Displaying items by tag: advisors

Blackrock’s Q2 earnings report gave some insights on the performance of its various funds in addition to commentary from its management team. Overall, the asset manager exceeded analysts’ consensus expectations with $9.28 in earnings per share vs $8.45. Compared to last year’s Q2, net income was up 25% while revenue was down 1%. Total assets under management climbed to $9.4 trillion.

However, the company did miss analysts’ estimates when it came to inflows into its equity and fixed income funds at $57 billion vs expectations of $81 billion. Active funds were particularly weak with $9.7 billion of outflows from active equity and $3.7 billion from active fixed income.

These disappointments have weighed on Blackrock’s stock price which has underperformed the S&P 500 YTD. Yet, the company remains confident that future growth will come from active fixed income. According to Blackrock President Rob Kaptio, “There is finally income to be earned in the fixed-income market.” He sees higher yields as a “once-in-a-generation opportunity” and that are supportive of inflows into its lineup of active fixed income products. 

Finsum: In Q2, Blackrock saw negative inflows into active fixed income and equity funds. Yet, the company continues to see these products as key to its long-term growth.

In an article for InvestmentNews, Steve Randall shares some insights from a recent study conducted by Dynasty Financial Partners of investors who work with an advisor and have at least $500,000 in investable assets. 

It finds that many wealthy investors seek out an advisor following a major life event such as a change in employment or inheritance. Interestingly, 57% end up working with the first advisor they meet. This is an indication that advisors should invest in efforts that increase their visibility especially among this set. 

One caveat is that while high net-worth clients are quick to choose an advisor, they are also prone to switching especially if they feel a lack of trust or generating value. For high net-worth clients under 45, 61% had changed advisors. 

Another finding from the research is that referrals remain an important source of new clients. About a little more than half of new clients come from family and friends with another quarter coming from a professional colleague. About a quarter of new business came from social media, blogs, or other online platforms. 

Finsum: A recent survey of high net-worth investors by Dynasty Financial Partners has some interesting insights for financial advisors.

In an article for InsuranceNews, Ayo Mseka shares some tips on what advisors should do during the summer when existing clients are hard to reach, and prospecting for new clients is even tougher. 

According to Brian Haney, advisors should embrace the downtime and use it as an opportunity to reassess your practice and client relationships. It’s also a time for longer-term planning and thinking about the firm’s future. It can also be used to refine processes and ensure that daily tasks are aligned with the long-term vision.

Another recommendation is to use the summer months to invest in building new relationships and deepen relationships with existing clients. This can include activities that involve the client and their family and even induce them to invite other potential prospects. 

The final recommendation is to embrace the downtime and ‘bank’ some rest and leisure time especially given that the pace and intensity of work will increase once summer ends. But, the summer also does offer some unique opportunities for client relationships or prospecting efforts given the abundance of sponsorship opportunities during the summer months for events, concerts, or festivals. 

Finsum: The summer months are typically slow for financial advisors. Here are some recommendations to best take advantage of this period.

A tricky path when it comes to attracting – and hanging onto talent – in the financial sector?

Oh, sure, if you insist.

In the aftermath of surveying 531 talent acquisition leaders across sectors in the name of its 2023 Hiring Report, goodtime.io recently released the report’s financial services edition, shining the spotlight on how they’re performing those initiatives despite the challenges.

A few need to know takeaways within the prism of this year’s obstacles in financial services hiring:

• Hiring Goal Attainment Fell Short
• Top Previous Change: Recruitment Team Turnover
• Layoffs Hit Financial Services
• Top Expected Challenge: Limiting Hiring Technology
• Competitive or Uncompetitive Landscape? You Decide

Oh, and here’s an idea: with an eye on top producers, make a deal they can scarcely refuse, according to linkedin.com.

Ah huh; now you’re listening. With both ears.With younger advisors turning up the heat on their demands, the importance of an up to date technology stack in order to lure potential talent is hardly lost on firms.

“Good technology is a game changer and committing to the tech of the future will be very attractive to those being recruited,” said Jim Frawley, CEO and founder of Bellwether.

In an article for SmartAsset, Rebecca Lake CEFP shares some tips on successful retirement planning for financial advisors. While advisors spend so much time and thought into their clients’ financial goals, they don’t do the same for themselves especially given the complications of succession planning. Additionally, advisors can maximize the value of their practice by taking some proactive steps.

The first step is to figure out your ideal outcome and then create a plan to achieve the goal. The earlier that you can start taking steps towards this goal, the higher your chances of success. This could mean thinking of how to transition the business whether that means selling to employees, the highest bidder, or passing the business on to your heirs, and how it will impact clients and employees.

The second step is to figure out the value of your business and to consider getting a professional appraisal. This will help you make better decisions so that you can ensure a successful transition. 

Finally, advisors have to consider their own personal financial situation that is independent of their business to ensure a comfortable retirement. This includes all the major components of planning such as retirement contributions, insurance, life insurance for family, budgeting during retirement, etc.

Finsum: Many advisors don’t spend enough time on their own retirement and succession planning. However, this is an increasingly important issue given the aging of the wealth management industry.