After many years of market gains, consumer confidence is high. The market environment appears to be making investors brave and willing to take on more risk. Is now the time to take on more risk and are consumers investing as if they’re invincible? Have they forgotten how devastating large losses can be to a portfolio and how long and difficult it can be to recover?
While much has been assumed about fee compression in the investment advisory space, there has been little data available to help financial advisors and wealth management firms truly understand the marketplace. Guessing blindly about pricing trends has often led advisors to be concerned they are charging fees that are too high whereas firms may assume their financial advisors are charging submarket fees.
There are many reasons financial advisors consider outsourcing asset management to professional money managers—from the opportunity cost of time that could go into meeting with clients and prospects to the desire to avoid being measured primarily as a portfolio manager. One important factor to consider in making this decision to outsource portfolio management is the difference in client outcomes in each scenario. Volatility is a key part of this experience: like turbulence on an airplane flight, the bumpier it is, the more jittery passengers become.
In recent years, assets in Fund Strategist Portfolios (FSPs) at Envestnet have grown at a healthy pace. Also known as wrap accounts, these model portfolios comprise a set of mutual funds and/or exchange-traded funds (ETFs) selected by investment strategists to meet distinct investment goals.
Using advanced technology to improve onboarding and create a better client experience
How do advisors benefit for advanced technology integration?
Ten ways to become an essential advisor.
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.