The theme for the Money Management Institute’s 2015 Annual Convention in Charlotte, NC was “Leadership Challenges in a Period of Fast-Paced Industry Transition”. This was well-timed considering the whirlwind of changes that have occurred over the past year.
The attendees were a good mix of asset managers, sponsors and vendors that led to some lively discussions.
For those of you who were unable to attend or for anyone who was there but was busy schmoozing and missed a session or two, here is a quick recap of the entire conference as it looked on Twitter.
MMI2015AC begins now w/ co-chairs @BlackRock’s Mike Lewers & @MetLife’s Jeff Wilk! Pick up your badge in the Grand Promenade on 2nd Floor.
Lorna Sabbia, Chairperson of the Board of MMI gave the opening remarks. She has been at Merrill Lynch for 18 years and is currently their global head of managed solutions. (See Merrill Streamlines Their Platform To Deliver UMH for Clients)
Keynote Speaker – Andy Sieg
The conference got off to a roaring start with an inspirational keynote speech from Andy Sieg, Managing Director, Head of Global Wealth & Retirement Solutions at Merrill Lynch.
Sieg came loaded with a barrel of tweetable quotes that made it a pleasure for anyone trying to summarize his presentation. “The US economy is a rock of stability when compared to the rest of the world,” was one of the first he shared.
Specificity is the soul of credibility” @AndySeig #MMI2015AC #wealthmanagement http://t.co/e4iqWR8ENX http://t.co/edUKMb7QbN
Sieg stated that the US has unprecedented growth possibilities. He listed four transformations that are changing our world and said “technology is a force multiplier”.
Merrill Lynch One #wealthmanagement platform consolidated $350 bil AUM since launched Jan 2014 @AndySeig #MMI2015AC http://t.co/yh4mf0Zxsj
Sieg reported on the success of their ML One platform that consolidated five formerly separate platforms.
Goals-Based Wealth Management: A Sea Change in Financial Advice Delivery
Jack Sharry and a panel of industry experts dived into Goals-Based Wealth Management (GBWM). What it means, which firms are adopting it and what direction the industry is going.
The moderator was Jack Sharry, Executive VP, Strategic Development, LifeYield LLC. The panel members were:
- Annamaria Banaszek, SVP & CEO Eagle Strategies, New York Life
- Bill Crager, President, Envestnet
- Eric Lordi, Head of Cross-Platform Development, Barclays Wealth and Investment Management
Goals-based #wealthmanagement is personalization enabled by technology #MMI2015AC @EricLordi https://t.co/4PhvhnK0nc
Bringing Impact Investing Down to Earth
Impact investing is the practice of investing with the goal of generating measurable social and environmental impact alongside appropriate financial returns. The MMI announced a new white paper examining how practitioners are integrating impact investing so that it becomes strategically material. It will present evidence that impact investing can improve how the financial services industry manages to the kinds of outcomes that clients seek and meet growing demand for socially acceptable investing.
The moderator was William Burckart, Managing Director, Burckart Consulting @BillBurckart. The panelists were:
- Anna Snider, Managing Director, Head of Global Equity Due Diligence, Merrill Lynch Wealth Management
- Gil Crawford, CEO, MicroVest @MicroVest
- John Streur, President and CEO, Calvert Investments @CalvertInvests
Changing consumption model could save EU $630 billion by 2020 via @BillBurckart #MMI2015AC
Burckart discussed the Rise of the Virtuous consumer. How firms like Patagonia and Whole Foods have built their brands around environmentally friendly business practices.
He explained how the current consumption model could be flipped around so that growth is untethered from resource constraints. The world should be moving towards a ‘Circular Economy’ where nothing is wasted.
In 2011, 20% of S&P500 issued social corporate responsibility reports, in 2014 it’s up to 80% -Anna Snider #MMI2015AC
Snider spoke about how social responsibility has gone from fringe idea pushed by noisy activists to mainstream concept that has been embraced by most of the largest companies in the country.
Gateway to Leadership Awards Dinner
The 2015 MMI Advisory Solutions Pioneer Award winner was Bill Crager, President of Envestnet. He was introduced by Jim Seuffert, former CEO of Pershing Managed Account Solutions and co-founder and former COO of the Lockwood Advisors. Seuffert is now Senior Partner at Wheelhouse Analytics.
Congratulations to @ENVCrager for winning the prestigious 2015 Advisory Solutions Pioneer Award at #MMI2015AC
Advisory Solutions Established Manager of the Year is won by @blackrock at #MMI2015AC
From Generation to Generation: Preparing for When Wealth Changes Hands
Day Two began with a riveting presentation by Kim Lear, Director of Content, BridgeWorks. Lear is an expert on demographic characteristics and behaviors for each generation. She had the somewhat hung-over MMI audience glued to their seats and wide awake as she explained the differences between each group. She also explained how advisors should tailor their message and communication style depending on the age of their prospect or client.
Generation Xers believe they have a greater chance of seeing a UFO than a social security check @kimmylear #MMI2015AC
By the time a Generation X’er is 20 years old, they will have watched 23,000 hours of television, Lear reported. This means they have seen a lot of advertising, so they are difficult to sell to.
Baby Boomers mix Optimism+Idealism – advisors must be optimistic, be the bright spot @kimmylear #MMI2015AC
Boomers are in the middle of the transformation to retirement, but still have responsibilities with work and family, Lear noted. Some Boomers spend up to 21 hours per week caring for aging parent (MIT & Gallup). All this stress can lead to emotional exhaustion, which advisors would be wise to help mitigate in their communications, she stressed.
Advisors should anticipate Generation Xers being skeptical, don’t get defensive @kimmylear #MMI2015AC
Platform, Product, and Client Interfaces of the Future
This was the UMA/UMH panel that is requisite for every MMI conference in order to cover the latest news, emerging trends and prognosticate about the future of technology, design and client experience.
This group did not disappoint. Led by moderator Robert Klapprodt, President of Vestmark Software, the panelists were:
- Sanjiv Mirchandani, President, National Financial, Fidelity Investments
- Curt Overway, President, Managed Portfolio Advisors, Natixis Global Asset Management
- Russell Tipper, Managing Director, Merrill Lynch
Good Morning #MMI2015AC ! Vestmark President, Rob Klapprodt, is moderating platforms and products of the future panel
Primary #advisor gets 65% of investor’s wallet share -Mirchandani @Fidelity #MMI2015AC
84% of clients that leave their #advisor do so because of poor service -Tipper @MerrillLynch #MMI2015AC
Mirchandani announced that Fidelity is following in Schwab’s footsteps and will be launching their own robo-advisor offering at some point. TD Ameritrade is the only one of the big four RIA custodians who has not announced a robo-advisor service. (See Pershing Plans a Robo-Advisor White Label Product — Patrick Yip)
@Fidelity is working on their own robo-advisor offering -Mirchandani #MMI2015AC
The Money Management Institute
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