Displaying items by tag: wealth management

Wednesday, 12 October 2022 03:11

Advisors and Clients Not Sold on Direct Indexing Yet

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.

Published in Wealth Management
Sunday, 09 October 2022 03:26

Kestra Joins the Model Portfolio Game

Kestra Investment Management recently announced the launch of its first two model portfolios series. The portfolios, which are exclusively designed for financial professionals associated with Kestra, are structured to maximize opportunities for clients, by providing options based on a client’s risk preference, desire for growth, and tax sensitivity. Both portfolio series have tax-aware versions, are low-cost, and flexible to fit a wide range of client needs. The Strategic Series has a long-term focus with multiple risk profiles. It is designed to be an efficient, streamlined solution with low turnover while still maintaining exposure to potential economic growth. The Dynamic Series is more active and has a higher level of trading activity for investors looking to benefit from changes in economic and market trends. The Kestra Investment Management team will manage the model portfolios. The team will analyze potential investments, use a rigorous due diligence process to select the best-suited funds, monitor portfolio allocations to opportunistically make changes, and regularly rebalance those allocations to keep each portfolio model aligned with its goals.


Finsum: Kestra launched two model portfolio series, one with low turnover and another with a higher level of trading.

Published in Wealth Management
Monday, 05 September 2022 11:57

RBC Lands $560 Million Merrill Lynch Team

RBC Wealth Management’s aggressive recruiting has landed another team. The firm was able to lure Coatoam Wealth Management Group, a $560 million team, away from Merrill Lynch. The team, which is led by Managing Director Brian Coatoam, is joining RBC in their new office in Winter Park, FL. Coatoam has been in the industry for 24 years. He got his start with Advantage Trading Group and worked for Morgan Stanley before joining Merrill Lynch. He leads a six-person team, which includes two Certified Financial Planners, Derek Grimm, and Ryan Plank. RBC, like many firms, is pushing expansion in Florida as the state lures more wealthy investors due to a lack of income and capital gains taxes. RBC had previously announced a father-son advisor team joining its office in Palm Gardens and in January the firm recruited a $1 billion Florida team from Truist.


Finsum:With more wealthy investors moving to Florida, RBC continues its aggressive expansion in the state by recruiting a $560 million Merrill Lynch team.

Published in Wealth Management

Direct indexing will now become available to teens and young adults after the gig economy platform PettyGigs and financial API Atomic announced a partnership. PettyGigs is a two-sided platform that connects young adults with local businesses and busy professionals. Teens can perform small tasks to earn money in their free time. Atomic provides fintech companies the ability to integrate wealth management and trading into their products. This includes capabilities such as conscious investing, direct indexing, and tax-loss harvesting. Through the new partnership, users of PettyGigs, also known as "Giggers," can allocate their earnings from each Gig into a fully diversified curated portfolio with benefits including direct indexing, tax-loss harvesting, and ESG investing. The portfolio has no account minimums. The partnership will also introduce socially responsible investing to young investors.


Finsum:A recently announced partnership between Atomic and PettyGigs makes direct indexing and ESG investing available to teens and young adults.

Published in Wealth Management
Friday, 15 April 2022 12:00

Huge Diversity Push in Advisor Recruiting

Firms have quickly ramped up the incentives to recruit and retain financial advisor talent, but those efforts are even stronger for women and minority groups. Merrill Lynch chair of Diversity and Inclusion said the “war for talent is alive and well” and they are trying hard to hire women and people of color in their ranks. No firm is outright saying they are paying women more money in advisor roles, rumors are trickling out that women are seeing higher salaries in order to be attractive to firms. There has been a huge increase in press events and speeches pairing ‘women’ and ‘wealth management’ from major brokerages. UBS, Edward Jones, and Merril Lynch have set high bars for their target percentage of their advisors are women or people of color.


FinsumWomen are an extremely valuable part of financial firms and efforts to attract and retain them will only intensify. 

Published in Wealth Management
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