Street Wise
FINANCIAL ADVISERS ARE A VARIED LOT. They range from private bankers, to brokers, to accountants, to financial planners, to folks with no qualifications who choose to hang out a shingle and offer advice. Ranking this amorphous group is difficult, and in fact may be impossible, given the disparate goals of its members.
The few "best" lists of financial advisers that do exist appear to consist largely of folks who've nominated themselves. Making the matter even more complicated, there is no set statistical benchmark on which to rate advisers. Unlike a mutual-fund manager, who can be ranked on his fund's performance, a financial adviser has many different accounts, some conservative and some aggressive in their investment style, so no one performance ranking applies.
That said, financial advisers are the most important professionals when it comes to helping Americans achieve their goals for retirement and for their children's educations. So rating them, however difficult it may be, is clearly worthwhile.
What we chose to do was to rely on the services of an outside expert to rate a subgroup of the financial-adviser field -- specifically those who work for brokerage houses and affiliates. For more than 10 years, R.J. Shook has been ranking America's top advisers at brokerages in his Winner's Circle books.
No. 1-ranked Martin Shafiroff of Lehman Brothers
To do so, he relies on nominations from the firms themselves, then independently checks the candidates for a range of qualifications, including their regulatory record, the amount of assets they have under management, and their willingness to offer products besides those of their own firm.
Shook, who talks extensively with the advisers' supervisors, peers and customers, says he receives no payment from any brokerage firm, although his research is supported in part by Franklin Templeton, which sells mutual funds through some of the advisers. Shook says his work is intended to promote "best practices" within the industry.
"By raising the bar and promoting the highest levels of professionalism and integrity, everyone is well served -- particularly clients," says Shook, who is based in Boca Raton, Fla.
His latest ranking of best advisers, which starts on the following page, offers a window on one of Wall Street's hottest sectors: wealth management, or services for the burgeoning ranks of millionaires. The 100 individuals listed all have developed thriving specialties in serving people with $1 million, $10 million or more to invest. After screening nearly 3,000 such advisers for quality, Shook ranked the finalists by size -- assets under management, assets farmed out to other institutions and revenue produced for their firms.
Make no mistake: These aren't the affable, rather limited "customers' men" of old. Although many on the list do have the gift of gab, the group is well-schooled in a full range of investment financial services, from stocks and bonds to hedge funds, estate planning and tax strategies. A growing number of them are women. And the advisers often come with their own staffs of a dozen or more -- analysts, financial planners, investment bankers and others. While many charge commissions, like traditional brokers, they increasingly offer the alternative of fees based on assets managed, like banks and other investment managers.
Table: The Top 100
For a glimpse of the new world, step into the office of Richard Saperstein of Bear Stearns, high above midtown Manhattan. The long, aqua-blue room features a trading desk with a half-dozen traders, traditional desks for portfolio managers, accountants and others, and a wood-paneled cubicle in a corner from which Saperstein, 45, can see and hear all.
Saperstein's group began life in the late 1980s as fixed-income experts serving the cash-management needs of corporations. While it continues to ply that field, it also has amassed hundreds of individual clients. "Chief financial officers saw the infrastructure we had and asked, 'Can you run a portfolio for me?' " Saperstein recalls. Still more individuals have come in through referrals.
The group manages bond investments for individuals and farms out equity work to other investment managers or hedge funds. Counting both institutional and individual clients, Saperstein is responsible for some $6.5 billion. Shook's ranking, which discounts institutional assets, places Saperstein at No. 3 among all wealth managers at brokerages.
No. 1 on the list is Martin Shafiroff of Lehman Brothers. The son of a Brooklyn, N.Y., plumbing-supply salesman, Shafiroff went to work on Wall Street in 1966 and never looked back. He has long focused on serving corporate managers, with his fortunes rising as they climbed the ladder. "Many have become CEOs, and a good number are retirees," says Shafiroff, 66. His forte: master limited partnerships in energy, which can produce steady and sizable cash payouts.
All advisers on the list have benefited from a worldwide explosion of personal wealth. Some 7.7 million people now hold more than $1 million each, up 7.5% since 2002 -- the result of strengthening economies in North America and Europe and revived financial markets, according to an annual report on wealth by Capgemini consultants and Merrill Lynch. The number of millionaires is expected to keep growing by about 7% a year through 2008, paced by soaring numbers of "ultra-high net worth individuals," or people with at least $30 million.
To get a piece of that, Wall Street firms are paying handsomely for top financial advisers. These pros can pull down more than $1 million a year, compared with $150,000 or so for rank-and-file retail brokers. Signing bonuses alone have been topping $1 million, say headhunters and other experts.
The very best advisers, however, are rarely lured away: Many haven't budged from the firms where they first went to work. "They know the clients, they know the firms, and the firms work hard to keep them" with deferred compensation, stock options and retirement plans, says New York-based brokerage recruiter Michael King. No. 2-ranked Mark T. Curtis of Smith Barney joined a predecessor firm, E.F.Hutton, 23 years ago and settled in nicely. No. 5-ranked Marvin H. McIntryre of Legg Mason Wood Walker has been with that outfit for 36 years.
The people on Shook's list may well be a breed apart from the rest of the brokerage industry, whose public image has plummeted in recent years. The number of arbitration cases filed annually by customers against brokerages has surged 60% since the tech bubble burst in 2000, to nearly 9,000 last year. Of 23 professions, brokers' reputation for ethics exceeds those of only four: advertising practioners, insurance salesmen, HMO managers and car salesman, according to a Gallup poll. In the past few years, brokers have even fallen behind lawyers.
A dramatically different picture emerges from the top advisers' clients. "Clients praise the high-end, sophisticated and customized advice," says Shook, who interviewed hundreds of customers for the accompanying rankings, adding that, many people "consider their advisers part of the family."
Advisers at brokerage houses don't provide audited performance results, so we can't say just how well the top 100 do for the customers. But as Shook points out, the big numbers for assets under management are a good sign -- the advisers wouldn't be attracting and keeping clients if their performance was weak. And the top brokers do suffer considerably fewer customer defections than others, based on confidential records the firms made available to Shook.
Is this list of 100 financial advisers the last word? Probably not. For one thing, two prominent brokerage houses, Edward Jones and Goldman Sachs, declined to participate in Shook's study. We hope they'll change their minds next year.
And the list doesn't address the many fine advisers at banks and other types of wealth managers. We'll take a step in that direction in November, with our annual ranking of the biggest institutions of all varieties in the private banking business.
Meanwhile, here's a rundown on Wall Street's top five for 2004.
1. Martin Shafiroff
Lehman Brothers, New York
Age: 66
Wow Factor: Shafiroff and his team of 10 hold sway over a stunning $100 billion of assets, enough to be a big mutual fund. Clients have parked much of that outside Lehman, often in banks, but Shafiroff says he can mobilize it as opportunities arise. Even if the outside funds are excluded, Shafiroff still would be No. 1, with an estimated $10 billion-plus in assets at Lehman. The team's portfolio of master limited partnerships -- believed to be one of the largest in the country -- has produced "healthy double-digit returns annually since 1998," Shafiroff says.
His Retirement: It doesn't look imminent. Shafiroff, who earned his spurs at Eastman Dillon Union Securities and then joined Lehman in 1969, says he's never been busier. "As you stay in this business and do well for more and more people, you become more productive than you were at younger ages," he says.
Recent Conversations: "What seems to be on clients' minds is safety and cash income," he says. Hence the interest in master limited partnerships, which he also invests in personally. To convince a client to invest, he says, "you have to have enthusiasm yourself."
2. Mark T. Curtis
Smith Barney, Palo Alto, Calif.
Age: 48
Mark T. Curtis
Working the Workplace: Curtis was early to the game of helping big corporations set up and run programs for awarding stock options, restricted stock and the like.
One thing led to another: "There's net worth created in the workplace, and it's very consistent for us to help manage that net worth," he says. So Curtis & Co. not only administers the internal stock programs, but also provides educational programs to staff and full financial advisory services for the many eligible takers.
Nesting Instinct: He and his wife, his college sweetheart from Stanford, live in the same house his parents moved into when he was six weeks old. "I'm incredibly boring," he says proudly.
Recent Conversations: More and more clients want to know about risk and how to control it, he says. "They're saying, 'I need this much money to maintain my lifestyle -- what's the best way to get there with the least risk?' " In the late 1990s, by contrast, people just wanted to maximize returns.
3. Richard Saperstein
Bear Stearns, New York
Age: 45
Richard Saperstein
Bond World: Individuals often benefit from the attractive bond-pricing the team can command on big purchases for corporate cash-management clients, Saperstein says. One deal now in the works: Buying bonds in a certain country with higher returns than in the U.S. and curbing the currency risk through swaps contracts.
Gone Fishing: He often names innovative deals after species of fish. "My drawer here is full of files with names like Rainbow Trout and Bonefish," he says. On his wall is a replica of a large tarpon fish, the toughest real one he ever landed.
Recent Conversations: Understandably, clients in the bond market want to know what to do about rising interest rates. Saperstein might suggest a "barbell" strategy, holding some bonds with long maturities to capture yield, some with short maturities to stay liquid, and little in between. Or perhaps a "flip" bond, whose rate floats but locks in after a year or so.
4. David W. Knall
McDonald Financial Group, Indianapolis
Age: 60
David W. Knall
Team Indy: Knall has assembled a 30-member staff, including portfolio managers, an analyst, a municipal-bond specialist and a private banker. In the past 18 months, they've been pushing into overseas markets, drawn by lower equity valuations than in the U.S. and stronger currencies.
Nondollar investments (he especially likes Canada and India) now account for as much as 20% of many clients' porfolios.
Knall also is a big believer in timber stocks and funds, citing returns in the high single digits.
Lilly Land: Indianapolis has plenty of wealth -- it is home to Eli Lilly, for instance -- and Knall's staff is quite content to be there. "We have talented people who, believe it or not, didn't want to live in New York," he jibes.
Recent Conversations: Many clients with large holdings of single stocks, perhaps Lilly stock, are looking to diversify. "With the world up in the air, valuations high and the capital-gains tax at just 15%, people are rethinking their philosophies," he says. For those drawn to hedge funds, Knall offers wisdom gleaned from first-hand experience: "Before I put you into a hedge fund, chances are 95% I'm in it myself."
5. Marvin H. McIntyre
Legg Mason Wood Walker, Washington
Age: 61
Marvin H. McIntyre
Safety First: He gets some investment perspectives from Bill Miller, Legg Mason's celebrated mutual-fund manager. While his team of 11 sometimes ventures to the cutting edge, putting clients in hedge funds, private equity funds and the like, caution is the watchword. "The first rule is, do not lose the money," says McIntyre. "The second rule is, do not forget the first rule."
Tech Friend: Richard Sharp, former chairman and CEO of Circuit City, set up a retirement account with McIntyre about 30 years ago and kept coming back. In 1992, McIntyre helped Sharp invest in a private company that became tech firm Flextronics, where Sharp is now non-executive chairman. As Sharp amassed concentrated positions in both Circuit City and Flextronics, McIntyre helped him devise hedges, strategically sell shares and carry out philanthropy. The adviser and client, who met playing tennis, have graduated to golf.
Recent Conversations: Clients have taken this year's market malaise in stride, and so has their adviser. "We haven't met the person smart enough to tell when the market is going to rock and roll again," he says. "But if you ask me whether I think the market will be higher in a year or two from now, the answer is yes. Stocks are reasonably priced here and the economic environment is better than people think."
聚焦全美顶级金融顾问
金融顾问的组成是五花八门，既有私人银行家、经纪人，也有会计师、金融规划师，还有那些毫无资质就挂起招牌的江湖中人。由于每位顾问的目标各不相同，对于这样一个鱼龙混杂的群体进行评估实非易事，甚至有点痴人说梦。
而目前仅有的几份“最佳”金融顾问名单大部分是那些榜上有名的顾问自封的。更棘手的是，目前还没有评估金融顾问的既定统计标准。共同基金经理的业绩可以通过基金的业绩衡量，而金融顾问管理著许多帐户，投资风格既有保守的也有激进的，所以不可单纯根据业绩进行评估。
不过话说回来，在帮助美国人实现退休及子女教育目标上金融顾问们发挥了最重要的作用。因此无论难度有多大，进行评估都是值得的。
那就让我们来借助专家的分析，看一看金融顾问中的一个特定群体──那些为证券公司及相关机构工作的专业人士的表现吧。在过去十多年里，R?舒克(R.J. Shook)在他撰写的Winner's Circle一书列出了全美经纪公司中的顶级金融顾问。
在进行评选时，他主要依靠经纪公司自己的提名，然后他对候选人的资格进行独立审查，包括他们的监管纪录、管理资产规模以及他们在所在券商之外推出了多少新的投资产品。
舒克与候选人的上司、同僚和客户进行广泛接触，并表示这一切都是无偿的，证券公司不会付钱给他。不过，通过金融顾问出售共同基金的Franklin Templeton对他的研究工作给予了一些资助。舒克称，他进行排名是为了在业内推广最佳服务方式。
“通过提高标准和专业服务水平，倡导诚信服务，每个人都获得了良好的服务，特别是客户，”舒克说。
舒克最新推出的最佳金融顾问名单为我们提供了了解财富管理这个华尔街上最炙手可热的领域的窗口，所谓财富管理就是为日益壮大的百万富翁们提供理财服务。上榜的100位顾问为投资额在100万、1,000万及以上的富翁们提供了多种多样的投资产品。经过对近3,000名顾问的筛选，舒克根据他们管理的资产规模确定了最终人选，这里的资产包括承包给其他机构并以此获利的部分资产。
请注意：这些顾问不再是以前那种唯唯诺诺、听从客户召唤的形像了。他们一般都受过良好教育、精通各种金融投资服务，无论是股票、债券、对冲基金、房地产规划还是纳税规划。其中，女性顾问的人数不断上升。这些顾问们通常拥有自己的团队，人数一般为十几个，包括分析师、金融规划师和投资银行家等。虽然许多顾问像传统交易员那样收取佣金，越来越多的顾问像银行和其他投资经理那样根据所管理的资产规模收取费用。
为了获得一点具体印象，让我们走进贝尔斯登(Bear Stearns)的金融顾问理查德?萨普斯登(Richard Saperstein)的办公室瞧一瞧。这个宽敞的浅绿蓝色办公室里设有一个能容纳6个经纪人的交易台、还有投资组合经理、会计师等专业人士使用的办公桌，以及设在角落的一小间办公室，供45岁的萨普斯登一揽全局。
萨普斯登的团队成立于上世纪80年代晚期，当时他们作为固定收益市场专家为企业提供现金管理服务。如今他们继续提供这项服务，同时他们也积累了上百名个人客户。“首席财务长们看了我们的投资结构后往往会问，能否为他们提供个人理财服务？”萨普斯登回忆说。目前有越来越多的个人客户通过他人介绍而来。
他的团队为个人进行债券投资，同时把股市投资业务外包给其他投资经理或对冲基金。算上个人和机构客户，萨普斯登目前管理著约65亿美元的资产。舒克的排名没有算上机构客户的资产，因此萨普斯登名列第三。
摘得桂冠的是雷曼兄弟(Lehman Brothers)的马丁?夏佛洛福(Martin Shafiroff)。身为纽约管道销售员之子的夏佛洛福从1966年开始在华尔街工作至今。长期以来，他一直为企业主管们服务，他个人的资产也随著这些主管们的升迁而上升。“许多人成了首席执行长，还有不少人退休了，”66岁的夏佛洛福说。他擅长于对能源领域的业主有限合伙制投资组合进行运作，这种投资组合能带来稳定而丰厚的现金回报。
波及全球的个人财富爆炸令榜上有名的金融顾问们大受裨益。根据Capgemini和美林公司(Merril Lynch)关于财富的年度报告，由于北美和欧洲的经济好转以及金融市场的复苏，目前约有770万人拥有100万美元的个人财富，较2002年上升了7.5%。预计从现在到2008年，百万富翁的数量将以每年7%左右的速度递增，而资产不低于3,000万美元的高收入人群的队伍将以更快的速度扩充。
为了分得一杯羹，华尔街公司给予金融顾问们可观的报酬。这些专业人士的年收入高达100万美元以上，而普通零售经纪人的收入只有15万美元左右。猎头公司及专家们说，单是金融顾问的奖金就超过了100万美元。
但是，一流的金融顾问通常很少跳槽，许多人从来就没动过地方。纽约的证券业招聘专家迈克尔?金(Michael King)说，他们掌握客户，他们了解任职的公司，这些公司也通过递延报酬计划、股票期权和退休计划竭力留住他们。排名第二的美邦(Smith Barney)的马克?柯蒂斯(Mark T. Curtis)此前就职于E.F.Hutton，他于23年前加入美邦后一直工作得很好。名列第五的Legg Mason Wood Walker的马文?麦金泰尔(Marvin H. McIntyre)在该公司呆了36年。
在舒克名单上的人士与证券业其他从业人员的声望截然不同，后者的公众形像在最近几年已经一落千丈。自从2000年科技股泡沫爆发以来，客户对经纪商提出的仲裁案件以每年60%的速度递增，去年接近9,000起。根据盖洛普公司(Gallup Organization, Inc.)的民意测验，在23种行业中，经纪人的职业道德声誉仅高于以下4种人：广告从业人员、保险推销员、医疗保健组织经理以及汽车推销员。在过去几年里，经纪人的地位甚至落在了律师之后。
而一流的金融顾问受到了截然不同的评价。“客户对高质量的成熟的个性化服务赞不绝口，”舒克说。为了编制榜单，他采访了上百名客户。他还补充说，许多客户把金融顾问当成自己的家人。
经纪行的金融顾问们不提供经审计的业绩，因此我们无法告诉读者这前100名专业人士究竟有多么好。但正如舒克指出的那样，资产管理规模是个不错的风向标──如果顾问们的业绩很差，他们就难以吸引并留住客户。从券商透露给舒克的保密资料上看，对于顶级经纪商来说，失去几个客户就会造成相当大的损失。
这份名单是否十全十美呢？也许不是。例如，Edward Jones和高盛集团(Goldman Sachs)就拒绝参与舒克的调查。我们希望它们明年会改变想法。
这份名单并没有关注在银行任职的众多优秀金融顾问以及其他类别的财富规划师。我们将在11月份作进一步的研究，届时我们将评选出私人银行业的年度领军人物。
华尔街五大金融顾问一览：
第一名：马丁?夏佛洛福(Martin Shafiroff)
所在公司：雷曼兄弟(Lehman Brothers)，纽约
年龄：66
轰动原因：夏佛洛福和他的10人团队掌控著令人眩目的1,000亿美元资产，这个数目足以组建一家大型共同基金。客户们通常将大部分资产存放于雷曼兄弟之外，例如存入银行，但夏佛洛福表示，当机会到来时他随时可以调动这些资金。即便不包括外部资金，夏佛洛福的业内老大地位仍然当之无愧，他在雷曼兄弟管理的资产高达100多亿美元资产。夏佛洛福说，他的团队掌管的业主有限合伙制(master limited partnerships)投资组合（被公认为美国最大的业主有限合伙制投资组合之一）自1998年以来实现了年均两位数的回报。
夏佛洛福的退休问题：近期不会退休。
夏佛洛福表示，他从没有像现在这样忙碌。他说，“当你在这个行业积累了丰富经验，并给越来越多的人带来财富，你就比年轻时更有价值。”夏佛洛福在Eastman Dillon Union Securities就职时成名，之后于1969年转入雷曼兄弟。
近期言论：他说，客户主要看重安全性和现金收入，这也是业主有限合伙制的投资宗旨，他本人在其业主有限合伙中也有大量投资。为了取得客户信任、吸引客户踊跃投资，他表示，“你自己首先要有热情。”
第二名：马克?柯蒂斯(Mark T. Curtis)
所在公司：美邦(Smith Barney)，加州帕洛阿尔托
年龄：48
为企业服务：柯蒂斯入行较早，当时他帮助大公司设立和运作授予股票期权、限制性股票等项目。
更上一层楼：柯蒂斯表示，“公司在运作中不断创造价值，而我们的一贯追求就是帮助管理这些价值。”因此柯蒂斯不仅管理内部股票项目，也向很多公司员工提供培训，并为有资格的员工提供全套的金融顾问服务。
家庭生活：柯蒂斯和妻子，斯坦福大学(Stanford)的同窗恋人一直居住他六个月时父母入住的这所房子。他骄傲地说，“我是一个安于平淡的人。”
近期言论：他说，越来越多的客户开始对风险有了深刻理解，并懂得如何控制风险。人们说：“我需要大笔的钱来维持现有的生活方式，什么是获得大笔收益同时尽可能降低风险的最佳途径呢？”而在九十年代末期，恰恰相反，人们只是一味地想把收益最大化。”
第三名：理查德?萨普斯登(Richard Saperstein)
所在公司：贝尔斯登(Bear Stearns)，纽约
年龄：45
债券世界：萨普斯登称，他们的团队在代表企业客户大笔购买债券时往往可以索要到很有吸引力的价格，而个人投资者如果能够抓住这个机会，也会有丰厚收入。眼下正在运作的一笔交易是：在债券收益率高于美国的国家买进债券，再用掉期合约规避外汇风险。
喜欢钓鱼：萨普斯登经常将一些有创意的交易以鱼的名字命名。他说，“我的抽屉里到处都是‘虹鳟鱼’、‘北梭鱼’这类文件。”他的墙上还挂著一个大海鲢实物标本，这是他钓上来的一条最大的鱼。
近期言论：投资债券市场的客户都想知道如何应对加息，这可以理解。萨普斯登的建议是，“杠铃”战略：持有一些期限很长的债券，获得利息收益，再持有一些短期债券，进行短线操作，中等期限的债券最好不买。或者你可以买进一种“弹性”债券，利率浮动，但在一年后锁定为固定利率。
第四名：大卫?克纳尔(David W. Knall)
所在公司：McDonald Financial Group，印地安纳波利斯
年龄：60
团队的艺术：克纳尔组建了一个30人投资团队，包括多名投资组合经理，一名分析师，一名市政债券专家和一名私人银行家。近18个月来，受海外股票估值低廉、货币走强的驱使，他们一直积极投身于海外市场。非美元投资（特别是加拿大和印度投资）在很多客户的投资组合中已占到20%。
克纳尔还是木材类股和木材基金的忠实买家，称这类投资的回报率达到7%-9%。
礼来(Lilly)的故乡：印地安纳波利斯──礼来公司的总部就设在这里，克纳尔对在这里投资心满意足。他笑道，“你信也好不信也好，我们有很多才华横溢的人并不想把家安在纽约。”
近期言论：很多大量持有单只股票（例如礼来股票）的客户正在寻求多样化投资。他说，随著股市整体走高，估值逐渐攀升，在资本收益税只有15%的情况下，人们开始重申审视投资理念。对于那些转向对冲基金的投资者，克纳尔以自己亲身经历得出的至理名言是：“当我把你交给一个对冲基金时，95%的情况我自己也买了这只对冲基金。”
第五名：马文?麦金泰尔(Marvin H. McIntyre)
所在公司：Legg Mason Wood Walker，华盛顿
年龄：61
安全第一：他吸收了Legg Mason知名共同基金经理比尔?米勒(Bill Miller)的一些投资理念。虽然他的11名投资团队有时也会冒险投资一些热门资产，将客户的资产放入共同基金、私人资本运营基金等，但谨慎一直是他们恪守的信条。麦金泰尔说，第一条是，不造成损失，第二条是，记住第一条。
与科技为友：Circuit City前董事长兼首席执行长理查德?夏普(Richard Sharp) 30年前在麦金泰尔这里开立了一个帐户。1992年，麦金泰尔帮助夏普投资了一家私人资本运营公司，即今天的科技公司伟创力国际(Flextronics)，现在夏普已经成为该公司非执行董事长。随著夏普在Circuit City和Flextronics积累的财富越来越多，麦金泰尔又帮助他策划了资产保值方案，战略性地卖出股票，开办慈善机构。如今，这对一度在网球场上切磋的投资顾问和客户，已经转战到了高尔夫球场。
近期言论：最近投资者对市场的萎靡不振泰然处之，投资顾问们也是如此。麦金泰尔说，“我们还没有发现有谁可以准确地说出市场何时将启动一轮显著行情，但如果你问我市场在一年内是否走高，答案是，是的。目前股票价位非常合理，经济基本面的改善也远比人们想像的更好。”
