Page 10 - Investment Advisor July/August 2021

EDITOR’S NOTE

By Janet Levaux

Recognizing Responsiveness

n this issue’s cover story “Standout Results for Extraordinary Melanie tackles the complicated issue of the Securities and
Times,” we shine a light on asset managers that demon- Exchange Commission’s new advertising and marketing and
I strated stellar decisionmaking in the face of tough condi- rule, which has been in effect since early May, in this month’s
tions last year and hence were selected as the winners of the Playing Field column. Compliance experts suggest advisors
17th-annual Envestnet and Investment Advisor magazine Asset tread carefully when using testimonials and endorsements
Managers and Strategist of the Year Awards. (Due to the coro- before the rule’s Nov. 4, 2022, compliance date.
navirus, this year’s winners were announced in mid-June during Industry consultant Tim Welsh looks at “The Dark Side
Envestnet’s Advisor Summit On-Demand 2021.) of Technology Consolidation” in his July contribution. This
The winning asset man- includes his analysis of what
agers were selected via a The winning asset managers prompted a recent fintech
systematic, proprietary and were selected via a systematic, marketing campaign that
multi-factor methodology didn’t quite go as planned and
from thousands of strategies proprietary and multi-factor what the latest fintech map
on Envestnet’s platform. drawn up by Michael Kitces
The criteria includes pro- methodology from thousands of says about innovation in the
file, performance, tax effi- strategies on Envestnet’s platform. independent wealth space.
ciency, investment process Columnist Angie Herbers
and style, composite and The criteria includes profile, is “Taking a Closer Look at
customer service. performance, tax efficiency, Technology” in her column
The managers all work this month, which stress-
with over $200 million in investment process and style, es that advisory firms can
assets under management “expand their valuation the
and have three-plus years of composite and customer service. most by building and integrat-
experience. With staff mem- ing their own technology.”
bers Ginger Szala, Bernice Napach, Jeff Berman and me, they Still, Herbers points out, “An investment in building your
shared many of their recipes for portfolio success in their own tech takes time and money. … And while that does create
respective profile pieces and revealed insights into where the added revenue, it does not maximize valuation, because now
puck is heading in investment management. firms are selling their client experience to their competitors.”
In other news, the COVID-19 pandemic has produced “imme- As always, we hope you enjoy the analysis, news and indus-
diate and long-term challenges” for the Labor Department’s try background we’ve packed into our latest issue. We also
Employee Benefits Security Administration, which enforces Title wish everyone a healthy, happy and pleasant summer and
1 of the Employee Retirement Income Security Act, or ERISA and thank you for your continued support of our publication.
helps organizations that need help locating “missing participants”
who’ve left behind retirement funds when exiting jobs. This and
related issues are explained by Washington Bureau Chief Melanie
Waddell explains in this month’s Washington Watch piece on the
Government Accountability Office’s review of the EBSA. GROUP EDITOR-IN-CHIEF

8 INVESTMENT ADVISOR JULY/AUGUST 2021 | ThinkAdvisor.com