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XLV *Components and weightings as of 1/31/25. Please see website for daily updates. Holdings subject to change.

HEALTH CARE SECTOR SPDR ETF TOP 10 HOLDINGS* Company Name

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Eli Lilly

LLY

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Unitedhealth

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Johnson & Johnson

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6.84%

AbbVie

ABBV

6.07%

Merck

MRK

4.67%

Thermo Fisher Scientific

TMO

4.27%

Abbott Labs

ABT

4.14%

Intuitive Surgical

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3.80%

Amgen

AMGN

2.86%

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An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF or visit www.sectorspdrs.com. Read the prospectus carefully before investing.

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Contents

twitter.com/investmentnews facebook.com/newsfromIN

8

UPFRONT 2 Editorial

DOGE runs amok

4 Statistics

A coming advisor shortage

NEWS ANALYSIS

10 Gold vs. bitcoin

Which currency is the best alternative for investors?

OPINION

NEWS ANALYSIS

The fall of the star fund manager Wamco’s outflows hint at key-person risk

19

COVER STORY

Pitcairn’s Andrew Busser sets stage for next 100 years

The CEO has no problem combining tradition and innovation

The makings of a great offsite

25 Column Opportunities ahead of the great wealth transfer

IN PROFILE

26 Setting expectations in alts investing Ed Cofrancesco on why transparency with clients is critical

FEATURE 28 Women’s History Month

13

Guiding the next generation

Newswrap

SPECIAL REPORT

InvestmentNews Best places to work

6

24 Column

These firms shine for advisor satisfaction

30 Industry 32 Regulation 34 Retirement 36 Your Practice 38 Investing

VIDEOS

NEWS ANALYSIS

FINRA fights for its existence A legal battle with broker-dealer Alpine Securities has the regulator on the ropes

SECTOR FOCUS

22

SCAN THIS CODE TO WATCH KATHY KRISKEY, COMMODITY STRATEGIST AT INVESCO, TALK ABOUT PROFITING FROM SPIKES IN THE COMMODITIES MARKETS.

A Trump trend for ETFs Some funds seek to benefit from the administration’s policies

INVESTMENTNEWS.COM Contents © Copyright 2024 by KM Business Information US Inc. All rights reserved. Vol. 29, No. 2, March 10, 2025. InvestmentNews (ISSN 1098-1837) is published monthly by KM Business Information US Inc., 575 Fifth Avenue, 14th Floor, New York, NY 10017.

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March 10, 2025 InvestmentNews | 1

Editorial

The Trusted Resource for Financial Advisers InvestmentNews.com

EDITORIAL VP - Editorial: James Burton Managing Editor: Emile Hallez Senior Columnist: Bruce Kelly Retirement & Planning Editor, Multimedia Anchor: Gregg Greenberg Journalist: Leo Almazora Senior Sponsored Content Writer: Manal Ali Contributing Columnists: Ed Slott, Joe Duran SALES Chief Revenue Officer: Dane Taylor dane.taylor@keymedia.com VP – Global Sales (Wealth): Abhiram Prabhu abhiram.prabhu@keymedia.com Senior Account Executive: John Shaughnessy jshaughnessy@investmentnews.com Business Development Manager: Catherine Reale catherine.reale@keymedia.com Customer Success Team Lead: Bernz Jalandoni Customer Success Coordinators: Cole Dizon, Pauline Talosig PRODUCTION VP – Production: Monica Lalisan Lead Production Editor: Roslyn Meredith Production Editors: Christina Jelinek, Kel Pero Production Coordinators: Kat Guzman, Loiza Razon Designer: Joenel Salvador Art Director: Marla Morelos

When the chainsaw comes for the SEC

M

easure twice, cut once.

If you’re familiar with woodworking, you’ve heard that, well, more than once.

And if you’ve ever made the mistake of failing to abide by it, you’ve learned the lesson that some errors can be hard to reverse. That may not be obvious to the world’s richest person, Elon Musk, who recently stole the stage at CPAC by wielding a novelty chainsaw – and, in case it was lost on anyone, yelling the word “CHAINSAW!” In normal times, such a metaphorical show would be an obvious gaffe, especially after his pet project, DOGE, has made numerous glaring mistakes in its quest to reduce the size of the federal government.

Career civil servants have reportedly been fired and then told that was an error, but then in some cases fired again later. And DOGE has also overestimated the money it claimed to be saving taxpayers through various cuts – in at least one case by three orders of magnitude.

Setting aside the argument that a scalpel may be a more appropriate implement in the pursuit of government efficiency, one wonders if the DOGE team is measuring at all.

And the legal fight over the president’s ability to withhold funds

EVENTS VP – Events: Katie Jones Head of Event Marketing: Oliver McCourt Awards Director: Jessica Duce Head of Event Operations – Conferences and Summits: Rosalie Jaliel Conference Production Manager: Jesse Friedl Conference Producers: Ian Ferguson, Matthew Seely Marketing Coordinators: Princess Capili, Ara Briones Event Coordinators: Jed Manalili, Honey Gonzaga, Joshua Esteves, Ann Tayao, Lindsey MacRae, Penny Mungal Team Leader – Event Design: Sheila San Miguel

services departments have also been affected.

And, of course, there is the Securities and Exchange Commission, which as of press time had not had a full DOGE review but is already facing some job cuts, including directors at its 10 regional offices.

The risk, when all is said and done, is that the SEC will lose many highly skilled workers. While that has the potential to affect investor protections in the short term, it could prove to be a long-term problem as well, as refilling those jobs in the future will not be quick and easy – institutional knowledge will be lost.

It will also mean that sound guidance

Sound guidance from financial advisors and brokers – whether fiduciary or best interest – may be increasingly important

MARKETING & RESEARCH Global Director: Claire Preen Marketing and Operations Director: Danica Mendoza Managing Editor – Special Reports: Chris Sweeney VP – Marketing Services: Lauren Counce Marketing Services Manager: Nicole Chantharaj Marketing Activation Manager: Rissa De Leon Project Manager: Kristyn Dougall CORPORATE President: Tim Duce Director, People and Culture: Julia Bookallil CIO: Terry Szames CEO: Mike Shipley COO: George Walmsley

InvestmentNews office 575 Fifth Avenue, 14th Floor, New York, NY 10017 KM Business Information US, Inc. 3190 S Vaughn Way, Suite 550 Aurora, CO 80014 InvestmentNews is part of an international family of B2B publications, websites, and events for the finance and insurance industries INSURANCE BUSINESS AMERICA cathy.masek@keymedia.com INSURANCE BUSINESS AUSTRALIA sophie.knight@keymedia.com

approved by Congress or eliminate agencies established by it has yet to play out.

So far, the mass firings and buyouts have hobbled the Consumer Financial Protection Bureau, and the IRS is set to lay off more than 6,000 people in the middle of tax season. Other non-financial

from financial advisors and brokers – whether fiduciary or best interest – may be increasingly important.

It is one thing to contend that government could be more efficient. It is another to allege widespread fraud and abuse. And in the latter case, widespread cuts at an agency like the SEC will hardly serve to protect consumers.

INSURANCE BUSINESS CANADA elijah.hoffman@keymedia.com INSURANCE BUSINESS UK gemma.powell@keymedia.com BENEFITS & PENSIONS MONITOR WEALTH PROFESSIONAL CANADA abhiram.prabhu@keymedia.com

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Comments? Questions? Send your thoughts to emile.hallez@keymedia.com.

2 | InvestmentNews March 10, 2025

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Statistics CATCHING THE WAVE OF WOMEN’S WEALTH To participate in the horizontal wealth transfer going into women’s hands, Cerulli urges firms to address their need for financial planning and relationships.

AN ADVICE GAP FOR DEATH AND TAXES In Orion’s inaugural investor survey, two-thirds of advised investors said their advisor doesn’t currently offer estate and trust planning, tax-efficient investing, and tax planning. Tellingly, those were also the three services that surveyed investors most wished their financial advisor would start offering.

A new report by McKinsey suggests that unless the wealth industry raises productivity and hires up to 80,000 new advisors in the next decade, it could face an advisor shortage of more than 100,000 by 2034.

Investors whose advisor does not offer this service Investors who wish their advisor offered this service

Estate & trust planning

$40T

assets to be inherited by widowed women among baby boomer and older generations by 2048

THE 10-YEAR RECRUITMENT AND PRODUCTIVITY COUNTDOWN

66% 27% Tax-efficient investing

64% 25%

$21T

amount projected to move between spouses currently considered high net worth

Tax planning

63% 24%

$47T

amount estimated to go to women in younger generations

Source: Orion Advisor Solutions, 2025 Investor Survey, February 2025

YOUNGER ADVISORS FACE CRYPTO CONUNDRUM In a poll of roughly 250 registered investment advisors, global crypto investment firm Coinshares found that Gen Z and millennial advisors were significantly more likely than their counterparts in the Gen X, baby boomer, and older generations to report feeling the struggle between digital assets and traditional finance.

53%

share of women investors who see relationships as a key factor in advisor choice

Gen Z & millennials

Gen X & boomer+

80% 60%

68%

63%

56%

9 OUT OF 10

share of HNW practices that say clients’ partners are at least involved in the financial planning process

48%

40%

38% 20%

26%

0% Believe recommending speculative assets does not align with their fiduciary duty

Say that threats of digital assets outpace innovation

Say volatility will decline as market matures

Source: Cerulli Associates, US High-Net-Worth and Ultra-High-Net-Worth Markets 2024, January 2025

Source: Coinshares, Inside the Minds of Financial Advisors: A Look at Their Views on Digital Assets, February 2025

4 | InvestmentNews March 10, 2025

InvestmentNews.com

Statistics ADVISORS NEEDED

30–80

320–370

Net new advisors needed through accelerated hiring and better retention of new-to-industry advisors (thousands of advisors)

Advisors needed by 2034 (in thousands)

30–60

380–400

Productivity gains needed by 2034 (equivalent in thousands of advisors)

Advisors needed to meet projected demand by 2034 at current productivity levels (in thousands)

290

Projected advisor count by 2034 based on current trends (thousands of advisors)

Source: McKinsey & Company, The Looming Advisor Shortage in US Wealth Management, February 2025

ACTIVE ETFS ARREST FEE-COMPRESSION TREND After almost a decade of steady decline, fees in US-listed ETFs have reached an inflection point. Asset-weighted fees rose slightly to reach 0.18 percent in 2024, driven by recent growth in the influence of actively managed ETFs.

BREAKING DOWN RETIREES’ HEALTHCARE COSTS According to Fidelity’s most recently updated estimate, the average 65-year-old who retired in 2024 could expect to spend $165,000 in healthcare and medical expenses, with more than half going to out-of-pocket drug costs and Medicare premiums.

US ETF expense ratio, asset-weighted

The average breakdown of healthcare costs in retirement

0.23% 0.21%

0.20%

0.19%

0.18%

10%

0.17% 0.17% 0.18%

Out-of-pocket prescription drug costs Medicare Part B and Part D premiums

47% 43%

2017

2018

2019

2020

2021

2022

2023

2024

Source: FactSet report, ETFs Went Bananas in 2024, January 2025

InvestmentNews.com

Other medical expenses

Source: Fidelity Investments’ “2024 Retiree healthcare cost estimate”

March 10, 2025 InvestmentNews | 5

NewsAnalysis

FINRA ON THE ROPES? The current legal battle with a broker-dealer, Alpine Securities, is the latest challenge for the industry regulator

BY BRUCE KELLY

T

he Financial Industry Regulatory Authority has faced criticism from the securities industry it regulates ever since it was formed in 2007 by the merging of NASD and NYSE Regulation, Enforcement, and Arbitration. And an ongoing lawsuit that targets the self-regulatory organization’s authority to expel broker-dealers could eventually erode its powers.

FINRA oversees and regulates 3,298 firms and 628,392 registered reps, or financial advisors.

Although it is not a governmental agency, it operates under the aegis of the Securities and Exchange Commission.

The current legal challenge by a broker-dealer to FINRA’s authority is the latest in a line of public setbacks involving the regulator, which has also seen a steady decline for more than a decade in the number of broker-dealers it regulates, as the industry steadily moves to the registered investment advisor side of wealth management.

RIAs operate under a fiduciary standard of care and are regulated by the SEC and states.

FINRA has the power to levy fines and, in serious cases, bar broker-dealers and individuals from the industry. If you want to be a broker or operate a brokerage firm, you must join FINRA. FINRA wields enormous power over the lives of brokers and broker-dealers.

The US Court of Appeals for the District of Columbia issued the first successful blow to FINRA’s enforcement power in Alpine Securities Corp.’s lawsuit against it.

In 2022, FINRA sanctioned Alpine Securities, which has been open for business since 1984, for violating industry rules, and issued a cease-anddesist order against the firm. Alpine, which is based in Salt Lake City, then sued the regulator.

According to Bloomberg News, a panel sided with Alpine Securities 2–1 on November 22, finding that FINRA’s expedited proceeding against the

6 | InvestmentNews March 10, 2025

broker-dealer would allow “FINRA to expel Alpine with no opportunity for SEC review,” which likely violates the private non-delegation doctrine.

In other words, FINRA cannot expel Alpine Securities without a review by the SEC, a direct blow to the regulator’s authority.

“In issuing this narrow decision, which applies only to FINRA-expedited proceedings, the court declined to address many of Alpine’s broader and more consequential constitutional arguments,” Bloomberg News reported. “These open issues will now be litigated in the lower court and, if successful, could severely limit FINRA’s securities enforcement authority.”

Project 2025 – published by long-running FINRA foe the Heritage Foundation, a blueprint for the Trump presidency – calls for the selfregulator to be done away with.

Financial regulators, particularly the SEC and FINRA, “are poorly managed and organized,” Project 2025’s playbook reads. “With regulatory authority delegated by the government, both the Public Company Accounting Oversight Board and FINRA have proved to be ineffective, costly, opaque, and largely impervious to reform.”

“To reduce costs and improve transparency, due process, congressional oversight, and responsiveness, PCAOB and FINRA should be

“Alpine Securities Corp. threatens to upend financial markets by eliminating a critical market regulator that cannot be replaced by a government actor” BENJAMIN EDWARDS, WILLIAM S. BOYD SCHOOL OF LAW “This lawsuit ultimately could be an issue for the Supreme Court to sort out,” said Louis Tambaro, an industry lawyer. “But FINRA is likely to see more challenges like this, particularly pertaining to its authority.”

A FINRA spokesperson noted that the court of appeals did not resolve the merits of any of Alpine’s constitutional challenges and does not limit FINRA’s day-to-day work.

“The court emphasized instead that its decision was limited to the SEC review of a specific type of expulsion proceeding,” the spokesperson said.

Along with the Alpine Securities decision, FINRA is now a regulator in Washington in an era when the administration of President Trump favors curbing the power of such organizations.

abolished, and their regulatory functions should be merged into the SEC,” Project 2025 concludes.

The Alpine Securities case, along with the declining number of broker-dealers, has FINRA on the ropes, some industry observers said.

“For quite some time, brokers have been leaving broker-dealers under FINRA to work as RIAs or as a hybrid investment advisor,” said Brad Bennett, former head of enforcement at FINRA and now an industry legal consultant. “That’s a decline. FINRA has no authority over RIAs. They’re regulating a melting ice cube.”

FINRA has weathered blunders and shortfalls in its past, although not as potentially severe as the Alpine Securities matter.

In March 2012, former FINRA CEO Richard

InvestmentNews.com

KEY FACTS ABOUT FINRA At the end of 2023, FINRA reported:

“FINRA is likely to see more challenges like this, particularly pertaining to its authority” LOUIS TAMBARO, OFFIT KURMAN Ketchum issued a public mea culpa for the regulator’s failure to uncover R. Allen Stanford’s alleged $8 billion Ponzi scheme.

“FINRA clearly could have done better, and we deeply regret we did not,” Ketchum said

InvestmentNews.com

435 individuals barred or suspended in prepared testimony to the House Financial Services Committee’s Subcommittee on Oversight and Investigations.

Meanwhile, FINRA clearly has its supporters, who are warning of dire consequences regarding the Alpine Securities claim.

“Alpine Securities Corp. threatens to upend financial markets by eliminating a critical market regulator that cannot be replaced by a government actor,” wrote Benjamin Edwards, professor of law at the William S. Boyd School of Law, University of Nevada, Las Vegas, in an amicus brief.

“A judicial ruling invalidating FINRA wholesale would inflict enormous damage on financial markets and could even cause a financial crisis.

Existing government agencies simply lack the ability to replace FINRA’s keystone role.”

3,298 broker-dealers

628,392 registered brokers

March 10, 2025 InvestmentNews | 7

NewsAnalysis

THE FALL OF THE STAR MANAGER Western Asset Management Company has seen at least $120 billion leave since the SEC announced its investigation into Ken Leech. The instance highlights key-person risk that the asset management world has been trying to get away from

BY EMILE HALLEZ

F

ranklin Resources has been dealing for several months with the fallout of former Western Asset Management Company co-CIO Ken Leech’s role in an alleged cherry-picking scheme.

Since Leech was charged in late November by the SEC and Department of Justice, clients have pulled tens of billions of dollars from Western, which Franklin acquired as part of its purchase of Legg Mason in 2020. For the quarter that ended December 31, 2024, there was a total of nearly $68 billion in long-term net outflows from Western, more than half of which happened in December alone, Franklin said in its recent quarterly report.

That, however, has only been since charges were announced. Since the company disclosed an SEC investigation last August, along with Leech stepping down, about $120 billion has been drained from Western, at least through January, executives said in an earnings call.

Despite being media shy, Leech, who was long renowned for his trading skills, was the star bond manager at Western – the face of its highly regarded aptitude in the fixed-income world.

That, of course, changed abruptly, and the consequences have been enormous. While Franklin has pledged to support Western’s operations while allowing its investment team to remain independent, the parent company has also announced a three percent cut to its workforce.

“In order to continue to invest in our longterm growth initiatives and evolve for the future, we need to find savings and remain focused on our effectiveness and efficiencies,” Franklin spokesperson Jeaneen Terrio said in a statement.

“No investment professionals were impacted” by the layoffs, she noted. “While a workforce reduction is not easy, we believe these changes will leave us even better positioned to serve clients in the future.”

A NAME AND A FACE

Until very recently, “star” portfolio managers were a draw for fund companies, adding strength to their reputations and giving easy publicity to those who consistently outperformed.

Peter Lynch, manager of Fidelity’s Magellan Fund, delivered returns during the ‘80s that far surpassed the S&P 500. Legg Mason’s former CIO, Bill Miller, beat that index for 15 years straight, through 2005, as portfolio manager of the firm’s Capital Management Value Trust.

8 | InvestmentNews March 10, 2025

Pimco cofounder and former portfolio manager Bill Gross was once crowned “the bond king.” His contemporary, DoubleLine Capital founder Jeffrey Gundlach, has been adorned with a similar title.

While having stars can give firms an upside, there are risks.

The firm at which Gundlach managed money – TCW Group – saw $25 billion in redemptions in only two months after it fired him in late 2009.

At Pimco, lagging performance in the Total Return Fund and Total Return ETF had caused

a manager who is sought after and viewed as an expert can be quite valuable,” Kilgallen said in an email. That is “particularly [the case] in the wealth channel, where the increase of passive investing is consistently highlighted. Active managers do deliver alpha, and that story needs to be told.

Firms just need to balance that visibility with the overall impact of the team on delivering results to investors.”

Indeed, advisors are not all sold on active management.

“The star fund managers essentially ended with the downfall of Cathie Wood from ARK. I believe most of the industry (including clients) is embracing efficient market theory and utilizing index funds to diversify portfolios” FILIP TELIBASA, BENZINA WEALTH investors to start pulling money before Gross exited the company in 2014 – but outflows were dramatic in the months and years following, with total assets in the mutual fund dropping to a reported $101 billion

by August 2015, roughly a third of what they had been two years prior.

Asset managers understand that, just as easily as assets can be attracted by stars, they can also be lost to them.

TEAM APPROACH

The institutional investing world has favored team management on funds for a long time; they want to be assured that, should one portfolio manager leave, things can be expected to continue as usual, said Craig Kilgallen, director of relationship development at Fuse Research Network.

That line of thought eventually permeated wealth management, and today, it’s less common to see asset managers emphasize single managers.

“You still see named PMs [who] retire or change firms covered in the financial press, but asset managers have worked hard to emphasize with the marketplace that returns are driven by the team approach or the investment process rather than one individual. That said, PR is impactful and having

Filip Telibasa, owner of Benzina Wealth, says it’s “a thing of the past” and that odds of trying to pick the best manager are slimmer than betting on horse racing.

“The star fund managers essentially ended with the downfall of Cathie Wood from ARK. I believe most of the industry (including clients) is embracing efficient market theory and utilizing index funds to diversify portfolios,” Telibasa said in an email. “We realize low fees paired with a focus on goals/values to utilize tax-efficient accounts get you further ahead than trying to pick the best manager from last year (who may or may not repeat next year).”

Another opinion comes from an advisor who is also the portfolio manager of a recently launched active fixed-income ETF. “Active management is making a comeback. I think one of the things that the last three years have really highlighted is that there is real value that an active manager can bring, especially on the risk-management side,” said Leibel Sternbach, founder of Yields4U. “For those of us who are taking income from their portfolios, time is a luxury we don’t all have, and so active management can help reduce volatility and reduce the chance of compounding those market losses when we take our income.”

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THE CASE AGAINST KEN LEECH The Securities and Exchange Commission and Department of Justice filed charges related to “cherry picking” last November against former Western Asset Management co-CIO Ken Leech.

“The outflows have been egregious since this news broke. But these funds – Core and Core Plus – were in very heavy outflows prior to any of this becoming publicly available” MAX CURTIN, MORNINGSTAR FEWER STARS IN THE SKY

“Over the past few years, you’ve seen less and less of fund companies propping up star managers or solo managers,” said Max Curtin, manager research analyst at Morningstar Research Services.

That is no coincidence, he said, with fund providers recognizing key-person risk, or the likelihood that if a face leaves, money can as well.

“At Western, it wasn’t as cut and dry. Leech spent time and grew the business from nothing and received all sorts of accolades – and deservedly so,” Curtin said. Leech wasn’t the only manager on the funds he oversaw, with the exception of the now-liquidated Macro Opportunities Fund that he started, as Western emphasized a team approach, Curtin noted.

Also complicating that are outflows that started well before the SEC’s investigation was known – those were performance-related, as the funds struggled in 2022 through 2024, he said.

“The outflows have been egregious since this news broke. But these funds – Core and Core Plus – were in very heavy outflows prior to any of this becoming publicly available.”

InvestmentNews.com

It’s difficult to show how much fund companies truly rely on teams, rather than individuals, as marketing a team approach gives some confidence to clients that strategies won’t suffer if a person leaves, Curtin said. Fund prospectuses often list large teams, even if only a couple of people do most of the work managing the money.

Because of that, it’s hard to show with any reliable data how the average size of management teams has changed over the years.

“One of the biggest challenges is sifting through marketing spin,” Curtin said.

At Franklin, the team approach helps develop talent, Terrio said.

“Movement within our investment teams creates opportunities for some of our strongest talent, including promoting talent into leadership and portfolio management roles,” she said.

“Western Asset’s team-based approach ensures that the departure of any one professional – or even of several professionals – does not impact the investment management process. Our experienced team will continue to provide the continuity and outstanding investment expertise our clients expect.”

Leech allegedly directed hundreds of net first-day gains to favored clients, including the Macro Opportunities strategy that he started, the SEC stated. At the same time, other clients had net first-day losses doled out to them, and the discrepancies totaled about $600 million between January 2021 and October 2023.

The SEC charges include one alleged violation of the Securities Act, one under the Exchange Act, one of the Advisers Act, and two under the Investment Company Act. The separate grand jury indictment includes one count of investment advisor fraud, one count of securities fraud, one of commodity trading advisor fraud, one of commodities fraud, and one for false statements.

An attorney representing Leech said in a statement that his client “has an unblemished record over nearly 50 years as a trader and portfolio manager” and that “these unfounded allegations ignore key facts, including the fundamental differences between distinct fixed-income strategies and the irrelevance of first-day performance to managing these strategies.”

Leech did not receive any benefits from the alleged conduct and will defend himself against the charges, the attorney said.

March 10, 2025 InvestmentNews | 9

NewsAnalysis

THE FINANCIAL BATTLE OF THE CENTURY: GOLD VS. BITCOIN Gold has been the currency of choice for centuries. But some advisors see big opportunities with bitcoin – a relative newcomer – and have been diversifying portfolios with it

BY GREGG GREENBERG

L

et’s talk about a real heavyweight match-up, shall we? A battle for the ages between old and new. Champion and challenger. Past and future.

Not to mention stakes so high that the entire financial world can’t help but wager on it.

Relax! We’re not promoting a rematch between YouTuber-turned-professional-pugilist Jake Paul and retired boxing legend Iron Mike Tyson. Paul won that bout via unanimous decision, but the real victor was Netflix, with over 65 million suckers tuning in to that farce of a fight.

No, the main event on this card is bigger. It’s gold versus bitcoin in 2025 and beyond. And judging by the tale of the tape, it’s going to be a knock-down, drag-out brawl in which the winner could very well take it all.

IN THIS CORNER: GOLD

Gold was up 26 percent in 2024, outpacing the S&P 500 by three percentage points. Gold is up over 10

10 | InvestmentNews March 10, 2025

percent so far in 2025 and flirting with $3,000 an ounce.

Gold, in other words, is a molten-hot commodity.

“Gold is part of our investment process and allocation, as we trade it in our portfolios,” says Ken Arnold, managing director of Everglades Parkland Advisors. “We have always viewed gold as a hedge against inflation and debasement of currencies.”

Arnold adds that the yellow metal also serves as a “time-tested” store of value in periods of geopolitical stress, and expresses this belief by owning gold royalty companies.

Along similar lines, David Weinerman, founder and managing director at The Weinerman Group, is bullish on gold for the next 12 to 18 months.

He invests in the metal using gold ETFs, such as SPDR Gold Shares (Ticker: GLD), which he says provide an easy and liquid way to gain exposure to gold without the risks associated with

mining stocks, such as poor management and regulatory issues.

“Recent policy uncertainties, rising tariffs, and concerns over US debt sustainability have strengthened gold’s appeal as a safe-haven asset,” Weinerman says. “Additionally, central banks have been aggressively buying gold, reducing market supply and driving prices higher.”

As to why own gold over other precious metals like silver or platinum, Weinerman maintains that gold has “historically been the go-to store of value during economic uncertainty, currency devaluation, and geopolitical risks.” And while silver, platinum, and palladium may also store value, they are more influenced by industrial demand, making them more volatile, in his opinion.

You hear that, bitcoin fans? Gold has been the goto currency for countless centuries. Bitcoin started trading in 2009. It’s a relative baby compared to gold.

InvestmentNews.com

That’s a pretty strong punch coming from gold.

But is it a knockout blow?

AND IN THIS CORNER: BITCOIN

Get real, gold bugs. While bitcoin may not have been around for millennia, you’ve got to admit that it’s coming out of the gate with a bang!

Bitcoin, the world’s largest cryptocurrency, was the top-performing investment of 2024. Prices surged 125 percent in 2024, finishing the year close to $100K per bitcoin.

“I hold bitcoin both personally and for clients, and continue to add to positions,” says Zoltan Pongracz, private wealth advisor at Procyon Partners.

“Institutional adoption is no longer theoretical – it’s happening. BlackRock and Fidelity are in, and pension funds, endowments, and nation-states are allocating.”

Pongracz points out that bitcoin ETFs hit $50 billion in assets in just 227 trading days, which

InvestmentNews.com

“Recent policy uncertainties, rising tariffs, and concerns over US debt sustainability have strengthened gold’s appeal as a safe-haven asset” DAVID WEINERMAN, THE WEINERMAN GROUP is the fastest any ETF category has reached that milestone. Despite its $2 trillion market cap, bitcoin adoption is still early in his view, with only two to three percent of the global population owning it.

“Tom Lee of FundStrat highlights that no asset has reached $2 trillion and then disappeared. Yet bitcoin is still often dismissed as a fad,” Pongracz says.

Everglades Parkland’s Arnold has owned bitcoin for clients since 2014, starting with a very small position across client portfolios that has since grown far larger. He has not trimmed the position

since first acquiring it and has grown comfortable with bitcoin’s volatility. Sometimes he adds to his stash on dips.

“Any new clients must own bitcoin, and Eaglebrook’s SMA platform is a great option for direct allocation to crypto on clients’ behalf. We feel that most financial and investment advisors have not spent the time to understand the asset and protocol,” Arnold says.

Similarly, Weinerman is bullish on bitcoin due to a combination of institutional adoption,

March 10, 2025 InvestmentNews | 11

NewsAnalysis TALE OF THE TAPE: GOLD VS. BITCOIN 2024 return: Gold up 26%, bitcoin 125% Gold started trading centuries ago, bitcoin in 2009 Both gold and bitcoin offer ETFs Market cap: Gold $18.4T (2024 est.), Bitcoin 21 million-coin cap Bond villains: Gold (1) Goldfinger, Bitcoin (TBD)

AND THE WINNER IS…

“I hold bitcoin both personally and for clients and continue to add to positions” ZOLTAN PONGRACZ, PROCYON PARTNERS

macroeconomic trends, and its fundamental scarcity. In his view, the approval of spot bitcoin ETFs last year has opened the door for large-scale institutional investment, increasing demand while supply remains fixed at 21 million coins.

In the meantime, the halving of bitcoin last year further reduced supply, which historically leads to major price surges. (So maybe bitcoin bulls do have history on their side, too!)

12 | InvestmentNews March 10, 2025

“As central banks struggle with inflation and monetary instability, bitcoin is increasingly seen as a digital hedge against devaluation. Metrics show strong accumulation, with more bitcoin being held long-term, reducing sell pressure,” Weinerman says.

Some pretty good counterpunches from the challenger. This one is definitely going the distance.

Wow! What a fight! Both assets truly showed their mettle.

Time to go to the judges’ scorecards! (Keeping in mind, of course, that these are the opinions of merely a few advisors. Feel free to score at home yourself.)

Procyon’s Pongracz gives the nod to bitcoin, calling it “Gold 2.0.”

“It’s scarcer, more liquid, immune to manipulation, and, unlike gold, its supply is permanently capped at 21 million coins, ensuring true scarcity,” Pongracz said.

Moving on, Arnold gives the edge to bitcoin as well, saying the cryptocurrency market will continue to grow exponentially with proper regulation and security.

“In the future, assets will be tokenized, and bitcoin, being the oldest protocol, may be the beneficiary of tokenization. Bitcoin is still a great hedge against monetary debasement, which has occurred since the formation of the Federal Reserve in 1913,” Arnold says.

Next up, Weinerman checks his scorecard, calling the bout in favor of bitcoin.

“While gold has been used for thousands of years, its supply is not truly finite, as new mining discoveries and technological advancements can increase availability. Bitcoin, however, has a mathematically enforced cap of 21 million coins, ensuring scarcity. It is also far more portable, allowing for instant, borderless transactions, unlike gold, which is costly and cumbersome to transport,” Weinerman said.

Finally, Wheeler Crowley, cofounder of CoFi Advisors, makes it a unanimous decision.

“Bitcoin wasn’t just the top-performing asset in 2024; it’s been the top-performing asset for a decade. Neither of them is an effective inflation hedge – they were both losing investments in 2022, although bitcoin more dramatically so. However, bitcoin has demonstrated throughout its history that it’s worthy of holding, or even adding to, through the volatility,” Crowley says.

Adds Crowley, “Comparing gold to bitcoin is like comparing Will Smith to Mike Tyson – it isn’t a fair fight.”

InvestmentNews.com

SPECIAL REPORT THE TRUSTED RESOURCE FOR FINANCIAL ADVISORS

BEST PLACES TO WORK Recognizing the best places to work for financial advisors in the US, where supportive, inclusive, and flexible environments have been created

InvestmentNews.com

CONTENTS

PAGE

Feature article ........................................................ 14 Methodology .......................................................... 14 Best Places to Work 2025 ..................................... 18

March 10, 2025 InvestmentNews | 13

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BEST PLACES TO WORK 2025

COMPANIES THAT CARE FLEXIBILITY AND WORK-LIFE BALANCE move the needle for America’s advisors.

Thousands of employees shared their insights with InvestmentNews when asked what changes they felt would result in a more content and happier workplace, and delivered a resounding message: • “Being able to handle a remote work environment” • “Evolving with the ever-changing needs of employees” • “There are a lot of companies out there that offer way more flexibility and are tempting to explore” • “More work-from-home options” • “Recognition of the pace of work and business in order to avoid burnout” • “Flexibility in our hours/work from home as we need to be available to clients during certain times of the day” • “Not changing the working conditions like pushing work to be 100 percent office-based, but leaving it up to the employee”

This anonymous feedback, along with other information, was analyzed by IN’s team before the Best Places to Work 2025 were named.

The list of policies valued by financial advisors was topped by three basic requirements: a retirement plan, vacation, and medical coverage.

The next was flexible work options that matched the respondents’ comments. IN also asked about their preferred working options, and only 10.9 percent stated it would be 100 percent office-based.

Survey respondents rated from 1 to 5 what was important to them irrespective of whether their company offered those arrangements.

One winner, VLP Financial Advisors, is aligned with employees’ demands for flexibility, which by definition varies on a case-by-case basis. The firm facilitates this by allowing for hybrid and flexible working schedules.

Nicholas DiFiore, VLP’s director of operations, says, “We respect work-life balance and that shows a trust in our employees that they can manage their schedule effectively. When people walk into our

CONSIDERING DIFFERENT WORKING OPTIONS, WHICH ARRANGEMENT WOULD EMPLOYEES PREFER?

office, we want them to immediately feel the culture of a welcoming environment.”

The Fairfax County-based firm seeks to remove issues from their teams’ lives.

“It could be their car is not working and they need to take it to the shop. They usually suggest taking PTO, but where we can, we’ll say, ‘Don’t take PTO. Go ahead and work from home and after

METHODOLOGY To find and recognize the Best Places to Work, InvestmentNews invited organizations to participate by filling out an employer form, which asked companies to explain their various offerings and practices.

Next, employees from nominated companies were asked to fill out an anonymous form evaluating their workplace on a number of metrics, including benefits, compensation, culture, employee development, and commitment to diversity and inclusion.

To be considered, each organization had to reach a minimum number of employee responses based on its overall size. Organizations that achieved an 80 percent or greater average satisfaction rating from employees were named Best Places to Work of 2025.

57.3%

13.6%

10.9%

100% office-based

14 | InvestmentNews March 10, 2025

Hybrid

100% remote

18.2%

Employee’s choice

“We’re not hundreds of people. We have a relationship with each and every person who works with us” JENNIFER VON RUDEN, IAG WEALTH PARTNERS

InvestmentNews.com

hours, go do whatever you need to,’” says DiFiore.

Similarly, at IAG Wealth Partners, there is a policy of being flexible to help employees outside of work.

“It could be somebody’s getting a refrigerator delivered or something like an ill child. We certainly allow individuals to work remotely to cover any situations like that,” says Jennifer Von Ruden, chief compliance officer.

Another of the winning firms, Per Stirling Capital Management, vows to meet employees’ “personal and professional needs.”

Chief compliance officer Carol Sheffield comments, “While some team members work remotely full-time for personal reasons, the majority follow a hybrid model – working from home one to two days a week and spending the rest of the time in the office.”

This approach was born many years ago in a bid to help employees avoid the worst of Austin’s traffic, with the office closing 30 minutes early. Now, there are three alternative schedules, with start times ranging from 7:30 AM to 9:30 AM and corresponding end times. Each team member can choose the schedule that best fits their lifestyle and adjust as needed.

While being flexible and understanding of work-life balance is about respecting employees, productivity is an important part of the equation for firms. Despite messaging from some of corporate America about it being detrimental to results, this is widely contested and is not the case at VLP Financial Advisors.

“We don’t see a decrease in work production when people work from home. I can see how it would be an issue if things are falling through the cracks,” says DiFiore. “But we don’t see that with our team members because we empower them to do the best they can and show our trust in them.”

A “zero-burnout policy” operates at another winning firm, Winthrop Wealth, on the belief that rest and recovery enhance performance while adventure and exploration fuel innovation.

Chief operating officer Lucas Winthrop says, “We’ve noticed that people use it thoughtfully. It’s not about taking endless time off but about creating a process that encourages and supports people taking time for themselves, leading to higher engagement, longevity in careers, and the ability to live full lives.”

The firm runs a flexible hybrid model that allows team members to work in a way that best supports their productivity while ensuring collaboration remains strong.

“We find that leadership, advisors, and clientfacing roles tend to come in more frequently, while operational roles embrace a mix of remote and inoffice work,” adds Winthrop.

COMPENSATION MATTERS With the cost of living rising and interest rates higher than they have been in two decades, it goes without saying that salary is vital for employees.

Per Stirling taps into a combination of metrics to remain competitive: • profit earnings • inflation data • employee performance • benchmarking data provided by custodians

ensures that we remain aligned with industry standards and can continue to attract and retain top talent.”

VLP Financial Advisors is also on the front foot and innovative in this area. The firm takes a long-term approach and ensures all employees can access free financial planning, with the accountopening fee waived.

“Team members can literally just grab an advisor or one of the partners, put some time in their schedule, and sit down to go over their financial plan, alone, or if they want to bring their significant other in too,” says DiFiore.

VLP offers a 401(k) plan with the following features: • matching 100 percent of the first four percent of each employee contribution • discretionary five percent profit-sharing contribution for each team member after a year of employment with a three-year vesting period

Being aware of the market is a priority at IAG because it monitors salaries regionally and nationally. The firm analyzes data and determines pay ranges to remain competitive with its peers.

“Before we make any big decision, we always put our people first and we have continuous feedback” NICHOLAS DIFIORE, VLP FINANCIAL ADVISORS

EMPLOYEES’ RATINGS OF COMPANY BENEFITS IRRESPECTIVE OF WHETHER THEIR COMPANY OFFERS THEM 1 = not important, 5 = very important

4.8

Retirement plan Vacation leave

4.7

Medical coverage

4.6

Flexible work options

4.6 4.4

Sick leave

4.3

Dental coverage Development/educational programs

4.2

Personal/carer’s leave

4.1

Employee performance review

4.0

Vision coverage

4.0

Disability benefits

4.0

Employee recognition programs

3.9

Employee equity program

3.9

Company support for community/charitable organizations

3.9

Life insurance

3.7

Time off for volunteering in the community

3.6

Maternity leave

3.6

Paternity leave

3.5

Corporate/employee wellness programs (health screenings, fitness centers, etc.)

3.3

Long-term care

3.2

Diversity and inclusion programs and initiatives

3.1

Sabbaticals

3.1

Company involvement in any green or sustainable business programs

3.0

Loyalty programs

3.0

Sheffield says, “This multifaceted approach

InvestmentNews.com

March 10, 2025 InvestmentNews | 15

SPECIAL REPORT

BEST PLACES TO WORK 2025

“We are constantly evaluating that every year and try to keep up with or exceed what the industry is paying,” says Von Ruden. “Outside of that, we also have worked with talent recruitment agencies and share our compensation, and they’re able to give us guidance as to whether or not they feel we’re right in line, or if anything needs to be tweaked.”

BEST PLACES TO WORK GO ABOVE AND BEYOND IAG’s base in Wisconsin isn’t known for idyllic sunshine and warm weather, but when it does happen, the firm responds. It offers early afternoon finishes from Memorial Day through Labor Day. Von Ruden says, “Our summer can be beautiful but so short. A lot of people travel on the weekends and appreciate getting on the road. We’re also pretty generous even when we get those nice days in September and October – you’ll often see an email saying, ‘It’s such a beautiful day. Why don’t we just close the office early?’”

Another benefit is retirees are handed two tickets anywhere on the planet. A team member has recently exercised that benefit and will be flying to France in 2025, with IAG picking up the cost.

Getting away from the office is also high up the agenda at VLP. The firm organizes biannual reports where the entire workforce spends two nights away.

All accommodation is taken care of, with everyone issued a daily stipend to use on activities such as golfing and beauty treatments.

“We have gift bags, like last year, we gave monogrammed bags with towels and other little gifts inside. I also work hand in hand with the managers of the property to help create an itinerary of what everyone can do,” says DiFiore. “It’s a way to get away from the everyday grind, enjoy each other’s company, and get to know each other’s families.”

“Quirkiness Matters” is one of the core values at Winthrop Wealth and encapsulates the company culture. A left-field example is when a team member was selected as a contestant on the TV show The Bachelor.

“She didn’t leave her role. Instead, the entire team rallied behind her – cheering her on, organizing watch parties, and fully embracing the excitement of her journey,”Winthrop says. “We

IAG Wealth Partners Founded: 1985 Employees have 401(k) with matching (first 3% gets 100% match, next 2% gets 50% match), access to fitness center, free lunch twice a week

VLP Financial Advisors Founded: 1996 Employees have legal insurance, ID theft insurance, tuition reimbursement, employee assistance program, discount program (i.e., gym memberships, car rentals, etc.), free membership to NOOM

“We intentionally build humor and fun into our day-to-day interactions, fostering supportive relationships across the organization” CAROL SHEFFIELD, PER STIRLING CAPITAL MANAGEMENT LLC

16 | InvestmentNews March 10, 2025

Per Stirling Capital Management LLC Founded: 2009 Employees have tuition reimbursement, annual recognition and awards for five- and 10-year anniversaries, paid maternity leave of six weeks, and paid paternity leave of three weeks

InvestmentNews.com

EMPLOYEES’ TOP FIVE SATISFACTION RATINGS 1 = least satisfactory, 5 = most satisfactory

My organization has a safe work environment.

4.7 I am satisfied with my overall job security.

4.6 My organization engages in employee team-building and social activities.

4.6 I am inspired to meet my goals at work.

4.5 I am satisfied with the culture of my workplace.

“To maintain our collective spirit, we emphasize in-person touchpoints, all-team meetings, and social events – whether that’s office massages, team happy hours, or our famed Donut Thursdays” LUCAS WINTHROP, WINTHROP WEALTH

4.5

HOW LONG HAVE THE EMPLOYEES WORKED AT THEIR ORGANIZATION?

26.7% 24.0% 19.6% 16.4% 13.3%

<1 year

1–3 years

worked together to ensure she had the flexibility to pursue this once-in-a-lifetime opportunity while continuing to thrive in her career.”

INCLUSION IN THE WORKPLACE The Best Places to Work apply different strategies in fostering togetherness and equity.

Per Stirling adopts a traditional approach, and half of its leadership team is made up of women.

“Talent is talent. We’ve never implemented hiring initiatives based on gender, race, sexuality,

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3–5 years

5–10 years

10+ years

or religion. Instead, we focus on recognizing talent and providing the tools and platform for skilled individuals to succeed,” says Sheffield.

A more progressive and proactive model is implemented at VLP. DiFiore says, “We take a pretty deliberate and thoughtful approach to DEI.” The firm’s hiring, training, and leadership development promotes diversity, backed up by a robust internship program.

“We hopefully help open doors to new

professionals from various backgrounds. We work with local colleges and go to career fairs, and we specifically look for interns who we feel could use their experiences to really help grow the profession,” comments DiFiore.“We really focus on skills potential and an alignment with the company culture, while actively trying to seek diverse perspectives.”

Ensuring employees feel safe sharing ideas matters to VLP and is evidenced by the firm’s opendoor policy. In the case that individuals might not feel comfortable voicing their thoughts or opinions, anonymous feedback options exist.

DiFiore adds, “We have a couple of different avenues to ensure that team members feel heard and are able to provide their perspective, so we are pretty proud of our progress. But we’re continuously looking for ways to improve and build a more inclusive workplace.”

The male-female percentage split at Winthrop Wealth is 67-33 and not the result of any definitive initiatives. However, Winthrop confirms the firm is committed to promoting inclusion.

“We focus on fostering diversity by supporting women in finance through mentorship and networking opportunities. Moving forward, we are exploring ways to further attract and retain female talent, particularly in leadership and advisory roles, to create a more balanced representation,” he says.

Von Ruden is living proof of IAG’s inclusive attitude. In her early 20s, she took a career break to raise her children but was then offered a part-time evening role. Positively, she grew with the firm and is now a partner, along with being CCO. Several other colleagues began in support roles and were handed the chance to transition into successful financial advisors.

“If they’re the right person for the culture of the firm, we support their dreams and goals,” says Von Ruden. “We have done really well finding good people but not only that, finding the right fit for them within the firm.”

March 10, 2025 InvestmentNews | 17

SPECIAL REPORT

BEST PLACES TO WORK 2025

BEST PLACES TO WORK 2025 <99 employees

GenWealth Financial Advisors Halbert Hargrove

IAG Wealth Partners LLC

Hemington Wealth Management

Phone: 262 446 8150 Email: iag@lpl.com Website: iagwealthpartners.com

Legacy Wealth Management Inc. McLean Asset Management Corporation Miracle Mile Advisors

Winthrop Wealth Phone: 617 530 1010 Email: info@winthropwealth.com Website: winthropwealth.com

MONECO Advisors Northwest Asset Management/RIA Innovations Per Stirling Capital Management LLC

Zuckerman Investment Group

Quantum Financial Planning

Phone: 312 948 8000 Email: communications@zuckermaninvestmentgroup.com Website: zuckermaninvestmentgroup.com

Richard P. Slaughter Associates

Adams Wealth Advisors Adero Partners LLC Affirm Wealth Advisors AGP Wealth Advisors Altfest Personal Wealth Management Armstrong, Fleming & Moore Burton Enright Welch C2P Enterprises Cassaday & Company Inc. Center for Financial Planning Inc.

RTD Financial Schechter Investment Advisors Sensible Money SFMG Wealth Advisors Skyeburst Wealth Management SLK Private Wealth Smith Anglin Financial LLC Tiras Wealth Management VLP Financial Advisors Wealthquest Corporation Weatherly Asset Management LP

CV Advisors Diversified LLC

100–499 employees

Egan Berger & Weiner Envisage Wealth, a private wealth advisory practice of Ameriprise Financial Services LLC

Docupace Technologies JMG Financial Group

Financial Freedom Wealth Management Group

Merit Financial Advisors

Fragasso Financial Advisors Inc.

Mission Wealth

18 | InvestmentNews March 10, 2025

InvestmentNews.com

C-Suite

CEO ANDREW BUSSER SETS THE STAGE FOR PITCAIRN’S NEXT 100 YEARS Pitcairn’s CEO has no problem combining tradition and innovation

BY GREGG GREENBERG InvestmentNews.com

WHEN ANDREW BUSSER was named CEO of Pitcairn in 2023, the famed family office was commemorating its 100th year in operation, a milestone anniversary few businesses ever come close to reaching. The decision at the time to tap Busser as the executive to lead Pitcairn into its second century came with the expectation that he would carry on the firm’s long-standing culture while simultaneously evolving its client experience to meet the needs of modern multigenerational families.

That’s no small task, considering preserving March 10, 2025 InvestmentNews | 19

C-Suite PITCAIRN AT A GLANCE Homebase: Conshohocken, PA 100+ employees $9 billion in AUM Founded 1923 Offices: Suburban Philadelphia; New York; Baltimore; suburban Washington, DC; Florida

tradition and promoting change are essentially conflicting forces. Then again, Busser is not the type of person who shies away from challenges – big, small, or diametrically opposed.

“We’ve always been an innovative organization, which is a key reason we’ve lasted 100 years,” Busser said. “Innovation is at the core of our tradition. We’ve been investing in technology, training, and platform modernization for decades, ensuring our clients feel confident in the experience they receive today, while also knowing that our culture remains durable.”

Oh yeah – and he also led the purchase of Brightside Partners earlier this year and established a new RIA entity, Pitcairn Wealth Advisors.

“We’ve always been an innovative organization, which is a key reason we’ve lasted 100 years” Wait a second. An up-and-coming RIA and an old-school family office? Isn’t that a mismatch, too?

Nope. There’s no clash whatsoever in Busser’s eyes.

“This move is part of our evolution. It modernizes our regulatory structure and makes sense given our size and scope today. Pitcairn Wealth Advisors operates under the Pitcairn umbrella, complementing our trust company, which will continue to be an important part of our services,” Busser said of the combined $9 billion AUM wealth management company.

PITCAIRN CATCHES BUSSER

Before becoming Pitcairn’s CEO, Busser served as the suburban Philadelphia-based firm’s president of family office, where he led the firm’s team of relationship managers, analysts, and client

20 | InvestmentNews March 10, 2025

communications professionals. Prior to joining Pitcairn in 2015, he was a partner at Symphony Capital, a healthcare-focused investment manager of private equity and hedge funds, and before that a management consultant at The Wilkerson Group.

Busser admits it took him a long time (although maybe not by Pitcairn standards) to finally make the jump from the healthcare arena into the wealth management business. Once he arrived, however, the fit was seamless.

“For me, it came down to a few key factors.

First, I was very attracted to the culture at Pitcairn – it’s highly collaborative, creative, and deeply curious. Our people are humble, while our exceptional track record speaks for itself. There’s often an expectation of a sales-driven, sharpelbows culture in our industry, but that’s not the case here. Second, Pitcairn’s 100-year history as a true family office brings a unique level of client-focus and stability that I found incredibly appealing,” Busser said.

Pitcairn focuses exclusively on serving wealthy families, not institutions. This sets them apart from many wealth management firms. They also offer a comprehensive family office experience across investments, tax services, trust and estate planning,

trustee services, budgeting, bill payments, household staff payroll, insurance, family engagement, and more. And they do these things with dedicated teams for accounting, bookkeeping, and family engagement and education.

The goal, according to Busser, is not just to keep it all in the family, but to grow it as well, all the while helping to keep the family peace.

“We’ve been diversified, disciplined investors for decades. We have maintained discipline through investment cycles, political shifts, times of uncertainty and unrest, and more. That long-term focus has been key in earning – and continuing to earn – the trust of our clients, both decades ago and today,” Busser said.

He adds, “We also place a major emphasis on family dynamics, engagement, and education.

People who feel informed and empowered are much more likely to be great stewards of their family’s wealth. They are also more likely to be happy in life.”

A NEW CENTURY, A NEW RIA

Despite the industry shock at Pitcairn’s recent purchase of Brightside Partners, Busser played down the move into the RIA arena as a natural

InvestmentNews.com

ANDREW BUSSER AT A GLANCE Education: Colgate University, history major Married with 2 children Pitcairn CEO since 2023 Member of CEO council of Family Wealth Alliance Trustee of National Committee on American Foreign Policy Enjoys skiing, painting, and fishing

team marks a pivotal moment, enabling us to preserve our legacy while offering broader investment opportunities.”

Whether it will be Busser’s final purchase in the current PE-driven, M&A-crazed RIA arena remains to be seen. Busser maintains he will “selectively pursue acquisitions” from time to time, but acquisitions will not be a core part of his strategy.

Put simply, Pitcairn is not taking private equity money and all the financial targets that come with it – at least not yet. And it doesn’t matter anyway, because Busser is not a roll-up kind of guy in the first place.

“We are focused on maintaining a measured growth strategy, with an emphasis on client experience and employee experience as our top two priorities,” Busser said.

OVER 100 YEARS OLD AND BUSIER THAN EVER

“We have maintained discipline through investment cycles, political shifts, times of uncertainty and unrest, and more. That long-term focus has been key in earning – and continuing to earn – the trust of our clients, both decades ago and today” extension of the business.

Still, even the firm’s eponymous chairman, Rick Pitcairn, emphasized the expansion as a decisive move by Busser in the firm’s long-term strategy during the deal’s announcement.

InvestmentNews.com

“As we’ve evolved from a small Pennsylvania family office into a national firm, our growth has surpassed our historical regulatory structure,” Pitcairn said at the time. “The launch of Pitcairn Wealth Advisors and the addition of the Brightside

Pitcairn may be over 100 years old, but it’s far from staid, said Busser. In fact, he believes the toughest part of his job is keeping up with all the activity.

“There’s always a lot going on, and ensuring that each task gets the right attention requires careful time management. That said, I really value spending time with our employees and clients – and leading the great culture we’ve built here,” said Busser.

He is also a member of the Wigmore Association, a global collaboration of chief executive officers and chief investment officers from five leading family offices around the world.

Additionally, Busser has served on multiple boards, and is currently on the CEO council of the Family Wealth Alliance and a trustee of the National Committee on American Foreign Policy.

And when Busser is not in the office leading the Pitcairn charge, the former Colgate University history major likes to travel with his wife Andy and two sons, usually taking an economics or history book along for the ride. Whenever possible, the family heads out west to ski in the Rockies, or sometimes heads north for fishing in the waters off Cape Cod. Still, it’s not easy finding time to be a family guy when you run one of the country’s preeminent family offices. But Busser is making it work.

“As a CEO, I’m fortunate to have a significant impact on many people’s lives, and that’s both a huge responsibility and a privilege. Being able to make a positive difference in so many lives is definitely my favorite part of the job,” he said.

March 10, 2025 InvestmentNews | 21

SectorFocus A TRUMP TREND FOR ETFs A number of exchange-traded funds are popping up that aim either to invest politically or to find opportunities amid deregulation. Be careful, observers say

THE INCUMBENTS Point Bridge Capital America First ETF (MAGA) • Launched in 2017 • $31 million in assets • Average annual return: 11.5% God Bless America ETF (YALL) • Launched in 2022 • $89 million in assets • Average annual return: 35.3%

BY EMILE HALLEZ

SOME POTENTIAL NEWCOMERS

T

here is a crop of ETFs seeking to benefit from the new political reality in the US. Already, so early in the second Trump administration, several products are seeking regulatory approval, and observers say more will almost certainly follow.

Such ETFs include a “MAGA Seven” fund, clearly a play on the Magnificent Seven but with the twist that the fund would hold stocks poised to do well under Trump. Another focuses on deregulation. One even hopes to invest similarly to Trump’s proposed sovereign wealth fund.

And that’s to say nothing of a line of funds from Trump Media & Technology Group subsidiary Truth.fi, which has filed trademarks for three ETFs and corresponding separately managed account strategies.

In the vast world of exchange-traded funds, it’s not much of a stretch to say there is a product for

political affiliations or opportunities, but those have seen limited success, Armour said.

“I don’t think there’s been a significant uptake by investors for a politically driven ETF,” he said.

One example is Point Bridge Capital’s America First ETF, with the ticker MAGA, which launched in 2017 and currently represents less than $31 million in assets.

That ETF, according to the company, “is the first ETF of its kind, providing investors with the opportunity to make investment decisions based on their Republican political beliefs.” It tracks an index of 150 S&P 500 companies “whose employees and political action committees (PACs) are highly supportive of Republican candidates.”

That product has returned an average of 11.46 percent per year since inception, compared with the index’s 12.3 percent returns. Although it has outperformed peer funds in its category, it has lagged

“Your money is too important – especially if you don’t have enough – to be throwing it at something that is shiny or a red dot… Investing should just be investing. You shouldn’t try to mix your politics or emotions with investing” KASH AHMED, AMERICAN PRIVATE WEALTH anything. But there is a question of whether the wave of proposed ETFs is just riding a meme or offers genuine opportunities.

“We’ve seen a lot of thematic ETFs, a lot of effort and marketing [of] thematic ETFs, and developing themes that investors might be interested in.

Obviously, politics is all over the news right now, so people have some level of focus on it,” said Bryan Armour, Morningstar’s director of passive strategies research for North America.

POLITICAL FUNDS In

the

past,

some

funds

have

22 | InvestmentNews March 10, 2025

pursued

behind the S&P 500, Armour noted.

Another existing product, the God Bless America ETF, with the ticker YALL, says it caters to “Godfearing, flag-waving conservatives.” It launched in 2022 and represents a modest $89 million in assets.

The subadvisor, Curran Financial Partners, picks stocks with at least $1 billion market capitalizations, excluding those of companies that “have emphasized politically left and/or liberal political activism and social agendas at the expense of maximizing shareholder returns.”

While YALL ranked in the top one percent and three percent for performance in 2023 and 2024, it is

• Truth.fi Made in America ETF • Truth.fi US Energy Independence ETF • Truth.fi Bitcoin Plus ETF • Defiance MAGA Seven ETF • Roundhill US Sovereign Wealth Fund ETF • Tidal Investments Free Markets ETF in the bottom one percent so far in 2025, data from Morningstar show.

But perhaps the best-known firm in the broader category of so-called anti-woke investing is Strive Asset Management. That firm, which was cofounded by former presidential hopeful Vivek Ramaswamy, counts 13 ETFs in its product line, with a total of about $2 billion in assets.

That makes the firm the 72nd-largest US ETF issuer, said Aniket Ullal, head of ETF research and analytics at CFRA Research.

“That’s pretty good,” Ullal said.

Still, as investors have responded to policy changes, both in the first and now second Trump administrations, they haven’t necessarily sought politically themed funds, he said.

In part, that’s because funds in that broad category have exposure across sectors, whereas using sectorspecific ETFs can be more efficient for investing in response to policy changes, he said.

Even so, ETF issuers aren’t shy about bringing new ideas to the market.

“It wouldn’t surprise me to see more products around political themes,” Ullal said. “But it is a very competitive market.”

TRUMP ETFS

The president has long offered a range of branded products, and his companies have recently expanded to meme coins. It may be of little surprise to observers that there may soon be Trumpaffiliated ETFs. But Truth.fi has yet to file an initial prospectus with the Securities and Exchange Commission, so it’s unclear what those funds will look like. The pending trademarks are for Truth. fi Made in America, US Energy Independence, and Bitcoin Plus ETFs and SMAs. As much as $250 million would be custodied by Charles

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“I would always look at any new ETF through an investment lens and not let emotions dedicate decisions” BRYAN ARMOUR, MORNINGSTAR

Schwab, and New Jersey-based Yorkville Advisors would be the RIA responsible for building them.

Some of the forthcoming funds not affiliated with Trump include the Defiance MAGA Seven ETF, the Roundhill US Sovereign Wealth Fund ETF, and Tidal Investments’ Free Markets ETF. The first, an actively managed ETF, would invest in seven stocks and “provide targeted exposure to companies that appear positioned to benefit from the economic, regulatory, and policy environment shaped by the Trump administration and its potential future impact,” its prospectus reads.

“It would be very challenging to define what the seven most MAGA companies are,” Morningstar’s

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Armour said.

Accurately following the forthcoming sovereign wealth fund’s investing strategy in an ETF is also a tall order, in part because public filings happen after positions are taken.

“At a minimum it would be delayed, but potentially also would not capture the full portfolio,” Armour said. That ETF acknowledges such limitations, citing potential regulatory constraints and availability of public information as hurdles.

FACTS AND FEELINGS

Thematic ETFs must do three things correctly to be successful, Armour said. The first is picking

the right theme – one that proves lasting. The second is ensuring the fund accurately represents the theme – a trickier point, as highlighted by the different ways ETFs seek to invest in AI, he said.

The last is getting in on the theme at a good price.

“You really need a lot of things to go right, and it’s really hard for thematic funds to outperform the market in the long run,” Armour said. “I would always look at any new ETF through an investment lens and not let emotions dedicate decisions.”

Clearly, ETF issuers see a market for political investing in various forms. But here is one advisor’s thoughts on the temptation to invest in line with political beliefs, fads, or memes: Stay away. There is an ocean of ETFs on the market, as issuers can create obscure indexes and curate their holdings to follow them – and such themes are often a distraction for serious investors, said Kash Ahmed, president of American Private Wealth.

“Your money is too important – especially if you don’t have enough – to be throwing it at something that is shiny or a red dot,” he said. “Investing should just be investing. You shouldn’t try to mix your politics or emotions with investing.”

March 10, 2025 InvestmentNews | 23

Column

What makes a great offsite?

There are some key ingredients that will help you get the most out of staff meetings away from the office

I

’m a big fan of doing an annual company offsite and have been taking part in this since our early days in business. If you aren’t doing one, I strongly encourage you to start.

OPINION

SCOTT HANSON The purpose of the offsite is to get the leadership team together, in one place, to strategize, plan, and set goals for the future of the business. Technically, this meeting could happen in your company’s conference room, but in my experience, getting away to a cool spot somewhere out of town seems to help the creative juices to flow.

When we were small and had just a few team members, we had the entire staff join us for the offsite. As we grew, we narrowed the team to just the leadership team. Today, we have several separate offsites for the many different teams that comprise our organization.

The offsite has been one of the keys to our success over the years. Here are the things I’ve learned make for a great offsite:

24 | InvestmentNews March 10, 2025

LOCATION

We’ve hosted company offsites at a variety of different places with different venues. We’ve stayed in really nice hotels, and we’ve hosted the offsite at very rustic places. What’s as important as the venue is to host somewhere where every member has their own personal space (i.e., bedroom and bathroom). We’ve rented big mountain homes before, but unless everyone has their own personal space, it doesn’t always work out too well.

Plus, no one wants to get stuck in the kid’s room of a rental home sleeping in a bed designed as a car.

DURATION

An offsite should be a two-day or two-night minimum. Ideally, it’s good to have some down time, and perhaps a team-building activity, in the middle of discussions. Often, new ideas will arise during an evening break or over the course of a meal, and you’ll want to capture those.

MODERATOR

It’s important that there be one person who moderates. It may be the principal of the firm or another leader in the organization. Or it could be a professional moderator. From

my experience, we’ve had the most successful offsites when we’ve had quality moderators lead us through our time together.

AGENDA

You’ll want to nail down one to three top goals. Maybe it’s to set your five-, three-, and one-year goals. Maybe it’s to develop a strategic plan for the current year. Perhaps you want to identify what

example, if your goal is to add 15 percent more top-tier clients than you added last year, it will be helpful to know how many clients you added the previous year, where they came from, etc.

GROUND RULES

Set ground rules and communicate those in advance. For example, if you want your team to ignore their phones and emails during discussions, have

“It’s good to have some down time... Often, new ideas will arise during an evening break or over the course of a meal, and you’ll want to capture those” new capabilities to add in the next year and how to go about it. Having a good idea of what you want to get out of the offsite is crucial to the success of your time together. If you aren’t clear on what you want to accomplish, you may accomplish very little.

PREP WORK

Do your homework prior to the offsite, and get whatever information you’ll need into an accessible format. As an

a rule that phones and laptops be put away.

If you haven’t done an offsite before, or haven’t done one in a while, I highly recommend you have one in the next quarter. They’ve paid big dividends for my organization, and I believe they will for yours as well.

Scott Hanson is cofounder of Allworth Financial, formerly Hanson McClain Advisors, a fee-based RIA.

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Column

Risks and opportunities ahead of the great wealth transfer Younger heirs may “be more dubious about forming traditional client-advisor relationships, having grown up with different expectations about financial guidance”

T

he great wealth transfer will shift $84 trillion from baby boomers to heirs by 2045, Cerulli Associates wrote in 2022. But only 42 percent of people who expect to receive an inheritance feel comfortable handling their anticipated wealth, New York Life found in its own survey.

OPINION

PHIL CAMINITI These circumstances present a never-before-seen opportunity for forward-thinking advisors to grow their businesses – if they act now. To do so, start with an understanding of your practice’s unique risks and opportunities.

IS YOUR PRACTICE CHARACTERIZED

BY ANY OF THE FOLLOWING?

• A baby boomer-heavy client base • A small team, or just yourself • No business succession plans in place • An established, strong community reputation

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If so, you may be caught flat-footed when these assets transfer hands.

Your primary risk may be a rapid decline in assets under management, as only 19 percent of investors use their parents’ financial advisors, Cerulli Associates found in 2023. You may also face challenges marketing your practice to younger heirs, whose needs and expectations differ from those of an older client base.

But your strong community reputation presents opportunities.

The priority is building relationships with your clients’ heirs. Try intimate events that enable you to connect personally, like informal dinners or strategic family-planning sessions, during which you can demonstrate your value to the whole family. Ask your clients if you can reach out to their heirs directly, proactively reinforcing your commitment to the future of their family’s wealth.

Next, create a succession plan for your business. Consider forging a succession-planning agreement with another well-established practice and making a formal announcement to your client base, promoting the resources and tools available through your new “merged” practice. This may prompt

clients to review their existing accounts and connect you with their heirs as they finalize beneficiary decisions.

IS YOUR PRACTICE CHARACTERIZED

BY ANY OF THESE?

• Some multi-generational client relationships • A mid-sized team with diverse skill sets • Succession plans in development

If so, you’re in a better position to capitalize on wealth-transfer opportunities. But beware of communication blind spots.

For example, heirs could be less knowledgeable about the products they’ll inherit, and may lack confidence to make decisions. Younger heirs may also be more dubious about forming traditional clientadvisor relationships, having grown up with different expectations about financial guidance. Also, heirs may be geographically dispersed or speak different languages, challenging ongoing engagement and meaningful connection to your firm.

Tailored communication is key.

Keep things simple and adjust your style according to the nuances of each distinct generation. A robust digital strategy can also ensure you can connect directly with clients and heirs who don’t live locally. Create a strategic calendar of social media and email marketing activity that will support consistency and engagement and help foster closer relationships.

You can also try conducting a survey among your clients about the needs and preferences of their heirs. Results

can help inform how and when you share information.

AND IS YOUR PRACTICE CHARACTERIZED BY ANY OF THESE?

• Mostly intergenerational client relationships • An intergenerational team to serve them now and in the future • Succession plans in place for your own business

You may already be in position to handle the next generation of clients.

Take advantage of this “calm before the storm” to refine your practice management and further solidify your competitive advantage.

Focus now on refining your processes. Template your success by building onboarding checklists and client meeting agenda templates, and maintain an updated CRM with client preferences, all to enable service consistency. Build in opportunities to remind clients and heirs of the value you provide by summarizing the actions, decisions, and conversations you have with them each year at their annual review meeting. You can also share the behind-thescenes of your practice by documenting things such as the continuing education that your staff completed, due-diligence meetings regarding investments, or industry events you attended.

Phil Caminiti is managing director, head of sales and relationship management for retail annuities at New York Life.

March 10, 2025 InvestmentNews | 25

INProfile

ALIGNING EXPECTATIONS WITH REALITY

Clients are often seduced by alternative investments’ potential for outsized returns, but Ed Cofrancesco knows education is key

E

d Cofrancesco is a seasoned financial executive with extensive expertise in equity trading, consulting, and operational leadership. But it’s his experience of human behavior that gives him an extra edge; in particular, the emphasis he puts on setting expectations.

The CEO and president of Orlando, Floridabased International Assets Advisory knows failing to temper assumptions of outsized returns, or the risks involved, is a recipe for disaster and that clients often enter alternative investments without fully grasping the risks involved.

“The greatest wealth in history has been created through private equity and real estate,” he said. “But that doesn’t come without significant risks. How many times did people fail before they succeeded?

Henry Ford failed multiple times before the Model T. Show me someone who hasn’t failed, and I’ll show you someone who hasn’t tried.”

Despite the allure of potential high returns, Cofrancesco emphasizes transparency. “We write up extensive disclosure lists for clients and go over them carefully.” This ensures that clients are informed about the risks versus rewards. “It’s about setting realistic expectations to help them reach their goals,” he explained.

Clients would be wise to listen. Cofrancesco previously served as EVP and COO at International Assets Holding Corp., where he boosted trading revenues by 1,500 percent and led the firm to profitability. He has also held key roles at Lehman Brothers and Raymond James, managing large-scale international trading operations. With Series 7, 8, 24, 55, and 63 licenses, he is vastly experienced and knowledgeable.

Cofrancesco approaches the evolving landscape of asset management with a direct and methodical style. As alternative investments such as private equity and hedge funds become more accessible, his strategies have focused more and more on education, reducing inefficiencies, and leveraging technology.

“It’s important that you educate your advisors on the nature of these products or particular products you allow on the platform,” Cofrancesco said. “If you don’t know it, how can you know it’s appropriate

26 | InvestmentNews March 10, 2025

“Too many intermediaries in a product erode returns, raise costs, and ultimately defeat the purpose of alternative investments” Ed Cofrancesco, International Assets Advisory for your client?”

Cofrancesco has also zeroed in on reducing intermediaries in investment structures, which he sees as a significant challenge.

“Too many intermediaries in a product erode returns, raise costs, and ultimately defeat the purpose of alternative investments,” he explained.

The firm’s approach involves forming special

purpose vehicles (SPVs) and engaging in co-investment opportunities to provide direct access to higher-quality options.

“More and more, we’re looking at products with fewer intermediaries to enhance client outcomes,” he added.

From an operational perspective, technology, particularly artificial intelligence, plays an

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ED COFRANCESCO POSITION: CEO and president FIRM: International Assets Advisory TIME AT FIRM: 19 years EXPERIENCE: VP, Lehman Brothers; VP, Raymond James & Associates

“Clients lie. They don’t intentionally lie, but they lie to themselves” Ed Cofrancesco, International Assets Advisory increasingly critical role in the firm’s operations.

“AI helps us formulate recommendations, create better calendar systems, and even uncover what clients really need,” Cofrancesco said. By assessing psychological profiles, AI enables advisors to tailor investment strategies. “AI can ask the same question in different ways to uncover risk tolerance,” he explained.

However, Cofrancesco is keenly aware of technology’s limitations. “Clients lie. They don’t intentionally lie, but they lie to themselves,” he said. One of AI’s strengths is that it can identify discrepancies between a client’s stated goals and their actual behavior. But he underscored that human judgment remains irreplaceable. “AI is a tool, not a replacement.”

Clients’ attitudes and decisions can evolve as they accumulate wealth – something advisors should be attuned to deal with. Some just want to play defense and preserve what they have, he said, but others take a more aggressive approach.

“Look at Elon Musk,” Cofrancesco said. “Even when he could afford to stop, he keeps pushing. He doesn’t play defense. There’s no right or wrong. It’s about what’s right for the individual.”

As markets grapple with uncertainty around threatened tariffs and geopolitical tensions, it’s easy to be gripped by a sense of lack of control. How can clients prepare? Cofrancesco leans on his belief that it’s vital to have a Plan A, Plan B, and even a Plan F. Drawing on his time in London, he added: “I carried an umbrella everywhere – not because I expected rain, but because it’s better to have it and not need it than the reverse. It’s not about being paranoid, but about being prepared.”

The same calculated pragmatism informs his leadership style and approach to alternative investments. “It’s not about taking no risk; it’s about taking the right risks.”

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March 10, 2025 InvestmentNews | 27

Feature GUIDING THE NEXT GENERATION To mark International Women’s History Month, influential women in wealth explain their roles in fostering the next wave of female financial advisors

BY SETH FORWARD

“I

f you can see her, you can be her.”

That is a guiding belief that Lindsey Lewis, managing director and chair at The American College Center for Women in Financial Services, has held throughout her career.

But for Lewis and other women entering the financial advising industry, examples of high-achieving women advisors were often few and far between.

Some of the country’s leading women in the industry are teaching the tools they have acquired in hopes of breaking down some of the barriers they had to overcome.

Gloria Garcia Cisneros has racked up many “firsts” in her family. First to attend college, first to enter the corporate world, and first to obtain US citizenship. Growing up in a lower-income immigrant community, Garcia had to work tirelessly to build connections that others in the field found at their fingertips.

“I stumbled into the industry – I really didn’t know about money and finances. It’s not something our community talks about when you’re living paycheck to paycheck,” said Garcia, wealth manager at LourdMurray in San Jose. “You come into the industry and there’s a playbook that you feel like you were left out of.”

Keeping true to her fundamental beliefs was not always easy for Garcia, but she believes this adherence to her values helped shaped the formidable career she has carved out for herself, and advises emerging female advisors to do the same.

“Stay true to yourself, because even though that might open less doors, it’ll open more authentic ones that are real connections,” she said.

Garcia pointed to what is being dubbed “the greatest wealth transfer in history” as trillions of dollars are set to be inherited by millennials in the coming years. She said the demographics of those inheriting wealth will shift completely from previous generations, an emerging trend she is excited to see play out.

“The people we are trying to serve are going to look different and how we approach that is going

28 | InvestmentNews March 10, 2025

to be different,” she said. “We have to expand our services to meet that demand; we can’t just do investing and call it a day.”

For Michelle Clary, founder and CEO of Piton Wealth, the path to success was not straightforward.

After trying her hand in auditing and trading in the semiconductor industry, she resolved to start Piton from the ground up, yearning for the interpersonal rewards that she earned from the financial advising sector. But building her new firm’s foundations was full of sacrifices, including a challenging sleeping situation.

“You come into the industry and there’s a playbook that you feel like you were left out of” GLORIA GARCIA CISNEROS, LOURDMURRAY “There was a year during that time where I couldn’t afford a part-time assistant, an apartment, and an office, so I slept in the back room of my office on an air mattress for 12 months,” Clary said. “It was a lot of early sacrifice, but I often tell people that that period in my career was probably the most joyful period, simply because I knew that the sacrifices I was making were going to pay off in dividends, both for me and the people I was serving.”

While the industry has historically been dominated by men, Clary believes women often have the natural traits that make financial advisors successful.

“I think women are just very naturally gifted at this job,” she said. “Women are more detail oriented.

By and large there is a very intrinsic, authentic

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NUMBERS GAME 31% of US financial advisors are women 23% of CFP professionals in the US are women Female investors are set to control $30T in US assets by 2030 18% of advisory firm owners are female 39% of support advisors are female Source: CFP, Fintrx, InvestmentNews Advisor Benchmarking Study

care for people. I think the dedication that women have to care for clients is also very good.”

Like Garcia, Clary says staying true to her internal compass has always been a key component to her work. While every advisor’s reasons will vary, Clary says remembering why they got into the industry is an essential daily task.

“Find why you’re doing this and make sure you don’t forget that,” she said. “Because ultimately, whether it’s day one, 10, or 25 years, you always come back to that ‘why.’”

Breaking into a male-dominated industry like financial advice is a challenge for most women.

But growing up with six brothers, holding her own in traditionally male-oriented spaces was all too familiar for Lindsey Lewis.

“I grew up in an environment where I felt like if any of my brothers could do it, I could do it too,” Lewis said.

“Find why you’re doing this and make sure you don’t forget that” MICHELLE CLARY, PITON WEALTH In her new role at the American College, Lewis cherishes the ability to mentor young professionals in the industry, and has been able to fine-tune the mentorship process to better suit the needs of women stepping into the industry. She finds that often leading women in business who speak at events are too far removed from the experience of starting out in the finance industry.

“I’ve been to a lot of events where you have someone who’s a female CEO and it’s absolutely fabulous. However, maybe they are too many steps away from their current career trajectory,” Lewis said. She now hosts an event called Polished, which helps young financial advisors with everything from resume building to asking for a raise while connecting them with other women in the industry who have directly applicable advice to share.

After overcoming an array of obstacles, Garcia is excited to see the next generation of women in the industry pave their own path.

“I hope there are many more like me coming, because I know that we tend to doubt ourselves and are our harshest critics, but I think the impact that you have when you genuinely care and represent more than just yourself is pretty powerful.”

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March 10, 2025 InvestmentNews | 29

Industry Morgan Stanley loses $843,000 investor claim stemming from ‘gold bar’ scam FOCUS

Massive barriers remain AN ELDERLY Morgan Stanley client in Florida who fell prey to a so-called gold bar scam won $843,000 in damages in February from the firm after she claimed it failed to follow industry rules designed to protect senior investors.

Marjorie Kessler, 76, claimed last year that Morgan Stanley violated two industry rules and

“long-standing” industry standards designed to protect elderly clients, according to her statement of claim, which alleged she had been defrauded of $1.75 million – not by the firm, but by outside fraudsters targeting her wealth.

The dispute was decided February 10 by a three-person panel under the aegis of FINRA Dispute Resolution Services.

60-year-old New York broker-dealer files for bankruptcy, closes down STOEVER, GLASS & CO. INC., a New York-based broker-dealer located on Wall Street, has been shut down after filing its bankruptcy petition in federal court in Manhattan on February 17.

The firm, which filed for bankruptcy under Chapter 7, also filed its formal termination on Monday with FINRA.

Schwab bumps up fee for RIAs using its referral service AFTER ALMOST two decades of no change in pricing, along with incredible growth in the financial advice industry, registered investment advisors that get referrals from the Charles Schwab Corp. will pay more for that client information.

Its affiliated registered investment advisor, Stoever Glass Wealth Management Inc., with $248 million in client assets, also closed.

Stoever, Glass & Co., which opened in May 1964 and focused on municipal bonds, had revenues of $5 million in 2024 and a loss last year of more than $1.9 million.

Called the Schwab Advisor Network, the program has not changed fees in almost 20 years.

This year RIAs will face an increase of five percent.

Schwab will charge a shade more than 26 basis points on the first $2 million in client assets. The fee is significant; a rule of thumb is for advisors to charge roughly one percent – 100 basis points – on assets.

30 | InvestmentNews March 10, 2025

THE WEALTH management industry has long struggled with diversity, particularly in leadership roles. And while progress has been made, Black professionals remain underrepresented in the field. Emlen Miles-Mattingly, founder and CEO of Gen Next Wealth, says that massive barriers still exist here – and that more leaders need to step up and enact change.

safe spaces – something that’s easier said than done.

“I really feel like it’s incredibly difficult to make space for Black professionals in this industry because it’s the chicken-or-the-egg situation. We want to have more, but this doesn’t seem like the most friendly place for more Black professionals. Point-blank, period. It’s a great place to make a career; it’s a great industry – it’s just not been the

“I’ve been in this industry for almost 25 years – and I’ve never seen it get [better]” EMLEN MILES-MATTINGLY, GEN NEXT WEALTH “They’ve always struggled with this,” Miles-Mattingly adds. “The crazy thing is, I’ve been in this industry for almost 25 years – and I’ve never seen it get [better].

There are probably more people of color now than there’ve ever been, but there’s still not enough.”

While diversity initiatives have gained traction, the industry’s cultural and structural challenges continue to hinder meaningful progress. As MilesMattingly explained, the first thing he considers when he thinks about representation and inclusion is creating

most friendly place for Black people.”

Even with increased awareness, systemic barriers make it unclear whether true change is on the horizon. “I don’t know how much it’s going to actually change here,” he added. “I’ve seen a lot more Black professionals here in this space than I’ve ever seen in the 23 years that I’ve been here. I’m not sure how you might tackle this issue, because it’s always been an issue.”

At Gen Next Wealth, Miles-Mattingly takes action where he can, running internships and encouraging public speaking opportunities. But the battle is ongoing.

Osaic hit with class action over cash sweep payments OSAIC IS the latest casualty in the wave of cash-sweep class actions that’s blanketed the industry.

A new class action against Osaic Holdings and related firms claims they profited at the expense of clients by paying less-than-fair rates of interest on cash sweep accounts.

The lawsuit, filed last month in federal court in Arizona, claims

Osaic breached its fiduciary duties by structuring its cash sweep program to generate revenue for itself while offering account holders belowmarket interest rates.

The complaint argues Osaic directs uninvested client cash into interestbearing accounts but retains a portion of the returns, known as the spread, for itself.

InvestmentNews.com

Convicted of fraud, GPB executives object to plans to return money to investors THE LATEST roadblock in the return of money to investors who bought high-risk GPB Capital Holdings private placements is a series of legal objections, including those by GPB executives convicted last summer of fraud.

The GPB receiver’s plan to return money to investors was filed in January.

On February 7, GPB founder

EMLEN MILESMATTINGLY

“It’s still one of the most uncomfortable industries I’ve ever been in. I don’t know how we’re going to fix it.”

Beyond representation, the financial industry has a broader role to play in addressing racial wealth disparities – a long-standing issue in the US, and something Miles-Mattingly categorizes as “the major issue.”

“We know that government has played a big role in creating some of the wealth disparities. [As such], it’s hard for

Morningstar exits another service for advisors MORNINGSTAR INC., one of the most widely used data firms in the financial advice industry, is continuing to revamp its strategy with financial advisors, telling them in February it was shutting down Morningstar Office, its portfolio management system.

Morningstar is encouraging

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advisors to come in and fix things that the government has allowed to happen.”

While some Black families have built financial stability, many still lack access to wealth-building opportunities.

“Not every Black family is poor and destitute,” he points out. “We do have some families that have been well-off.

I think those are the families that may have access to financial professionals in their lives, right? So how do you find those people?”

financial advisors to use Black Diamond, a popular online portfolio management platform.

It’s the second instance recently in which Morningstar has jettisoned a service for financial advisors, although the popular fund tracker is hardly walking away from the financial advice industry.

Last June, AssetMark said it was buying roughly $12 billion in assets from the Morningstar Wealth Turnkey Asset Management Platform.

David Gentile and marketing chief Jeff Schneider filed objections to the plan, claiming it would prevent them from receiving legal costs.

Gentile and Schneider were convicted of fraud and conspiracy in August. Sentencing is scheduled for April.

Investors bought $1.8 billion of GPB limited partnerships starting in 2013.

LPL boosts revenue potential with ampedup alts platform LPL FINANCIAL HOLDINGS INC.’S recent moves to bolster its alternative investment platform will not only expand the number of investment products financial advisors may sell to wealthy clients but also boost the firm’s ability to generate revenue.

LPL launched its Alts Connect platform last month. But the

LPL keeps spending big to recruit, attract advisors LPL FINANCIAL, with over 29,000 financial advisors, has been spending significant dollars to recruit financial advisors, and 2024 was no different, as the firm reported a 57 percent increase in loans made to advisors to tie them to the company.

According to a filing in

company has been steadily beefing up its ability to sell more alternative investments, which typically charge higher fees than stock and bond mutual funds.

The moves include hiring key personnel and expanding products available to advisors. Alternative investments also carry more risk and are designed for wealthier investors.

February with the Securities and Exchange Commission, in 2024 LPL reported $2.14 billion in advisor loans, net, compared to the year earlier, when it reported $1.36 billion in advisor loans.

Brokerage firms like LPL routinely give financial advisors forgivable loans or notes that are worked off over time as an incentive to change firms.

March 10, 2025 InvestmentNews | 31

Regulation The fight over the CFPB is just beginning THE CONSUMER watchdog established in the wake of the 2008 financial crisis may not be long for this world.

In just a matter of days, Elon Musk’s extra-governmental team of cost cutters, DOGE, reportedly gained access to the Consumer Financial Protection Bureau’s data, acting head of the CFPB Russell Vought moved to effectively defund the regulator and told staff to stop

working, and an employees’ union sued Vought in response.

Musk, who has planned a “digital wallet” feature for X, formerly Twitter, since at least last year, has been critical of the agency, which would have had regulatory authority over that proposed system. Some Republicans have long called for the dissolution of the CFPB, which during President Donald Trump’s first term was slowed down significantly.

Trump executive order gives White House influence over SEC rulemaking AN EXECUTIVE order from President Donald Trump would require independent agencies, including the Securities and Exchange Commission, to seek White House approval before issuing new rules.

The order directs agencies to align their strategic plans with White House priorities, raising concerns about potential political influence over regulatory decision-making.

The expansion of executive

oversight of agencies that have historically operated with autonomy raises questions about the SEC’s ability to police Wall Street without political interference, one observer told Barron’s.

“The position of the executive order is that independent agencies are not independent and are subject to complete White House control,” said John Bergmayer, legal director at Public Knowledge, a consumer advocacy group.

FINRA bars ex-Morgan Stanley broker previously charged with mail fraud IN FEBRUARY FINRA barred a former Morgan Stanley broker who was “discharged,” or fired, from the firm last summer over allegations of outside or third-party business dealings.

According to his BrokerCheck report, the broker, Roger A. Gallagher, was charged in August with two felony counts related to mail fraud and fictitious obligations. He pleaded

not guilty to both.

In the FINRA order, Gallagher was barred from the securities industry after he refused to provide documents and information to FINRA and appear for on-the-record testimony regarding “a tip to FINRA concerning a criminal indictment,” according to the selfregulatory organization. The August felony charges are not specifically mentioned in the FINRA order.

32 | InvestmentNews March 10, 2025

FOCUS

Risks for SEC amid DOGE cuts ELON MUSK’S extra-governmental team is coming for the SEC – and whether it can push job cuts that don’t sacrifice investor protections is a massive question.

Already, that group, known as DOGE, has worked with the Trump administration on potentially hundreds of thousands of layoffs and firings across the federal government. That has happened at a breakneck pace, in some cases leading to staff reductions that did not appear to be intended. At the Department of Energy, for example, hundreds of workers who received termination notices had their jobs reinstated after it became known that they worked on nuclear weapons or handled nuclear waste.

A risk at the Securities and Exchange Commission, which has been at odds publicly with Musk in several instances, is that its institutional knowledge could quickly be depleted and be very difficult to get back.

“The SEC’s work is a product of the expertise and persistence of the professionals who work there,” said Charles Riely, partner at Jenner & Block and a former supervisor in the SEC’s Division of Enforcement. “There is definitely the risk that any cuts will cut

in the wrong places, and the agency will lose very valuable human capital that is essential to its mission.”

It’s all but certain that, in the name of efficiency, Musk’s team will suggest cuts among the SEC’s roughly 5,000 fulltime workers.

And it would be hard to argue that the SEC – like any other government agency – couldn’t be made more efficient, lawyers told InvestmentNews.

“There have perennially been reports that government bureaucrats, government workers don’t work as hard [as other workers],” said Jill Fisch, Perry Golkin professor of law and co-director of the Institute for Law and Economics at the University of Pennsylvania. “Those debates have been going on for certainly as long as I’ve been a practising lawyer.”

But even if that is one’s view, “It’s a far cry from fraud,” Fisch said.

It may be clearer to make the case that government, at least pertaining to the SEC, has gotten bigger than some people would like than it is to say the agency is rife with fraud and abuse, she said.

One side of the argument is that the SEC, through concerted rulemaking efforts and enforcement, has protected investors – and the other side is that

DOGE’s cost-cutting team has come knocking at the IRS IRS WORKERS are reportedly on edge following Elon Musk’s Department of Government Efficiency paying a visit to the agency, signaling heightened scrutiny of the tax agency as the administration pushes for cost-cutting measures across the federal government.

According to multiple news outlets, Gavin Kliger, a senior staffer on the team,

came to the IRS on Thursday requesting information on each of its business units, its priorities over the next 90 days, and potential risks it faces.

While there was no immediate indication that Kliger accessed IRS systems, employees were reportedly uneasy about the presence of an outsider evaluating the agency’s operations.

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SEC prepares to back away from defending climate rule in court THE NEW, Republican-controlled SEC has a convenient way to get rid of a climate-disclosure rule it doesn’t like: deferring to plaintiffs in a lawsuit challenging it.

Acting Securities and Exchange Commission Chairman Mark Uyeda hinted that such a course is likely. In a public statement, Uyeda said he is directing SEC staff to notify the court about a change in

circumstances, including a shift in the commission’s makeup and a freeze on regulations, ordered by President Donald Trump.

That is in regard to a rule the SEC passed last year that, while it set a new standard in making public companies disclose certain climate risks and greenhouse gas emissions, left both supporters and opponents of it unhappy.

Robinhood says SEC has dropped investigation, declares bigger crypto ambitions “There is definitely the risk that ... the agency will lose very valuable human capital that is essential to its mission” CHARLES RIELY, JENNER & BLOCK there has been far too much regulation and enforcement, Fisch said.

Cuts could make it more difficult for the SEC to police Wall Street and help investigate things like Ponzi schemes and insider trading, said Benjamin Schiffrin, director of securities policy at Better Markets.

“Making things more efficient is good.

But any dramatic reduction in the size of the SEC’s workforce is going to have real consequences for Americans,” Schiffrin said. “Throughout the building there are people whose role it is to ensure Americans are able to invest safely. The reason that America’s capital markets are the envy of the world is that they’re wellregulated and well-policed.”

SEC moves to keep ESG shareholder resolutions off proxy ballots THE SEC reversed Biden-era guidance on shareholder resolutions, in a move that could make it more difficult for investors to bring environmental and social issues to proxy votes.

The agency’s Division of Corporation Finance published a bulletin that appears to revert to the SEC’s stance during President Donald Trump’s first term, generally allowing public companies to exclude shareholder proposals from their

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proxy ballots if they say the issues focus on ordinary business operations or amount to micromanagement.

The new bulletin “moves the goalposts smack dab in the middle of this year’s shareholder proposal process. Doing so at this hour creates undue costs and uncertainty for investors and corporations alike,” Caroline Crenshaw, the lone Democratic SEC commissioner, said in a statement.

ROBINHOOD REVEALED last month that the SEC has dropped an investigation into the firm’s crypto business, signaling a potential shift in regulatory attitudes.

In a blog post, the company said it had received a letter from the SEC’s Enforcement Division stating that the agency would not pursue enforcement action against Robinhood’s crypto unit.

“This investigation never

New York RIA, former rep fined

by SEC ONE OAK CAPITAL MANAGEMENT and one of its former advisors, Michael DeRosa, settled charges by the Securities and Exchange Commission for breaching fiduciary duties.

An investigation concluded that more than 180 brokerage accounts for DeRosa’s clients at an unregistered

should have been opened,” stated Dan Gallagher, the former SEC commissioner and now chief legal officer at Robinhood. “We appreciate the formal closing of this investigation, and we are happy to see a return to the rule of law and commitment to fairness at the SEC.” The decision comes after a similar development at Coinbase, which said the SEC also dropped charges against the firm.

broker-dealer by which he was simultaneously employed were transferred to One Oak as advisory accounts.

The mostly elderly, long-time clients were not informed that the accounts would have higher fees than the brokerage accounts, nor that DeRosa would receive higher commission, according to the SEC. One Oak Capital Management did not admit to or deny the charges, but agreed to pay a $150,000 civil penalty. DeRosa also did not admit to or deny the charges, but agreed to pay a $75,000 civil penalty and to be suspended from the industry for nine months. He had no disciplinary history with the SEC.

March 10, 2025 InvestmentNews | 33

Retirement Social Security Administration cuts are a move toward privatization, Wyden says

A STUNNING reduction in personnel who help with Social Security claims could make it difficult for many people to start collecting benefits.

That would be in the short term, Democrats said. A longer-term result might be privatization, a goal senators attributed to Elon Musk.

“DOGE’s attack on Social Security is in my view a first step on the path

to privatizing Social Security,” said Senator Ron Wyden, D-OR, at a March 3 press conference.

The administration announced a planned reduction in total headcount from the current “bloated” level of 57,000 to 50,000. Workers across the agency are being offered buyouts or early retirement packages on a first-come, first-serve basis.

Don’t assume clients will make it to 100 LONGEVITY RISK is old news.

It’s well established that lifespans around the world are, on average, increasing – declines seen due to the recent COVID pandemic and other factors notwithstanding.

And people broadly overestimate their financial readiness, according to a survey by the Geneva Association. It found that people in more developed countries often underestimate how long they are likely to live, while those in less-developed countries do the opposite.

Since 1950, average life

expectancy globally has gone from 46 years to 74 years.

So, should financial advisors use assumptions that all their clients will live to 100? No, says one financial planner who is also a physician.

“We have decimated our primary care system in this country,” said Dr. Carolyn McClanahan, founder of Life Planning Partners.

Half of voters worried about retirement and finances MANY AMERICAN voters feel unprepared for retirement, with a third reporting no savings, a survey by BlackRock found.

The findings came as the asset management firm and the Bipartisan Policy Center convened leaders in Washington to discuss potential solutions.

The survey, conducted by Public Opinion Strategies, polled 1,000

registered voters and highlighted widespread financial concerns.

More than half of respondents – 56 percent – reported worrying about their personal finances at least once a day, while 51 percent said they fear running out of money in retirement more than they fear death.

34 | InvestmentNews March 10, 2025

FOCUS

Inefficiencies mean opportunities CLINTON INVESTMENT MANAGEMENT operates in a highly specialized area – taxexempt fixed-income solutions – catering to ultra-high-net-worth clients and institutions. For Andrew Clinton, the firm’s founder and CEO, success in such a niche demands both depth of expertise and the ability to navigate an industry often mired in inefficiencies.

Municipal fixed income became Clinton’s focus due to its inefficiencies and the opportunities they presented. The municipal bond market is vast, featuring over 60,000 issuers and a million different CUSIPs, yet remains largely unsophisticated.

“It’s an extraordinarily inefficient market, and rightly so,” he added. “The

“Many clients entrust us with a lifetime of wealth.

It’s a deeply personal relationship, and we take that responsibility very seriously” ANDREW CLINTON, CLINTON INVESTMENT MANAGEMENT “When I first came out of college, I wanted a career in finance,” Clinton says.

“But I didn’t realize the breadth of the financial services industry – it was about finding a path with both opportunity and challenge. The scoreboard is your track record and the growth of your firm.”

Healthcare shocks could cost retirees dearly, warns study RETIREES ARE vulnerable to the costs associated with long-term care and other healthcare needs, according to a recent analysis by the Center for Retirement Research at Boston College.

The research used data from the

opacity and complexity of the market really piqued my interest and has kept me excited about it ever since.”

At Clinton Investment Management, an unrelenting focus on accountability anchors both its team dynamics and client relationships.

Health and Retirement Study to examine how retirees with at least $100,000 in investable assets respond to major healthcare shocks.

Medical-cost spikes have limited long-term financial impact. Households experiencing a medical-expense shock did not show a statistically significant increase in Medicaid enrollment or a decrease in wealth, though the data did show a small decline in expected bequests of $100,000 or more.

In contrast, retirees with long-termcare expenses were far more likely to enroll in Medicaid, with rates rising by 6.6 percent in the year of the shock and an additional 2.4 percent the following year.

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Vestwell adds emergency savings account option THE FINTECH has launched an emergency savings account designed to help employees build financial security against unexpected expenses, providing them quick access to after-tax savings without penalties or highinterest debt.

The emergency savings account, which can be integrated into an employer’s benefits package or

ANDREW CLINTON

“The client comes first – it’s an overused phrase in finance, but underappreciated in practice,” Clinton says. “Many clients entrust us with a lifetime of wealth. It’s a deeply personal relationship, and we take that responsibility very seriously.”

Clinton’s approach to leadership reflects these values. Accountability isn’t just a client-facing principle – it’s embedded in the firm’s culture.

“Everyone here is accountable not just to clients but to one another,” he explained, adding that this teamfocused dynamic is crucial for delivering the firm’s stated goal of exceeding expectations. For Clinton, this mindset extends beyond performance: it’s about service and responsiveness.

“It’s not just about returns. It’s the engagement level, the problemsolving. At the end of the day, we’re partners helping clients navigate challenges.”

Empower extends health services for retirement plan clients THE COMPANY wants to be nearly a onestop shop for employee benefits, recently debuting a “consumer-directed healthcare” package that will live alongside its retirement plans.

It extends the company’s business well beyond the health savings accounts

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Reflecting on how the firm has weathered uncertainty, Clinton pointed to experience as the foundation of its resilience. Having founded the company in 2007, just before the financial crisis, he learned the value of discipline during volatile periods.

“We’ve navigated crises like the financial meltdown, Meredith Whitney’s municipal bond predictions, Brexit, and COVID. Even though the future is unknowable, our experience gives us confidence to navigate what comes.”

Clinton’s insights extend beyond investment strategies to the broader industry. He acknowledges the complexities in maintaining client trust while integrating evolving financial products like ESG investments.

“There’s a dark side to greenwashing – it’s often just a marketing tool. Mass transit and other projects are inherently green, but they don’t get enough attention because they aren’t new products.”

offered as a standalone option, allows users to view their balance alongside other accounts, such as 401(k) or 403(b) plans, IRAs, and student loan repayment programs, through the Vestwell platform.

“With the average American having less than $1,000 in savings, many cannot afford to handle emergencies,” Vestwell CEO Aaron Schumm said in an announcement.

Student debt has a chilling effect on employees’ retirement planning

DEBT-SADDLED workers tend to focus on near-term financial needs, limiting their ability to build long-term wealth, according to a report by MissionSquare Research Institute.

Drawing from a survey of more than 2,000 public- and privatesector employees, the report found many with student debt are either not investing at all or are opting

for short-term, lower-risk investments that tend to produce lower long-run returns.

In the public sector, 34 percent of employees with student debt reported that they are not investing, compared to 26 percent in the private sector.

Among those who do invest, 29 percent of public sector employees and 36 percent of private sector employees prioritize short-term investments.

Do we need a new word for retirement? it has provided since 2017. The new Empower Consumer-Directed Health service includes flexible spending accounts, health reimbursement arrangements, voluntary employees’ beneficiary association plans, wellness incentives, transportation benefits, and other options, the firm stated.

The company’s new focus on benefits comes as retirement plan advisors have increasingly offered health and other benefit services to the employers they work with.

NEARLY NINE in 10 baby boomers are still working, according to a report by staffing platform Indeed Flex. That includes those in the 59-to-65 age group who would likely still be working anyway.

But for those aged 66 to 77, who might have spent a lifetime expecting to have stopped working by then, things are not the same as they have been for previous generations of older Americans.

When considering what work they would prefer in their so-called retirement years, 83 percent said

something temporary and perhaps in retail, hospitality, or business support.

More than half said they would prefer to work 10 to 20 hours a week, 27 percent would prefer 20plus, and 14 percent would want a maximum of 10 hours.

March 10, 2025 InvestmentNews | 35

YourPractice FOCUS

Financial advisors react to the idea of ‘parent money’ LET’S TALK about a provocative New York Magazine article that has financial folks aflutter and evaluate its thesis that parents are supporting a growing number of young city dwellers’ expensive lifestyles.

The article shines a spotlight on young New Yorkers living beyond their means.

Steve Parrish, professor of practice and retirement planning at the American College of Financial Services, points out that affluent baby boomers have wealth concentrated in 401(k)s. They have retirement capital rather than income, and that has led these baby boomers to separate into two camps.

“One group is worried about not having enough in retirement, and they are holding tight to their purse strings,” Parrish said. “The other camp is sitting on seven-figure 401(k) and investment balances and are spending freely – perhaps too freely. And adult children are often the beneficiaries of this inflated sense of boomer wealth.”

Gen AI keeps winning more advisors GENERATIVE AI is notoriously bad at hands – that is, creating images of people with digits that don’t resemble octopi. But in terms of giving financial advisors a hand – well, that’s another matter.

Currently, 85 percent of advisors say generative AI can help them in their practices, up from 64 percent who said so last year, according to results of a survey by Advisor360.

Most advisors – 91 percent – said they already use it to some extent.

The leading applications for it: predictive analytics, or expectations for client behavior; marketing; and summarizing meeting notes.

Twenty-nine percent of advisors said they are using generative AI to develop personalized financial plans.

Separately, the CFP board issued an ethics guide for generative AI. With all the potential benefits of using it come risks, including compromises to client confidentiality.

LPL amps up alts capabilities with new centralized platform SHORTLY AFTER CEO Rich Steinmeier revealed plans to focus more strategically on alternative investments, LPL is officially making good on its pledge to help advisors provide affluent clients with more diversification in their portfolios.

The firm has introduced LPL Alts Connect, a full-service platform that centralizes the purchasing

process and introduces digital tools aimed at improving efficiency, transparency, and compliance oversight.

Powered by Subscribe, LPL Alts Connect provides a digitized system for independent advisors and institutions, such as banks and credit unions, offering them access to a broader set of alternative investment products.

36 | InvestmentNews March 10, 2025

Mentorship can’t be a checkbox item AS SOMEONE who’s both led and developed advisor teams for the past two decades, Ed Kuresman, regional president and market leader at MAI Capital Management, understands how successful individuals tick – and how to propel them to their best.

“There’s no substitute for effort and making your team a priority,” Kuresman says. “It’s easy to look at team members or development as something you’ll get to later, but making it a priority makes the difference in terms of success.”

It’s this emphasis on prioritizing people that sits at the core of MAI’s culture, which Kuresman describes as being built on three fundamental tenets: “Take care of our clients, take care of each other, and take care of the community.”

A key aspect of fostering this collaborative environment is the structure of MAI’s operations. While many organizations have shifted to hybrid or fully remote models, Kuresman highlights the value of inoffice interaction.

“Collaboration takes place organically in the office every day,” he explains. “People are walking up and

Texas gives thumbs-up for stateregistered RIAs to use online reviews THE TEXAS State Securities Board has approved a change that would allow advisors registered to practice in the Lone Star state to post five-star reviews

“People are walking up and down the halls, talking to each other, learning from each other, having fun together” ED KURESMAN, MAI CAPITAL MANAGEMENT down the halls, talking to each other, learning from each other, having fun together. It’s not just coming from your boss or supervisor; it’s happening in many different ways as we collaborate as a team. In our Cincinnati office, we’ll have about 40 people stemming from four different acquisitions working together with a common goal and mission, truly trying to help each other.”

For Kuresman, leadership is about consistently investing in people. As he says, if you’re not spending time with your team, if you’re not helping

and positive client testimonials online.

The change reverses a long-standing rule prohibiting state-registered advisors from using testimonials and soliciting reviews. That’s in contrast to the SEC’s 2020 Marketing Rule, which took effect for federally registered advisors in 2021.

One marketing consultancy focused on wealth firms and advisors painted the decision as a win for approximately 1,400 Texas-based advisors and millions of consumers, who might have previously assumed local stateregistered advisors were less capable than their federally registered counterparts based on the absence of positive reviews alone.

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Deloitte highlights regulatory concerns for wealth firms in 2025 WITH A new presidential administration, financial firms could see a friendlier regulatory environment – but they should still stay on their toes, according to a report from Deloitte.

It highlights several areas of scrutiny for wealth management firms, including fiduciary duty, electronic communications com-

pliance, and marketing practices under existing SEC rules.

“Financial regulatory policy is likely to reverse course for the second time in eight years,” the report said, highlighting Donald Trump’s campaign pledge to “eliminate a minimum of 10 old regulations for every one new regulation.”

Despite high satisfaction, client acquisition is a struggle

ED KURESMAN

them get better, if you’re not giving them attention, you’re not going to be successful. To that end, MAI has implemented quarterly town hall meetings to highlight and celebrate how the firm’s values are being lived out in practice, reinforcing the cultural glue that binds the team together. And part and parcel of this is investing in the future generation of leaders.

“Mentorship and professional development can’t just be a checkbox item

Number of CFP professionals reaches fresh worldwide record THE NUMBER of professionals holding the certified financial planner designation worldwide reached a new high in 2024, according to the

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once a year during performance reviews,” Kuresman stresses. “We’re constantly speaking with each other. Feedback is provided regularly, and informal meetings throughout the year give us opportunities to check in and discuss how team members are progressing... You could reach out to the leader in your office, the leader of a region, or even Rick Buoncore, our executive chairman, and you’re going to get time and energy, and it’s going to be genuine.”

Financial Planning Standards Board.

The data show 230,648 CFP professionals by the end of the year, reflecting a 3.1 percent increase from 2023, with net growth of 6,878 new CFPs across 28 territories.

“The continued global growth of CFP certification supports the rising demand for financial planners who commit to the delivery of competent and ethical financial planning advice,” Dante De Gori, CEO of the Financial Planning Standards Board, said in a statement.

Still, the 2024 numbers are a slowdown from 2023, when 10,768 new CFP professionals were minted on a net basis worldwide, according to the FPSB’s annual tally last year.

FINANCIAL ADVISORS continue to face challenges in attracting new clients, even as satisfaction levels among existing clients remain high, according to Cerulli Associates.

In its latest US advisor report, Cerulli highlighted 80 percent of clients being satisfied with their primary financial advisor, with that number rising to 88 percent among those with more than $5 million in

Decade of RIA M&A explosion shows no slowdown: Fidelity TRANSACTIONS FOR RIAs are rising, plenty of new buyers are crowding the market, and RIA owners keep getting older, which indicates the per-

investable assets.

Despite that, 55 percent of advisors cite client acquisition as a significant challenge. Twentynine percent also struggle to build multigenerational relationships, which are key to sustaining longterm business growth. Other hurdles include differentiating their services, retaining clients, and justifying fees.

sistent pace of mergers and acquisitions should keep on rolling.

It’s been an incredible decade for RIA M&A, with the emergence of buyers making repeated acquisitions, often backed by streams of private equity money.

And that’s despite recent headwinds such as high interest rates and pricey valuations.

According to a study by Fidelity, the number of RIA deals grew from 89 in 2015 to 233 in 2024.

Over the same time, purchased assets increased from $130 billion to $669.8 billion, and the median deal size increased from $500 million to $536 million.

March 10, 2025 InvestmentNews | 37

Investing Crypto sent reeling by world’s biggestever heist FOCUS

Balancing risk and reward

THE CRYPTOCURRENCY exchange Bybit has suffered a staggering security breach, resulting in the theft of approximately $1.5 billion in Ethereum. The incident, which is being described as one of the largest crypto hacks in history, targeted the exchange’s cold wallet, which is typically considered a more secure method of storing digital assets offline.

Bybit’s cofounder and CEO Ben Zhou confirmed the attack, stating

that hackers managed to bypass the platform’s security measures and gain unauthorized access.

According to initial reports, the exploit involved deceiving wallet signers through a manipulated user interface and URL, leading them to unknowingly approve a malicious transaction. This breach enabled the attackers to alter the smart contract logic and seize control of the cold wallet, subsequently draining its funds.

JACK ABLIN, chief investment officer at Cresset Asset Management, has built a career on balancing stability and opportunity. And, as global markets face inflation, fiscal imbalances, and volatility, Ablin focuses on creating resilient portfolios that adapt to shifting risks while remaining poised to capitalize on growth.

“We’ve done a lot of work evaluating the value-add of gold in portfolios,” Ablin explains, emphasizing its reliability as a diversifier. In analyzing gold alongside the S&P 500 and long-term treasuries, he found a remarkable consistency: “There was only one year, and it was 2022, when all three asset classes were down simultaneously.”

He points to 2022 as a recent example when rising rates devastated both equities and bonds, yet gold was off fractionally.

“I don’t expect anyone to have a third of their portfolio in gold,” he says, highlighting it as a prudent allocation, not an outsized bet.

On the issue of US fiscal imbalances, Ablin sees the bond market

Vanguard topples State Street as world’s new largest ETF

Gold hits new record as ETF flows surge

VANGUARD UNSEATED State Street for the title of the world’s biggest exchange-traded fund last month, ushering in a new world order for the $11 trillion industry.

The Vanguard S&P 500 ETF (ticker VOO) now commands nearly $632 billion in assets after raking in some $23 billion so far in 2025, according to data compiled by Bloomberg. That haul has vaulted VOO past the $630 billion SPDR

GOLD PRICES hit a fresh record last month, bolstered by safe-haven demand and a surge in exchangetraded fund inflows, according to new data from the World Gold Council.

The rally arrived as investors respond to concerns over potential new US tariffs and ongoing economic uncertainty.

The gains came on the back of strong inflows into physically backed gold ETFs, which saw their largest

S&P 500 ETF Trust, known as SPY, which previously held the title of largest ETF. It’s a changing of the guard several years in the making. Created in 1993 as the brainchild of the then American Stock Exchange and State Street Global Advisors, SPY is one of the oldest ETFs still in existence. As such, the fund enjoys a powerful first-mover advantage in terms of size and trading volume.

38 | InvestmentNews March 10, 2025

playing a crucial regulatory role.

“I think the bond market will eventually exert some discipline on policymakers,” he says, citing the Clinton administration’s response to rising rates in the 1990s as an example. But despite the acknowledged risks, he remains confident in the market’s ability to nudge legislators toward corrective measures.

“I don’t think it will lead to default or anything catastrophic,” he adds.

Emerging markets present a more complicated picture, shaped by competing forces. Ablin describes two trends: “We have what I’ll call the broadening trade,” fueled by lower interest rates and easier financing, versus protectionist policies that could create headwinds for international markets. US small-cap stocks, however, emerge as a rare beneficiary.

“Good news, I suppose, is US small caps actually are beneficiaries of both of those currents,” he notes, pointing to their adaptability in either scenario.

Drawing lessons from past market behavior, Ablin recalls the 2016 US

weekly influx since March 2022. Citing WGC data, Reuters said gold ETFs attracted 52.4 metric tons, valued at $5 billion, the week of February 17.

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Advisors are starting to hear the bears growl BEARISH SENTIMENT among individual investors, or expectations that stock prices will fall over the next six months, reached 47.3 percent in last month’s survey from the American Association of Individual Investors (AAII). That was the highest bearish level since November 2023.

JACK ABLIN

Bullishness, on the other hand, declined 4.9 percentage points to 28.4 percent, while neutral came in at 24.3 percent. Bullish sentiment is below its historical average of 37.5 percent for the fifth time in seven weeks.

Tom Graff, chief investment officer at Facet, said he is definitely hearing more nervousness from clients. He said it is partly driven by uncertainty around the Trump administration, yet he also believes the hype around AI is reminding people of the 1990s prior to the bursting of the internet stock bubble.

Lower-grade debt a hot area for CLO ETFs, asset managers say

“What we try to do is mitigate risks on the public side and take opportunities on the private side” JACK ABLIN, CRESSET ASSET MANAGEMENT election and the initial sell-off in China and Mexico.

“If you look one year [on], China was the best-performing equity market in the world,” he says, underscoring the importance of long-term perspectives even in volatile markets.

Risk management, according to Ablin, requires clear distinctions between defensive and opportunistic strategies.

“We mitigate risks on the public market side,” he explains, describing moves such as reducing equity exposure

Allspring to shut down alternative equity strategies THREE YEARS after being spun off from Wells Fargo & Co., Allspring Global Investments is nixing its alternative equity team, which currently manages its US Large Company Value Strategy, US Low Volatility Strategy, and Global Long/Short Equity Strategy offerings.

For years, fund managers like Allspring Global Investments have been

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or reallocating to bonds and gold. In contrast, private markets become the arena for offensive strategies. “If there’s a pre-IPO opportunity or a specific debt deal, that’s where we’ll go on offense,” he says, keeping the public side neutral-to-underweight during times of uncertainty.

The interplay of resilience and agility is at the heart of Ablin’s strategy.

“What we try to do is mitigate risks on the public side and take opportunities on the private side,” he explains.

facing competitive pressure from lowfee exchange-traded funds and indexed mutual funds. According to Morningstar, over 20 years the average fund fee has more than halved – from 0.87 percent in 2004 to 0.36 percent in 2023.

“We’ve made the difficult decision to discontinue our alternative equity strategies, and our alternative equity team will depart the firm this June,” a company spokesperson wrote in an email to InvestmentNews.

WHILE JANUS HENDERSON’S AAA CLO ETF recently surpassed $20 billion in assets under management, other fund managers and financial advisors say that CLO ETFs with exposure to lower debt ratings are becoming preferred targets for investors.

“If you’re a typical investor with a core fixed-income portfolio, you’re not constrained to AAAs,” said Bill Sokol, vice president and director of product management at VanEck. “The best way to build a stronger core portfolio is a broad investment-grade approach, for the higher yield and better total return opportunity.”

VanEck’s CLO ETF, which holds $911 million in total net assets,

was launched in 2022 and invests primarily in investment-graderated tranches of collateralized loan obligations (CLOs). VanEck’s other AA-BB CLO ETF launched in September 2024 and now has $66 million in net assets.

In January, BlackRock launched its iShares BBB-B CLO Active ETF, another example of an asset manager tapping into debt tranches below the top-tiered AAA. Shortly after the first CLO ETFs launched in 2020, their total assets were around $120 million, but that total has since ballooned to more than $25 billion, said Kirsten Chang, senior industry analyst at VettaFi.

March 10, 2025 InvestmentNews | 39

Investing

Trump Media takes finance ambitions further with investment fund TRUMP MEDIA & TECHNOLOGY GROUP CORP. is creating a new fund to invest in “America First” companies, a move that could further co-mingle the business and policy interests of President Donald Trump.

Though it’s not clear what those businesses might be, Trump Media has previously used America First to

Fidelity strengthens ETF portfolio focus with new suites FIDELITY INVESTMENTS is sharpening its focus on wealth managers with new additions to its ETF model portfolios.

The firm introduced two new suites last month, leaning into the trend of advisors de-prioritizing investment management in favor of other activities to build their business or serve clients.

“ETFs continue to be an increasingly attractive option for advisors due to their cost and tax efficiencies,”Amanda Robinson, vice president of portfolio solutions at Fidelity Institutional, said in a statement. “These new model portfolios offer advisors a streamlined way to execute an ETF strategy while also meeting the evolving needs of their clients.”

encompass US energy independence, made-in-America, and Bitcoin-related products.

While many details of the new fund’s strategy remained vague, it will look for companies that would benefit from Trump Media’s technology and branding, and that could function on their own as subsidiaries, the company said.

What’s next for crypto ETFs: Litecoin, XRP, Solana, and Dogecoin BITCOIN AND ETHER may be just the beginning for spot-price crypto ETFs, with the SEC disclosing last month that it is reviewing applications for products that hold Litecoin and XRP. In fact, the Securities and Exchange Commission could prove to be much more crypto-friendly than it was during

the Biden administration. Already, interim SEC Chairman Mark Uyeda has directed the start of a crypto task force led by Commissioner Hester Peirce.

The SEC’s notices reflected applications by CoinShares for Litecoin and XRP ETFs as well as one from WisdomTree for an XRP ETF.

European stocks are finally leading. Should financial advisors follow?

MAYBE IT’S time for financial advisors to finally take that European vacation – at least portfolio allocationwise.

European stocks have outperformed US equities since President Trump’s inauguration.

It is a big turnaround when judged against European stocks’ recent performance. US stock returns have trounced European ones in the past five years, with the S&P 500 up over 80 percent compared to a paltry 25

40 | InvestmentNews March 10, 2025

percent gain in the iShares Europe ETF (Ticker: IEV).

Despite the progress in European shares, Sean Beznicki, director of investments at VLP Financial Advisors, is unconvinced they are a better bet than domestic stocks.

“We remain cautious on the region, as the strength of the US dollar continues to erode local currency returns, adding an additional layer of risk to European investments,” Beznicki said.

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