UBS released its annual outlook for 2018 on Thursday that, among many insights from the bank’s wealth management business, highlighted three portfolio risks investors face in the coming calendar year. The year 2017 was strongest for the global economy since 2011, with growth likely rising to 3.8 percent from 3.1 percent in 2016, and UBS expects global growth to continue at that rate in 2018. But a sharply higher inflation that forces central banks to tighten policy could impact client portfolios. Geopolitical shocks, especially stemming from North Korea and the Middle East, are also risks that could have a significant impact on markets in 2018. And finally, China could mismanage its debt, leading to a “greater-than-expected” economic slowdown.
Millennial advisors are more likely to adopt financial planning than both Generation X and baby boomer advisors, according to a new Cerulli Associates study. On average, these younger advisors offer 5.1 planning services, compared with 4.6 for Gen X and baby boomer advisors. Nearly 83 percent of millennial advisors’ clients receive planning advice, versus two-thirds of Gen X advisors’ clients. In addition, 62 percent of the younger cohort charge for planning, compared with 38 percent of baby boomers. “The rising trend of comprehensive planning has swept up millennial advisors who entered the workforce during its growing popularity,” said Marina Shtyrkov, a research analyst at Cerulli. “In the early stages of their careers, they have already calibrated their practices, including pricing and service models, to fit a comprehensive planning structure, and many provide expansive planning offerings.”
Envestnet’s Taramac technology platform focused on boosting productivity is now integrated with RightCapital, a financial software company that offers advisor and client-facing financial and tax planning tools. RightCapital, which is only in its second year, has $20 billion in assets linked to the platform and is used by 1,300 advisors from more than 1,000 different firms. More than 59,000 advisors and 2,900 companies already use Envestnet, including the majority of the largest banks, wealth management and brokerage firms.