Gaining Perspective

Our topic today is ESG/SRI investing – one of the most important themes in the asset management industry over the last several years. One of the questions I will explore is whether the importance, history and culture of ESG at the asset manager firm level is more important than individual strategies. Indeed, greenwashing has become a serious issue, as advisors and asset managers need to understand which companies are making a genuine effort to implement meaningful ESG/SRI policies, and which ones have succeeded in putting a positive PR spin on their efforts.

Global rates have fallen over the course of 2019. Indeed, trillions of dollars in sovereign debt now carry negative yields. This has forced income-oriented investors to look to non-traditional sources to find sustainable, low-risk yields. Ben Kirby discusses the Thornburg Investment Income Builder fund, which has had an exceptional track record over the last 15 years.

The first Litman Gregory Masters Fund was launched December 31, 1996. Litman Gregory Masters Equity was created because, as financial advisors, the team at Litman Gregory wanted more control over the mutual funds they used in its client portfolios, and it had specific ideas about how to build a “better fund.” Since then, Litman Gregory has been a pioneer in the development of liquid alternative funds and, in 2018, launched a high-income alternatives fund.

Merger and acquisition (M&A) activity in the wealth management profession has reached record levels this year, highlighted by mega-deals such as the acquisition of United Capital by Goldman Sachs. Indeed, the total AUM of deals more than doubled since 2018, according to some reports. My guest today is David DeVoe, who will help us understand what is behind that trend, whether it will continue and what advisors should consider if they want to position themselves for a sale.

Growing your practice isn’t just about good marketing. If you’re looking to make a better impression outwards, look inwards first at the foundation of any future growth – your profitability. The need to achieve profitability is something that most business owners take for granted. But for financial advisors, achieving that goal is especially important, as my guest, Jim Palumbo, explains.

The conventional wisdom around digital advice platforms – what are commonly referred to as “robo advisors” – is that they will commoditize the investment process, and push traditional, human advisors to justify the value they add – and, hence, justify their fees – with services other than investment management. So far, however, the performance results of those platforms have been unimpressive. What do those results bode for the future of digital advice?

Your client's heirs will fire you as often as 90% of the time within one year of your client's death because they have no relationship with you. Arlene Cogen explains how to bridge those relationships and retain assets.

Approximatley 40% of financial advisors plan to retire within the next 10 years, according to Cerulli and Associates. The CFP Board says that there are more certified financial planners over 70 than under 30. Replacing those professionals will be a challenge for the industry. The advisor profession faces a talent and hiring crisis. My guest today is Kate Healy, who is charged with solving that crisis by opening the RIA career path to fresh faces – including new graduates, career changes, military veterans, and other groups that aren’t traditionally represented in the financial advice field.

In recent years, behavioral finance has become really popular. But taking a step back, one of the biggest questions I have about this field is -- “So what?” There are so many behavioral finance theories. But where is the practical application? What can we actually do with this stuff?

Guggenheim’s macroeconomic team is predicting a recession by mid-2020. We discuss the underlying drivers of this forecast, the steps the Fed can take to address a weakening economy, and how advisors should allocate for the period ahead.