get it wrong. In their 2018 “Quantitative Analysis of Investor Behavior” report they calculated that average investors who pulled their money from stock funds saw their investments decline more than 9.42% in a year when the S&P 500 declined 4.38%, results which further underscore the existence of a behavior gap during a year of excessive swings in the investment markets.

While those examples quantify the value of an advisor, there is also a great deal of qualitative proof that financial advisors make a difference. A financial advisor’s guidance may make the difference between whether or not a family has the financial security provided by life insurance when a breadwinner suddenly passes away; a financial advisor can help a couple ensure that their children will finish their education with little or no indebtedness; a financial advisor can help a client achieve her goal of retiring in Italy or provide the financial assistance from long-term care insurance when a family’s matriarch is diagnosed with dementia.

All of these examples, whether proven by research or anecdotal in nature, reflect the value of a financial advisor.

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