I try to help with the finances of family members to make sure they are making wise decisions. I have a family member that is invested with UBS, and they have a financial advisor there that they have been with for a long time. He seems like a good guy, but when he makes recommendations on where to invest money, I often look at the funds that he is recommending. Often they are on the lower end of best performing funds in the class.
When I inquired about some of the vanguard funds that I have my own money invested in, he explained that UBS can only purchase ETF funds from other institutions, but not regular funds. Does this mean it's a mistake to use UBS (or any bank limited in its fund offerings from other institutions) as the "wealth management" institution?
For instance he is recommending moving money into HYD which seems to have a higher risk at an average return ( for this asset class )ABHFX seems to have a higher return at a lower risk. Am I missing something?
I know that Morningstar can be off on their assessments, but still. Do these ratings mean anything at all? I'm just trying to make the most educated decisions possible. I also wonder if financial advisors steer clients toward funds in return for something ( no quid pro quo but more subtle ) I've read about this happening in certain circumstances.