Lisa Shidler

The significance of Trizic being acquired by Peter Mallouk is that portfolio construction is treated as an expert technology rather than an expensive outsourced asset management function. This allows Mallouk to greatly streamline cost, gain control advisor margins, greatly enhances the level of portfolio detail that can be directly managed, supercharges the advisor value proposition and is consistent with professional standing as required by statute requiring continuous comprehensive counsel. This is clearly not an extrapolation of pervasive brokerage advice products but a rare example of an Advisor taking control of their value proposition in the best interest of the investing public.

This new advisory business model has largely been aspirational until now. Mallouk has made a superior value proposition possible in the client’s best interest at a lower cost while generating higher advisor margins. This is presently not possible in a brokerage format. Consumer’s and advisors love it. What is not to like.

SCW.

Peter Mallouk buys a stake in Trizic

 Brad Matthews: It was important if we were going to do something like this, [that] we worked with one of the leading firms.

Impact Communications

Trizic

Creative Planning

Marie Swift

Brad Matthews

Peter Mallouk

Laurine Garrity

Stripped down to its essentials, financial advice is a fairly straightforward proposition. Done well, a highly ethical individual stewards the assets and actions of an investor in a personal and professional interchange.
 
But now a vibrant new class of entrepreneurs is staking their fates and their fortunes on the premise that financial advice can be delivered in a better, cheaper, easier, more ethical, more transparent manner and, as a bonus, in a way more devoid of human annoyance on both ends of the transaction.
 
Cue the robo-advisors, arguably a callous misnomer for automated asset management. 
 
The prototypical robo-advisory entrepreneur has more brands on his or her resume than NASCAR. The bona fides of these industry upstarts often include Ivy-level colleges and MBA programs at Harvard or Stanford. They are often flush with IPO dollars realized at concerns like LinkedIn, Facebook, eBay, Amazon  and Microsoft. 
 
Robo-folk believe that technology is not an enabler of advice but rather, if engineered correctly, advice itself in digital form. 
 
And, they believe the best solutions originate in Silicon Valley or academia, not Wall Street. Robo-entrepreneurs are white-boarding the whole business model, culture and technology from scratch in the conviction that little can be learned from a legacy advice system still rooted in an investment banking culture acting under the core premise that if stockbrokers get rich some of the good effects will trickle down to clients – with the clients none the wiser. 
 
Robo-advisors are a scintillating topic for students of the advice game as they grow by hundreds of millions in assets every month, constantly evolve their business models and receive cash infusions from ever-larger swaths of venture capitals.
 
Throw in the fact that robo-advisors have yet to see a dime in profits -- and won’t in the foreseeable future -- and you have real intrigue. 
 
RIABiz has avidly covered the fast-evolving robo-advice phenomenon and will continue to do so. We present the growing body of articles here.

Robo-Advisors

The RIA business has many tech vendors working hard to serve its diverse needs, and we're seeing technology become a more crucial part of setting up and running an RIA than ever before.

The Technology section includes unbiased tech reviews, tech-related news, and coverage of tech-related conferences.

Technology

Barron's No. 1 advisor is likely to have his $12-billion RIA, Creative Planning, become a Trizic client

Peter Mallouk buys a stake in Trizic

Related Moves

October 16, 2020 at 7:49 PM

November 20, 2019 at 10:19 PM

Stephen Winks

RIABiz Directory

White Paper Postings

Special Sections

Common Tags

Recent Articles

Popular Writers

RIABiz

Directory

Archives

Connect