Firms can do a better job supporting high-net-worth millennials—or at least the advisors who service them, according to a new report. Ninety percent of HNW baby boomers say wealth managers are effectively supported by quality investment information, communications tools, and investment technologies, according to a new survey of over 1,000 HNWIs by FactSet and Scorpio Partnership. But that drops by more than 20 percentage points for those respondents under age 35. Millennials are looking for more frequent communications with their wealth advisor, with nearly a third indicating they want updates on risk profiles weekly; 16 percent want daily updates. This younger generation also demands socially responsible investing options, with 61 percent saying they wanted evidence that their wealth managers are screening investments based on environmental, social and governance (ESG) factors. “The group’s unique ideals and expectations represent an opportunity for wealth managers to bring their industry into the digital age and broaden their appeal in the process,” writes Greg King, director of wealth management strategy at FactSet.
Mutual Funds Bounce Back in July
Large cap mutual fund managers seemed to bounce back from an otherwise dismal 2016 in July, with 58 percent beating the Russell 1000 index benchmark, CNBC is reporting. The average fund manager saw a 4 percent return for the month, eking out the Russell's 3.8 percent gain, according to data from Bank of America Merrill Lynch. Growth and value managers' performance stood out with 67 percent beating benchmarks. Small-cap managers had a bad month, but are doing best so far this year, with a 43 percent outperformance rate. Even with July's solid numbers, just 14 percent of large-cap managers are outperforming the benchmark this year.
United Capital Using Yodlee To Power FlexScore
Envestnet Yodlee announced Tuesday that it will provide its aggregation technology to power FlexScore, the financial planning tool acquired by United Capital in February. FlexScore provides investors with a credit score-like rating of a client’s financial health and requires a comprehensive look at various accounts and assets. United Capital said Yodlee’s aggregation capabilities would improve FlexScore’s functionality. United Capital plans to offer FlexScore as part of FinLife Partners, its white-labeled advice and planning platform for independent advisors, and Yodlee will serve as the primary data aggregator.
