Gaining Perspective

American investors are confronted by accelerating complexity, sub-par returns and minimal coordination between their assets, investment strategies and underlying liabilities. When one considers that millions of investors struggle with the same challenges, you realize that America’s multi-trillion-dollar personal savings market is plagued by systemic inefficiency.

In the aftermath of the global financial crisis, many individual investors were left questioning the effectiveness of their investment strategies. While many believed their portfolios were well-diversified, as the financial system faltered, they saw a large portion of their investments decline. Investors have grown weary of fund managers who profess to provide excess returns, while gains they realize are diminished by fees. Investors are more keenly focused on portfolio risk and efficient, cost-effective implementation. So given this heightened focus, how can advisors help investors work toward their goals efficiently and effectively?

VSL uses a volatility-driven, short-term capital appreciation model. Don Catrambone explains how that has made VSL the top performing large-cap ETF in 2019 year-to-date.

It will soon be possible for guests at Marriott hotels in China to bypass lines at the registration desk and check in at a kiosk using facial recognition. Halfway across the globe, Marriott workers are going on strike, seeking higher wages and workplace safety.  Artificial intelligence and robotics are at the heart of those highly promising but disruptive innovations. I am speaking today with someone whose index invests in robotics, automation and artificial intelligence companies that are at the heart of those trends.

One billion people lack access to safe drinking water, and this number is likely to grow to nearly 3 billion by 2050. To complicate this problem, 60 percent of the world’s population lives in crowded water basins shared by multiple states — many of whom are failing or are at war with one another. There is a lack of fresh water resources to meet water demand. It affects every continent and was listed in 2015 by the World Economic Forum as the largest global risk in terms of potential impact over the next decade. My guest today invests in solutions to this looming global water crisis.

I speak with Steve Deroian about the future of the partnership between Dimensional and John Hancock, and explore the reasons behind their fee reductions and the new products coming from this relationship.

In the U.S., $12 trillion of investments carry an environmental, social and governance – or ESG – mandate. That is nearly a quarter of all professionally managed assets in the U..S. – and the same percentage of global assets have an ESG mandate. Boston-based Grantham Mayo van Otterloo and its chairman, Jeremy Grantham, are among the leading and most outspoken proponents of ESG investing and related issues.

Private equity funding is behind many of the big roll-up firms, including High Tower Advisors, Atria Wealth Solutions, Edelman Financial Services and the Carson Group. Most prominently, PE investments fueled Focus Financial Partners, which went public in July of last year. James Poer, the CEO of Kestra Financial, recently partnered with a private equity investor and discusses the role of private equity in wealth management.

With consolidation looming in the ETF industry, who will be the likely winners? Will advisors continue to shift allocation to passive products and will ETFs be the primary recipients of those flow? Two industry experts sort out those issues.

ETFs have become a cornerstone of portfolio construction across the advisory industry. Over the last three decades, they have grown from zero to a $4 trillion market. My guest today is Ed Rosenberg, who will help us understand the key trends in the ETF market and what they mean for advisors.