Page 20 - Investment Advisor January/February 2022

PORTFOLIO PERSPECTIVES

by Janet Levaux

Innovator Capital’s Bruce Bond Weighs In on

Risks, Opportunities in an ‘Uncertain Market’

The PowerShares co-founder also explains how financial advisors can be a

“clear voice” for clients in the face of volatility.

hicago-based Innovator Capital
Management said in mid-
CDecember that it is expanding
the Innovator Accelerated ETFs suite.
New products will be rolled out in early
2022 and will be part of Innovator’s
Defined Outcome ETF series, which now
includes over 75 funds and $5.3 billion
in assets.
Investment Advisor Group recent-
ly recognized Innovator Capital for
excellence in Thought Leadership
in its inaugural LUMINARIES pro-
gram. Also winning one of the 2021
LUMANARIES award was its co-
founder and CEO Bruce Bond, who
started the company in 2014 with John
Suthard, and was honored for Executive
Leadership. Bond and Suthard founded
PowerShares in 2003 and then sold it to
Invesco in 2006.
Bond took some time off from his
busy schedule to answer a few broad
questions about his work and off-the-
clock life. Here are the highlights:

1. What market indicator, industry
statistic, regulatory change or inflation and taxes can sap portfolio value But today’s low-rate environment has
advisor trend are you watching (and retirement longevity) much faster made those types of portfolio moves
most closely right now and why? and are risks that must be addressed. more difficult. For example, it may
There are probably two indicators we sound simple, but a 10% portfolio allo-
are watching closely right now: inflation 2. How has this figure been cation to TIPS will only cover 10% of
and potential tax hikes. Mainly because changing recently (2021), and how your portfolio from inflation! That’s not
those are two factors that can really do you expect it to change in 2022? nearly good enough. While we don’t
impact wealth negatively. We used to wonder when inflation might know the future, we don’t see inflation
Those seeking meaningful portfolio hit. We no longer have to wonder. It’s going away anytime soon.
growth are now faced with increased here. Today, it’s more a question of what
risks, and those seeking protection and we do with it. Historically, the answer 3. What would you suggest advisors
income (e.g., retirees) are struggling to has been TIPS (Treasury Inflation- do now or consider doing in the
find either in the bond markets. While Protected Securities) or other assets future about it?
market volatility can hurt a portfolio, that have performed well with inflation. We believe today’s investors must stay

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