Former Vanguard consultant launches new firm to support RIAs

After a successful 30-plus year career, wealth management veteran and former Vanguard consultant Don Bennyhoff, who co-created Vanguard Advisor’s Alpha, is turning over a new leaf post-retirement.

The launch of his new venture, Bennyhoff and Co. is a fractional chief investment officer business serving fiduciary independent registered investment advisors. The new firm aims to provide traditional investment services like model portfolio evaluation, model construction, manager search and oversight and investment content as well as relationship management support to RIAs.

Bennyhoff's background spans roles as a financial advisor, consultant, and chief investment officer, giving him a unique perspective on the challenges facing many RIA firms today.

"A lot of RIAs are struggling more than they realize," Bennyhoff explains. "They have good intentions, but many are spread too thin, wearing multiple hats within their firms. By being able to allocate some of the investment and the portfolio-related responsibilities to us means that they can fully focus on their clients. We will fully support their efforts.”

That relationship is “part and parcel” with whatever growth efforts RIAs have, Bennyhoff says, because to have satisfied clients means that they have to feel good about the relationship they have with the advisor. “The trust they have with the advisor is also being satisfied with the performance of the portfolio,” Bennyhoff says.

Bennyhoff believes the firm's true value will come from its focus on relationship management, helping RIAs enhance their client relationships and better articulate their value proposition.

"Too often, advisors get so focused on investment performance that they neglect the importance of the client relationship," Bennyhoff says. “We're not doing tactical, we're not doing market timing strategies, we're not trying to pick stocks [and] bonds or the next great fund manager.”

"We have an appreciation that the relationship is just as crucial as the portfolio itself. By supporting our RIA partners in this area, we can help them differentiate themselves and drive growth,” he added.

With Bennyhoff being a one-man-band to start, he’s trying not to spread himself thin. That’s why he plans to be selective in the RIA firms he partners with, aiming to initially work with 4-6 firms. He's looking for RIAs that are at a point of growth and transition, and who are perhaps considering hiring a dedicated chief investment officer for the first time.

"The people I can help best are those who have grown to a spot where the firm is wondering whether they should have a full-time CIO who's not also serving as another role within the firm,” he explains, remarking that many RIAs have CEOs or presidents who also serve as the firm’s CIO. “A fractional CIO might be a way to help them free up that time that they're looking to dedicate or reallocate to their clients.”

"Our focus on their own advisors and value proposition can be of great service to them and help them better market their brand and help facilitate the growth they’re looking for."

Beyond the investment services, Bennyhoff also hopes to leverage his extensive industry connections and experience in areas like sales, marketing, public relations and fund management to further support his RIA partners.

Bennyhoff's decision to launch Bennyhoff and Co. comes after a brief retirement following his departure from Liberty Wealth Advisors, a $1.7 billion RIA, before its sale to Prime Capital Financial in 2022.

While serving as a senior investment strategist at investment management firm Vanguard, Bennyhoff co-authored the Advisor’s Alpha research, led a team that created ETF model portfolio solutions for advisors, and served as a senior financial advisor, managing approximately $400 million in assets for about a dozen families.

During retirement, he found that he missed the connection and sense of purpose and relationships that came from working closely with advisors and their clients.

"Taking a break made me aware of how much I loved working with advisors and their clients,” he admits. “I've always liked helping people. With my background and with our focus for Bennyhoff & Co., we can bring something unique to RIAs that are looking for help.”

As Bennyhoff embarks on this new chapter, he's focused on finding the right fit with a select group of RIA firms.

"It's really important for me that that I find not just clients but partners. I want to have a great relationship with the firms I work with. I don't want them to be just a client who hires me to do some work for them. I'm looking for a rewarding relationship beyond the income. That's what I can't get in retirement.”