Research Magazine April 2012

Clearing Firms’ Expanded Mission

By Jane Wollman Rusoff

Financial advisor Bruce G. Allen, who catered to HNW individuals in Denver, staunchly survived the 2008-09 financial crisis and was ready to embark on a growth program — only problem was, he didn’t know how to do that.

The Measured Approach to Value

By Gerald Burstyn

Tevye the milkman. He’s not the first person who comes to mind for the average value investor, but according to value guru Vitaliy Katsenelson, we can learn a lot from Tevye.

Complexity Theorist

By Ellen Uzelac

For years, atmospheric sciences professor Tim Garrett has been intensely curious — as many are — about what actually drives financial wealth.

Milevsky: What Is a Proper Spending Rate in Retirement?

By Moshe A. Milevsky

Professor Irving Fisher, whose reputation as a great economic scholar was shattered by the Great Depression, developed a unique equation to predict one's spending rate in retirement.

Evidence Over Ideology

By Bob Seawright

In the words of the great Benjamin Graham, an “investor’s chief problem – and even his worst enemy – is likely to be himself.”

Beware the App: Will Technology Replace Advisors?

By Bill Miller

“Don’t you think,” I asked the broker, “if you can reposition someone’s portfolio to match any given model with a couple of clicks, that eventually the technology will be available for your clients to do something similar?”

European Stagnation

By Alexei Bayer

When the financial system faces a major bankruptcy, one that is large enough to threaten its health, it often makes sense to buy time. Regulators, central bankers, multilateral lenders and governments.

The Third Choice

By Kenneth Silber, Research

Americans Elect is an organization that aims to provide an alternative to the Democratic and Republican candidates in this year’s presidential elections.

I Hereby Bequeath

By Bill Good

When times are tough and uncertain, investors cling to their current advisor.

A Disciplined Approach

By Robert Tyndall

This month’s cover story (“Pursuing Simplicity”) discusses a renewed emphasis on focus and organization on the part of financial advisors in managing their practices.

Wall St. Bonuses Taking 14% Beatdown, Could’ve Been Much Worse

By Janet Levaux, AdvisorOne

Workers at Wall Street firms should expect their cash bonuses to fall by 14% this year, after dropping 13% last year, according to an estimate released in March by New York Comptroller Thomas DiNapoli.

Advisor Group Touts Plans at Confab

By Janet Levaux, AdvisorOne

The Advisor Group’s three broker-dealers had strong results in 2011, according to President and CEO Larry Roth.

Baird Growing Revenues at 12.5% Annual Clip

By Janet Levaux, AdvisorOne

Milwaukee-based Baird says it has recruited close to 250 advisors over the past two years or so, and its veteran reps have been boosting average fees and commissions by about 12.5% in 2010 and 2011, putting its year-over-year performance ahead of some larger rivals.

Lifecycle Products Grew 8% in Q4 to $842 Billion

By Janet Levaux, AdvisorOne

Target-date and target-risk products grew 5% in 2011 and 8% in fourth quarter, according to New York-based Strategic Insight.

Stats Show Bond Fund Shift

By Janet Levaux, AdvisorOne

Since the 2008 financial crisis, the intermediate-term bond category has grown from less than $500 billion in assets to nearly $930 billion.

Merrill, Goldman, Seafarer Launch Funds

Bank of America said recently that it launched the Merrill Edge Select Portfolios to give its mass-affluent clients access to actively managed, diversified portfolios with a minimum balance requirement of $20,000 and a 1% yearly management fee.

Digging for Bargains

By Ronald Delegge, ETFguide.com

As 2012 develops, one unchanged investment trend is the continued expansion of the ETF universe.

Going for Foreign Beta

By Ronald Delegge, ETFguide.com

Invesco PowerShares Capital Management added two “high beta” ETFs, focusing on emerging markets and developed international stocks.

Tapping Energy Prices

By Ronald Delegge, ETFguide.com

Oil prices have been increasing this year, spurring investors to look for ways to hedge against inflationary pressures.

U.S. Bancorp Enters Arena

By Ronald Delegge, ETFguide.com

The ETF marketplace is getting ready for another new face: U.S. Bancorp Fund Services.

Global X Goes ‘Permanent’

By Ronald Delegge, ETFguide.com

Of all the investment strategy funds that have recently debuted, it was just a matter of time before the ETF industry would launch a “Permanent Portfolio” fund. In February, New York-based Global X Funds introduced the Global X Permanent ETF (PERM).

BlackRock Adds Bond Sectors

By Ronald Delegge, ETFguide.com

BlackRock, sponsor of the iShares ETFs, launched seven bond ETFs focused on specific segments within the fixed income market.

Determined Deliveries

By Ed McCarthy, CFP

Alliance Resource Partners LP (ARLP) / Natural Resource Partners (NRP)

Powerful Potential

By Ed McCarthy, CFP

Public Service Enterprise Group (PEG) / Southern Company (SO)

Steady Streams

By Ed McCarthy, CFP

American Water Works (AWK) / Aqua America / American Water Works (AWK)

From Backstage to Spotlight

By Janet Levaux, AdvisorOne

The Russell 3000, which covers roughly 99% of the U.S. stock market, is among the Tacoma, Wash.-based firm’s expanding product menu.

Trading ETFs: Basic Order Types

By Janet Levaux, AdvisorOne

Buying and selling ETPs requires a clear understanding of the various order types.

Handling Stock Volatility With ETPs

By Ronald Delegge, ETFguide.com

Investment decisions must take into account a perennial and unpredictable constant: stock market volatility.

Guide to ETP Taxation

By Janet Levaux, AdvisorOne

While ETFs are generally regarded as “tax-efficient” investments, the multiplicity of product structures in the ETP market has created a maze of confusing possible outcomes.

Industry Crossroads

By Barry Russell

The American oil and natural gas industry finds itself once again at a dramatic political crossroads in 2012.

Compelling Dynamics

By Jane Wollman Rusoff