In the traditional sense of “alpha,” we think of what Investopedia calls, “an investment strategy’s ability to beat the market, or its ‘edge.’” In other words, we assume our edge arises from investment strategy. This week, Ryan George makes the case that the modern edge is actually in the back office.
We also bring you a white paper by Sander Ressler, presenting a review of how advisory firms meet their compliance needs and discussing the benefits of outsourcing.
Should Wealth Management Firms Build Out Internal Compliance Staff Or Bring On Outsourced Compliance Services?
Sander Ressler of Essential Edge presents a white paper examining whether compliance needs should be outsourced or met internally. He explores technologies, work paradigms, compliance and employment costs, and outsourcing tools.
Ressler’s paper presents a cost-benefit analysis on outsourcing compliance and sets out benefits of outsourcing that go beyond cost savings.
Docupace’s George: Execution Is The New Alpha In Wealth Management
Ryan George of Docupace makes the case that the differentiator in wealth management is no longer traditional “alpha.” Instead, operational excellence is the alpha that firms must demonstrate.
“Alpha, in the traditional sense, has become table stakes. Execution is what earns trust,” said George, who unpacks how firms can differentiate themselves in the modern landscape.
Deals & Recruiting Roundup
This week we cover M&A by Mercer, Merchant, Madison Dearborn, Corient, Savant, Modern Wealth and CW Advisors; RIA debuts by Granite Islands and Canterbury Capital; a partnership between Elevation Point and Goldman Sachs; and appointments by Hightower and FNZ.
As we move into September, M&A deals in the billions are everywhere, pointing to a fall season of high powered capital movement.
Corient Starts Global Expansion With Acquisitions Of Two U.K.-Based Advisory Firms
Corient acquired U.K.-based advisory firms Stonehage Fleming and Stanhope Capital Group in transactions that it said will add over $214 billion in client assets to Corient, boosting its total assets to $430 billion.
These numbers aren’t typos. Corient more than doubled its size with a major push into Europe.
Mercer To Expand In California, Idaho And Oregon With Latest Acquisitions
Mercer Advisors announced the acquisitions of RIAs West Oak Capital, headquartered in Eagle, Idaho, as well as Eagle Wealth Management and its sister firm Eagle Wealth Accountants, based in Bend, Oregon.
The acquisitions will add a total of about $850 million in assets to Mercer.
Morningstar Launches Its First Medalist Ratings For Semiliquid Funds
Morningstar published its first Medalist Ratings for Semiliquid Funds, which analyze the performance potential of semiliquid strategies in comparison to their peers, traditional mutual funds and ETFs. Semiliquid fund net assets have increased over 60% since 2022, driven by “heightened interest in private credit and private equity,” Morningstar said.
Morningstar said it’s harder to evaluate semiliquid funds, so independent analysis is needed. This is another step in the rise of private markets.
Betterment: RIAs Are Adapting To Meet The Demands Of Digital-First Investors
Betterment Advisor Solutions released its second annual Advisor Survey showing the adoption of AI solutions across the generations, as well as hesitancy among the younger generations about clients’ overreliance on generative AI for financial advice.
Gen Z and millennial clients demand a more AI-driven experience.
IFG Hires Steven Gensler To Lead Advisor Growth Strategy
Independent Financial Group hired Steven Gensler, formerly of LPL, as Senior Vice President of Advisor Growth and Development. He will oversee the firm’s multi-year growth strategy and take responsibility for programs designed to support advisors.
This is the firm’s second major hire since April, when it onboarded Kevin Keefe as COO and President.
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Larry Roth
CEO
Wealth Solutions Report
