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How to Avoid Chasing Squirrels With Technology

“When I walk into one these conferences, especially the exhibit halls… I find it overwhelming,” said Matt Lynch, the managing partner of Strategy & Resources. Although new technology can help a firm improve its operational efficiency, Lynch said it always leads to at least some buyer’s remorse.

“More often than not it’s a disruption to the business, at least in the [short] term,” Lynch said, adding that its not the tool’s fault, but the process of implementing change. “It disrupts the ongoing growth; creates friction among teams of employees and managers and senior folks in the firm.”

Lynch said he has data showing that despite an increased spending on technology, there isn’t much improvement in terms of margins. And this can devastate a smaller firm making a large investment in a new tech product.

 

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How to Avoid Chasing Squirrels With Technology
By Ryan W. Neal, Weathmanagement.com, Feb. 10, 2016

 

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The Pressure is Mounting for IBDs

What value will independent broker/dealers be able to offer their advisors in a post-Department of Labor fiduciary world?

Even without the regulatory changes, market realities such as different and increasing advisor and consumer expectations, as well as advancing technology—have forced IBDs to up their game, said Matt Lynch, managing partner of Strategy & Resources LLC.

“IBDs that simply maintain accounts, provide compliance, process trades, etc., are not adding sufficient value and are feeling the squeeze of margin compression more acutely,” Lynch said. For most IBDs, over 50 percent of their business is already fee-based, so that change has already been factored in to most successful IBD business models.

IBDs who are best positioned to weather the storm are those that can demonstrate they help advisors achieve their goals (profitably growing their practices), Lynch said.  “Those whose affiliation proposition is limited to fulfilling the regulatory requirement that a rep has to be registered with a broker-dealer…are likely facing extinction,” he added.

 

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The Pressure is Mounting for IBDs
By Megan Leonhardt, Weathmanagement.com, Jan. 28, 2016

 

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The Trouble With The (Multi)Millionaire Next Door

Moving into the high-net-worth space is not the easiest way for a mass-affluent advisor to grow.  

The HNW client brings a need for much more attention to each individual case, and some mass affluent advisors can crash up against the limits of their own knowledge and capabilities, according to industry consultant Matt Lynch of Strategy & Resources.

“The idea that you can go out and buy it, and spread it among an existing group of advisors who are not familiar with that client base—I don’t see that working very well for firms that have attempted it,” Lynch says.

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The Trouble With The (Multi)Millionaire Next Door
By Megan Leonhardt, Weathmanagement.com, Dec. 25, 2015

 

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Advisers can demonstrate value proposition with downside protection to calm investors’ volatility fears

Risk-protection strategies are proving to be popular for advisers to recommend to their skittish clients, but haven’t gained traction among the majority of robos.

A survey of independent financial services firms’ chief executives conducted by the Financial Services Institute in conjunction with Strategy & Resources, an independent consulting firm for advisers, found that on a scale of one to 10, goals-based investing was ranked 7.5 and downside-protection strategies scored 7.3.

“It all comes from the market,” said Matt Lynch, a managing partner at Strategy & Resources. “They want to manage their portfolios in such a way to mitigate risk.”

 

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Advisers can demonstrate value proposition with downside protection to calm investors’ volatility fears
By Alessandra Malito, Investment News, Sept. 8, 2015

 

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Regulation a Bigger Threat to Advisors’ Business Than Market Crash: FSI Survey

Half of CEOs of FSI member firms say ‘regulatory interference’ is a significant business risk vs. 28% who say ‘significant market decline.’

 

According to Matt Lynch, managing partner of Strategy & Resources LLC, the survey found there was significant interest in downside protection strategies among advisors who serve the emerging affluent client segment.

“More broadly, we observe increased interest in liquid alternatives coming down market where advisors working with mass affluent and middle-market clients are seeking solutions for this asset class,” Lynch said in a statement.

 

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Regulation a Bigger Threat to Advisors’ Business Than Market Crash: FSI Survey
By Emily Zulz, ThinkAdvisor Staff Reporter, Sept. 7, 2015

 

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