Industry White Papers

Latest Industry White Paper - 04/10/17

In a volatile climate, advisors have much to gain by harnessing data more effectively. From cost savings to improved forecasting, the benefits of data aggregation and data analysis can be considerable. Download this white paper to learn how to use data to better support your clients.

Latest Industry White Paper - 10/13/16

Today’s market and regulatory environment is putting pressure on many financial advisors. To maintain productivity and revenue levels, many advisors need to increase their books of business. However, regulatory pressures are also requiring they spend more time with each client. More than ever, advisors are relying on technology to help meet these growing demands. Read the report.


In this paper we will explore these industry dynamics and how successful advisors of the future will evolve their value proposition from making investment product recommendations to meeting the digital expectations of the consumer while also engaging clients in a more comprehensive conversation about the important goals and aspirations they have for their wealth— delivering a lifecycle of advice. This unique industry inflexion point is what we see as the Fiduciary Opportunity.


Advisory firms rethinking their approach to consumer-centric digital solutions will want to gravitate toward highly-engaging tools that meet the demands of different client segments. A successful transition includes eight steps that comprise a path toward embracing digital.


Recent market volatility has prompted many advisors to mount an aggressive stance against portfolio risk. But a better time to address risk and volatility is during portfolio construction. Being proactive, rather than reacting to market conditions, can position client portfolios to limit downside losses and participate in the prospective upside.


Registered investment advisors, tasked with making money for their clients, also must be mindful of their own bottom line.1 Those who are most successful are particularly adept at marshalling their resources to concentrate on revenue-generating activities. According to a recent study, 75% of their efforts comprise managing investments, expanding existing client relationships, and garnering new opportunities. Rather than becoming entrenched in the quagmire of time-consuming administrative, compliance, training, and back-office tasks, they mobilize outsourcing services to manage them, so they can stay focused on serving clients and increasing profits.


An ongoing debate among investment advisors and their clients centers on value: creating it, preserving it, and perpetuating it. Each faces a different challenge: Advisors are tasked with delivering worth to their clients, and clients need to understand what they can expect for the dollars they spend.


Executive Summary of White Paper: Exploration of the Cross-Sectional Return Distributions of Socially Responsible Investment Funds

In recent decades, institutional and individual investors have increasingly considered social consciousness as part of their overall investment program. Indeed, from 1995 through 2012 (the latest data available), the amount of assets under management in (SRI) strategies grew from $639 billion to $3.7 trillion, a gain of 486%. Over the same period, overall assets under management (including conventional, non-SRI assets) grew 376%. It is estimated that SRI assets now comprise approximately 11% of assets under management in the U.S.


Many investors are seeking additional strategies to help improve portfolio diversification and increase the yield generated by their investment portfolio. MLPs have been receiving a lot of attention recently and may indeed help investors achieve both of these objectives as part of a thoughtful, well-planned investment strategy. However, MLPs are more complicated than traditional stock and bond investments and these complexities may seem intimidating to potential investors.


Getting data into an account or a reporting platform can be a bit complicated. To start, you will need to decide among several types of data feeds when you are pulling in information. Consider your goals: Do you want to report only on your traditional custodial assets? Would you like to provide your clients with a holistic “total” view of all their resources so you can more completely advise them on their options?


The goals of this research paper are several: first, to measure the statistical significance of every percentile in the cross-sectional (i.e., across a given Morningstar category) distribution of alphas; second, to use the statistical significance percentile data to designate particular Morningstar categories as candidates for either active or passive management; and third, to conduct predictive analysis along several dimensions to formulate an a priori decision rule for selecting funds with the highest probability of future outperformance.


This is the second in a series of white papers discussing how the aggregation and integration of investment performance data can create a new paradigm of insight, holistic investment advice for nonregistered investment advisors.