Bank of America global wealth and investment management chief Sallie Krawcheck used her soapbox at the ICI GMM Thursday to dispel what she calls the myths that surround the wealth management industry. Those fundsters seeking the point of view of their distributor and the facts behind them should take a closer look at her list.

Myth: The large wealth management firms are losing advisors to the independents.
Fact: Last year BofA Merrill Lynch lost just 36 FAs to indies from its base of some 15,500. It gained 25 FAs from indies. Krawckek added that client client flows in those 51 were positive. Indeed, she claims that Merrill's FA attrition rate is near record lows.

Myth: Clients are fleeing.
Fact: Client attrition is in low single digits as a percentage, said Krawchek. She points out that most industries would be trumpeting such a low attrition rate.

Myth: Wealth management firms set cross-sell goals.
Fact: Krawchek points out that Merrill Lynch sold its proprietary asset management business altogether (to BlackRock) and that it continues to reduce proprietary products across its business ... Client satisifaction, not cross-selling, is what Krawcheck says matters.

Myth: Relationships are short-term and transaction-based.
Fact : Merrill's average client stays 13 years claims Krawchek.

Myth: Pricing pressures are crushing wealth managers.
Fact: Return on assets (ROA) at Merrill Lynch has been flat for 15 years, says Krawchek. The industry has morphed from brokers to investment managers to wealth managers. They have fully offset any pricing pressure by following this path, she says.

Myth: It is all about investment performance.
Fact: Performance matters so much that clients rank it as number 7 on the list, reports Krawchek. Solving client problems is what matters most she says. "Keep me safe, keep me safe, keep me safe ... and only then look at increasing my upside potential," is the message she hears from clients.

Myth: Younger investors are more risk tolerant than their elders.
Fact: 25-35 year-olds are almost as risk averse as pre-retirement investors. This group came of investing age after 2000, so of course they are different. 

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