ADVISOR CONNECT Financial Insights and Growth Strategies | Spring 2019
Help Millennial Advisors Cope With Volatility pg. 20
Goal-Based Strategies for Your Unique Clients, pg. 10 Candid Conversation With Will Clifton, pg. 16 2019 APEX Conference Honorees, pg. 30
Shaping a Culture for Next-Gen Advisors Retain Younger Advisors and Attract Similar Investors The APEX conference was held in March at Universal Orlando. More than 240 attendees nationwide participated in three days of business development activities designed around achieving practice excellence. This annual forum fosters the like-minded community of advisors, sales assistants, and branch managers sharing challenges and opportunities for future success.
Chris Flint President & CEO
Several award winners were honored at the conference for their outstanding performance, including Todd Hamlin, Chad Hatter, Danica Ansardi, Will Clifton, and Security Financial Management — read more on page 30. I hope you join us for the 2020 APEX conference in Dallas, February 24-26. APEX conference attendees heard about several projects aimed at strengthening your experience and the service you extend to your clients. A few initiatives are also described in this issue, including: •
Hiring Business Development VP Tammy Robbins to support practice expansion and create opportunities for younger advisors to partner with experienced practice leaders (page 24);
•
Partnering with CellTrust for enhanced client communication via texting to meet investors where they are (page 26); and,
•
Personalizing advisory tools that enable data-driven decisions to optimize your practice (page 4).
We recognize the industry demand for new talent in order to capture a portion of the $30 trillion in assets that will be transferred to the next generation. In addition to the initiatives outlined above, foundational work is underway to digitize account processing through Docupace with a pilot go-live in July and staged rollout for the remainder of the year. In the meantime, use this publication to stay informed about what’s happening at ProEquities and the actions we’re taking to support your future success.
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Contents Goal-Based Strategies for Your Unique Clients
Help Millennial Advisors Cope With Volatility
pg. 10
pg. 20
pg. 16
pg. 30
Candid Conversation With Will Clifton
2019 APEX Conference Honorees
WEALTH MANAGEMENT
Advisory Resources to Power Your Practice Portfolio Management Support Advisors Should Expect CLIENT ACQUISITION
Want More Millennial Investors? 5 Ways to Speak Their Language PRACTICE MANAGEMENT
3 Healthy Habits to Increase Your Business Value New Business Development VP Supports Practice Expansion
4 8 14 22 24
RESOURCES AND SUPPORT
CellTrust Partnership Enhances Client Communication 26 Save the Date: 2020 Conferences 32 ProEquities Fast Facts 35 Welcome New Advisors 36 P
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Advisory Resources to Power Your Practice by Daniel Jones, CFP®, CRPC® Our advisory lineup delivers the tools to help your clients build a strong financial foundation. Whether you’re a seasoned fee-based advisor or you’re looking to transition your existing book of business, we deliver the compliance, marketing, and operational support you need to power your advisory practice. build custom portfolios based on client and business needs.
A suite of resources is available to support your advisory business and create efficiencies on ProEquities AMPSM — a fee-based platform that enables you to operate an effective wealth management firm. Download the AMP overview to learn more about this fully integrated technology.
DUE DILIGENCE IDENTIFIES LEADING ASSET MANAGERS
The ProEquities Due Diligence Committee continuously reviews our slate of managers to provide access to some of the best institutional and boutique money managers. Screens are conducted several times throughout the year, based on For Advisor Use Only
performance, risk, turnover, holdings, etc. Reference guides with the status of available managers and funds are posted to Advisor Portal > Advisory, Planning & Product > Advisory. Best Interest Lists As an advisor managing assets, there are best interest lists for mutual funds and ETFs organized by fund family and asset class. While due diligence on advisor-managed accounts remains the advisor’s responsibility, these lists are meant to enhance and support your ongoing efforts. By referencing the best interest lists, in conjunction with our Strategic Asset Allocation framework, advisors can quickly
Strategist and SMA Status Guides For advisors who work with third-party managers (Advisor’s Choice SMA or Advisor’s Choice Strategist), reference guides are compiled to analyze the managers and funds on the AMP platform. Helpful information includes approval status, manager fees, and account minimums.
MEASURE YOUR BOOK OF BUSINESS
Knowing where you stack up gives you the ability to make data-driven decisions and identify growth opportunities. Two reports help you understand how to optimize your practice for long-term success: Personalized Dashboard Each quarter a custom report is delivered to advisors with assets on AMP, providing a breakdown of your advisory business, how that compares with your peers at ProEquities, and how advisors across the industry are practicing. A breakdown of JoinProEquities.com
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wealth management average client fees and industry trends is also included. View your Advisory Dashboard by accessing Advisor Portal > My Business Tools > ProEquities AMP Dashboard. Then open the file named Quarterly Advisory Dashboard Report. FundDiagnosticSM Tool New this year and exclusively for ProElite partners, this custom report helps advisors review mutual fund and ETF performance in their advisory accounts, including an analysis of Class C shares. AMP data is overlaid with our Due Diligence criteria to reveal funds with negative patterns and suggest similar funds that passed the screening process.
UPDATES AND ENHANCEMENTS
There are several User Guides to support efficient
workflows and enhanced software integrations. AMP Things to Know and How-To’s are included in the Weekly Digest newsletter, delivered to your inbox every Wednesday. Training Guides and communications are posted to Advisor Portal > Advisory, Planning & Product > Advisory Training > AMP Training.
By referencing the best interest lists, in conjunction with our Strategic Asset Allocation framework, advisors can quickly build custom portfolios based on client and business needs.
ADDED BENEFIT OF CONSULTING SERVICES
PESolutions has built a team of industry professionals to help you create optimal solutions for your clients. Work with these consultants for one-on-one investment strategy consultations, AMP training, and financial planning case development. For questions, email us at PESolutions@proequities.com.
Daniel Jones Platform Services Director 205.268.7011 or Daniel.Jones@proequities.com For Advisor Use Only
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IN-HOUSE CONSULTANTS FOR ADVISORY & PLANNING
PESolutions @proequities.com
Our dedicated PESolutions crew is your . . . • • • • •
Go-to investment research and due diligence team One-stop for advisory, planning, and product questions AMP geek squad Annuity consultants Retirement plan consultants
Email PESolutions@proequities.com, and we’ll match you with the right professional.
WHO WE ARE Designations Include: 12
CFAs, CIMAs, CPFAs, CRPCs, CFPs, MBAs
Subject Matter Experts Dedicated to Serving You
Advisory Resources — AMP Things to Know and How-To’s Best Interest Lists Personalized AMP Dashboard Portfolio Solutions Quarterly Spotlight Strategist and SMA Status and Quick Reference Guides Weekly Digest Newsletter
162 62
Combined Years of Industry Experience
Years Combined Spent Practicing as Financial Advisors
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Embrace Digital. Grow Your Practice. Investors today are actively engaged. They want to know more about their investing options and better understand their personal finances. They want control, transparency, and access. In this 24/7 information driven environment, advisors need to embrace digital solutions. They need to connect with investors on different levels and demonstrate that their advice is essential.
Leverage Envestnet’s Client Portal It’s a digital platform with configurable modules that aggregates personal finances with investment accounts, all white-labeled for the advisor.
A set of online tools gives end-investors greater insight and control to chart their expenses and income, monitor cash flow and determine net worth—all while providing a holistic view of their wealth.
And, a digital storefront allows end-investors to experience a personalized approach to investing and to open an account on their own.
Join the digital revolution. Learn more at envestnet.com/clientportal. ENVESTNET RESERVES THE RIGHT TO ADD TO, CHANGE OR ELIMINATE ANY OF ITS SERVICES WITHOUT PRIOR NOTICE. APPROVED FOR INVESTMENT PROFESSIONALS ONLY. IT IS NOT INTENDED FOR PRIVATE INVESTORS. © 2017 Envestnet, Inc. All rights reserved.
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Portfolio Management Support Advisors Should Expect From Broker-Dealers by Libet Anderson, CIMA® as seen on WealthManagement.com, March 2019 In this environment, advisors should expect superior technology, a nimble approach to portfolio construction support, and personalized service from broker-dealers.
Tech-driven portfolio management should make it easier for broker-dealers to share proprietary data with their advisors, which would potentially provide them a leg up as they work to best position clients during inevitable market fluctuations. As the fee-based model continues to gain prominence and portfolio construction becomes more of a focus, busy advisors need more assistance from their broker-dealers to adapt to the shifting business landscape. In this era of consolidation, it’s worth considering whether all firms are positioned to deliver this type of experience.
TECHNOLOGY
Scalable portfolio management technology is a must for advisors, who in many cases serve hundreds of clients. The best tech platforms facilitate For Advisor Use Only
better service, tracking whether portfolios remain consistent with a client’s financial plan or perhaps if they have drifted outside their risk tolerance. At the same time, they are also compliance friendly, alerting advisors when a client has made too many trades or, at the opposite end of the spectrum, a fee-based client hasn’t been active enough. Meanwhile, tech-driven portfolio management should also make it easier for broker-dealers to share proprietary data with their advisors, which would potentially provide them a leg JoinProEquities.com
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wealth management up as they work to best position clients during inevitable market fluctuations. Broker-dealers should also be able to plug customized information into these tools about trusted investment managers available on their platforms. That would simplify sometimes very complicated decisions, like which third-party solutions might be better for clients nearing retirement, as opposed to one better geared for investors who have a different time horizon.
PORTFOLIO STRATEGIES
Broker-dealers should strive to support a range of investment management models, whether it’s the traditional rep-as-PM approach, the use of model portfolios, or a combination of the two. They also should be able to work with advisors to develop Unified Managed Accounts, and even create and manage custom products based on the feedback from the field force. Undoubtedly, this will require firms to assemble dedicated teams that proactively work with advisors. To do this, it will require time and patience, since getting to know the ins and outs of an advisor’s business is not something that can happen overnight.
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Ideally, however, this dynamic would reach a point in which the firm’s consultants, using the knowledge they have both of an advisor’s business and the clients they serve, could easily answer a variety of strategic and performance-related questions about available third-party managers or products. That would include, for instance, having experts who can spot when a manager exhibits style drift or whose performance begins to falter, and then have a process in place to notify advisors that these things are happening and make the appropriate recommendations.
TOO BIG TO SERVE
expertise, because there are too many strategies or products. So, what many advisors do is make decisions based on Morningstar ratings or solely on past performance. In other instances, too many options could invite paralysis by analysis to set in, which, among other things, could allow portfolios to go unchanged that are in desperate need of adjustment.
RIGHT-SIZE FIRMS
Firms that are large enough to provide strong digital automation and investment manager oversight for advisors but are not too bloated to also offer expert, in-house support teams are the key to serving advisors in today’s environment.
Massive broker-dealers with thousands of advisors could find it impossible to offer that kind of personal touch, especially when many of them set lofty, albeit unofficial AUM requirements to determine who gets the best service. For those on the outside, they may be left to do much of the heavy lifting themselves, including everything from selecting the proper tech tools, conducting market research, and performing due diligence. Sometimes even when larger firms offer more hands-on support, it’s often lacking in
Libet Anderson Advisory & Planning Managing Director 205.268.7085 or Libet.Anderson@proequities.com JoinProEquities.com
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Goal-Based Strategies for Your Unique Clients by Chris Phillips, MBA, CFA® In addition to identifying leading asset managers and funds, the ProEquities Investment Committee provides a full range of internally managed Portfolio Solutions with active and passive strategies to meet various risk characteristics, time horizons, and investment objectives.
The newest additions to our actively managed portfolios prioritize income yield over risk categories.
CorETF and Select Opportunity Portfolios have been constructed as foundational pieces for your clients’ portfolios. Most of these models have long-term track records and well-defined investment philosophies, and several new ones were recently released.
INCOME FUNDS BALANCE QUALITY AND VOLATILITY
The newest additions to our actively managed portfolios prioritize income yield over risk categories. These strategies stand apart from their risk-based, asset allocated counterparts on ProEquities
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AMPSM and include a wide variety of actively managed bond and stock mutual funds. The new income portfolios range from conservative to moderate risk and are called: • Conservative Quality Income • Moderately Conservative Income • Moderate Equity Income Similar to their risk-based counterparts, the investment minimum is $10,000.
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wealth management IDEAL INVESTMENT SCENARIOS
The Investment Committee recommends using income strategies for clients who fit into one of the scenarios below. There are other opportunities to suggest these portfolios to your clients, but these illustrate the most common: Standalone – • for clients who need a broadly diversified income solution • don’t have a large enough portfolio to justify a multi-strategy SMA approach in a UMA format ($100,000 or less) • a single investment in any of the ProEquities income funds is focused on income yield Core Income Holding – • for clients who need a solid foundation for a larger, diversified retirement income solution • have enough assets to develop a diversified UMA strategy ($100,000 or more) • flexibility to add other income producing vehicles like closed-end funds, preferred securities, interval funds, and non-traded alternatives Satellite – • supportive diversifier in UMA portfolios not focused on income yield • use against other risk-based, strategic asset allocation strategies, balance equity-only strategies, or lower-correlated solutions • provides layers of risk-reducing benefits, serving as one strategy among many
LEVERAGE PESOLUTIONS FOR INVESTMENT ADVICE
The PESolutions team works closely with you to understand how to maximize wealth management for your clients. Our consultants lead you through a client discovery process to determine the best method for investing and help you recommend and implement personalized strategies that meet the individual needs of your clients. Share the Investor Guide: Portfolio Solutions with your clients to communicate the full range of internal strategies available. Reach out to the Investment Committee with questions at PESolutions@proequities.com.
Chris Phillips Advisory Investments Director 205.268.7040 or Chris.Phillips@proequities.com
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PROTECTIVE® INCOME BUILDER
Strong Guaranteed Lifetime Income at More Retirement Ages Select Retirement Age
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Guaranteed lifetime income when your clients are ready to retire. Many clients have a target age or retirement savings goal they want to reach before they retire. But these plans can quickly and unexpectedly change, often resulting in early retirement and a longer time horizon for income needs. 53% of retirees admitted they retired early — and not by choice — primarily due to healthcare issues or job loss.1 When retirement timing is uncertain, talk to clients about Protective® Income Builder Indexed Annuity with Guaranteed Income Benefit. It offers strong, guaranteed lifetime income clients can’t outlive, even when retiring earlier than planned.
Download a sample illustration at www.myprotective.com/incomebuilder. www.protective.com
PABD.1198770
(04.19)
For Financial Professional Use Only. Not for Use With Consumers.
Based on data from LIMRA Secure Retirement Institute, The Inner Workings of Retirement Timing, Consumer Behavior and Attitudes (2018). Protective® is a registered trademark of Protective Life Insurance Company (PLICO) and Income Builder is a trademark of Protective Life Insurance Company. All payments and guarantees are subject to the claims paying ability of Protective Life Insurance Company. Neither Protective Life Insurance Company nor its representatives offer legal or tax advice. Purchasers should consult with their legal or tax advisor regarding their individual situations before making any tax related decisions. Annuities are long-term insurance contracts intended for retirement planning. Protective Income Builder is a limited flexible premium deferred indexed annuity contract issued under contract form series FIA-P-2011 or FIA-P-2010. The Guaranteed Income Benefit is provided under form series FIA-P-6048. Protective Income Builder is issued by Protective Life Insurance Company located in Birmingham, AL. Contract form numbers, product availability and features may vary by state. Protective Income Builder is not an investment in any index, is not a security or stock market investment, does not participate in any stock or equity investment, and does not contain dividends. 1
start a conversation that will help her plan a lifetime of perfect sunday mornings. Lifetime CheckSM by Jackson® can help explain income planning using terms your clients already understand. Lifetime Check can come monthly, so your clients can have consistent income for the rest of their lives. It’s a straightforward way to show your clients how their accumulated assets can translate into steady income. Lifetime Check is just one of the ways Jackson is making retirement simpler to understand. Learn more about Lifetime Check at Jackson.com
Annuities are long-term, tax-deferred investments designed for retirement. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company® or Jackson National Life Insurance Company of New York® and do not apply to the investment performance of the separate account or its underlying investments. Annuities are issued by Jackson National Life Insurance Company (Home office: Lansing, Michigan) and in New York by Jackson Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC. These products have limitations and restrictions. Contact the Company for more information. Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.
Not FDIC/NCUA insured • May lose value • Not bank/CU guaranteed • Not a deposit • Not insured by any federal agency CNC21435 02/19
Want More Millennial Investors? 5 Ways to Speak Their Language contributed by Broadridge Advisor Solutions As more millennials progress in their careers, marry, consider taking on a mortgage, and prepare for their share of the looming $30 trillion wealth transfer, one thing is becoming clear: millennials still don’t understand much about investing.
According to a study published by Broadridge and The Center for Generational Kinetics, while retiring baby boomers showed a conventional preference for US equity investments, 66% of millennials opted for low-interest savings accounts over every other investment. But it’s no fault of their own. It’s because investment advice simply isn’t reaching them.
MISSING: INVESTMENT COMPOUNDING
Missing out on the compounding effect of stock market participation could seriously undermine an individual’s portfolio growth in the long term. If they are neither risk-averse nor risk-seeking, what are they? For Advisor Use Only
FIVE BEHAVIORS TO REACH NEXT-GEN INVESTORS: 1. Put your age and experience to work. Millennials tend to trust older, wiser experts. The study showed that millennials value the knowledge of parents, teachers, and, yes, experienced financial professionals.
70% of millennial investors prefer monthly or more frequent communications.
2. Get personal. Millennials respond best to financial advisors who focus on their personal circumstances and interests. This explains why a millennial could view a $10,000 investment in a friend’s restaurant as “safe” — and not as a highly speculative private equity deal.
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client acquisition
Advisors might consider hosting special estate planning events designed to encourage clients to bring their adult children.
3. Communicate often. From personal meetings to digital updates, the study showed that millennials like hearing from advisors more than other generations. In fact, 70% of millennial investors prefer monthly or more frequent communications. An email about the environment, social, and governance issues (ESG) behind an equity investment, for example, could be an effective door opener.
5. Delegate “Investing 101” to a digital partner. While advisors address life events, experiences, family, and friends, when does investment education kick in? Educational content modules review subjects like retirement, portfolio construction, asset allocation, and other relevant topics. Enormous strides have been made in the areas of automated social media and email marketing.
4. Partner with clients for a referral — to their millennial children. Fully 55% of millennials said they would consider using their parent’s advisor — but only 20% have ever met one. Advisors might consider hosting special estate planning events designed to encourage clients to bring their adult children.
As the study showed, millennials already outpace boomers four-to-three in workplace savings plans. Yet 70% don’t have a relationship with a financial advisor.
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Trusting and curious, millennials are hungry for information, understanding, and advice. By automating and personalizing communications to this cohort, financial advisors can tap into a new, emerging source of loyal, long-term relationships — one next-gen investor at a time.
Salvatore Sodano Vice Chairman Broadridge Advisor Solutions
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Candid Conversation With Will Clifton Starting his career as an independent financial advisor has created some obstacles, but this Rising Star Award honoree goes above and beyond to help his clients – even if it means serving as a two-person moving company. You’ve been with Protective Financial Services since 2017, starting as an independent financial advisor. What impacted your decision to be independent? How has PFS supported your training and development? I was at Georgia College in between my junior and senior year with absolutely no prospects for a job after I graduated. I went to Career Services and asked about internship opportunities, and they told me about the internship with PFS. Soon after that, I met Colin McCulley at a career fair; he had joined PFS in 2015 and knew the firm would be a good fit for me after graduation. There were 10 other students who interviewed for the internship position, and I felt blessed to be selected. I interned for a summer and was exposed to a lot, being attached at the hip to Todd Hamlin, learning everything I could about the financial planning business. For Advisor Use Only
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practice management Based on your Business Management and Finance degree from Georgia College and State University, is being a financial advisor what you expected? I had this idea that financial advisors sat behind a desk all day picking stocks for their clients, but it’s much more about relationships with people and finding ways to help them. I have a story about my adopted grandmother that immediately comes to mind. There was an elderly couple in their early 80s who came into the PFS office, and they were both very frail. Her husband’s kidneys eventually sent him to the ICU one day, and she was unable to function at their two-story house by herself. So after researching assisted living facilities and finding the right one for her, Todd and I went to her house, packed up everything, and moved her to the care facility. Her husband has since passed away, and she’s now looking to move closer to family in Florida.
Accepting the Rising Star Award at 2019 APEX.
For example, one of our clients called the office to take out money for a river cruise, and our support staff recorded that in Redtail. Before our next client meeting, we reviewed all the notes for his account in Redtail and asked about the cruise. He was pleasantly surprised we even knew about his trip and started telling us stories about it. Redtail helps keep everyone on the same page, so we can serve our clients the best way we can.
As an advisor building your practice, what are My a-ha moment was Todd saying, “If we didn’t the top challenges you face on a daily basis? help her, no one would.” And that experience has shaped the way I look at the service we provide. Since I’ve joined the industry, nothing has stayed It’s really about going above and beyond to help the same for more than four months. Especially our clients realize financial security. with the DOL and industry regulations, including paperwork requirements – it seems like change Describe the business model at PFS. How does is constant. Redtail help support operational workflows? As a younger advisor, it’s tough to overcome Nothing would happen without Redtail. Because the perception of not having any experience. we have 11 people in the office with advisors and Fortunately, I’m able to leverage my mentorship our support staff, every client touch gets recorded with Todd Hamlin and talk about the experience in Redtail. All client information is captured in the of the firm and the strength of my team. That system, so we’re able to scroll through account usually builds a bridge for clients to begin trusting notes before client meetings and provide a high my ability, and the relationship building begins. touch, high quality experience.
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practice management Have you found the ProEquities Millennial Study Group to be a helpful resource? It’s incredible to have a group of peers to talk through technology platforms and how to deliver a better client experience. For example, we changed our financial planning software from eMoney to MoneyGuidePro, based on a study group discussion when I realized other advisors had similar issues with our existing platform. How important is mentorship in the financial services business? Did you have a mentor that impacts how you practice today? It’s extremely important, because it’s much tougher to start out on your own and build your business – creating processes to not only run the business but generate new clients as well. I feel very blessed to have these resources at PFS. Todd has been a tremendous model for how to navigate difficult client situations. He’s able to separate the larger issues from routine challenges, and he’s taught me so much about client service and the high touch environment we aim to create.
“As a younger advisor, it’s tough to overcome the perception of not having any experience. Fortunately, I’m able to talk about the experience of the firm and the strength of my team.” What advice would you give to firms that are actively recruiting younger advisors? Is there a secret to retaining them? Work-life balance is really important, and PFS For Advisor Use Only
understands that. Our office is closed every Friday, so I only take client appointments four days a week. It doesn’t mean I don’t work on Fridays, but it pushes me to work even harder for our clients throughout the week (putting in 12- to 14-hour days sometimes) knowing that I can take it easier on Fridays. You attended the ProEquities business development conference in Orlando and received the Rising Star Award for your steady, effective growth. What have been some of the keys to your success? Our office staff, hands down. I’d be completely lost without them. They’re well-trained and supportive, and they really free up the advisors’ time to focus on strengthening client relationships and managing financial plans. I wouldn’t be able to do my job without them. What would you say to advisors who are on the fence about attending APEX next year? It’s an investment in time and resources, but it’s worth it. It’s important to bounce ideas off other advisors from all over the country. And after hearing the current priorities and where the business is heading, it allows us to be more proactive versus reactive. For example, knowing that Docupace is coming helps us plan more effectively. When you’re not helping clients realize their financial goals, how do you spend your time? I enjoy hunting, fishing, and being outdoors. I plan to hike seven miles on the Appalachian Trail this weekend. It runs from Georgia to Maine and takes four to five months to complete the full trek. If I ever find a chunk of time to only hike, then you might find me on the trail. JoinProEquities.com
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Brighthouse Financial Insights Panel: Topic of the Month
The Great Wealth Transfer
As boomers prepare their estate plans, roughly $30 trillion in assets will be transferred to their spouses, children, and grandchildren. The Insights Panel takes a look at how this presents both a challenge and an opportunity for financial professionals. Below are insights that will help prepare you for your role in building a legacy for your clients.
Five Key Insights Establish an estate plan. While it may be easier to avoid conversations about leaving a legacy, it’s important to get clients to think about an estate plan in their 50s and 60s, before they develop cognitive decline.
Involve family members in your conversations. Much of the wealth transfer will happen between boomers and their children, so it’s important to facilitate end-of-life conversations with family members who will be involved in the estate. Set a time to convene the entire family to begin those conversations, and make sure children stay involved in estate discussions afterward.
Reach millennials on their terms. Younger individuals may have different financial goals and lifestyles than their parents, so financial professionals need to modernize their business models to accommodate them and to maintain continuity in their businesses.
Maintain a robust online presence. Because the next generation will be much more interested in communicating online, consider strengthening your social media accounts and online strategies.
Manage client inheritances. Encourage clients to talk to their children about their assets early so children will know where they stand when parents begin the wealth transfer process.
Find out how you can help beneficiaries plan for their wealth transfer and get other insights from our leading independent experts at brighthousefinancialpro.com/insightspanel Listen to the podcasts.
Read the articles.
Watch the videos.
Annuities and life insurance are issued by Brighthouse Life Insurance Company, Charlotte, NC 28277 and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017 (“Brighthouse Financial”). • NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY ANY BANK OR CREDIT UNION • MAY LOSE VALUE
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Help Millennial Advisors Cope With Volatility Millennial advisors who entered the business after the outset of the recovery from the financial crisis had, until recently, spent their careers enjoying a remarkably smooth and upward-trending investment environment. as seen in ThinkAdvisor, December 2018
Younger advisors can look at increased volatility as an opportunity to deepen bonds with clients and continue growing with scale. by Cristi Meyers Practice Management Consultant
With volatility on the rise and returns likely to be lower compared to the recent past, clients who have not confronted this type of environment in years may want — and need — their advisor to offer more handholding. This probably will require millennial advisors to make three adjustments as they address client concerns. For Advisor Use Only
They will need to get counsel from mentors who have lived through previous bouts of volatility and market downturns, fully leverage a team-based approach, and consult with working groups in their professional network to share best practices. This way, instead of trying to fly solo, millennial advisors will still be able to operate at scale while also rising to this new challenge. JoinProEquities.com
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resources and support LEARNING FROM MENTORS
Younger advisors have two significant incentives to seek the mentorship of experienced advisors who have survived choppy markets. Mentors can show millennial advisors what behaviors to expect from clients, and from client portfolios, as markets swoon. Millennial advisors also can point to the presence of mentors when reassuring clients they will in fact be able to successfully oversee a portfolio during what, for the younger advisor, may be unprecedented levels of volatility.
Millennial advisors gravitate toward sharing best practices and past experiences within peer networks or working groups, as opposed to learning how to build a book of business through solitary trial and error.
Properly executing the team-based approach requires both junior and senior advisors to give Mentor-mentee relationships may call for the support staff clear direction on protocols and younger advisor to swallow his or her pride. A assignments. This should include what to say and young advisor can be tempted to tell clients the what not to say to clients, when to conduct specific advisor is fully equipped to navigate challenging tasks and when to escalate issues to the advisor, financial markets alone, but that can be small as well as educating the team on market volatility comfort to older clients with significant assets at or economic developments that might affect client risk. Older advisors, meanwhile, should be ready portfolios. to share their wisdom and experience to help the WORKING GROUPS firm retain assets. Millennial advisors gravitate toward sharing best practices and past experiences within peer LEVERAGING THE TEAM During volatile markets many clients prefer increased networks or working groups, as opposed to learning communication from their advisory team. Providing how to build a book of business through solitary an “all-hands-on-deck� experience from multiple trial and error. Firms that facilitate such groups professionals can allow for greater scale than a improve the dissemination of knowledge among younger advisor constantly being on duty for every younger advisors, something that is especially crucial during periods of lower portfolio returns. client phone call and email. This is where support staff and sales assistants can be a great resource. They can share pre-approved market research, product communications, schedule in-office meetings, clarify account details, arrange events or seminars, onboard new clients, and have conversations with clients that can save millennial advisors precious time. Support staff and sales assistants may also handle the practice’s social media presence and text messages from clients [read more about the ProEquities partnership with CellTrust]. For Advisor Use Only
The goals of in-network consulting may differ from firm to firm or even advisor to advisor, but millennial advisors facing volatility for the first time would do well to seek insights from successful peers on a few common issues. Market instability always brings unwanted obstacles, but it is inevitable. Younger advisors can look at increased volatility as an opportunity to deepen bonds with clients and continue growing with scale. JoinProEquities.com
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3 Healthy Habits to Increase Your Business Value by Cristi Meyers and Matt Williams Creating positive habits is important in all aspects of life, whether it’s physical fitness, financial wellness, parenting routines, or running a successful business. While ProEquities may not provide resources for developing habits in all these areas, we do want to help you establish beneficial habits as an independent business owner.
Watch Mike Langford with Truelytics describe how to take your business to new heights.
Our partnership with Prolytics powered by Truelytics gives you the tools to implement vital business habits that enable continued success. If used effectively, this technology platform will help you run a competitive, profitable wealth management firm.
IMPROVE THE HEALTH OF YOUR BUSINESS There are three habits every financial advisor should start today to strengthen the value of your business.
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Three keys to running a successful financial firm include: 1. Evaluate your business regularly. It is important to evaluate your practice consistently to track ongoing efforts throughout the year. Are the new prospecting activities you started last quarter affecting the number of new clients? Do you have a recent valuation for continuity or succession planning? Prolytics delivers key measures of ongoing activities and tracks performance, so you can adjust JoinProEquities.com
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practice management partnership with your practice management team to create your game plan and establish healthy business habits.
GET STARTED TODAY
Reach out to a consultant today and learn how to activate your Prolytics account and use this tool to support the health of your business. The software is currently available to all ProElite partners at no additional charge.
and optimize your practice to have the biggest impact on business valuation. 2. Compare relevant data of your business to your peers. How do you match up? Are your expenses higher than your peers? Do you get more clients from referrals? Prolytics offers benchmarking data for practices that match your firm size and provides insight into the market as a whole. 3. Create actionable activities. Based on where your business is today and where you want to go, create a plan with actionable steps and timetables. Then, reevaluate your business at least annually to see the impact that these activities are having on your business value and where you stack up with your peers. For Advisor Use Only
USE METRICS AS A ROADMAP
Using a sports analogy, Prolytics serves as the statistics sheet, or box score, for your team. Coaches assess their statistics after every game to tell the story of what the scoreboard reads. Further, coaches evaluate Cristi Meyers how they compare to their Practice Management Consultant competition throughout the 618.570.8831 or season to see where they stand. Cristi.Meyers@proequities.com This comparison gives them the roadmap they need to follow in practice to direct their team appropriately and accomplish their goals. Similarly, metrics will help provide insight into areas where your business can improve and demonstrate your strengths to other firms in the market. This information can also be used in
Matt Williams Practice Management Consultant 205.268.5430 or Matthew.Williams@proequities.com JoinProEquities.com
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Longtime Industry Veteran Tammy Robbins Named Vice President of Business Development This ProEquities leadership role directs the firm’s talent acquisition and practice management efforts, furthering our long-term growth strategy.
In her new role, Robbins works to enhance the ProEquities service experience, providing advisors with the resources they need to grow. ProEquities announced the hire of veteran executive Tammy Robbins as Vice President of Business Development on March 20, 2019. In this role, Robbins leverages her extensive experience in acquisitions and background in practice management to enhance the advisor service experience and help expand their businesses. Her efforts ultimately strengthen the firm’s long-term growth strategy. She reports to ProEquities President and CEO Chris Flint. Flint said, “We are pleased to welcome Tammy to the
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ProEquities family. Over the years, she has established herself as an industry leader with a proven ability to work alongside both executives and advisors to create innovative opportunities for growth.” “Her vast experience, not to mention the depth of her skills, are a tremendous asset to our firm as we continue to develop new solutions and services that position us for greater success in the years to come,” Flint continued.
ENHANCING THE SERVICE EXPERIENCE
Robbins works to enhance the ProEquities service experience,
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practice management providing advisors with the resources they need to grow, including: • Best practices that improve efficiency and boost revenues; • Product lines and financial planning solutions that promote better relationships with clients; • Industry-leading software and technology solutions; • Advisor study groups; and, • A wide variety of one-onone coaching opportunities. To fully complement these offerings, Robbins leverages the firm’s advisory board to ensure that advisors have a voice in setting the firm’s priorities. She also leads advisor talent acquisition initiatives, focusing in part on creating opportunities for younger advisors to team with experienced practice leaders and to assume the books of businesses of exiting advisors.
VALUABLE CAREER CONTRIBUTIONS
Prior to joining ProEquities, Robbins served as Assistant Vice President of Business Development at Lincoln Financial Network, where her duties were to develop and to execute strategies for For Advisor Use Only
sustainable growth for its elite advisors. She also served as a founding board member of Lincoln’s initiative to bring female advisors together to share best practices, which aligns with her longstanding passion for creating more opportunities for females in the financial advice industry.
Forum in May 2018.
Before Lincoln, Robbins served as Vice President, Head of Advisor Recruitment, at United Planners Financial Services of America. Over the years, she has made important contributions to a number of industry associations, including the Financial Planning Association and Women in Insurance and Financial Services.
“The firm’s forward-thinking approach to the industry’s most pressing issues, along with its commitment to attracting and cultivating advisors who appreciate a high-touch boutique service, is something that I have always admired from afar,” she continued.
DEVELOPMENT OPPORTUNITIES FOR FEMALE ADVISORS
Robbins said, “I’m excited to be at ProEquities. As someone who is passionate about helping advisors support their clients and reach their business goals, I could not think of a better fit, both from a cultural and business standpoint.”
“I’m excited to be working with Chris and the rest of the leadership team to build these important initiatives and deliver a first-class service culture.”
Robbins’ hiring comes after the partnership announcement with The W Source to expand professional networking and business coaching resources for the firm’s female financial advisors. This strategic alliance builds on broader existing Tammy Robbins initiatives at ProEquities Managing Director of Business to increase development Development opportunities for women 205.268.1796 or advisors, including the launch of Tammy.Robbins@proequities.com the firm’s Women’s Networking JoinProEquities.com
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CellTrust Partnership Enhances Client Communication by Steve Youhn We aim to consistently enhance the overall client experience and meet the needs of next-gen clients through their preferred communication method. Our partnership with CellTrust and Smarsh enables compliance-approved, secure text messaging with clients at no additional cost to advisors.
CellTrust is currently available to the field at no additional charge, and more than 100 advisors and staff have downloaded the mobile application to text with their clients.
Based on the growing need to meet clients where they are by communicating via text messages, ProEquities has partnered with CellTrust to roll out a new texting solution for client communication. There is no additional charge for the service, and messaging meets applicable regulatory guidelines.
ENHANCING THE CLIENT EXPERIENCE
This new solution strengthens our suite of digital capabilities and offers advisors yet another tool to enhance the overall client For Advisor Use Only
experience. CellTrust provides a mobile app that allows advisors to use the new text messaging service on their smart phone. More importantly, the new service gives advisors the ability to keep their personal and business text messages separate, so only the business-related texts are monitored.
SLOW AND STEADY ROLLOUT TO DATE
A select subset of home office staff went through the JoinProEquities.com
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resources and support setup process and tested the functionality in the fourth quarter of 2018. Then the software was piloted with several field groups in February 2019, including the ProElite Advisory Board, the Millennial Study Group, and branch managers.
Appropriate disclosures are included with each text, so no additional compliance review is needed. The ProEquities surveillance team monitors all texts sent via CellTrust, and Smarsh archives messages for regulatory purposes.
Once the process was sufficiently tested and efficiencies identified, the software was rolled out to ProElite advisors.
START TEXTING CLIENTS TODAY
CellTrust is currently available to the entire field at no additional charge, and more than 100 advisors and staff have downloaded the mobile application to text with their clients.
Detailed instructions for phone number assignments and app download will be emailed to you after you express interest in account activation. To effectively track communications, a unique phone number for texting will be assigned unless there is an existing, unique landline number for all individual users.
ACCOUNT SETUP AND COMPLIANCE REVIEW
Based on initial feedback from the pilot groups, the setup instructions were adjusted to streamline the account activation process. Support works closely with CellTrust to facilitate activation, then users are able to download the mobile app on their smart phone. Contacts from their phone directory automatically appear as contacts within the app for business texting.
For Advisor Use Only
If you are interested in texting your clients via CellTrust, email Support@proequities.com.
We are pleased to offer this enhanced communications platform and are excited about the additional functionality this provides to effectively serve your clients. If you have questions about setup or eligibility, email Support@proequities.com.
Steve Youhn Chief Compliance Officer 205.268.3369 or Steve.Youhn@proequities.com JoinProEquities.com
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Gain the advantage for your client-segmentation strategy VIEW TO LEARN MORE
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Voya Institutional Trust Company is the custodian for mutual fund custodial accounts distributed by Voya Financial Partners, LLC (member SIPC) or other broker-dealers with which it has a wholesaling or selling agreement. Both are members of the VoyaŽ family of companies. Not FDIC/NCUA Insured | Not A Deposit Of A Bank | Not Bank Guaranteed | May Lose Value | Not Insured By Any Federal Government Agency For Registered Representative use only. Not for public distribution. Š2019 Voya Services Company. All rights reserved. CN0522-42350-0620D 201331 05/01/2019
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You and your clients deserve better.
88% underperformed
of active U.S. large cap managers
the S&P 500
from 2011 through 2016.*
Help Your Clients Confidently Achieve Their Long-Term Goals Loring Ward believes your clients’ financial goals are too important to risk the unpredictability and generally lower returns of most active managers. Instead, our Asset Class Investing approach seeks to give you the highest probability of achieving your clients’ goals with a suitable amount of risk. To learn more, download our Asset Class Investing Guide:
loringward.com/assetclassinvesting
1.800.366.7266
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loringward.com
*Source: SPIVA US Scorecard Year-End 2016 Financial Professional Use Only — Not for Public Distribution. Investment advisory services provided by LWI Financial Inc. (“Loring Ward”). Securities transactions offered through its affiliate, Loring Ward Securities Inc., member FINRA/SIPC. R 18-065 (1/19) Implementing an indexing or asset class investing strategy cannot guarantee a gain or protect against a loss. All investing involves risk, principal loss is possible.
Recognizing Practice Excellence at the 2019 APEX Conference The APEX conference was held in Orlando in March and spotlighted achievements in several categories, as awards were presented to exemplary advisors. IMPACT AWARD
Todd Hamlin | Protective Financial Services | Milledgeville, GA This distinguished advisor is nominated by their peers and selected by a committee of industry professionals. The award recipient consistently personifies four traits: • Leadership • Integrity • Partnership • Performance In the words of fellow advisors, some of Todd’s attributes include: • “Relentless when it comes to process improvement, and works tirelessly for the underserved.” • “Always, always, always puts the client first.” • “A person who changes the trajectory of lives and careers of individuals far beyond the financial advice world.” For Advisor Use Only
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resources and support RISING STAR AWARD
Will Clifton | Protective Financial Services | Milledgeville, GA The Rising Star honors a financial advisor under the age of 40, skilled in client acquisition, retention of assets, and portrays a passion for aligning client interests with their financial plan. While personifying the spirit of the Impact Award, Will pursues additional educational opportunities.
AMPLIFY AWARD
Danica Ansardi | Ansardi Financial Services | Belle Chasse, LA With most assets gathered on the ProEquities AMPSM platform, Danica’s annual AMP assets were $83.3M in 2018, including a net inflow of $15.6M.
ADVISOR OF THE YEAR
Chad Hatter | Weaver Insurance & Financial Advisors | Waynesboro, Virginia As the highest performing advisor of 2018, Chad finished the year at $1.5M in commissions and advisory fees.
BRANCH PARTNER OF THE YEAR
Security Financial Management | Orlando, Florida The highest performing branch finished last year at $8.5M. Partners include: Dave Allen, Mike Allen (not pictured), Frank Lovaglio, and Keith Moore.
Congratulations to all honorees! For a conference snapshot, view the APEX key takeaways. For Advisor Use Only
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Save The Date APEX Conference
February 24 – 26, 2020 Fairmont Dallas, TX
PLBD.1122277
(02.19
Save The Date The Elite Summit June 10-14, 2020 Hyatt Regency Aruba
PLBD.1122277
(02.19
The Tactical Core for Client Portfolios
The portfolio team achieved Strategist of the Year honors in 2016 and was named a finalist in 2018 by Envestnet.
A Risk-Managed Core Holding Our portfolios are designed to be low cost and low volatility, while producing long-term capital appreciation. We are asset allocators, our portfolios evolve over time to manage risk and capture opportunities, rather than switching quickly between assets. Our portfolios are used as the risk-managed core of a client’s portfolio.
We offer 4 risk-adjusted Global Tactical strategies ranging from Income to Growth. Global Tactical Allocation is our flagship moderate risk portfolio.
Global Tactical Income
Global Tactical Conservative
Global Tactical Allocation
Global Tactical Growth
Receive our monthly Markets in Motion and keep up to date with our CIO’s global perspective on the markets. Visit: JAForlines.com/Request-Access
Call us �516� 609-3370
Visit www.jaforlines.com
The material contained herein is not an offer or solicitation for the purchase or sale of any financial instrument. It is presented only to provide information on investment strategies, opportunities and, on occasion, summary reviews on various portfolio performances. Returns can vary dramatically in separately managed accounts as such factors as point of entry, style range and varying execution costs at different broker/dealers can play a role. The 2016 & 2018 "Strategist of the Year" awards are based on using the systematic, proprietary, and multi-factor evaluation methodology developed by Envestnet | PMC. The evaluation framework considers performance, firm profile, customer service, investment process and style, composite, tax efficiency, and other quantitative and qualitative criteria. JAForlines’s receipt of these awards is in no way indicative of any individual client or investor’s experience with JAForlines or W.E. Donoghue & Co., LLC or of future performance. For Advisor Use Only JoinProEquities.com 34 For broker/dealer use only.
Fast Facts We think like entrepreneurs, because that’s who we support. Founded in 1985, ProEquities is an independent RIA with a broker-dealer headquartered in Birmingham, Alabama. We have over 500 FINRA registered offices and support more than 700 independent financial advisors nationwide who, in turn, serve over 160,000 clients. Our advisors include investment advisor representatives, registered representatives, and registered investment advisors who work through hybrid RIA service models. ProEquities is a wholly owned subsidiary of Protective Life Corporation. PROEQUITIES.COM/JOIN | 866.933.2163
OUR AVERAGE PRODUCTION PER ADVISOR HAS INCREASED 44% OVER LAST YEAR.
TECHNOLOGY SOLUTIONS Create your own suite of technology based on your needs.
Research tools Financial planning Practice valuation & benchmarking tools Technology supporting rep managed accounts and third-party managers
8 SECONDS
CUSTOMIZED SUPPORT
DIRECT ACCESS TO STAFF AND MANAGEMENT
RESOURCES YOU NEED WITH SUPPORT YOU WANT
BACKED BY A WELL-CAPITALIZED LEADER
Avg Annual GDC: $183K
BASED ON 2018 PRODUCING ADVISORS WITH GDC > $20K
1. Dedicated in-house consultants 2. Comprehensive advisory and cybersecurity platforms 3. Direct access to our leadership team 4. Dedicated team that supports top producers
1:6
EMPLOYEE TO ADVISOR RATIO
24 HR AVG FOR ROUTINE COMPLIANCE RESPONSES
PRODUCT & PORTFOLIO SUPPORT
162 YEARS
COMBINED FINANCIAL INDUSTRY EXPERIENCE
LEADERSHIP TEAM
OF EXPERIENCE
BOUTIQUE SIZE WITH NATIONAL PRESENCE
5. Robust selling agreement list including alternatives
CLIENT SERVICES ANSWERS CALLS WITHIN
OVER
REASONS TO JOIN
WHAT MAKES US UNIQUE
Account aggregations
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200 YEARS
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OVER 150 YEARS OF FIXED INCOME SKILLS Investment banking, municipal underwriting, and fixed income trading desk
A Registered Investment Advisor, Member of FINRA and SIPC
62 YEARS
AS FINANCIAL ADVISORS
Our experts include: CFAs, CIMAs, CRPCs, CFPs, JDs & MBAs Rev 4.2019
Welcome New Advisors
NAME
PREVIOUS FIRM
LOCATION
Daniyal Ahmed
AXA Advisors
Dubuque, IA
Tom Archer
Voya Financial Advisors
Houston, TX
Ben Barnett
FTB Advisors
Knoxville, TN
Adam Burgess
Edward Jones
Spartanburg, SC
Allen Carter
Foresters Equity Services
Ukiah, CA
Adam Feierstein
Woodbury Financial Services
Redondo Beach, CA
Alex Grammatic
Park Avenue Securities
Dover, NH
Adam Harris
Lincoln Investments
Bessemer, AL
Dan LaForest
Next Financial Group
Orlando, FL
Edick Lucas
Lincoln Financial Services
Altamonte Springs, FL
Tim McCabe
Huntington Investment Company
Columbus, OH
Molly Nelson
LPL Financial
Missoula, MT
Emerson Paul
Cetera Advisor Networks
Ephrata, PA
Brent Ramsey
Wells Fargo Advisors
Orlando, FL
Brian Zardavets
Questar
Ponte Vedra, FL
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Talk to a Business Development Consultant about joining us. Call 866.933.2163 or email Join.Us@proequities.com.
Speak to a service associate or reach a ProEquities team member.
Call 800.288.3035 or email by using this general rule: Firstname.Lastname@proequities.com.
About ProEquities Founded in 1985, ProEquities, member FINRA/SIPC, is an independent RIA with a broker-dealer and headquartered in Birmingham, Alabama. This wholly owned subsidiary of Protective Life Corporation supports more than 700 independent advisors nationwide in serving their clients. ProEquities and its partner firms help you maximize your effectiveness as an independent financial advisor. Learn more about our advisor-centric financial services and find out how we can help optimize your business.
ProEquities, Inc. 2801 Hwy 280 South Birmingham, AL 35223
We Listen. We take the time to listen so we can work with you to develop a solution for your financial needs. We Think. We consider what you tell us and ask clarifying questions so that we truly understand your overall objectives and the unique challenges that stand between you and your dreams. We Respond. Only then do we reply...not with a cookie cutter answer but with a personalized action plan...a roadmap that will help lead you in the direction you want to go.
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