A recent panel discussion at Nicsa's 2024 Strategic Leadership ForumReshaping the Value Chain with AI, explored the transformative impact of Artificial Intelligence (AI) on the asset and wealth management industry.

The panel was moderated by Michael Sands, Senior Manager, Strategy & Consulting - Capital Markets, Accenture and featured Joe Bonanno, Global Head of Data, Digital and Innovation, Citi; Vinay Nair, Founder and CEO, TIFIN; and Koren Picariello, Executive Director and Head of Generative AI Strategy and Execution, Morgan Stanley.

The discussion highlighted how AI is revolutionizing existing practices and driving automation, consequently reshaping opportunities and value streams within the industry. However, questions around risk management and scalability remain crucial.

 

Key insights emphasized the necessity of securing business buy-in and delivering value-driven outcomes, alongside collaboration with partners to devise effective roadmaps. The industry is poised to transition from viewing GenAI merely as a tool to leveraging it for comprehensive organizational transformation, with Responsible AI taking precedence.

 

Five Steps Asset and Wealth Managers Can Take (Now)

  1. ·       Educate teams on how to prompt engineer, how to iterate on that prompt, how to review the outputs, how to gain legal risk compliance approvals.
  2. ·       Improve productivity with meeting notes, action items, and executive summaries.
  3. ·       Look into building language models that can ultimately streamline client onboarding, sales support, and marketing.
  4. ·       Support the front office by summarizing sell side research collaboration.
  5. ·       Support the middle and back office operations of KYC, NAV oversight, and reconciliations.

  

Establishing a Center of Excellence

Integrating generative AI solutions across organizational frameworks is imperative. The establishment of foundational building blocks can ensure consistency and efficiency across all use cases, reducing the need for repetitive engagements with stakeholders such as legal, risk, and compliance partners or UX teams. Executive buy-in is essential and can be achieved by involving relevant stakeholders, targeting pain points strategically, prioritizing use cases, and highlighting return on investment while acknowledging the morale boost associated with realizing AI's value.

 

Through collaboration, experimentation, and strategic partnerships, organizations can harness the transformative potential of AI to drive innovation and enhance operational efficiency in the asset and wealth management industry.

 

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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Boston, MA – February 6, 2024 – Nicsa, a leading provider of education and networking forums to professionals in the global asset and wealth management industry, announced its key speakers and session highlights for the 2024 Strategic Leadership Forum taking place on March 13-15 in Orlando, Florida.

·       Industry veteran Marty Flanagan, Chairman Emeritus of Invesco, will share perspectives from pivotal times in his career and explore how lessons learned can be applied to future "watershed" moments.

 

·       Bob Pisani of CNBC will moderate an intimate C-Suite Roundtable featuring Edward Jones’ Penny Pennington and Yie-Hsin Hung, President & Chief Executive Officer, State Street Global Advisors in Nicsa’s annual Face the Membership session; and

 

·       Candida 'Candi' Wolff, Global Head of Government Affairs, Citi, will provide an in-depth exploration of the economic indicators, election implications, geopolitical tensions, and other key drivers of global markets in the coming year.

In all, 30+ industry experts will take the stage at the 2024 Nicsa Strategic Leadership Forum, with attendees from across asset and wealth management firms. View all speakers here.

 

Event highlights include:

Day 1 - Mar 13

The Science of Managing Time, Focus & Energy
Reshaping the Value Chain with AI
Think Like a Futurist

Day 2 – Mar 14 

Fireside Chat | Marty Flanagan, Invesco
Building Tomorrow’s Portfolio
The Quest for Hyper-Personalization

Nicsa Gives Back Afternoon

 

Day 3 – Mar 15 

Face the Membership | Bob Pisani, CNBC; Penny Pennington, Edward Jones; Yie-Hsin Hung, SSGA

Economic & Public Policy Outlook | Candi Wolff, Citi
M&A Hotbed

View the full agenda here.

 

About Nicsa 

Nicsa is a not-for-profit trade association striving to connect all facets of the global asset and wealth management industry in order to develop, share, and advance leading practices. For over sixty years, Nicsa has promoted a collaborative environment where members come together to help strategically address the industry’s most vital issues. 

Nicsa’s Diversity Project North America champions DEI as a strategic business priority within the asset and wealth management industry. The goal of the Diversity Project North America is to advance better business results for our member firms and positive long-term impact for the clients we all serve by fostering an industry where diversity is achieved, equity is the standard, and inclusion is celebrated.

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Boston, MA – January 26, 2024 – Nicsa, a premier asset and wealth management association, is proud to announce a partnership with Expect Miracles Foundation (EMF) for its 2024 Nicsa Gives Back Charity Golf Tournament.

Nicsa will invite attendees of its Strategic Leadership Forum, executives from leading asset and wealth management firms, to participate in its March 14 event at Waldorf Astoria Orlando Golf Club in Orlando, Florida. Net proceeds from the Nicsa Gives Back Charity Golf Tournament will go to Expect Miracles Foundation, a leading advocate in the fight against cancer within the financial services industry.

The opportunity to work with charitable organizations like the Expect Miracles Foundation is an honor. We are thrilled to both enhance the experience of our attendees as well as raise funds for EMF’s important work. Professionals within the asset and wealth management industry that would like to support EMF’s life-changing mission can now do so through Nicsa’s signature event in Florida,” noted Jim Fitzpatrick, President & CEO of Nicsa.

“We’re honored to be supported by Nicsa and its membership in bringing the financial services industry together to bring hope to the cancer community,” said Frank Strauss, Founder and Chairman of the Board Expect Miracles Foundation.

About Nicsa Gives Back Charity Golf Tournament:

Nicsa Gives Back is an initiative that provides Nicsa members a way to give back to the industry and support local communities. Nicsa’s Strategic Leadership Forum features a dedicated afternoon of philanthropic opportunities, networking, and fun in support of Nicsa Gives Back. Click here for the SLF schedule of events. 

The Nicsa Gives Back Charity Golf Tournament will take place on Thursday, March 14 at the Waldorf Astoria Orlando Golf Club, and will be available to SLF attendees. Click here for registration options. 

About Expect Miracles Foundation:

Expect Miracles Foundation rallies the financial services industry and beyond to invest in life-saving cancer research while advancing the financial and emotional health of people impacted by cancer. We are a 501(3)c public charity, Tax ID #20-4127495. Learn more at expectmiraclesfoundation.org.

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To the Nicsa Community:

Happy 2024! I hope each of you rang in the new year with renewed optimism for the industry we all serve. I am very proud to be part of a community that has made impressive strides in servicing clients, supporting employees, and offering innovative investment solutions.

Likewise, I am exceptionally proud of Nicsa’s role in that progress, and I’d like to take this opportunity to thank our members for their ongoing support of each other, our industry, and our association during the last twelve months.   

 

People

Nicsa has always been about “the people,” and that is clearly where we shine.

We have some exceptional leaders advancing Nicsa’s mission, and they come from a wide array of firms across the industry.

Here’s a quick look back at 2023 through a ‘Who’s Who’ in Nicsa press releases:

Board Electees

Committee Co Chairs (1H) |  Committee Co Chairs (2H)

NOVA Awardees

Volunteers of the Year

Rising Stars

One of this year’s highlights was Jenny Johnson, President & CEO of Franklin Templeton, accepting the 2023 Nicsa Strategic Leadership Award. Jenny had some terrific things to say about the people of Nicsa. I share her enthusiastic support of this community and I encourage you to listen here.

 

Community

At Nicsa, there’s a committee for everyone! The size and depth of our communities continue to grow.

We have strategically expanded our reach into front office business functions, which now includes Product & Distribution, SMAs & Model Portfolios, and Alternative Investments Committees. We also recently launched an International Committee to support those members with cross border product distribution. And, as the industry embraces holistic financial health, our Retirement Committee has become one of our more active groups and we expect that to continue into 2024.

Here’s a recent blog authored by Nicsa’s Chairman, Scott Brady, that highlights the kind of activity supported by these committees: Product & Distribution Committee Talks with Cerulli

We are actively focused on engaging our Broker Dealer and Wealth Management members in every event and program we host. We strive to have all perspectives represented at the table so that the conversation is inclusive and most helpful to all industry participants.

I’d love to hear your thoughts on how Nicsa can support the future of asset and wealth management. Please reach out to me with any ideas you may have on new initiatives.

 

Content

Nicsa is humbled to have over 500 volunteers working on over 30 committees to bring the very best content and programming to our members.

Here’s a quick look back at our offerings for 2023:

 

Most Listened-to Podcasts:

Lorna Sabbia, Bank of America

Steve Rueschhoff, Edward Jones

Sandy Bolton, Ameriprise Financial Services

 

Most Downloaded Blogs:

A New Dawn for the Advisor Landscape

The Convergence of Wealth and Retirement

AI Awakens in Asset & Wealth Management

Nat’l Disabilities Month: Guide to Inclusion Resources

 

Most Popular Publications:

Pay Equity Guidance for Asset & Wealth Managers

Consumer Data Privacy Laws

Return to Office Update 2023

 

Our Signature Survey:

2023-24 DEI Perception Report

 

Latest in Sponsored Webinars:

Understanding Liquidity Risk Management Practices

Managing Intermediary Lifecycle Risk

Driving Investors to Financial Wellness

 

As a valued member, I’m sure you are well aware of the great value that Nicsa can offer all of your employees, but DID YOU KNOW...?

 

We’re actively engaging Next Gen leaders.

We recognized our third cohort of Rising Stars this year, and continue to celebrate rising talent with Emerging Leaders, and NOVA Awards programs. These awardees are among the best and brightest in our industry and I look forward to their contributions to Nicsa in the years ahead. These programs, in addition to our robust and active Next Gen Committee, are a great way for your firm to recognize and retain top talent.

 

We offer strategic DEI support.

We’re accelerating best practices in this area via the Diversity Project North America. We offer a host of DEI-related content specific to our industry, including guidance on pay equity, DEI metrics, mentorship & sponsorship, Business Resource Groups, and more. Be sure to attend the annual Fearless Leadership Symposium in NYC this June, which provides a platform for our members to incubate powerful ideas and champion for change in the years ahead.

 

We produce content for quick, on-the-go updates.

In addition to our events, webinars, and publications, Nicsa offers content that is easy to access right from your personal device. Listen to NicsaTalk Podcasts for personal conversations with the visionaries impacting our industry, and check out Nicsa Videos for quick bursts of Nicsa content including event line-ups and wrap-ups. In addition, we send out a weekly newsletter, Nicsa Connect, that highlights all of this Nicsa content and more.

 

We believe networking is more important than ever before.

(Especially!) in today’s hybrid work environment, networking can help you and your team stand out. There are several opportunities for key executives to foster strategic relationships – and for new employees to build networking skills – including the 2024 Strategic Leadership Forum. In addition, members will be able to give back to the communities we serve via philanthropic events like our US Hunger Event and Nicsa Gives Back Golf Tournament.

 

I hope you join me in Orlando this March to continue our celebration of Nicsa’s six decades of industry service. Thank you for your support. I look forward to watching this organization continue to evolve for the next 60 years and beyond.

 

With gratitude,

 

Jim Fitzpatrick

President & CEO

Boston, MA – January 3, 2024 – Nicsa, a leading Association in support of the asset and wealth management industry, recognizes eight new Committee Chairs. These individuals help lead the nonprofit’s work to advance leading practices across a wide spectrum of industry business lines and professionals.

Nicsa’s committees are open to all employees of member firms and comprise professionals across divisions, departments, and all levels of management. A full list of Nicsa Committee Chairs follows, with recent appointees appearing in bold:

BOD/Executive Committee

Scott Brady, Columbia Threadneedle | Chair

Stacy Bernstein, American Century | Vice Chair

Clint Harris, Invesco | Nominating

Irene Speridakos, BNY Mellon | Treasurer

John Stradtler, PwC | Audit

 

Alternative Investments

John Seidita, PwC

Yousif Nimer, Deloitte

Awards

Karen Walsh, Putnam Investor Services

 

Compliance & Risk Management

Mark Hunter, Dimensional Fund Advisors Inc.

Stephanie Tyler, Franklin Templeton

 

Content

Janet Bienkowski, MFS Investment Management

Anne Hebard-Duduch, SS&C Technologies

 

Data Analytics

Brian Foote, Broadridge

 

Fund Administration

Gary Casagrande, Northern Trust

Victoria McGowan, J.P. Morgan

 

Fund & Investor Services

Linda Azzara, GMO, LLC 

Gregory Cohen, MUFG Investor Services

 

International

Lesley-Anne Archibald, Baillie Gifford

Mike Melles, FIS 

 

Membership

Ryan Burns, Northern Trust

 

Next Gen

Lesley-Anne Archibald, Baillie Gifford

Nicholas Lombardo, Citi

 

Product & Distribution

Scott Brady, Columbia Threadneedle

Alaina Giampapa, Natixis

 

Retirement

Alvin Hasegawa, Fiduciary Trust International

Brad Spolec, SS&C Technologies

 

SMA & Model Portfolio

Daniel Milligan, Columbia Threadneedle

Patrick Mullins, Invesco

 

Technology & Digital Innovation

Chuck Gallant, BNY Mellon

Anish Mazumdar, Aliter Investment Services

 

UIT

Scott Larsen, Guggenheim Investments

Matt Wolcott, Hennion & Walsh, Inc. 

 

Unclaimed Property

Heidi Lastoria, MFS Investments

Carol Irvine, Abandoned Property Advisors, LLC.

 

EVENTS:

General Membership Meeting

Chuck Gallant, BNY Mellon

Kirstin Pickens, FS Investments

 

Fearless Leadership Symposium

Cheryl Boyd, EY

Gary Casagrande, Northern Trust

Nicole Green, SS&C Technologies

 

Strategic Leadership Forum

Steven Rueschhoff, Edward Jones

Kelli O’Brien, Citi

 

DIVERSITY PROJECT NORTH AMERICA: 

CEO Advisory Council/Executive Committee

Thomas Arnold, EY

Deirdre O’Conner, Cerberus Capital Management, L.P.

Benchmarking

Cheryl Reich, Broadridge

Deb Sealy, Aegon

Education & Outreach

Suzanne Cullinane, Janus Henderson

Ann Carpenter, State Street Global Advisors (SSGA)

 

Industry Engagement & Events

Emily Lawrence, Northern Trust

Shannon Daigh, J.P. Morgan

 

Next Practices

Rosa Licea-Mailloux, MFS Investment Management

Ofelia Potter, Northern Trust

  

Nisca also recognizes the following industry executives in recognition of past service:

Charles Booth | Compliance & Risk Management

Donelle Chisolm, American Century | DPNA Engagement & Events 

Jon Gezotis, Citi | Fund Administration

Lisa Halbach, Bank of America | Executive Committee, Audit 

Karym Murphy | Technology & Digital Innovation

Michael Murtaugh, Wells Fargo | Alternative Investments

Rhett Payne, J.P. Morgan | Fund & Investor Services

 

About Nicsa 

Nicsa is a not-for-profit trade association striving to connect all facets of the global asset and wealth management industry in order to develop, share, and advance leading practices. For over sixty years, Nicsa has promoted a collaborative environment where members come together to help strategically address the industry’s most vital issues. 

The Diversity Project North America champions DEI as a strategic business priority within the asset and wealth management industry. The goal of the Diversity Project North America is to advance better business results for our member firms and positive long-term impact for the clients we all serve by fostering an industry where diversity is achieved, equity is the standard, and inclusion is celebrated.

 

# # #

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Participants at Nicsa’s 2023 General Membership Meeting explored what’s driving the diverse landscape of alternative assets, from private equity to venture capital, hedge funds, and beyond.

The session, What’s Driving the Alts Landscape, took a deep dive into the untapped opportunities that alts can offer. York Lo, Head of Alternative Product and LLCs, John Hancock Investment Management moderated the panel which comprised Brendan Cuddihy, Chief Operating Office, CAIS; Kenny King, Head of Alternatives, Asset Servicing, BNY Mellon; and Meisan Lim, Investment Managing Director, Hedge Funds, Cambridge Associates

Alternative investments have emerged as a diverse array of strategies, gaining significant attention in recent years. Key periods that have buoyed this strong interest include the post-dotcom bubble in the early 2000s, after the Global Financial Crisis (GFC) in 2009, and notably post-2022 where bonds failed to provide the anticipated protection for investors. Nicsa GMM attendees benefited from a candid discussion around the opportunities and hurdles facing the ever evolving alts landscape.

Here are the key takeaways:

  1. Challenges arise in reconsidering the traditional 60/40 allocation, prompting a paradigm shift towards more substantial and enduring allocations to alternative strategies.
  2. Despite the potential advantages, the wealth channel remains under-allocated to portfolio alternatives, spurring various firms to address this disparity.
  3. Semi-liquid products have witnessed remarkable growth, offering increased access to private assets.
  4. Convergence between alternative and traditional managers, including mergers and acquisitions, is a prevailing trend.
  5. Financial advisors are becoming better equipped, and technology is transforming the game, although immediate flows may lag behind heightened interest.
  6. The subscription process proves cumbersome, propelling firms to address challenges through digital transformation, especially in the realm of alternatives and trading.
  7. Post-allocation to alternatives, the focus shifts to data, reporting, and cycles, ensuring comfort in approaching clients with comprehensive portfolio insights.
  8. Client concerns regarding liquidity vary, challenging the conventional notion of maintaining 100% liquid assets. The recognition of the illiquidity premium has prompted asset managers to create structures that are more conducive to wealth building.
  9. In spite of being part of a higher-margin and fee industry, fee compression is observed, prompting nuanced considerations about paying for alpha versus beta. Bargaining power and early engagements with managers may influence fee structures.
  10. The industry is poised for a transformation, with a projected dominance of 20 to 30 product providers. Private wealth firms are expanding rapidly, propelled by a perceived $10 trillion opportunity.
  11. Successfully navigating this landscape involves careful consideration of alpha performance relative to benchmarks. 

In summary, alternative investments present a dynamic landscape where historical trends, evolving strategies, and technological advancements shape portfolio decisions. Balancing liquidity, navigating fee structures, and adapting to industry shifts are crucial for success in this evolving market.

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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A recent panel discussion at Nicsa's 2023 General Membership Meeting, Unveiling the Power of AI, delved into the transformative impact of Artificial Intelligence (AI) on the asset and wealth management industry and the unique dynamics at play, giving rise to this technological wave.

 

The panel was moderated by Matt Labovich, US Data Analytics and AI Leader, PwC. Panelists included Vanessa Fernandes, Head of Digital Experience and Delivery, BNY Mellon, Amie Fleming, Data & AI Director, Microsoft, and Ninou Sarwono, VP, Head of Emerging Technology, Capital Group.

 

An AI Revolution:

The panel discussed the significant paradigm shift that has taken place, captivating global attention. AI, which has been in development since the 1950s, has reached a critical juncture. A perfect storm of technological advancements, computing power, data, and larger models has led to a revolution in AI accessibility. This transformation has placed AI capabilities into the hands of hundreds of millions of users, making it a pivotal moment in AI history.

 

AI is real today. AI is here today:

The panel emphasized that AI is not a distant concept; it is here today and readily available. The technology is undergoing an expansion phase, generating value and impacting a multitude of businesses. As seen by numerous use cases, the evidence of its efficacy extends beyond the boundaries of controlled environments. Machine learning projects, once lengthy and resource-intensive, have been significantly accelerated by massive models trained on extensive datasets, ushering in a new era of efficiency and practicality.

 

The Vital Role of Data:

Data emerged as a crucial factor in AI's success. It is the lifeblood of AI, the primary source from which it learns and evolves. Organizations must focus on data quality, quantity, and avoiding biases. The quality of data informs the reliability and fairness of AI models, ensuring ethical and unbiased outcomes. Data augmentation, blending public models with internal data, offers a path to enriching client-specific datasets and automating processes. The panel highlighted the significance of data quality, quantity, and fairness in AI development, emphasizing the need for ongoing attention in these areas.

 

AI in Action:

The panel shared real-world use cases of AI in action, dispelling the notion that AI is a futuristic concept. Instead, it is a present-day reality driven by visionary leaders. AI applications span across diverse sectors, proving the broad impact of the technology. They acknowledged the existence of limitless use cases and the importance of continually reviewing and assessing the quality of AI's contributions. The discussion reaffirmed that AI is an ally, augmenting human capabilities rather than replacing them.

 

Building Trust and Embracing Change:

Building trust in AI systems was emphasized as a gradual process achieved through responsible AI practices and real-world experiences. Technology evolves alongside human engagement, making practical, responsible AI practices an integral part of trust-building. The panel concluded by highlighting that success belongs to those who embrace change and adapt to the evolving AI landscape.

 

“The companies rising, the companies succeeding are the ones embracing change.”

 

Summary:

In summary, the panel revealed the transformative power of AI and underscored its current significance in various sectors. AI's evolution is driven by technology advancements, data accessibility, and visionary leadership, with an emphasis on ethical considerations and a collaborative human-AI partnership. The discussions at the Nicsa General Membership Meeting marked a pivotal moment in the understanding and adoption of AI within the asset and wealth management industry.

 

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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A recent panel discussion at Nicsa's 2023 General Membership Meeting, A Confident Board, delved into the strategies for effective governance within the asset and wealth management industry, 

 

The panel was moderated by Amy Merrill, Senior Manager, EY. Panelists included Gary Casagrande, Senior Vice President - Head of US Fund Administration, Northern Trust, Joanne Kane, Chief Compliance Officer, SS&C Technologies, and Rosa Licea-Mailloux, Vice President and Head of Compliance, Americas, MFS Investment Management

 

The discussion revolved around the critical interplay between board oversight, compliance, and operational understanding within an organization. The participants emphasized the necessity of a well-designed compliance framework, rooted in a deep comprehension of organizational operations. They stressed that crafting policies and procedures demands an awareness of the real-world dynamics to ensure monitoring and testing align with the organizational reality.

 

Outsourcing:

The importance of understanding outsourcing was highlighted, not just in terms of where and how it occurs but also why certain functions are outsourced. This understanding is crucial for aligning with business units overseeing these processes or service providers.

 

Operations:

The conversation touched on the symbiotic relationship between compliance and operations. The participants stressed the need for a robust partnership and communication between asset managers, service providers, and compliance and operations officers. Standardization is encouraged, not only for efficiency but also as a risk mitigation strategy, avoiding divergent processes that could increase risk.

 

Operating Models:

The discussion extended to the broader topic of the search for “the right” operating model. The consensus was that operating models should be tailored to the organization's current strengths and must continuously evolve. The participants emphasized the need for organizations to assess what they excel at and what should be outsourced. Long-term considerations are crucial, questioning whether the organization will maintain proficiency in a particular area and, if not, whether outsourcing to specialized service providers is a strategic move.

 

In summary, the discussion underscored the evolving role of compliance officers, the critical relationship between compliance and operations, and the importance of a flexible and tailored operating model that aligns with organizational strengths and future trajectories. Effective governance is a collaborative effort that requires ongoing communication and partnership among key stakeholders.

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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Nicsa’s 2023 General Membership Meeting featured an insightful panel discussion focused on the evolving relationship between the wealth management and retirement industries.

Moderated by Bing Waldert, Managing Director, U.S. Research, Cerulli Associates, the panel featured Kevin Murphy, Senior Vice President, Head of Workplace Retirement Distribution, Franklin Templeton, Jania Stout, Senior Vice President, OneDigital | Retirement Services, and Nathan Voris, Head of Channel Strategy, Morningstar.

The conversation centered on the transformation of wealth management from a conventional business model to one that prioritizes financial planning. One central theme was the changing battleground in wealth management, shifting towards organic growth and acquiring new clients. The panel pondered the implications of this shift on the future of retirement savings and explored the convergence between these two domains.

“We need to retire the term “retirement.” What we’re talking about now is financial stability.“

The Wealth Management Shift:

The panel initiated the discussion by highlighting the growing commoditization of the wealth management business model in recent years. The industry is increasingly leaning towards the foundational implementation of financial planning. This evolution has prompted a reevaluation of wealth management, and the panel recognized organic growth as the new frontier. The central question became: How can the industry attract new clients and what impact will this have on retirement savings and the broader wealth management ecosystem?

Expanding Roles of Retirement Advisors:

The convergence of wealth and retirement industries is encouraging advisors and their practices to expand into wealth management. This shift is pushing the industry to enhance its offerings, from product solutions to additional resources to provide individuals with comprehensive advice and ongoing asset management. Advisors who have successfully transitioned "from the boardroom to the breakroom" as well as those that have embraced digital solutions have excelled in this changing landscape. They are now capable of serving both fiduciary needs at the plan level and delivering valuable propositions to plan participants, addressing their diverse needs.

The Holistic Approach:

A significant portion of the panel discussion was dedicated to emphasizing the evolving roles and responsibilities of advisors and plan sponsors. Their reach is being extended to become holistic human capital consultants, going beyond just retirement planning. Participants are seeking personalized advice and guidance tailored to their unique needs and preferences. The focus has shifted from the traditional notion of saving for retirement to addressing immediate concerns like renting versus buying and paying off debt. Meeting participants where they are in their life plans and personalizing solutions emerged as a crucial aspect of the discussion.

The Need for Personalization and Data Sharing:

The industry needs to adapt to the changing preferences of participants. The panel emphasized that what worked decades ago is no longer effective today. Actionable (a big theme for this panel) personalization is at the forefront, with 70% of employees seeking more holistic solutions beyond retirement. Over half of them are willing to provide additional data to their employers to receive personalized recommendations. Furthermore, the importance of financial health, often overlooked compared to physical and mental health, was discussed. Employers were urged to consider investing in financial health as part of their benefits packages.

The Future of the Financial Epicenter:

The workplace was identified as the emerging financial epicenter for most Americans. Data and personalization played a critical role in the industry's evolution. Younger generations are increasingly comfortable sharing their data, which can be harnessed to enhance the industry's solutions. An inherent level of trust between employees and their employers was noted, offering an opportunity to leverage this trust through advisors to deliver personalized and holistic financial solutions.

“The workplace will become the financial epicenter for most Americans.”

Challenges and Future Prospects:

The panel touched on the challenges of measuring engagement and the importance of retraining to meet contemporary needs. The discussion also extended to potential solutions, such as collaborating with employers and redefining success metrics. The critical role of employers in engaging employees and demonstrating the value of retirement plans to their workforce was underscored.

In conclusion, the panel emphasized the need to retire the term "retirement" in favor of "financial stability," recognizing the evolving financial landscape. The convergence of wealth and retirement industries is a reflection of changing demographics and the growing demand for personalized, holistic solutions. Employers, employees, and advisors must collaborate to address these changes and meet the diverse financial needs of today's workforce. The evolving landscape offers opportunities for the industry to adapt and thrive while ensuring financial stability for all Americans.

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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Nicsa's 2023 General Membership Meeting offered a look into the advisor landscape and the shifting intermediary marketplace. Broadridge’s Tim Kresl and Columbia Threadneedle Investments’ Jim Bumpus, Head of Intermediary Markets, discussed key trends.

With the increasing product complexity and evolving investor expectations, advice models are being reshaped. The session’s audience included executives from across the asset and wealth management industry. The discussion offered the following takeaways:

  1. Financial advisors are increasingly diversifying their allocations, including alternatives (liquid and non-liquid), separately managed accounts, model portfolios, active ETFs, and passive ETFs.

  2. Advisors are simultaneously shifting towards a focus on holistic financial planning, spending more time with clients and less on investment management and back-end operations.

  3. While the financial industry embraces product complexity and innovation, advisors are more focused on deepening client relationships.

  4. Advisors continue to look toward personalized portfolios to differentiate themselves and address various client needs.

  5. Advisor satisfaction has declined in recent years, likely due to lower returns in fixed income and challenging market conditions. Financial planning can help maintain client satisfaction during market fluctuations.

  6. Younger investors, especially Millennials and Gen Z, are less satisfied with the traditional financial advising model, presenting an opportunity for advisors to adapt their services to meet the unique needs of younger clients.

  7. A significant transfer of wealth is expected, making it essential for advisors to connect with younger investors and address their specific financial goals and needs.

  8. Attracting younger and more diverse talent to the financial advisory industry is a challenge but critical for its future success.

  9. Delivering value-added services, beyond just products, is crucial for financial advisors to better serve their clients.

These key takeaways highlight the evolving landscape of financial advisory services, emphasizing the importance of adaptation to meet changing client needs and the increasing focus on holistic, value-added services and financial planning.

Personal views and observations of individuals contained herein are as of the date of the live event or written material and do not necessarily reflect the views of Nicsa or its member organizations. May contain forward-looking statements subject to various uncertainties. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain legal advice regarding these or any other matters. The information contained herein is for informational purposes only and does not constitute a recommendation of best practices.

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