ThinkAdvisor

The Big Profit Squeeze All Advisors Face

As the industry looks ahead to 2017, many executives are concerned about profit margins. The cost of complying with new Department of Labor regulations adds to the inexorable upward march of costs, while new competition from digital advisors (yes, we’re talking about robos) has advisors and service providers worried about fees. Costs up, revenues static or down — it’s your classic margin squeeze, which causes small firms to suffer and medium to large firms to band together in search of scale.

 

Read full article:
The Big Profit Squeeze All Advisors Face
By Matt Lynch, Managing Partner, Strategy & Resources, LLC., November 21, 2016

 

Investment Advisor -December 2016 Issue

Investment Advisor cover story
December 2016 Issue

 

 

5 Trends That Matter to RIAs That Want to Grow

Consumer preferences, competitive threats, and compliance and regulatory noise are the driving forces in advisors’ evolving futures.

Investment Advisor article Nov 2015 (Illustration: Gary Neill)

These trends are changing the way advisors serve their clients and build their businesses. (Illustration: Gary Neill)

What can you do? Start by lifting your sights from the day-to-day stresses and think about the major trends affecting our industry — and your long-term strategy. That always helps put distractions in the appropriate context. Right now, I count five trends important enough to require that you think proactively about how you are going to deal with them.

WHAT’S DRIVING THE TRENDS?

It’s important to know what the trends are, and it’s important to know what’s driving them: Consumer preferences, competitive threats, compliance and regulatory noise or some combination of these “Three C’s.” Then you can decide, if you’re an advisor or part of a firm that serves them, whether it’s just a passing fad, a trend you can beat or a systemic change you can’t ignore.

 

Read full article:
5 Trends That Matter to RIAs That Want to Grow
By Matt Lynch, Managing Partner, Strategy & Resources LLC.
ThinkAdvisor.com, Nov 2, 2015
Originally published in Investment Advisor, November 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.

 

Read full article:
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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Should Advisors Change How They Charge?

There are several models advisors can use to charge for their services, and all come with a significant amount of debate over which is best.

“A lot of businesses confuse their regulatory model — RIA, broker-dealer, etc. — with what they actually do,” [Matt] Lynch observed. If you allow this regulatory label to determine how you get paid, it may lead to a “fundamental disconnect” with your value proposition.

 

Read full article:
Should Advisors Change How They Charge?
By Sherry Christie, from the September issue of INVESTMENT ADVISOR, August 31, 2015

 

 

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Morningstar 2015: How Vendors Can Best Serve Advisors

Matt Lynch of Strategy and Resources LLC knows advisors of all kinds well, but when asked if those companies that partner with advisors are doing a good job, he responds by saying “there are great tools available, but are they close enough to the advisor to know how to create leverage” for those advisors with whom they want to partner?

In this video interview from the exhibit floor of the 2015 Morningstar Investment Conference, Lynch concludes that there may well be “at least one too many intermediaries in the supply chain.”

 

Screen Shot of video interview

View Video:
Morningstar: Matt Lynch on How Vendors Can Best Serve Advisors
By James J. Green, Group Editorial Director, Investment Advisor Group
ThinkAdvisor, August 11, 2015

 

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