Vanguard Says System Helps Advisors Add Value
Financial advisors can add up to 3% in net returns for their clients by using Vanguard Advisor’s Alpha, the firm’s wealth management framework that focuses on portfolio construction, behavioral coaching and other relationship-oriented services.
The investment management firm says an advisor can add net returns based on their approach to the following five wealth management principles:
• Being an effective behavioral coach. Helping clients maintain a long-term perspective and disciplined approach can add up to 1.50%.
• Applying an asset location strategy. The allocation of assets between taxable and tax-advantaged accounts can add up to 0.75%.
• Employing cost-effective investments. This critical component is based on simple math: gross return, less costs, equals net return. Can add up to 0.45%.
• Maintaining the proper allocation through rebalancing. Ensuring the portfolio’s risk/return characteristics stay consistent with a client’s preferences can add up to 0.35%.
• Implementing a spending strategy. As the retiree population grows, helping clients make important decisions about how to spend from their portfolios can add up to 0.70%.
“As the industry continues to evolve from a commission-based to a fee-based model, advisors who successfully explain their value have more time to serve clients, leading to increased client satisfaction and retention,” said Francis Kinniry Jr., a principal in Vanguard’s Investment Strategy Group.
Catalyst Launches Macro Strategy Fund
Huntington, N.Y.-based Catalyst Fund’s new Macro Strategy Fund (MCXAX) will make investments in a variety of asset classes with the goal of capital appreciation to achieve positive returns in all market conditions.
MCXAX’s investments will focus mainly on the global equity markets. MCXAX will invest in other asset classes primarily to manage risk and hedge exposure to the equities market. The fund will also focus on companies involved in corporate events, including spin-offs, share buybacks and corporate insider trading activity.
TisBest Creates Charitable Gift Cards
The nonprofit organization TisBest Philanthropy has created a gift card that allows the recipient to donate the card’s balance to up to three charities of his or her choice.
The Shoreline, Wash.-based organization says examples of the cards’ uses include financial advisor client gifts and employee recognition awards. The cards can also be used at trade show conferences, says the firm. Its ExpoGiving card enables an exhibiting company to make a single charitable donation and invite booth visitors to select the recipients. The cards are customizable and can include a firm’s branding and messaging.
Calvert Launches MorRE World Strategy
Calvert Investments has introduced its newest sustainable and responsible investment strategy, the Calvert-Osmosis MoRE (Model of Resource Efficiency) World Strategy.
Developed with United Kingdom-based Osmosis Investment Management, the investment process analyzes energy consumption, water usage and waste across a universe of global large-cap peer companies.
“We believe we have found an objective way to demonstrate that a company’s ability to create greater value from resource inputs correlates to that company’s ability to generate better shareholder returns,” said Saad Rashid, investment director of Osmosis Investment Management.
First Allied Expands Female Advisor Mentoring Program
Launched as part of the firm’s Women’s Impact Network (WIN) initiative, the program’s objectives include helping younger female advisors benefit from an instructive one-to-one professional relationship with experienced female advisors at the firm.
In addition to the mentoring program, WIN provides a series of events and resources geared to further the careers of female advisors. The program delivers networking opportunities, educational workshops, peer-led business growth sessions, seminars and research, as well as “Advisor Spotlights”—a quarterly publication that features specific examples of advisors’ successful practices in working with female clients.
Fidelity Offers Retirement Plan Business Analysis
Fidelity’s Retirement Plan Growth Strategies takes RIAs through a three-step process to help determine if growing their retirement plan business is right for their firm.
First, the program offers a personalized approach to help advisors assess their level of interest in retirement plans and suggests resources to begin the development process.
Once the level of interest is determined, the program offers workshops and tools to develop a strategy to accelerate their retirement plan business.