To provide our clients with high quality tailored consulting and research, we need to know the financial services industry and our clients. To build lasting and profitable relationships, we dedicate ourselves to staying not just current on, but ahead of industry trends. This blog is intended to share our industry insights and, at the same time, to capture feedback from our readers.
In an op-ed published in the Wall Street Journal on Monday evening, U.S. Secretary of Labor Alexander Acosta confirmed that the agency’s fiduciary rule will begin taking effect on June 9.
Acosta wrote that careful review has found “no principled legal basis to change the June 9 date, “and that “respect for the rule of law leads us to the conclusion that this date cannot be postponed.”
The announcement represents a victory for supporters of the rule, which requires financial advisers to act in the best interests of their clients in retirement accounts. The rule’s implementation was delayed for 60 days, from April 10 until June 9, while the DOL reassessed the regulation in response to a directive from President Trump. The Department has adopted a phased implementation approach, with final implementation of the Rule on Jan. 1, 2018.
A lengthy Q and A... [read more]
Most of the industry recognizes that we are at a pivotal moment. But how many of us truly appreciate the seismic nature of the shift?
I believe that the industry will change more in the next ten years than it has in the last thirty, and that only half of existing asset managers and broker dealers will survive the next five to ten years.
Here are the 4 megashifts in the market that every executive has to tackle. This is a wake-up call to all executives who believe that incremental changes are sufficient to position your organizations for the future.1. Artificial Intelligence
Machine learning, natural language processing, and advance analytics will move the needle on technology that can replicate human interactions. AI is already part of our consumer experience in the form of machine-generated content and recommendations. It will also become an integral part... [read more]
Management fee compression is a big concern for most asset management firms – and with good reason. As we outlined in our recent white paper, Capitalizing on Disruption: Transforming Asset Managers for 2020, regulatory initiatives, the growth of passive products, and the increase of fee-based advisory business are all exerting downward pressure on mutual fund fees. In addition, broker-dealer consolidation and cuts to distributor product line-ups are creating increasing competition for shelf space. Indeed, amongst US equity mutual funds, only the lowest fee decile garnered positive net flows over the course of 2016, with all other deciles experiencing net outflows.
US Equity Mutual Funds: Net Flows ($B) by Management Fee Decile
(1 = lowest fee, 10 = highest fee)
Unsurprisingly, funds... [read more]
( 212 ) 349 - 7412