I hope you had a wonderful weekend! Today is National Name Your Car Day. Although still an unofficial national holiday, (I know, it is hard to believe) apparently there are a lot of car owners who have names for their cars. I have just always called my Honda, “my Honda”. If you need help naming your car, check out the video at the prior link.

LRPC’s Monday Morning Minute for this week, “Top-Of-Mind Trends For Investment Managers” (presented below) comes to you courtesy of ThinkAdvisor. As an independent, objective Registered Investment Advisory (RIA) firm, Lawton Retirement Plan Consultants, LLC (LRPC) has access to research from many sources. Be assured that I will share enlightening, useful information with you each week.

What trends do the country’s best investment managers think will influence the markets in the near term? Read on below to find out.

Have a wonderful week!

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Top-Of-Mind Trends For Investment Managers

 

By Michael S. Fischer, Contributor, ThinkAdvisor

What’s on the minds of investment professionals as they look into the near future?

In a recent survey, CFA Institute identified a baker’s dozen trends that may influence investment management practice over the next three years.

Today, investment professionals operate within a tighter framework of increased financial market regulation scrutiny. Consider the risk alert just released by the Securities and Exchange Commission on advisor violation of advertising rules, or the SEC’s ongoing crackdown on share classes with 12b-1 fees.

In addition, advanced analytics are altering financial analysis and decision-making processes, forcing advisors to understand machine learning and the implications of “big data.” Add to that investment professionals’ continuing struggle to fully incorporate the low, or negative, interest rate environment into the portfolio management process.

The institute said that including the perspective gained from these and other trends in its practice analysis process better positioned its Chartered Financial Analyst credentialing program to remain relevant for investment professionals.

Following are the top 13 trends for the next three years as they ranked in impact for 3,462 investment professionals polled by CFA Institute:

13. Importance of financial market history to portfolio management

Significant impact: 13%
Moderate impact: 33%
Slight impact: 43%
No impact: 11%

12. ESG integration into the investment decision-making process

Significant impact: 16%
Moderate impact: 39%
Slight impact: 38%
No impact: 8%

11. Greater demand for active investment management

Significant impact: 18%
Moderate impact: 38%
Slight impact: 33%
No impact: 11%

10. Smart beta’ investment strategies

Significant impact: 18%
Moderate impact: 45%
Slight impact: 32%
No impact: 5%

9. Importance of investment managers possessing soft skills

Significant impact: 26%
Moderate impact: 38%
Slight impact: 29%
No impact: 7%

8. Importance of investment managers possessing fintech skills

Significant impact: 28%
Moderate impact: 40%
Slight impact: 27%
No impact: 6%

7. Risk factor asset allocation approaches

Significant impact: 28%
Moderate impact: 47%
Slight impact: 23%
No impact: 2%

6. Increased global demand for alternative investments

Significant impact: 28%
Moderate impact: 44%
Slight impact: 25%
No impact: 3%

5. Use of robo-advisors in private wealth management

Significant impact: 31%
Moderate impact: 36%
Slight impact: 28%
No impact: 5%

4. Pension funding shortfall on capital markets

Significant impact: 33%
Moderate impact: 43%
Slight impact: 21%
No impact: 3%

3. Low/negative interest rates

Significant impact: 42%
Moderate impact: 37%
Slight impact: 18%
No impact: 3%

2. Role of ‘Big Data’ in financial analysis

Significant impact: 43%
Moderate impact: 38%
Slight impact: 17%
No impact: 2%

1. Impact of regulation on investment decision-making

Significant impact: 46%
Moderate impact: 39%
Slight impact: 15%
No impact: 1%

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About LRPC’s Monday Morning Minute

Lawton Retirement Plan Consultants, LLC (LRPC) Monday Morning Minute is crafted to provide decision-makers with important information about the economy, investments and corporate retirement plans in a format that allows a reader to consume the information in less than 60 seconds. As an independent, objective investment adviser, LRPC has access to many sources of research and shares the best and most relevant information with its readers each week.

About Lawton Retirement Plan Consultants, LLC  

Lawton Retirement Plan Consultants, LLC is a Milwaukee, Wisconsin-based independent, objective Registered Investment Adviser (RIA) providing investment advisory, fiduciary compliance, employee education, provider management and plan design services to retirement plan sponsors. The firm currently has contracts in place to provide consulting services on more than $400 million in plan assets. For more information, please contact Robert C. Lawton at (414) 828-4015 or bob@lawtonrpc.com or visit the firm’s website at http://www.lawtonrpc.com. Lawton Retirement Plan Consultants, LLC is a Wisconsin Registered Investment Adviser.

Important Disclosures

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance, tax, legal or investment advice. Each plan has unique requirements and you should consult your attorney or tax adviser for guidance on your specific situation. In no way does Lawton Retirement Plan Consultants, LLC assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations. Investors should carefully consider investment objectives, risks, charges and expenses. The statements in this publication are the opinions and beliefs of the commentator expressed when the commentary was made and are not intended to represent that person’s opinions and beliefs at any other time. The commentary does not necessarily reflect the opinion of Lawton Retirement Plan Consultants, LLC and should not be construed as recommendations or investment advice. Lawton Retirement Plan Consultants, LLC offers no tax, legal or accounting advice and any advice contained herein is not specific to any individual, entity or retirement plan, but rather general in nature and, therefore, should not be relied upon for specific investment situations. Lawton Retirement Plan Consultants, LLC is a Wisconsin Registered Investment Adviser and accepts clients outside of Wisconsin based upon applicable state registration regulations and the “de minimus” exception.