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DPL survey: advisors can grow revenue, improve client plans with annuities

John HIlton
October 18, 2023

Schneider Small Cap Value Fund is one of the worst-performing mutual funds of the past 25 years, Morningstar said recently, returning -18.9% after losing its bet on distressed energy company Chesapeake.

Still, no advisor would warn clients off of mutual funds just because Schneider struggled. While not mentioning any specific mutual fund, panelists made the general analogy of poor mutual funds to so-called bad annuity products during a webinar Tuesday sponsored by DPL Financial Partners.

There are plenty of good annuity products that make sense inside responsible, holistic financial plans, said David Blanchett, adjunct professor of wealth management at The American College of Financial Services.

"The biggest thing that I hear from advisors too often is, 'Oh, I've seen 20 annuities and they're all terrible," Blanchett said. "Well, my comment is always, if you're an investment manager, do you pick the worst funds that you can give your clients or the very best mutual funds out there?"

Historically, registered investment advisors have resisted annuities. Even where they fit well in a retirement plan to give a client guaranteed lifetime income, advisors demurred. Compensation was one big problem, said David Lau, founder and CEO of DPL Financial Partners...