Independent advisors have a golden opportunity to benefit from an era of “profound change,” but must swiftly address the new realities and complexities of the economy and the marketplace, said Envestnet president Bill Crager, delivering the opening address at the wealth management outsourcing firm’s 2012 Advisor Summit in Chicago last week.
“The future of investment advisory depends on being able to understand and respond to uncertainty on behalf of clients,” Crager told a standing room only audience of advisors. Adapting quickly to complexity, he said in a subsequent interview with Family Wealth Report, was the biggest challenge facing advisors right now.
"Old truths" are out
The “old truths” of investing, such as assuming the US is safe and financially secure, expecting ten per cent annual returns, and relying on buy and hold strategies are gone for good, Crager said.
Those assumptions have been replaced by uncertainty and complexity, he continued, accompanied by a need for advisors to cope with new asset classes, “an explosion of investment products,” strategies, tactics and client demand for retirement income.