Gaining Perspective

Technology continues to play an important role in transforming the advice profession. From streamlining administrative tasks to creating personalized experiences for clients at scale, technology provides advisors with meaningful ways to prioritize their time so they can focus on valuable relationship-based services like behavioral coaching and building trust among clients.

My guest and I will discuss the latest technology trends for advisors, the importance of developing and introducing technology skillsets, the rise of GenAI and other emerging technologies, and more, in this episode. 

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Here are some links to learn more about Lauren and Vanguard:

• Putting a value on your value: Quantifying Advisor's Alpha- https://advisors.vanguard.com/insights/article/putting-a-value-on-your-value-quantifying-advisors-alpha 
• Emerging technologies and their impact on your practice- https://advisors.vanguard.com/insights/article/emerging-technologies-and-their-impact-on-your-practice

According to my guest today, impact investing can provide the means to combine community action, government support and private capital to achieve rewarding sustainable results.

The pandemic and social unrest of 2020 inspired communities, government officials, and business leaders to voice their concerns for social and environmental justice. Echoing these values, investors within the finance industry have the power to use their knowledge and resources for social advancement and community development through impact investing.

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Here are some links to learn more about Ron and RBC:

• Supporting small business through impact investing- https://usmutualfunds.rbcgam.com/us/article/supporting-small-business-through-impact-investing/detail 
• Impact report 2022 | Letter from our Chief Strategist of Impact Investing | RBC Global Asset Management - Institutional- https://institutional.rbcgam.com/en/us/campaigns/impact-investing-annual-report-2022/
• RBC becomes signatory for Impact Operating Principles- https://usmutualfunds.rbcgam.com/documents/insights/impact-operating-principles-disclosure-report-2023.pdf
• Beyond ESG and green bonds- https://usmutualfunds.rbcgam.com/us/article/beyond-esg-and-green-bonds/detail
• How impact investing can uplift local communities  (An interview with Ron Homer)- https://usmutualfunds.rbcgam.com/us/article/how-impact-investing-can-uplift-local-communities/detail
• An art, not a science: how to invest for impact  (By Harrison Hill)- https://usmutualfunds.rbcgam.com/us/article/an-art-not-a-science-how-to-invest-for-impact/detail

Private credit markets have shifted upmarket. Many larger financial players are seeking bigger deals that can have a greaterimpact on their portfolios. This has led to a vacuum in small/mid-cap deals where investors can get a significant yield premium to the overall market. In this episode, we will look at the public debt markets, where one can invest in high-yield/lower-rated bonds (e.g., triple Cs) to construct a portfolio that has a 200 or 300 basis point yield premium and has default losses equal to or less than the market. Investors can take advantage of market inefficiencies by participating in a part of the market that others are avoiding.

Here are some links to learn more about Ben and Polen Capital: https://www.polencapital.com/people/ben-santonelli 

Today’s episode will focus on the Human Capital Factor (HCF). This factor applies workplace behavioral science, financial acumen and deep data science to capture the powerful connection between human capital and stock performance. By understanding company culture and intrinsic employee motivation, my guests have transformed these insights into investment strategies. For advisors looking for a way to generate additional alpha in client portfolios, understanding the HCF and how these products fit in a portfolio may lead to better returns and greater client satisfaction levels.

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Here are some links to learn more about David, Kristof, Irrational Capital and Harbor Advisors:

• Irrational Capital home page- https://www.irrational.capital/ 
• HAPY ETF- https://www.harborcapital.com/etf/HAPY/
• HAPI ETF- https://www.harborcapital.com/etf/HAPI/
• HAPS ETF- https://www.harborcapital.com/etf/haps/

The relatively new category of buffered or “defined-outcome” ETFs has grown to $30 billion in assets, with more than $10 billion in inflows in 2023 alone. Amid significant uncertainty surrounding the Fed's trajectory for rate cuts, geopolitical tensions, and a presidential election year, investors are seeking new ways to mitigate risk in their portfolio while still participating in the returns of the equity market. AllianzIM entered the ETF market in 2020 to address this need with a growing suite of buffered ETFs. Buffered ETFs are a powerful tool for advisors and their clients to reduce volatility and diversify a traditional allocation.

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Here is a link for more information about Johan and Alianz:

• Allianz website- https://www.allianzim.com/
• Buffered ETF resource library- https://www.allianzim.com/resources/
• Allianz Life’s Q4 Quarterly Market Perceptions study- https://www.allianzlife.com/about/newsroom/2024-Press-Releases/Fewer-Americans-are-Optimistic-About-the-Economy-in-2024

The biggest trend in the advisory profession over the last year was the integration of AI into practices. Using generative AI for finance allows advisors to enhance their efficiency across multiple areas of their business, letting them do more with less. Increasing their productivity in investment management allows them to spend more time with their clients, and AI – which can reveal relevant news items for advisors – gives them natural touch points to reach out to their clients more often.

Here are some links to learn more about Josh and Boosted.ai: https://boosted.ai/ 

The SEC's approval of spot bitcoin ETFs was a watershed moment for crypto in the US. Grayscale's flagship product, GBTC, continues to be a compelling offering for investors looking to access a bitcoin ETF with liquidity, tight spreads, high trading volumes, and a decade-long track record of operational success. Since launch, GBTC has dominated trading volume, and outflows have moderated over the last few trading sessions. Grayscale is dedicated to providing investors with exposure to digital assets in the form of a security without the challenges of buying, storing, and safekeeping crypto. 

Here are some links to learn more about Grayscale:

• January market commentary on spot bitcoin ETFs- https://www.grayscale.com/research/market-commentary/january-2024-the-debut-of-spot-bitcoin-etfs 
• White paper: The Role of Crypto in a Portfolio- https://www.grayscale.com/research/reports/the-role-of-crypto-in-a-portfolio 
• My previous podcast with David- https://www.advisorperspectives.com/podcasts/2022/03/04/investing-in-the-digital-currency-infrastructure

As advisors are striving for that truly personal touch with their clients (and how much more personal can you get than eye-to-eye), there is increased interest in more in-person prospecting events. My guest today will discuss how he and his team have unlocked the power of seminars, giving advisors and firms opportunities to make a lasting impression and turn intrigued prospects into clients.

Additionally, as people are getting so much spam through their email and on their cell phones, he will share how to gain mindshare in a meaningful way.

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Here is a link for more information about Greg and White Glove:

• White Glove's website- https://www.whiteglove.com/ 
• Greg’s LinkedIn- https://www.linkedin.com/gregbogich
• FPA research: New Study Reveals Psychological Factors Hindering Growth for Financial Advisers- https://www.financialplanningassociation.org/press-room/releases-announcements/fpa-janus-henderson-adviser-growth-research 

Advisors are increasingly shifting away from a traditional 60/40 portfolio as they realize the full potential of alternatives and the benefits they can provide for their clients. Yet, despite increasing demand, hurdles to accessing and understanding alternative investment strategies still exist. My guest, Abby Salameh, will leverage findings from the CAIS-Mercer second annual survey – which was conducted at the second annual CAIS Alternative Investment Summit last month – to expand on the shift that’s taking place as investors adopt a modern three-dimensional portfolio, the challenges that advisors continue to face when accessing these investments, how technology platforms like CAIS are addressing those hurdles, and her outlook for the alternatives industry into 2024. 

Here are links for more information about Abby and CAIS IQ:

• CAIS Website- https://www.caisgroup.com/home 
• CAIS Brand Refresh Press Release- https://www.caisgroup.com/our-company/press/cais-modernizes-brand-to-reflect-role-in-transforming-the-world 
• SS&C Advent white paper: Meeting the Demand for Diversification- https://www.advisorperspectives.com/pdfs/2023/meeting-demand-for-diversification-paper.pdf 
• See the results of CAIS’ 2023 survey, developed in partnership with Mercer- https://info.caisgroup.com/state-of-alternative-investments-in-wealth-management?utm_campaign=cais-mercer-survey-2024&utm_source=press&utm_medium=pws 

The biggest recipients of the "great wealth transfer" aren't happy with their advisor. These investors – women and NextGen (GenX, millennial and Gen Z) prospects – seek a modern advisory relationship focused on a personal connection with an advisor who they can trust to understand their unique needs and help them achieve their financial and life goals.

According to McKinsey and Company’s research, an estimated $59 trillion will be passed down from baby boomers to their spouses and heirs in the next 40 years. By 2030, $30 trillion will be controlled by women.

With the great wealth transfer as the catalyst for change, advisors need to update their strategy and tactics to better connect with, retain and grow relationships with these clients who stand to inherit the bulk of the assets. Demographic shifts will drive the need for advisors to better understand how to connect with and support traditionally underrepresented groups.

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Here is a link for more information about Lacy and Willow: https://www.trustwillow.com/