FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
7 Things Advisors Need To Do To Poach Clients (WealthManagement.com)
Wealthy clients are willing to change advisors, but only if they can find someone significantly better than their existing advisors, according to Stephen Boswell and Kevin Nichols at WealthManagement.com. For advisors to “take away clients from other advisors” and “thrive” in times of crisis, they need to do seven key things.
1. Get more face-to-face time with potential and existing clients. 2. Place themselves in situations where their “conversation can serve as a segue into offering a second opinion.” 3. Know their message in advance. 4. Be assertive. 5. Meet with CPAs and attorney and warn them about red flags they should be watching for. 6. Maintain a work-life balance 7. Maintain a social and business relationship with a client or prospective client.
When it comes to separating yourself from the herd, it’s the little things that count, writes Karen Demasters in FA Mag. Mark Kemp of Pennsylvania-based Kemp & Associates Retirement Services, tells Demasters things like taking child protection riders off the insurance, if the client has adult children; or making sure insurance policies have been updated to reflect beneficiaries, make all the difference.
BlackRock thinks emerging market stocks still look cheap — considering their potential for growth and improved corporate profits — especially when compared with U.S. stocks. “Despite the recent emerging market stock rebound, EM equities were still trading at a 36% discount to U.S. stocks, and below their three-year average valuation, as of October 10, 2013, as measured by price-to-book ratios.”
Morgan Stanley Duo Switches To Raymond James (Investment News)
Richard B. Swift and Jeff A. Dakin that managed nearly $US1 billion for clients at Morgan Stanley have jumped to Raymond James. The pair joined Raymond James’ brooder-dealer business. They earned $US1.2 million in annual fees and commissions.
When asked if it makes sense to own individual bonds over bond funds Howard Marks, CEO of , said “probably, because the bond fund never pays off.”
“On the other hand, it is very hard for individuals to make those choices. It is very hard to know enough about enough bonds to have an intelligently diversified portfolio. We have approximately 140 names in our portfolios; that is a lot safer than going out and buying 10. The people picking those 140 bonds are experts, and that is a lot safer than some novice buying the 10. If you combine the lack of diversification in individually bought bonds with the lack of expertise, then you really get in trouble if you try it yourself. An emphasis on investing in a diversified portfolio has always been at the heart of prudent investing in high bonds.”
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