Displaying items by tag: clients

CrowdStreet Advisors, the in-house investment manager for the real estate investing platform CrowdStreet, recently announced plans to accelerate the development of private commercial real estate solutions for financial advisors. CrowdStreet Advisors provides access to private commercial real estate investments that had previously only been available to institutional investors. As of September 30th, the firm had $431 million in assets under management across separately managed accounts and more than 25 private funds. CrowdStreet REIT I (C-REIT), the firm's flagship fund, was recently launched and offers financial advisors a low-cost entry point for clients interested in private commercial real estate projects focused on growth and capital appreciation. C-REIT, which has so far raised $37 million, is available on custody platforms such as Fidelity, Schwab, Pershing, TD Ameritrade, and 17 self-directed IRA custodians. The accelerated expansion of these solutions is due to an increased need for client portfolio diversification and inflation protection.

Finsum: Due to increased demand for portfolio diversification, CrowdStreet Advisors is accelerating the development of private real estate solutions for financial advisors and their clients.

NDVR, a Wealth Optimization firm, recently unveiled NDVR Unified Equity, an actively managed personalized indexing strategy. NDVR, which was created by a team of Quant Ph. D.s and technology innovators, offers a proprietary investing platform for high net worth investors that features personalized direct indexing and active factors such as Extended Market, Low Volatility, Momentum, Quality and Value, tax-loss harvesting, and Socially Responsible Investing. The Unified Equity strategy will target traditional alpha, tax alpha, and fee alpha through direct ownership of U.S. equities and is designed to deliver more aligned portfolios with greater efficiency than index funds and separately managed accounts. The strategy starts with a universe of 1,500 large-, mid-, and liquid small-cap stocks traded on U.S. markets. Investors can then create a portfolio using goals, requirements, and investing preferences in the NDVR Portfolio Lab. The NDVR Optimization Engine analyzes that plan and builds a custom portfolio that is optimized to deliver the growth and secured spending that was targeted by the investor.

Finsum: As direct indexing continues to proliferate, wealth optimization firm NDVR unveiled an active personalized direct indexing strategy that high net worth investors can customize through their platform

According to a new report from Cerulli Associates, more advisors will be adopting the use of model portfolios to better serve their clients and free up time to develop their businesses. In the latest Cerulli Edge—U.S. Advisor Edition, 4Q 2022 Issue, the firm noted that the industry’s steady transition toward a financial planning-oriented service model will be a major fact in the increased adoption of model portfolios. Cerulli expects advisors to increase planning offerings over the next year, with 82% of advisor clients receiving targeted or comprehensive financial planning services by 2023. The report also noted that insourcers, or those who either customize portfolios on a client-by-client basis or use practice-level resources to build a series of custom models, spend 18.5% (practice models) and 29.5% (customizer) of their time focused on investment management. If those advisors use model portfolios, it will allow them to reduce their time commitment to less than 10%. The report also notes that advisors that outsource their portfolio construction have clients, on average, that are roughly half the size of those that insource their portfolio construction. Cerulli also found a correlation between model users and younger and smaller advisory practices.

Finsum: A recent Cerulli report predicts an increase in demand for model portfolio outsourcing as the industry transitions to a financial planning service model.

While direct index may be a hot industry topic, not all advisors are buying in. In fact, most clients don’t even know what direct indexing is. Based on comments from a panel of advisors and tech executives at the WealthManagement.com Industry Awards earlier this month, clients aren’t asking for direct indexing and most have never heard of the term. While financial giants such as Goldman Sachs, Fidelity, Vanguard, Pershing, Schwab, and Franklin Templeton are acquiring firms and building out direct index offerings, the strategy has not made its way into client and advisor discussions. Megan Meade, CEO of The Pacific Financial Group told WealthManagement.com, “They’re just not that sophisticated of investors. They don’t have the assets for that. Nor do they need that level of tax efficiency.” Adding to the uncertainty are tech executives who are also unsure about the current value of direct indexing. J. Helen Yang, founder and CEO of Andes Wealth Technologies told the publication, “I am very skeptical about direct indexing as a way to offer personalization.”

Finsum: A recent panel of advisors and tech executives revealed that many haven’t bought into direct indexing yet, while most clients don’t even know what it is.

You can, um, bank on it; as sure as taxes and a Nolan Ryan fastball – at least back in the day – for a panacea of reasons, financial advisors regularly switch firms, according to visionretirement.com.

You know; as in now you see ‘em, now, well, not exactly. Good. You get it. Let’s face it: maybe they receive more cash or chances to move their careers forward elsewhere. Whatever the case. you name it, and a bolt of lightning later, they’re out like the wind.

Of course, like many other professions, exactly when they decide to cut the cord isn’t necessarily based on when, according to financial-planning.com. There’s no idyllic time.

Naturally, it helps to have a robust relationship with clients. That way, an advisor can move on to greener pastures no matter how the market’s performing. Maybe he or she wants to upgrade their technology and a broader menu of products. On the other hand, perhaps they’re intent on leveraging on the expansion of their practice or set themselves up to call it a career.

Meantime, clients might be caught off guard when their advisors pull up stakes, noted visionretirement.com. But, hey, there’s always this: a client can maintain a relationship with an advisor or nip it in the old bud or sniff out other options.  Call it an Amazon shopping spree. Or not!