Page 10 - Investment Advisor July/August 2023

EDItOr’s NOtE

By Janet Levaux

The Market Is Moving … Up!

he S&P 500 is up about 15% as we go to press, into marketing strategy and where advisors go wrong: “Like
trading just under 4,410. That’s higher than it was on the homeowner who fixes his roof when the sun’s shining,
TMarch 16, 2022, according to Bloomberg, when the advisory firm owners should have marketing programs in great
Federal Reserve started on its move to hike interest rates more working order before they badly need them.”
than it had done in the past four decades. One of Herber’s main insights is to suggest that advisors reflect
Some stocks in the artificial-intelligence space — especially on what a marketing strategy is not. As she emphasizes, it’s not a
those tied to ChatGPT — are soaring. NVIDIA, for instance, marketing initiative — like a podcast, a series of educational events,
has risen over 190% this year through June 16, and Meta or an ad campaign. “These aren’t strategies. They’re tactics. …
Platforms is up 156% since Jan. 1. Strategies are built around clear, measurable key performance
To get a sense of how financial advisors and their clients can indicators (KPIs) that a firm wishes to move,” she stated.
get up to speed on AI investing, reporter Dinah Wisenberg Brin In terms of technology strategy for advisory firms, BNY Mellon
spoke with Morningstar’s President and CEO Robin
Bryan Armour, who To get a sense of how financial advisors and Vince recently argued on
shared: “There’s not their clients can get up to speed about AI stage at Pershing’s June
going to be one AI that is INSITE event in Orlando
used. There are so many investing, reporter Dinah Wisenberg Brin “that emerging technolo-
different applications. spoke with Morningstar’s Bryan Armour, gies, such as generative
There will be a dramatic who shared: “There’s not going to be one AI artificial intelligence and
shift toward AI that will blockchain ledger tech-
be felt across hundreds that is used. There are so many different nology, are not just flashy
of companies, it won’t be applications. There will be a dramatic shift news items that can be
like there’s just one.” expected to fade into the
Both Armour and Dave toward AI that will be felt across hundreds of background. Rather, they
Nadig of data and research companies, it won’t be like there’s just one.” represent the start of a new
firm VettaFi zoom in on era of profound advance-
what AI-themed investing is all about, using ETFs and other ment that will very likely reshape the world of global finance,
tools. “A good advisor should work with that client to help them and many other walks of life,” according to John Manganaro, our
understand what [it is about AI] that’s exciting to them,” he said. senior reporter who attended the popular conference.
If they’re just chasing headlines, the client perhaps should be in Speaking further about AI, Pershing’s Vince added: “This
a momentum fund instead, Nadig adds. kind of technology, as a wealth advisor, can really be your co-
Meanwhile, as Senior Editor and Washington Bureau Chief pilot and help you understand what your clients might want
Melanie Waddell highlights in this month’s Playing Field to do next. It can help you do deeper planning so much more
column, regulators are hard at work “beefing up exams of quickly and easily. The future will bring more innovation, but
advisors’ compliance with its Form ADV,” as it relates to the right now, AI can already be a lever that helps us to do things
agency’s Marketing Rule. In a recent risk alert, the Securities more efficiently — to get a depth of planning insight that would
and Exchange Commission’s exam group alerted the industry to normally take hours, days or weeks to accomplish.”
the fact that, although it “will continue to focus on policies and
procedures, substantiation, performance advertising and books
and records, exam staff is now ‘increasing its focus’ on other
Marketing Rule-related areas,” according to Waddell.
In her Fast Track column this month, Angie Herbers digs GrOup EDItOr-IN-CHIEF

8 InvesTmenT ADvIsor July/August 2023 | thinkAdvisor.com