Gaining Perspective

Direct indexing is the most powerful trend sweeping through the advisory profession. When done right, it lets clients build low-cost, tax-efficient, and highly customized portfolios. Those portfolios can track a broad market index or implement a factor-based strategy. They can follow an ESG or sustainability mandate. Here to discuss the latest developments in the direct indexing world are two members of Envestnet’s management team.

-

Here is a link to the Direct Indexing Overview and a link to the QRG Website. Here is a link to the Quantitative Portfolio brochure.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

The information, analysis and opinions expressed herein are for informational purposes only and do not necessarily reflect the views of Envestnet. These views reflect the judgement of the author as of the date of writing and are subject to change at any time without notice. Nothing contained in this piece is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Intended for investment professionals only. Past performance is not indicative of future results. Advisor Perspectives and Envestnet are separate and unaffiliated firms.

Every year, Northern Trust Asset Management issues a multi-asset class, five-year investment outlook known as its Capital Market Assumptions Report. Per the recently released 2023 edition, Northern Trust is expecting market returns to be slightly below long-term historical averages. While they believe lower stock valuations may provide some support, upside will be limited by higher interest rates. They see a somewhat similar dynamic playing out with bonds, where returns will be supported by higher yields that will be capped by flatter global yield curves. Among the Every year, Northern Trust Asset Management issues a multi-asset class, five-year investment outlook known as its Capital Market Assumptions Report. Per the recently released 2023 edition, Northern Trust is expecting market returns to be slightly below long-term historical averages. While they believe lower stock valuations may provide some support, upside will be limited by higher interest rates. They see a somewhat similar dynamic playing out with bonds, where returns will be supported by higher yields that will be capped by flatter global yield curves. Among the six investment themes they’ve identified as driving markets over the next five years are Slow Growth Transitions, which looks at such slow transitions across the globe as pandemic to endemic; globalization to regionalization; and fossil fuels to renewables. Here today to discuss CMA’s themes and forecasts is Chris Shipley.

-

Here is a link to Northern Trust’s Capital Market Assumptions Report.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

There is no relief in sight. The market remains volatile. Both equity and fixed-income assets are taking a beating as investors grapple with 40-year-high inflation and the Federal Reserve’s attempts to rein it in. My next guest says there is potential upside in this tumultuous market. He claims high volatility has historically had positive effect on a little-known class of bonds known as convertibles. He will explain why adding convertible bonds to your portfolio is a smart move as we weather this financial storm.

-

Here is a link to the Wellesley Asset Management web site.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

-

Important Disclosure

This podcast is meant for broad discussion purposes only, and is not intended as a recommendation to buy or sell any security. An investment in convertible securities involves a risk of loss and may not be suitable for all investors.

The commercials are relentless. Cleverly nestled between episodes of Matlock and Golden Girls, each ad features boomer-friendly celebrities like Joe Namath, Mike Ditka and Jimmie “JJ” Walker breathlessly imploring viewers to find out if they’re missing out on “important new Medicare benefits.” And, to do so now “before it’s too late!”

“Call the number on your screen now,” urges Broadway Joe in one Medicare Advantage plan spot. “It’s free!”

And call they do.

My guest is here to explain why Joe Namath and others may be the biggest threat to your clients’ retirements.

-

• Here is a link to the article Melinda wrote for Advisor Perspectives: Why Joe Namath May Be the Biggest Threat to Your Clients’ Retirement.
• Here is a link to Melinda’s company, 65 Incorporated.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

Tides are shifting in the world of financial advice, especially in advisor-client dynamic. During a record bull market, advisors were the investment experts that would deliver the retirement that their clients demanded. But if the last year in the market has shown us anything, it’s that advisors need to be more for their clients than simply portfolio managers.

Dimensional’s Global Investor and Global Advisor studies bear that out. In fact, results from those studies reveal how top quartile RIA firms stand out by emphasizing offerings that bottom quartile firms do not. What difference has it made for these firms? Dimensional found that they are growing faster, driving more revenue and landing bigger clients. Coincidence? I think not.

-

• Here is a link to register for the September 20 webinar: “Perception vs. Reality – the Vital Role of Insurance in a Thriving Advisory Practice.”

• Here’s the link to the RetireOne survey mentioned in the podcast.

• Here is a link to the RetireOne website and to its Constance website.

• Here is a link to the Dimensional website.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

The big trends in advisor marketing and client service are differentiation, specialization, and digitalization. In this podcast, Stephanie explains how they sit at the intersection in terms of what’s possible and how advisors operate today.

-

Here is a link to Stephanie’s firm, Limitless Advisor Coaching.

If you'd like to learn more about Stephanie's strategies and Limitless Advisor Coaching, please visit https://limitlessfa.life.  Stephanie will be hosting an introductory webinar on September 27th, where she and other Limitless coaches will share tried and true strategies for building a wildly successful business and life you love.  You can register for that at https://limitlessfa.life/ap-09-27.  Limitless is offering Advisor Perspectives members a $1500 discount on any Lifestyle Program or a $3000 discount on their Leaders Program.  SImply use the promo code AP23 when enrolling.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

The global economy and financial markets have suffered a dreadful first half of the year, ravaged by a severe commodity shock, strict COVID-19 lockdowns in the world’s second largest economy, and one of the most aggressive Fed tightening cycles in recent history. The second half looks equally tough.

Given that backdrop, now is a critical time for multi-asset investors to revisit their investment approach. There is a sharp divergence in the investment opportunities across equities, fixed income, and real assets.

My guest today, Todd Jablonski, will share how he’s thinking about investing across the multi-asset universe. Todd is the chief investment officer and head of multi-asset investment strategies and solutions for Principal Global Investors. He is responsible for the business, research, and investment management of Principal Global Asset Allocation.  

-

Here is a link to Principal’s Global Asset Allocation Viewpoints, 3Q 2022 – “Reaching fever pitch.”

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

The world is undergoing a dramatic energy regime shift that has been accelerated by recent events, including the COVID crisis, the Ukraine war and growing concerns about climate change. Harbor Capital Advisors recently introduced the Harbor Energy Transition Strategy ETF – ticker symbol RENW – which is subadvised by Quantix Commodities, a specialist in the development and management of innovative commodity-based investment strategies.

My guests today believe this will be one of the largest macro themes in investing over the next several decades and will fundamentally change the commodities landscape.

Their new ETF offers an opportunity to invest in this transition in a distinct and differentiated manner, through the commodities needed to facilitate change.

For HNW clients, it’s not just about investments. It’s about what their money can do for them. Whether it’s leaving a legacy for their grandchildren, sailing around the world, or establishing a non-profit, these investors expect that you know what’s important to them, and you are both working toward that. AssetMark is a leading provider of wealth management and technology solutions that helps thousands of financial advisors meet the ever-changing needs of their HNW clients.

Introducing AP Premium! Download and brand thousands of articles, summaries & commentaries in minutes. Unlock Premium today and receive $10 off your first monthly or annual payment with promo code PODCAST2022.

While market volatility is to thank for significant portfolio losses across the board, WisdomTree funds attracted almost $4 billion of inflows in the second quarter of 2022, the firm’s strongest quarter since 2015, and met a new milestone with 82% of its AUM exceeding benchmarks – something my guest, E-Trade veteran and WisdomTree president and COO, Jarrett Lilien, hasn’t seen any asset manager achieve over his 30+ year career.

We will discuss what’s driving this growth at a time when so many investors are tracking losses.