Gaining Perspective

 As interest rates have risen dramatically over the past year, income-oriented funds have become more attractive. With the income finally back in fixed income, advisors are searching for new opportunities to generate yield while mitigating risk in their bond investments. That’s why Madison Investments, an independently owned investment firm managing $22.9 billion in assets, recently launched its first suite of four income-oriented ETFs. The firm provides a range of investment strategies across mutual funds, managed accounts and customized investment portfolios. It added ETFs to its offerings in August. Two of the funds in its suite – the Madison Aggregate Bond ETF (NYSE: MAGG) and the Madison Short Term Strategic Income ETF (NYSE: MSTI) – seek to capitalize on the growing demand for dynamic, risk-managed fixed income strategies. My guest today will discuss how advisors can use these actively managed ETFs to get the most value out of their fixed income allocation. 
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Here are some resources to learn more about Madison Investments:

• Madison Investments website – https://madisoninvestments.com
• Madison Aggregate Bond ETF (MAGG) – https://madisonfunds.com/etfs/madison-aggregate-bond/
• Madison Short Term Strategic Income ETF (MSTI) – https://madisonfunds.com/etfs/madison-short-term-strategic-income/
• Follow Madison Investments on LinkedIn – https://www.linkedin.com/company/madison-investment-advisors/

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Equities are the building blocks of any successful portfolio. Advisors must understand the best way to wield equities if they want to succeed. Join VettaFi and other industry-leading experts on Wednesday, MARCH 13 for their “Equity Symposium!” Register for Free at etftrends.com/webcasts/equities-symposium-2024

My guest today is here to talk about an asset class that is often misunderstood. It wasn't until recently that all investors had access to collateralized loan obligations (CLOs). Institutional investors have benefitted from the ownership of CLOs for over 25 years, and the asset class has grown to over $1 trillion.

These are not the same bonds that eroded the economy in 2008 during the global financial crisis. It's a similar name in "C blank O," but a very different asset class. John Kim and his team at Panagram are experts in CLO investing. He is here to explain how they work, why now for individual investors, the benefits of owning CLOs, and dispel some of the myths about this often-misunderstood asset class. John will share what Panagram is doing to educate and explain why advisors should consider an allocation.

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Here is a link to the Panagram website.

Here are links to the two ETFs mentioned in this podcast: CLOZ and CLOX.

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Equities are the building blocks of any successful portfolio. Advisors must understand the best way to wield equities if they want to succeed. Join VettaFi and other industry-leading experts on Wednesday, MARCH 13 for their “Equity Symposium!” Register for Free at etftrends.com/webcasts/equities-symposium-2024

Northern Trust’s Capital Market Assumptions (CMA) report, an annual report of long-term average annualized return expectations for a wide range of asset classes, forecasts below-trend global growth at an annualized rate of 2.4% over the next 10 years, moderating developed-market inflation of 2.4%, and a lower global equity return of 6.3% a year on average. The CMA report’s asset class forecasts are driven by six key themes that Northern Trust investment experts see affecting markets and the economy over the next 10 years: restraints on global economic growth, geopolitical fault lines, adaptation to persistent inflation, central bank concessions to inflation, a sustainable green transition, and growing private markets.

Rooted in the firm’s deep capital market analysis, the CMA report informs the investment decisions and asset allocation recommendations made by Northern Trust, which as of June 30, 2023, had US$1.4 trillion in assets under management. Forecasts are created with a “forward-looking, historically aware” approach, analyzing the past drivers of returns across asset classes and developing investment themes that inform how those return drivers may evolve in the future.

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• Here is a link to the CMA report- https://www.capitalmarketsassumptions.com/
• Here is a link to the press release announcing the CMA report-  https://www.businesswire.com/news/home/20230912762715/en/Northern-Trust-Forecasts-Slow-Economic-Growth-and-Moderating-Inflation-Over-the-Next-10-Years
• Here is a link to the podcast I did with Chris in October of last year-  https://www.advisorperspectives.com/podcasts/2022/10/05/northern-trust-asset-managements-capital-market-forecast

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Equities are the building blocks of any successful portfolio. Advisors must understand the best way to wield equities if they want to succeed. Join VettaFi and other industry-leading experts on Wednesday, MARCH 13 for their “Equity Symposium!” Register for Free at etftrends.com/webcasts/equities-symposium-2024

Managing volatility is a high priority for advisors. The right investments can stabilize a portfolio and dampen volatility, while keeping goals on track. Increasing bond allocations used to be the standard way to reduce volatility, but with bonds more correlated to equities, their diversification value has decreased. With high inflation, bonds also aren’t providing enough real income for many investors.

Demand for private credit has increased because of its low correlation to traditional equities and bonds, and enhanced income potential. As an asset class, private credit has a history of resiliency throughout economic downturns. That was true during the pandemic, and last year when these types of loans largely held up, in contrast to the bond market which had historically bad performance.

My guest today will discuss how advisors can reduce volatility, increase income and diversify equity and bond allocations through private credit and other alternatives.

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Here is a link to the CION website- https://www.cioninvestments.com/

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Artificial Intelligence has been a category-killer among investment themes in the past year.

Its impact on the wealth management profession has been profound, from gravity-defying value creation on the stock market to optimizing the day-to-day operations of an advisory practice.

Every participant in financial services, in companies large or small, needs to embrace and integrate this powerful technology into its future, or risk falling behind.

My guest today, Valery Talma, will share his perspective on the state of the art in AI investment management and how advisors can serve their clients better with AI-powered strategies.

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Here is a link for more information about Val and QueensField:

• QueensField AI Technologies website - http://www.queensfield.ai/
• Product Brochure : 5 Model Strategies Brochure
• QueensField AI Technologies Public Indexes Indexes: 
  • https://merqube.com/index/MQQFUSAI
  • https://merqube.com/index/MQQFUSAT
•  White Paper on the Performance of AI-Powered ETFs
• Valery Talma Linkedin page: Valery Talma Profile

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

The rise in global interest rates is driving a “great reset” of real estate values. With the ongoing correction in private markets, REITs offer an attractive entry point with valuations at historic lows. In addition, a number of factors favor REITs:

• Large differences in valuation between public and private RE markets, while rare, have historically benefited REITs.
• REITS have historically outperformed the S&P post-Fed tightening cycles.
• REIT sectors are more concentrated in areas with strong sector secular growth, including senior housing, industrials, data centers, and residential/specialty housing.
• If the real estate repricing process continues, there will be a wave of consolidation as well-capitalized firms buy attractive properties at steep discounts.
• Longer-term, falling rates combined with an imbalance of supply and demand will be bullish for REIT valuations.

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Here is a link for more information about Rick and PGIM:

• PGIM Select Real Estate Fund-  https://www.pgim.com/investments/mutual-funds/pgim-select-real-estate-fund
• US Real Estate Fund Performance-  https://www.pgim.com/investments/getpidoc?file=8CE3D7D87B7CAE1285258138004284B8
• Rick’s Latest Perspectives on REITs-  https://www.pgim.com/real-estate/commentary/manager-minutes-inflection-point-reits

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

One of the hardest parts of planning for our loved ones with disabilities is getting started. It’s overwhelming. Thinking of who will care for your child when you or your partner cannot is not easy. While we realize no one will care for your child like you do, you need to plan for the day when you no longer can.

In this session, we talk about one tool that may help with some of the financial responsibilities for supporting your loved one while helping them stay qualified for means-tested benefits supplemental security income (SSI) and Medicaid. My guest will introduce the importance of planning ahead and maintaining eligibility for public benefits whether the family is wealthy or has limited means.

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Here is a link for more information about Jeff and Vistica Wealth Advisors:

• Vistica’s web site
• ABLE National Resource Center
• Vistica’s Need Assessment

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Several factors point to why this is an exceptional time to invest in small-cap stocks. Small-cap stocks tend to outperform after inflation peaks and in the aftermath of recessions. Small-cap valuations are at 20-plus-year lows relative to large-cap equities. Earnings revisions for small caps are stabilizing and beginning to outpace those of large caps. The M&A market is recovering, which historically correlates with improved small cap performance.

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Here is a link for more information about Eric and Penn Capital:

• Penn Capital web site- https://www.penncapital.com/
• Connect with Eric Green on LInkedIn- https://www.linkedin.com/in/eric-green-cfa-333335/
• Penn Capital Special Situa�ons Small Cap Equity Fund (PSCMX) fact sheet- https://www.penncapital.com/sites/default/files/media/documents/Penn%20Capital%20Special%20Situations%20Small%20Cap%20Equity%20Fund%20Factsheet_2Q23.pdf
• Penn Capital Mid Cap Core Fund (PSMPX) fact sheet- https://www.penncapital.com/mutual-funds/penn-capital-mid-cap-core-fund

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Private equity has backed many of the recent acquisitions in the RIA profession. Indeed, approximately 77% of transactions in the first quarter of this year involved private-equity funding. Many of the largest acquirers are backed by PE firms, including Mariner, Carson, Mercer, Focus, Savant, Pathstone and the Wealth Exchange Group. When evaluating a PE-backed acquirer, there are a few things to consider, including possible drawbacks and how it will impact the future of your firm.

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Here is a link for more information about Advisor Growth Strategies:

Advisor Growth Strategies website - https://www.advisorgrowthllc.com/

John Furey bio - https://www.advisorgrowthllc.com/team/john-furey

John Furey’s Advisor Perspectives article, The Permanent Role of Private Equity in the RIA Profession - https://www.advisorperspectives.com/articles/2023/04/14/the-permanent-role-of-private-equity-in-the-ria-profession

AGS’ annual report, the RIA Deal Room, which shares real-time, data-driven M&A industry trends looking at the mechanics underlying transactions - https://www.advisorgrowthllc.com/ria-deal-room

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

The SouthernSun Small Cap fund (symbol: SSSIX) is up 13.5% this year, versus 10.33% (as of July 18, 2023) for its Morningstar small-blend peer group. Last year was even more impressive, when it was down only -1.37%, versus its peer group, which was down -16.24%, putting SSSIX in the first percentile of that peer group. It has approximately $400 million in assets and is a highly concentrated portfolio, with only 21 holdings as of March 31, 2023.

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Here is a link for more information about SouthernSun:

• SouthernSun web site- https://southernsunam.com/
• SSSIX fact sheet and performance- https://southernsunam.com/investment-products/small-cap-fund/

Important Disclosures

AUM mentioned is as of 07/18/2023; Morningstar Ranking out of 611 funds in the Morningstar Small Blend category for 1-year period ended 12/31/2022. Past performance is no guarantee of future results; The information discussed represents the opinion of the host, and is subject to change. It is not intended to be a forecast of future events, a guarantee of future results, and is not intended as an offer or solicitation of the Fund nor any other products or services. It is for general informational purposes only and should not be considered an individualized recommendation or investment advice. Some of the statements contained in this podcast may be forward-looking and contain certain risks and uncertainties. Investing involves risk, including the possible loss of principal.

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Great things rarely occur within your comfort zone. Earning revenue via commission-based mutual funds or annuities might seem straightforward and familiar, but it isn’t a sustainable way to grow your practice.

There’s been a steady trend in the advisory profession to fee-based practices and holistic wealth-management services. But just because this trend is widespread doesn’t mean that transitioning to fee-based models comes without challenges. My guest today, Jen Gloss, will discuss the why and how of transitioning from commissionable products to fee-based wealth management.

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If you’re thinking about transitioning to fee-based, but also thinking about the challenges you’ll face, download our guide:

The Future of Advice Is Fee-Based. What's Holding You Back? - https://www.assetmark.com/commission-to-fees-2023?utm_campaign=Commission%20to%20Fees%202023&utm_source=3rd%20Party%20%7C%20Vettafi%20%7C%20Podcast%20%7C%20C2F2%20%7C%207%2F13%2F23 

This guide explores the three fears many advisors face when considering the move from a commission to fee-based model and ways to overcome those fears, including: 

• How to price your services and create more stable revenue for your business;
• Communication tips to help you discuss this change with your clients; and
• Simple, five-step process for making the transition easy for you and your clients.

See how to tackle the obstacles advisors commonly cite to making the transition to fee-based with guidance, best practices, and insights to help you pave the way to a fee-based model.

Get the guide here- https://www.asstmark.com/commission-to-fees-2023utm_campaign=Commission%20to%20Fees%202023&utm_source=3rd%20Party%20%7C%20Vettafi%20%7C%20Podcast%20%7C%20C2F2%20%7C%207%2F13%2F23 

Here is a link for more information about AssetMark:

• AssetMark web site- https://www.assetmark.com/ 

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Hamilton Lane (Nasdaq: HLNE) is one of the largest private-market investment firms globally, with nearly $857 billion in assets under management, providing innovative solutions to institutional and private wealth investors around the world.

In this episode, my guest, Steve Brennan, will discuss the private market opportunity for advisors and HNW investors. For financial advisors looking to minimize the impact of public-market volatility on their clients’ portfolios, private equity is a long-term investment vehicle that gives an investor an extended period to invest their money and protect it from the turbulence of the markets. Private-market investing can provide gains for HNW investors who have traditionally focused on real estate and private-credit strategies.

But many advisors still don't invest in private markets. Steve will discuss the opportunity in private investing, how it works, and most importantly, how to use it in the context of a portfolio.

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Here is a link for more information about Hamilton Lane:

• 2023 Market Overview - https://explore.hamiltonlane.com/2023-market-overview/home
• A Guide To Private Markets - https://www.hamiltonlane.com/en-us/insight/private-markets-a-guide
• Hamilton Lane’s Private Wealth Knowledge Center- https://www.hamiltonlane.com/en-us/education/private-markets-education
• https://www.hamiltonlane.com/en-us

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Standpoint is an investment firm focused on providing all-weather investment solutions to U.S. financial advisors. An all-weather approach is an asset allocation methodology that diversifies across geographic regions, asset classes, and investment styles. The goal of this multi-layered diversification is to shield investors from the pitfalls of concentrated investing by relying on thoughtful preparation rather than unreliable predictions.

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Here is a link for more information about Standpoint:

• BLNDX/REMIX Performance Highlights - https://www.standpointfunds.com/fund/highlights
• A comparison of the top 20 liquid alt funds - https://www.standpointfunds.com/fund/top-20
• Standpoint's most recent market commentary - https://www.standpointfunds.com/fund/commentaries/june-2023

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

NEOS is an ETF sponsor, and its ETFs aim to deliver the next evolution of options strategies that seek income as the outcome. Built on decades of research and experience, NEOS ETFs aim to empower investors with portfolio building blocks to provide high monthly income, tax efficiency, and diversification through data-driven options-based ETFs. Today, we’ll be speaking with Garrett Paolella of NEOS investments, to learn more about its suite of ETFs, its potential benefits, and where they may fit in investment portfolios.

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Here is a link for more information about NEOS:

• NEOS Website: https://neosfunds.com
• Schedule a Meeting: https://neosfunds.com/contact-us/

NEOS ETF Comparisons:

• SPYI: https://neosfunds.com/spyi-comparison
• CSHI: https://neosfunds.com/cshi-comparison
• BNDI: https://neosfunds.com/bndi-comparison

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Uncertainty around the direction of inflation, interest rates, and the U.S. economy will continue to drive market volatility. Doug Wolff, the CEO of Security Benefit – a leader in the U.S. retirement industry – is my guest today to offer valuable insight on how to navigate this landscape for the remainder of 2023 and beyond.

The traditional 60/40 asset mix is facing several challenges due to that volatility. Both stocks and bonds were battered in 2022, and while both have come back a bit this year, the uncertainty makes it difficult to optimize portfolio allocations. Doug will discuss bond alternatives, like fixed-rate annuities, to diversify and de-risk client portfolios.

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Here is a link for more information about Security Benefit:

• Security Benefit website - https://www.securitybenefit.com/splash-page

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Churchill Asset Management invests in middle-market companies. It is part of Nuveen, and it raises capital from investors through comingled funds, separately managed accounts, business development companies (BDCs) and collateralized loan obligations (CLOs).

In February, Nuveen and Churchill announced the launch of PCAP, a BDC that offers individual investors access to private capital investments across the U.S. middle market. My guest today, Alona Gornick, works with advisors who invest in this space. She will discuss the market environment and how advisors are approaching it, the risk-return profile for this type of investment, and the questions advisors should ask as they approach this opportunity.

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Here is a link for more information about Churchill Asset Management:

• Churchill Asset Management web site - https://www.churchillam.com/

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Spear Advisors is a fundamental asset manager specializing in industrial technology.

My guest today is the founder of Spear. She will explain how investors can do better than passively tracking the broader market. You will hear why adding a thoughtfully managed product to your portfolio can help you capture more upside in the long run.

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Here is a link for more information about Spear Advisors:

• The Spear Advisors website - https://spear-funds.com/

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Few of the advisors who will listen to this podcast have had professional careers that spanned a period of rising interest rates. But rates have been rising, and passive allocations to bonds or stocks cannot be counted on to provide the same results they did for the last 40 years.

Given that regime change, my guest today is here to discuss what should be the appropriate allocation to fixed income in a multi-asset portfolio. We will discuss how advisors should think about liquidity in their bond allocations, and to what extent tactical adjustments will be needed.

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• Here is a link for more information about BlackRock and its ETF lineup:

  • The 360 evaluator tool - https://www.blackrock.com/us/financial-professionals/tools/360-evaluator  
  • The iBonds ladder tool - https://www.ishares.com/us/resources/tools/ibonds 
  • The recent iShares fixed income whitepaper, “The Great Reset” - https://www.ishares.com/us/literature/whitepaper/the-great-yield-reset-stamped.pdf 

A message from Advisor Perspectives and Vetta Fi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.”

Schwab Charitable donors gave $4.7 billion in 2022 despite the difficult economic environment, up 7% from the year before. Schwab Charitable's mission is to increase giving in the U.S. with donor-advised funds and philanthropic resources that make charitable giving tax-smart, simple, and efficient. Here today to talk about how advisors can help support clients’ charitable giving and planning, and the benefits a donor-advised fund provides is Fred Kaynor.

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Here is a link for more information about Schwab Charitable:

• Why charitable giving matters to clients - https://www.schwabcharitable.org/advisors
• A comprehensive guide to create a giving strategy - https://www.schwabcharitable.org/maximize-your-impact/advisors-giving-guide
• How a Schwab Charitable account works - https://www.schwabcharitable.org/Advisors-DAF-Fact-Sheet
• Ways to invest clients’ charitable assets - https://www.schwabcharitable.org/investment-options-advisor
• Tax-smart charitable giving tips to share with your clients - https://www.schwabcharitable.org/12-tax-smart-charitable-giving-tips-for-2023
• Stories of Impact—Alex and Will Ed - https://www.schwabcharitable.org/advisor-story-will-ed

A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.”

Saving for college and other educational needs is one of the most pressing financial planning concerns. Investors are looking to their financial advisors for guidance. In this episode, we’re going to look at the role 529 plans play and why they’re so important in improving client outcomes and in supporting practice management.

My guest, Leslie Geller, will be talking about the expanded set of educational expenses 529 assets can fund, details of Capital Group’s CollegeAmerica savings plan – one of the largest in the country with approximately $80 billion in assets under management, as well as how Secure 2.0 has lowered barriers to opening and funding a 529.

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Here is a link for more information about Capital Group and its 529 offerings:

• CollegeAmerica 529 Savings Plan - https://www.capitalgroup.com/individual/what-we-offer/college-america-529.html 
• 529 Advisor Research Report – Benefits and Barriers: How advisors and clients view education savings in the current market - https://www.capitalgroup.com/content/dam/cgc/shared-content/documents/reports/03_FF_PR-529_Advisor_Study.pdf 
• My previous podcast with Leslie:  The Questions to Ask Your Female Clients - https://www.advisorperspectives.com/podcasts/2019/12/16/the-questions-to-ask-your-female-clients 

A message from Advisor Perspectives and Vetta Fi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.”