Tag Archives: uma

Around the RIA Web with Adhesion, April 2016

A few great reads from the month of April, highlighting some of the key conversations we’re having with advisors. Growth, technology, investment design, outsourcing, recruiting, compliance…all are key discussion points for RIA firms and we share the following for your own discussions:

Tim Harford on the compromise effect and the paradox of choice, relevant for how advisors choose investments and their clients choose an advisor.

Michael Kitces uses the context of diet and exercise to show how advisors can use small financial planning goals to help clients on a successful long-term journey. More excellence from Michael on the evolving skill set of the modern advisor.

Ben Carlson on building failure into your process, so important in developing robust investment plans. This pairs well with his post on the dual mandate of an investment advisor, that the best plan for a client is one that survives the real world.

Tom Brakke states well the obvious flaw in starting manager research with a performance screen, and Corey Hoffstein shares the additional problems with using 3 years as a lookback period. The team at GestaltU covers the perils of past performance quite well in this excerpt from its new book.

A great advisor views his/her role as one of deep relationships, personal advice, and ongoing coaching through the journey. Awesomeness from Josh Brown on The Job Security of a Great Advisor.

Our advisor clients tend to embrace the flexibility of an open-architecture platform, again demonstrated in our approach to “robo”.  Some providers have chosen a more bundled approach to advisor solutions, later requiring a messy divorce in trying to replace any specific component.

Are you marketing to a niche market, or truly serving one? Julie Littlechild neatly explains the difference.

When it comes to data, more is not always better. As Tadas Viskanta explains, comparing different eras is hard and in investing can be downright dangerous.

Josh Brown on how bad active management is being taking to task. Jake at EconomPic shows when good active management can be worth the cost. Patrick O’Shaughnessy rounds out this topic with a wonderful illustration of the difference between seeking alpha and seeking assets.

Speaking of expensive active management, ThinkAdvisor reports that the SEC is prepping a 2016 initiative on 12b-1 fees, a hidden cost of mutual funds that gets disclosed but rarely discussed.

One trend sure to continue with the new regulations is mergers and acquisitions of RIA firms. Investment News summarizes this trend, and shares good ideas on items to consider in any potential arrangements.

Speaking of new regulations, some solid advice from Russell Investments on creating, documenting, and reviewing best practices for healthy client relationships.

The consummate guide to the DOL ruling from Michael Kitces, incredibly thoughtful and no stone unturned.

JP Morgan puts out a wonderful Guide to the Markets every spring, with all kinds of fun and informative graphics.

Adhesion continues to work behind the scenes in helping advisors grow, with new options allowing the integration of Outsourced CIO implementation via Mercer and robo technology via Riskalyze. We welcome your feedback at solutions@adhesionwealth.com, and encourage you to subscribe on the upper right of this page to receive our regular blog updates.

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Crafting Solutions at TDA National LINC

Growth was a big topic at the recent TDA National LINC conference, and Adhesion was central to the discussion on many fronts. First, our recent entrance into the TD Ameritrade Unified Managed Account Exchange (UMAX) generated much discussion about the value of leveraging a specialist to implement a firm’s investment approach. While some firms use Adhesion as a delivery vehicle for internally built strategies, others see additional value in outsourcing the design of the firm’s asset allocation blueprint.

Significant buzz also came from the announcement that Adhesion is partnering with Riskalyze and TDA to deliver the industry’s first open-architecture digital advice platform built solely for advisors. While much of the “robo” discussion has centered on adding an outside vendor with limited choice, the Adhesion/Riskalyze combo is designed to blend in seamlessly with an advisor’s existing practice. It is a true business solution, helping advisors meet the needs of web savvy prospects and preparing the firm to serve the next generation members of existing client families.

While there was significant focus on growth and robos, there was also time to sample some truly unique craft bourbon. The Adhesion booth was quite popular the first two evenings with tasters – ranging from bourbon novices through the very experienced. All enjoyed the selection offered.

Bourbon Tasting_Bartenders  Busy @TDA (002)

For a more complete roundup of LINC – inspired reactions, here are a few stories published since the conference:

RIABiz on the threats and opportunities for advisors

Investment News on TD Ameritrade’s open-architecture approach to technology

Wealth Management on the Adhesion/Riskalyze offering

Financial Advisor IQ on integrating a solution for small accounts

 

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TD Ameritrade Institutional UMAX powered by Adhesion

On the heels of an announcement to help advisors strengthen their investment offering, Adhesion is very pleased to have partnered with TD Ameritrade Institutional for their Unified Managed Account Exchange (UMAX) offering to advisors. UMAX powered by Adhesion makes Adhesion’s industry-leading, personalized UMA platform easily accessible to all advisors working with TD Ameritrade Institutional. We invite you to read more details about the offering in this summary.

 

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Embracing Flexibility

Today’s Unified Managed Account (UMA) offers the masses an affordable mechanism for achieving portfolio diversification with management expertise – formerly achievable only with mutual funds – with the flexibility, control, and tax efficiency traditionally associated with SMAs.

CNBC has a new article on its site, and it does a good job highlighting key benefits of managed accounts. These are the same benefits sought by the advisors we speak with every day, including:

  1. Personalization
  2. Transparency
  3. Tax-efficiency

With today’s UMA, managed accounts are available to the masses, no longer simply an elite product for wealthy individuals and institutions. Leveraging Adhesion’s UMA platform, advisors deliver sophisticated investment services across all segments of the client base with the following benefits:

  1. Hefty account minimums are no longer an obstacle
  2. Expensive and tax-inefficient mutual funds are no longer the only vehicle for employing professional managers
  3. Low-cost, passive products are easily blended with active and/or tactical management in a single account
  4. Client-specific customizations or restrictions can now be efficiently accomodated

By partnering with Adhesion, RIA firms can not only shed back-office functions but actually win new business through differentiated investment delivery. We invite you to learn more about how the right UMA provider can help you grow a more sustainable practice.  To read the CNBC article in its entirety, click here.

 

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