Industry White Papers

Latest Industry White Paper - 09/25/14

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.

Latest Industry White Paper - 06/13/14

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.

Latest Industry White Paper - 04/07/14

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.


While there are multiple segments of the $3.5 trillion endowment and foundation market, this paper is directed to foundation and endowment organizations that provide investment advisory services. These organizations are typically exempt from registration under the Investment Adviser Act of 1940.


So how can advisors meet investors’ needs, stay on top of emerging best practices—and still have time to select great investment products in a rapidly changing, globally connected complex and even chaotic marketplace? One way is to outsource to a new type of investment product that manages both product selection and asset allocation, called a Fund Strategist Portfolio (“FSP”).


While there’s no doubt the growing concerns that higher interest rates will place a significant burden on many facets of the economy, the challenge for advisors now is to find a way to diversify their clients’ interest rate exposure without severely disrupting the portfolio’s income stream and risk/reward profile.


When comparing registered investment advisors (RIA) practices that have similar team sizes, practices with some level of technology integration have, on average, more than double the amount of client assets had by practices without technology integration.


There has been much hype recently that retail investors are rediscovering the value of equities and will or should be selling bonds. While it's true that bond yields are exceptionally low, there are plenty of reasons why investors should, and will, continue to own fixed income. The question isn't should investors own bondsthe question is which bonds should investors own?


Investors are looking to advisors for new solutions that seek to protect portfolios from market extremes and, ultimately, help preserve wealth. In a 2011 study by Cerulli Associates, 22.7 percent of all households indicated that their greatest personal concern was protecting the current level of their wealth – underscoring just how defensive investors have become.


Principals at the most successful advisory firms spend 75% of their time on new business development, according to Schwab Advisor Services. This figure may seem daunting for many RIAs, but it’s a number you can reach when you focus exclusively on your core competencies. In order to spend more time growing your firm, you may need to consider outsourced solutions for any and all activities that aren’t directly helping you serve existing clients or win new business.