Today on the podcast, Rusty and Robyn are joined by Daryl Clements, Municipal Portfolio Manager at AllianceBernstein. Daryl Clements joined AB in 2002 from a role in credit research. Drawn by the firm's reputation and potential for opportunity, he has played a key role in pulling the municipal market forward through relentless innovation. For Clements, active management means leveraging fundamental and quantitative research to reduce volatility and produce better outcomes. AB has been a leader in using completion funds for the construction of municipal SMA portfolios. Further innovations included developing proprietary research and trading tools for the municipal bond market. The result? Faster, more efficient portfolio construction at AB. Clements relishes change, evolution and the drive to become the number-one bond manager of choice. “We are not a static group,” he says. “We are not happy where we are, ever. We are always moving forward and changing things. We want to seek out differentiation.”

Key Takeaways

• [03:13] - Daryl’s professional background and what led him to his current role at AllianceBernstein.
• [04:40] - Learn more about AllianceBernstein and the secret to its longevity.
• [05:54] - What are some of the key themes, and most significant trends, Daryl is seeing currently influencing the Muni Bond market?
• [07:54] - How does Daryl anticipate changes in tax policies, Federal infrastructure spending and any other policies impacting Muni Bond valuations and investor demand? What is he watching out for right now?
• [11:31] - What are the 3 reasons it pays to be Active as a Muni investor? What are some specific examples of how these add value?
• [15:06] - What criteria does Daryl emphasize when evaluating Muni issuers?
• [16:27] - How does Daryl balance the pursuit of higher-yields with the need to manage credit risk?
• [18:32] - How should one decide when to rotate into different sectors, or increase Treasury holdings, within a Muni portfolio?
• [22:42] - What strategies does Daryl employ to capitalize on the inefficiencies of the Muni market?
• [23:56] - What is AllianceBernstein’s technology The AbbieOptimizer?
• [28:26] - Looking ahead, what challenges and opportunities does Daryl see for Active Municipal Bond managers?
• [30:52] - How are big picture things, like climate change and demographic shifts, influencing his investment decisions in the Muni market?
• [33:37] - Is there anything else that Daryl thinks advisors and investors should know about the Muni market?
• [35:26] - What is currently Daryl’s favorite investment idea?

Quotes

[07:17] - “If I look at Active Managers in the Municipal market, versus Passive Managers, Active Managers outperform Passive 98% of the time in a rolling three-year period. Over two year periods, it’s 89% of the time, so we’re trying to get investors focused on Active Management and what that means to them.”  ~ Daryl Clements

[26:53] - “We run [the AbbieOptimizer] multiple times a day. That allows us to now build portfolios in 10 days, not 50 or 60 days, that’s the speed concept of it, less cash drag in a portfolio. Also, we are buying bonds at an average discount. As a liquidity provider, we are getting to those bonds faster than anybody else. We are able to provide execution alpha, which when you combine the two, is worth about 40-50 basis points.”  ~ Daryl Clements

Links

• Daryl Clements on LinkedIn
• AllianceBernstein
• This Week in Muni Land
• “Honky Tonk Highway” by Luke Combs

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0572-R-25058

Today on the podcast, Rusty and Robyn are joined by Felipe Toews, Chief Executive Officer of the Toews Corporation and a Portfolio Manager of Toews Asset Management.  Felipe Toews is Chief Executive Officer of the Toews Corporation and a Portfolio Manager of Toews Asset Management. His management strategies focus on creating “investor friendly” products designed to meet investors’ economic and behavioral needs. Phillip is the founder of the Behavioral Investing Institute, an organization devoted to helping advisors manage investor behavior through market challenges. 

Key Takeaways

• [03:00] - Felipe’s professional background and what led him to found Toews Asset Management.
• [07:45] - What inspired Felipe to create Cornelius and Prudence in his new book The Behavioral Portfolio?
• [10:13] - A preview of Scene 1 from Felipe’s new book, The Behavioral Portfolio.
• [10:56] - What should Cornelius have done differently in the prior scene to align Prudence’s expectations?
• [13:27] - How could Cornelius have prevented Prudence’s panic selling?
• [17:10] - Why do investors like Prudence make the decision to shift advisory firms and how can advisors prevent client attrition?
• [20:56] - From a Behavioral Finance perspective, what could have helped Cornelius manage Prudence’s expectations a bit better?
• [22:00] - What happens to an investor’s mind during a significant downturn and why do financial advisors sometimes struggle to keep them invested?
• [23:25] - What tips does Felipe have for advisors on how they can communicate in such a way that really reinsures their clients?
• [25:13] - What are the most common, and detrimental, behavioral biases that Felipe sees in investors and how can advisors counteract them?
• [30:43] - If Cornelius would have implemented a behavioral portfolio from the start, how might have this story been different?

Quotes

[07:45] - “Most of us who have studied Behavioral Finance learn that there’s thinking about something that happened historically, and then there’s having it told in a way that helps you understand or kind of relive the moment. Right, so it’s talking about the story with dialogue in a way that helps you understand it…Seeing the way many advisors and their investors shifted their thinking around portfolios from the top of the market in 07’ to the bottom in 09’ and then throughout the rise of that. I wanted to tell that story, so that advisors could sort of re-understand, for those that lived through it, how challenging actually managing investor behavior and making good decisions around that big downturn was.” ~ Felipe Toews

[11:13] - “What Behavioral Coaching…has gotten wrong from the beginning, is it starts with the assumption that the historical accident of the 60/40 portfolio, a portfolio which does not…in all cases meet the economic and psychological needs of portfolios, is what you need to start with and coach around. So what you actually need to do is start around what the portfolio is and how it works…Then the other thing too is that advisors…like to kind of gloss over the worst things that markets can do.” ~ Felipe Toews

Links

• Felipe Toews on LinkedIn
• Toews Asset Management
• “Sweet Disposition” by The Temper Tramp
• Ask Vinh (Instagram)
• The Behavioral Portfolio by Philip Toews

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0700-R-25070

Today on the podcast, Rusty and Robyn are joined by Wade Pfau, Director of Retirement Research for McLean Asset Management, Founder of The Retirement Researcher and Co-Founder of the Retirement Income Style Awareness Tool. Wade D. Pfau, PhD, CFA, RICP® is the founder of Retirement Researcher, an educational resource for individuals and financial advisors on topics related to retirement income planning. He is a co-founder of the Retirement Income Style Awareness tool and a co-host of the Retire with Style podcast. He also serves as a principal and the director of retirement research for McLean Asset Management. He also serves as a Research Fellow with the Alliance for Lifetime Income and Retirement Income Institute. He is a professor of practice at the American College of Financial Services and past director of the Retirement Income Certified Professional® (RICP®) designation program. He holds a doctorate in economics from Princeton University and has published more than sixty research articles in a wide variety of academic and practitioner journals. His research has been discussed in outlets including the print editions of the Economist, New York Times, Wall Street Journal, Time, Kiplinger’s, and Money magazine. Wade served for four years as a co-editor of the Journal of Personal Finance. Wade has contributed to Forbes, Advisor Perspectives, and as an Expert Panelist for the Wall Street Journal. He has spoken at the national conferences of organizations such as the CFA Institute, the CFP Board, the FPA, NAPFA, and the Academy of Financial Services. He is also the author of four books in the Retirement Researcher’s Guide Series.

Key Takeaways

• [03:17] - Wade’s professional background and more on his current positions
• [04:51] - Learn more about McLean and The Retirement Researcher
• [05:54] - What led Wade to create the RISA (Retirement Income Style Awareness) tool and what problem does it seek to solve for those planning for retirement?
• [07:46] - How does RISA differ from risk-tolerance questionnaires and behavioral finance questionnaires?
• [09:53] - How many people have taken the RISA test so far, how accurate does it seem to be and what sort of feedback has Wade gotten on it?
• [11:14] - What are the different retirement income styles and how can advisors apply these in practice?
• [14:40] - With this data, how are advisors integrating RISA into client conversations to help them tailor retirement strategies more effectively?
• [17:05] - Have there been any unexpected patterns in how people approach retirement income?
• [18:33] - What is one thing that Wade wishes more advisors understood about retirement income planning?
• [20:15] - What are the biggest risks that retirees face today and how should they be preparing for them?
• [22:27] - What is the 4% rule of retirement income and why did Wade challenge it?
• [26:27] - What is a bucketing approach and how does Wade see it fitting into a broader retirement strategy?
• [29:11] - Some people argue that bucketing is more of a behavioral tool than an optimal financial strategy. What’s Wade take on this view?
• [31:03] - How should advisors think about the role of annuities in retirement portfolios today?
• [35:10] - How can advisors better educate their clients on annuities potential benefits?
• [37:03] - What types of annuities are most valuable for retirees and which ones should they be cautious about?
• [41:17] - With interest rates higher than they have been in years, but also given stock market valuations are quite high, are annuities a more attractive option than they have been in the past decade?
• [42:50] - What are the key factors advisors should evaluate when they are choosing an annuity vendor or product for their clients?
• [47:03] - Resources and reading material for advisors hoping to learn more about retirement income
• [47:50] - Learn more about Wade’s Podcast, Retire With Style

Quotes

[05:57] - “When you ask someone basic questions about retirement there’s so much argumentation and conflicting advice, should you be 100% stocks in retirement or should you only use annuities in retirement? I was seeing for a long time that there're different schools of thought…for retirement, and they’re [all] different viable approaches. How do people select them? [My colleague and I wondered if we] could develop an assessment tool to determine what sort of factors are at work here…[RISA was born out of this].” ~ Wade Pfau

[08:23] - “So, with the research we did on the RISA we could really see more clearly two key risks and concerns people have for retirement relate to…how concerned am I about outliving my money and also how concerned am I that I won’t have reserves available to deal with spending shocks like a long-term care event…So, what we saw was that the risk tolerance score, whether I’m comfortable with short-term market volatility, had no relationship to whether I’m worried about outliving my assets or worried about having reserves to deal with unexpected spending.” ~ Wade Pfau

Links

• Wade Pfau on LinkedIn
• Retirement Researcher
• “The Good, The Bad and The Ugly by Ennio Morricone
• Retirement Planning Guidebook
• Retire With Style Podcast
• RISA Profile

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by Toews Asset Management. Toews Asset Management and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

McLean Asset Management is a third party strategist available on Orion Communities. Orion Communities is a product of Orion Advisor Technology, LLC (“OAT”). Orion Portfolio Solutions, LLC (“OPS”), a registered investment advisor, makes third-party strategists available through Orion Communities and is also a strategist on the platform. OAT and OPS are affiliated companies through their parent company Orion Advisor Solutions, Inc (“Orion”). Orion and McLean Asset Management are not affiliated companies.

Compliance Code: 0681-R-25069

Today on the podcast, Rusty and Robyn are joined by Anmol Sinha, a Fixed Income Investment Director at Capital Group, home of American Funds. He has 15 years of investment industry experience and has been with Capital Group for one year. Prior to joining Capital, Anmol worked as an EVP - fixed income strategist at PIMCO. Before that, he was a consultant at NERA Economic Consulting and also worked on a capital markets team at Citi. He holds an MBA from Columbia Business School, a master's degree in economics from New York University and a bachelor's degree in economics from University of California, Berkeley. Anmol is based in Los Angeles.

Key Takeaways

• [03:31] - Anmol’s professional background and what led him to his current role at Capital Group.
• [05:22] - Learn more about Capital Group’s history, investing ethos and the work that Anmol does there.
• [10:05] - What are the key drivers behind the resilience of the US economy and does Anmol see this trend continuing into 2025?
• [14:06] - How should investors be thinking about how to deal with policy changes and political turbulence when it comes to their portfolios?
• [16:54] - How is policy volatility impacting the Capital Group’s research efforts to make investment decisions?
• [18:36] - Does Anmol think that the market is correctly pricing in future rate moves?
• [22:01] - How is Capital Group thinking about its overall exposure to longer-term bonds?
• [24:27] - Spreads tightened even as yields rose recently for Corporate Bonds. What does this tell us about Corporate Credit fundamentals?
• [27:21] - Is Anmol concerned about all of the potential issuance within high-yield in 2025?
• [29:21] - Are there other Fixed Income sectors we should be paying attention to or avoiding?
• [32:35] - What benefits do active strategies bring to Fixed Income ETFs?
• [36:31] - What are Capital Group’s “Three T’s” framework for the benefits of Fixed Income ETFs?
• [40:56] - How does the Capital Group’s “Capital System” lead to better outcomes for Fixed Income ETFs?
• [44:05] - How should investors think about using the Capital Group’s Fixed Income ETFs within their broader portfolio strategy?
• [47:50] - How should investors weigh the tax-exempt income potential of Municipal Bonds vs. other Fixed Income options?
• [49:31] - What role should International Fixed Income play in a diversified portfolio?
• [51:33] - What is currently Anmol’s favorite investment idea?

Quotes

[15:27] - “You could argue that [historically] markets have taken their direction a lot from monetary policy. What is the Fed likely to do, what are they telling you about growth implications and their policy, and then you imply your own growth and inflation expectations. Now you could argue, fiscal policy is going to be a bigger driver. Some of our portfolio managers have been talking about this trend. That is not an environment investors have been used to.”  ~ Anmol Sinha

[33:12] - “[In Fixed Income] you have a lot of players that are inherently not economically driven…Think central banks, commercial banks, even insurance companies. They buy bonds for reasons other than maximizing their return…They have reserves, they have regulatory requirements…all sorts of things that drive behavior in the market, that isn’t necessarily maximizing a return. What percent of the market are they? The estimates vary, but they could be…40-50% of the market, and the Fixed Income market is something like 120 Trillion…So, when you think about a good chunk of players in this market playing by different rules, it creates inefficiencies. So, structurally, active managers can take advantage of that.”  ~ Anmol Sinha

Links

• Anmol Sinha on LinkedIn
• “Beautiful Day” by U2
• “It Don’t Get Better Than This” by Royal Deluxe
• Capital Group

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0528-R-25055

Today on the podcast, Rusty and Robyn are joined by Russ Koesterich, portfolio manager at BlackRock in Denver, CO. Russ Koesterich, CFA, JD, Managing Director and portfolio manager, is a member of the Global Allocation team and the lead portfolio manager of the GA Selects Model Portfolios. Mr. Koesterich's service with BlackRock dates back to 2005, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. He joined the BlackRock Global Allocation team in 2016 as Head of Asset Allocation and was named a portfolio manager of the fund in 2017. Previously, he was BlackRock's Global Chief Investment Strategist and Chairman of the Investment Committee for the Model Portfolio Solutions business, and formerly served as the Global Head of Investment Strategy for scientific active equities and as senior portfolio manager in the US Market Neutral Group. Prior to joining BGI, Mr. Koesterich was the Chief North American Strategist at State Street Bank and Trust. He began his investment career at Instinet Research Partners where he occupied several positions in research, including Director of Investment Strategy for both U.S. and European research, and Equity Analyst. He is a frequent contributor to financial news media. Mr. Koesterich earned a BA in history from Brandeis University, a JD from Boston College and an MBA from Columbia University. He is a CFA® Charterholder.

Key Takeaways

• [04:30] - Career highlights and how Russ ended up in his current position at BlackRock
• [06:56] - When it comes to global allocation, what is Russ’ overriding investment philosophy in building those portfolios?
• [08:24] - What makes the GA Select model portfolios different from other global, multi-asset model portfolios?
• [10:06] - What is Russ’ strategic view on non-traditional asset classes?
• [11:31] - What is Russ’ philosophical view on active management?
• [13:23] - What is Russ’ overall market outlook for the coming year?
• [16:01] - What are some of Trump’s initiatives that investors should keep an eye out for and how does Russ expect the economy to react to these moves?
• [18:19] - What are Russ’ areas of focus within the stock market looking forward to the remainder of 2025?
• [20:02] - What’s Russ’ current view on non-US stocks?
• [21:10] - What’s Russ’ current view on Fixed Income and the Bond Market?
• [23:01] - What’s Russ’ current outlook and positioning for alternatives, real assets and crypto currencies?
• [24:18] - What is currently Russ’ favorite investment idea?
• [25:36] - How does Russ maintain his energy and health, both physical and mental, to ensure he’s performing at a high level?

Quotes

[10:52] - “The gold exposure is one that a lot of people ask, what does gold do? Gold is a store of value. It enables you to have something in the portfolio that you would expect to hold up better if we continue to see developed countries running these huge deficits. It’s a very specific exposure, it serves a very specific purpose in the portfolio, but again having the flexibility to have a small amount of that really results in…building a more robust multi-asset portfolio.”  ~ Russ Koesterich

[12:28] - “What [our actively managed funds] all have in common is, again, very specific mandates, very specific risk control and the ability to access types of investments [or] alpha streams that you really can’t do with passive products.”  ~ Russ Koesterich

Links

• Russ Koesterich on LinkedIn
• “I Believe That We Will Win (World Anthem)” by Pitbull
• BlackRock

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0342-R-25034

Today on the podcast, Rusty and Robyn are joined by Meb Faber, Co-founder and Chief Investment Officer of Cambria Investment Management. Mr. Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management. Faber is the manager of Cambria’s ETFs and separate accounts. Mr. Faber is the host of The Meb Faber Show podcast and has authored numerous white papers and leather-bound books. He is a frequent speaker and writer on investment strategies and has been featured in Barron’s, The New York Times, and The New Yorker. Mr. Faber graduated from the University of Virginia with a double major in Engineering Science and Biology.

Key Takeaways

• [06:05] - How did Meb make the leap from engineering and biology to the investment world?
• [07:42] - What was the impetus for founding Cambria Funds and what makes it stand out from its peers?
• [11:15] - What is Meb’s overall investment philosophy and why does he produce so much great content that’s freely available?
• [14:08] - What adjustments has Meb made to his investment philosophy over the years?
• [17:00] - What inspired Meb to start his podcast The Meb Faber Show?
• [24:52] - Learn more about Meb’s book, Shareholder Yield, and why should investors check it out?
• [30:28] - What prompted Meb to issue a 2nd edition of Shareholder Yield?
• [33:36] - Has Meb’s research shown that shareholder yield works better in certain markets, or sectors, than others?
• [36:51] -  What is Meb’s market outlook for 2025? Also, when will diversification outperform again?
• [44:18] - What did Meb mean when he said “nobody ever got fired for buying Vanguard?”
• [47:25] - What is Meb’s outlook for the ETF industry going forward?
• [49:47] - What is Cambria’s ETF TAX trying to accomplish and how does it work?
• [56:03] - When does he foresee the ETF giants, like Blackrock or State Street, getting into 351 ETFs?
• [61:02] - What are some other Cambria ETFs that Meb would like to spotlight?`
• [68:16] - In this age of information overload, how does Meb balance the need to be informed with the need to unplug and tune out?

Quotes

[20:43] - “That’s kind of the whole point of the Idea Farm. We try to narrow down, and curate, this massive amount of news down to…what are the top 2 or 3 things that people read or listened to this week?”  ~ Meb Faber

[36:56] - “On a relative basis, this is arguably the worst period ever for anyone doing diversification in asset allocation, relative to US stocks. The only comparable periods are the 1990s and 1940s…In terms of not just magnitude of underperformance, which is hundreds of percentage points to the person that’s just YOLOing into the S&P or Mag 7, but also the worst part is that it’s years in a row.” ~ Meb Faber

Links

• Meb Faber on LinkedIn
• Cambria Funds
• “1999” by Prince
• Cambria Investments - Tax

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0334-R-25034

Today on the podcast, Rusty and Robyn are joined by Jeff DeMaso - editor and founder of The Independent Vanguard Adviser. Jeff was previously the co-editor and research director of The Independent Adviser for Vanguard Investors. He also served as Portfolio Manager, Director of Research and the interim CIO at Adviser Investments, LLC—a leading investment advisory firm. He has been quoted in Forbes, The Wall Street Journal, Barron’s, InvestmentNews and Kiplinger, to name a few. Citywire named him a Rising Star of manager research in 2019. Jeff graduated magna cum laude from Tufts University with a B.A. in economics in 2006 and holds the Chartered Financial Analyst designation.

Key Takeaways

• [04:32] - Jeff’s  professional background and how he transitioned into his full-time role at IVA
• [07:27] - Learn more about The Independent Vanguard Adviser and how they hope to serve their readers
• [09:20] - What is Jeff’s market outlook for the coming year?
• [12:23] - Why does Vanguard have an international slant and does Jeff agree with this approach?
• [14:26] - What is Jeff’s take on how the typical dollar is invested at Vanguard? How does Jeff think those dollars should be invested?
• [16:41] - What are some of Jeff’s favorite Vanguard Mutual Funds or ETFs?
• [18:16] - What are some underutilized Vanguard strategies in Jeff’s opinion?
• [19:28] - Are there areas where Jeff thinks Vanguard could improve their active management offerings?
• [20:31] - Why was Vanguard recently in the news regarding the FDIC? Was this important or not important?
• [24:03] - Outside of Index Funds, what are some of Vanguard’s strengths?
• [24:06] - What does Jeff think Vanguard could be doing better?
• [26:07] - What steps could Vanguard take to enhance the client experience?
• [27:33] - Learn about Vanguard’s new advice and wealth management division and how this can help investors?
• [29:05] - Over the next 5-10 years what should Vanguard investors be keeping an eye on?
• [30:57] - In closing, are there any other things that Jeff thinks advisors and investors should know about Vanguard or the broader market?
• [32:17] - What is currently Jeff’s favorite investment idea?
• [34:37] - How does Jeff balance the need to be informed and educated with the need to reset and tune out?

Quotes

[13:27] - “I think that as investors we need to use both our spreadsheets and…common sense a little bit, or think in the real world, and having 40% in non-US is really hard for a lot of US investors. So, I am a big fan and advocate of staying globally diversified, I just think that might be a little bit too much for most people.”  ~ Jeff DeMaso

[24:16] - “As I alluded to before, I think that more important than active vs. passive is low cost vs. high cost investing, and even if you go active at Vanguard you’re still getting low cost investing.”  ~ Jeff DeMaso

Links

• Jeff DeMaso on LinkedIn
• The Independent Vanguard Adviser
• “Take the Money and Run” by Steve Miller Band

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0222-R-25024

Today, Rusty and Robyn are joined by Sue Thompson, co-founder of Women in ETFs. Sue Thompson is a strategic, dynamic Financial Services Executive who has distinguished herself by commercializing new trends in the financial services industry. Her expertise spans investment management distribution, strategy, competitive landscape, finance, marketing, digital innovation and technology. Sue's experience at the top 3 ETF issuers gave her a unique perspective to push the envelope in strategy and distribution, ensuring that the firms where she worked were at the forefront of the industry. The organizations benefited from her ability to discern and capitalize on market trends, fostering innovation and driving growth in a competitive landscape. With a focus on collaborative success, she empowered her teams to deliver exceptional results. 

State Street Global Advisors (SSGA) recruited Sue as Head of Americas Distribution in 2018 to staunch ETF market share losses. Her strategy was to overhaul distribution, focus on lower cost solutions, and deepen client loyalty and advocacy. She defined a clear vision, restructured the distribution teams, leveraged data and established a Client Advisory Council. During her tenure, assets more than doubled, increasing from $500B to over $1 trillion AUM and employee satisfaction also doubled during that time. Prior to her role at SSGA, Sue was a Managing Director at Blackrock, where she led the RIA and Asset Manager teams. She led the firm’s investment in the RIA business and helped the Aladdin business in developing technology solutions for RIAs. During her tenure, the iShares business grew from $350B AUM to over $1 trillion. Sue co-founded Women in ETFs and is currently a board member emeritus. She has also served on the Board of Governors of the Money Management Institute as well as on the Franklin Templeton ETF board. She's been named as one of the most influential women in U.S. Finance by Barron's magazine since the inception of the list in 2020 through 2023.

Key Takeaways

• [03:38] - Sue’s professional background, career highlights and what she’s up to now
• [06:23] - What were some of the most pivotal moments in Sue’s career and how did they shape the leader she is today?
• [07:32] - How has Sue’s collaborative approach to leadership evolved over the years?
• [09:57] - What frameworks or approaches does Sue use when she’s faced with very difficult decisions as a leader?
• [12:47] - How has the ETF industry evolved since Sue started and what does she see as some of the most significant milestones in its history?
• [15:56] - What does Sue think are some of the most exciting trends in the ETF space and how does she think financial advisors should position themselves to take advantage of these?
• [18:13] - What misconceptions or barriers still need to be addressed in the ETF space?
• [19:42] - What did Sue discover as she searched for a financial advisor and what does her selection process look like?
• [25:27] - Outside of the traits she has already mentioned, what values does she think are very important and not important for financial advisors?
• [27:43] - How would Sue describe her investment philosophy and how has this philosophy changed over the years? Also, does Sue believe that a shared philosophy is one of the key factors for selecting the right financial advisor?
• [34:28] - What advice would Sue give to women aspiring to leadership roles in financial services?
• [37:22] - How can firms encourage more women financial advisors to join and thrive in this field?
• [39:08] - What impact does Sue hope to have both on the financial industry as a whole and the individuals she has worked with?
• [40:50] - What is currently Sue’s favorite investment idea?

Quotes

[08:01] - “What you find, when you start to work with people, is there are very few people you work with that aren’t trying to do their best. Most people come to work and they try to do their best everyday. So, when they fail, it’s not because they’re necessarily…bad at something…it’s because they have one particular strength that they lean on and they overplay that. ”  ~ Sue Thompson

[19:58] - “I think that we are so used to, in a post-covid world, things like Zoom calls and video conferencing, that I don’t necessarily think that you need to be co-located with your advisor any longer…So I think that advisors who have got it in their head ‘oh well, my world is Cleveland,’ and they don’t want to think beyond that, I think they do themselves a disservice…[for many people] it’s more important to find the right advisor.”  ~ Sue Thompson

Links

• Sue Thompson on LinkedIn
• Women in ETFs
• “Brave” by Sara Bareilles

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Wealth Management services offered through Orion Portfolio Solutions, LLC d/b/a Brinker Capital Investments a registered investment advisor.

Advertisement sponsored by Toews Asset Management. Toews Asset Management and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0227-R-25027

Today, Rusty and Robyn are joined by David Lau, Founder and CEO at DPL Financial Partners. David Lau is widely recognized as an innovator and disruptor in the financial services industry. He is the Founder and Chief Executive Officer of DPL Financial Partners, a privately held financial services firm that specializes in the development and distribution of low-cost, commission-free insurance and annuity products, as well as technology-driven product discovery tools and education, for Registered Investment Advisors (RIAs) and individual investors. Since going to market in 2018, DPL has worked with 20 leading insurance carriers to bring a range of value-driven, no-load products to its turnkey insurance management platform for advisors, and built an advisor base of more than 10,000 advisors from more than 3,500 RIA firms. Mr. Lau is a sought-after speaker, commentator, and adviser to financial journalists, insurance carriers, RIA firms, fintech providers and others in the financial services and fintech industries. His work has received coverage in The Wall Street Journal, The New York Times, Barron's, CNBC, Wealth Management, and other financial media where he provides insights on industry products, players, trends, and best practices. Mr. Lau serves on the CFP Board's Standards Resource Commission, and also on the Insurance sub-committee, to help develop resources that provide guidance to CFP® professionals and their firms on CFP Board’s new Code of Ethics and Standards of Conduct. Prior to founding DPL, Mr. Lau was Chief Operating Officer of Jefferson National, a leading innovator of tax-advantaged investing strategies for RIAs and fee-based advisors, where he led sales, marketing, technology, operations, and service. During his tenure, Mr. Lau architected the industry’s first flat-fee variable annuity product, Monument Advisor, and grew it into the leading no-load variable annuity in the market. Prior to joining Jefferson National, Mr. Lau was principal and co-founder of The Oysterhouse Group, LLC, a management consulting firm focused on retail delivery of financial services products, where he developed “go-to-market” strategies for key initiatives. His firm’s list of internationally recognized clients included Shinsei Bank, Merrill Lynch and Ace Insurance Group. Earlier, Mr. Lau served as Chief Marketing Officer of E*Trade Bank, and its predecessor TeleBank, the first pure-play internet bank. As the chief marketing strategist, he was responsible for creating and implementing break-through national direct marketing and branding campaigns that defined the online banking category. During Mr. Lau’s six-year tenure deposits at the bank grew from $200M to over $8B, and, at the time of its sale to E*Trade, TeleBank was the largest internet bank worldwide and five times larger than all US competitors combined. Mr. Lau’s early career included various positions at the Jamestown Foundation and the American Trucking Associations. In his leisure time, David enjoys spending time with his family, playing golf and cooking. Additionally, David is a diehard Boston Red Sox fan and an avid Duke basketball fan.

Key Takeaways

• [04:13] - David’s professional highlights and more on his current role at DPL
• [06:25] - What was the impetus for founding DPL and for the services they provide?
• [10:35] - What are some of the unique challenges that fee-based advisors face, when it comes to implementing insurance solutions, and how does DPL address them?
• [13:30] - How does DPL help advisors break away and retain their book of annuities?
• [15:52] - Why has the growth in insurance and annuities not kept pace with the growth of the rest of the financial services industry?
• [18:11] - How should advisors go about incorporating insurance into their holistic financial plans?
• [20:17] - What are the behavioral and psychological benefits of using  insurance and annuities as strategic tools during periods of market volatility?
• [24:11] - What kind of trends is David seeing in the adoption of commission free insurance products among registered investment advisors?
• [26:33] - What role does technology play in simplifying the process of offering insurance products to clients?
• [28:40] - What are some common misconceptions financial advisors have about annuities or life insurance products?
• [31:24] - For advisors looking to integrate these commission free insurance products, how do they educate their clients about the benefits of them?
• [34:03] - What inspired David to create the Advisor Revelations podcast?
• [36:27] - What feedback has David received on his podcast and how has that shaped its content?
• [37:56] - For someone who has not yet checked out his podcast, does David have any recommendations for an episode to start with?
• [39:47] - If David could give one piece of advice to financial advisors looking to grow their practice, what would it be?
• [41:48] - What is currently David’s favorite investment idea?

Quotes

[22:25] - “Annuities kind of give…the client a license to spend, because they don’t worry about overspending and outliving their money because they have that guaranteed income stream…they’re still getting a paycheck, and that’s another great behavioral thing.”  ~ David Lau

[41:13] - “It’s always more expensive to go find the next customer than it is to further monetize your existing ones, and that’s what we can help you do. We can help you further monetize your existing ones, giving them better products, better outcomes and then also your ability to more easily find and attract new clients.”  ~ David Lau

Links

• David Lau on LinkedIn
• DPL Financial Partners
• “Here Comes the Sun” by The Beatles
• Advisor Revelations Podcast

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0097-R-25013

Today, Rusty and Robyn are joined by Bob Baker, President at Advanced Asset Management Advisors. Bob founded Advanced Asset Management Advisors in 1998, with the mission of creating a better client investment experience. Today, he remains heavily involved in carrying that vision forward, overseeing the daily management of the company. Bob received a degree in finance from the Ohio State University. With nearly 30 years in the industry, Bob has wealth of experience in portfolio creation and asset management. Before starting AAMA, he served as Vice President of a large regional investment firm and President of a national advisory group. He oversaw the management of retirement plans and participated in the development, launch, and marketing of load and no-load mutual funds. Bob has also served as a trust officer for the Bank One Trust Company, managing client portfolio investments.

Key Takeaways

• [04:12] - Bob’s professional highlights and more on his current role at AAMA
• [05:08] - What was their mission when Bob first founded AAMA and how has this played out over the  years?
• [05:45] - Learn about AAMA’s fundamental investment process and how that has, or hasn’t, changed over the years
• [07:32] - From an investment process standpoint, how does AAMA’s fundamental process flow into the firm’s strategies?
• [08:18] - What makes working with AAMA different from large brand firms?
• [09:10] - How has AAMA enhanced its capabilities in recent years?
• [09:47] - What are the key market trends, challenges and opportunities that Bob sees coming up in 2025?
• [12:01] - How is Bob putting the inflation data into perspective and how is this view impacting his portfolio positioning, if at all?
• [13:00] - Over the past couple years, Bob has held a fairly contrarian view of the economy. Has anything changed his view recently?
• [14:00] - Why have AAMA’s sector weights remained relatively stable in spite of recent volatility?
• [15:17] - Why has investor sentiment been so bullish? Also, does this impact AAMA’s portfolio decisions or market commentary in any way?
• [16:06] - Looking ahead at 2025, how does Bob think fiscal and monetary policies might influence investment strategies and market dynamics?
• [17:06] - What risks are Bob most worried about at the moment?
• [18:33] - What is currently Bob’s favorite investment idea?
• [19:55] - How does Bob balance the need to stay informed and educated with the need to take mental space and tune out?

Quotes

[05:48] - “Well we deploy a fundamental investment process, and it looks at really strictly fundamental valuations in the marketplace. PEs, forecast of earnings, etc. We’re looking basically to overweight undervalued sectors and underweight overvalued sectors, and we do that through a very disciplined process…It’s been a good discipline for us to implement overtime. We’ve not changed it, because again, it keeps us out of a lot of the noise that can sometimes come into a portfolio.  ~ Bob Baker

[08:21] - “As a boutique firm, we kind of pride ourselves in the process of, if an advisor would like to speak with us they can pick up the phone and call myself, or my partner…and get answers to questions that they would like to have immediately, or quickly. Since those advisors have the opportunity to really talk to the decision makers of the firm, we think that’s a competitive edge vs. some of the other, larger firms on the platform where you’re probably not going to talk to the president or CIO…directly. ~ Bob Baker

Links

• Bob Baker on LinkedIn
• Advanced Asset Management Advisors
• “Shake it Off” by Taylor Swift

Connect with Us

• Meet Rusty Vanneman, Orion’s Chief Investment Officer
• Check Out All of Orion’s Podcasts
• Power Your Growth with Orion

Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Advertisement sponsored by [Toews Asset Management]. [Toews Asset Management] and Orion Advisor Solutions, Inc. (“Orion”) are not affiliated companies, and the advertisement is not a recommendation or endorsement by Orion for any of the services referenced or provided. Orion does not endorse any particular third-party product or service.

Compliance Code: 0086-R-250010