July / August 2022 • www . fa-mag . com

Facing Down The Talent Crisis

Our biggest human capital challenge may still be ahead of us .

The Real Impact Of ESG

As critics start to hover over the ESG space , we ask what the real pros and cons are .

S FINANCIAL ADVISOR ’ S ANNUAL RIA SURVEY REVEALS , most advisory firms enjoyed asset growth of about 30 % last year , only to give most of that back in the first six months of 2022 . That wouldn ’ t be so bad , given the robust state of the RIA economy , except that most clients have also seen their 2021 portfolio gains evaporate .

At this year ’ s Invest In Women conference in late June ,

I had the opportunity to discuss this state of affairs with a number of advisors — most of whom reported that the majority of clients could handle the current bear market . Two advisors , however , said that if clients were to see their 2020 gains disappear , it could well be a different story .

Almost from the beginning of the pandemic , portfolios were the least of most people ’ s concerns . That ’ s still the case for many , but as the post-Covid world takes shape , the stars are realigning .

As senior editor Eric Rasmussen writes in the cover story accompanying the survey on page 35 , the days of “ too much of a good thing ” could be coming to an end . Abby Joseph Cohen put it succinctly when she said that the “ everything is going up era is over .”

It ’ s also clear that the talent shortage pervading most sectors of the job market , from airline pilots to nurses and truck drivers , is hitting the RIA world , too . While a handful of new-concept RIA fintech vehicles are trying to handle vastly more clients with the same number of advisors , the jury remains out on that model ’ s viability .

While a handful of new-concept RIA fintech vehicles are trying to handle vastly more clients with the same number of advisors , the jury remains out on that model ’ s viability .

KNOWLEDGE FOR THE SOPHISTICATED ADVISOR

FA ’ s RIA Survey & Ranking 2022

Is this the end of “ too much of a good thing ” for RIAs ?

How To Use LinkedIn

Susan Theder answers 10 advisor questions about how to use the popular site .

Most robo-advisors , despite their intriguing technology , did not turn into the threat they were perceived to be five years ago . Some recently have been slapped with hefty regulatory fines .

A few years ago , RIA firms with the highest profit margins were seen as the best managed . But as sophisticated institutional investors move into the space and start looking under the hood , they are realizing that some super-profitable firms could simply be underinvesting in the business and milking clients while sacrificing future growth .

The upshot : Just when the investment puzzle is turning more complicated , RIA firms are witnessing their rivals turn up the competitive heat and add more services to enhance the quality of their clients ’ lives . But then , isn ’ t that what any business is supposed to do to ensure its viability ?

Evan Simonoff

Email me at esimonoff @ fa-mag . com with your opinion .

8 | FINANCIAL ADVISOR MAGAZINE | JULY / AUGUST 2022 WWW . FA-MAG . COM