RobustWealth Advisor Insights Dinner

On Thursday December 8th, RobustWealth held their Advisor Insights Dinner at Brian’s Lambertville, featuring guest speakers Bill Winterberg of FPPad and Charmaine Chin of K2 Advisors. RobustWealth’s quarterly Advisor Insight Events provide learning and networking opportunities to financial advisors.

Bill Winterberg discussed the business investments and transitions that you should consider for your business in 2017. These technology and security strategies are aimed to help you grow your business in the coming year.

  • Implement efficient account opening, account management and trading software, comparable to the automated investment services marketed to consumers. The same efficiencies and standardization will enable any RIA to expand their services to a larger market of potential customers.
  • Implement account aggregation. DOL regulatory changes coming in April emphasize the importance of knowing a client’s financial circumstances. By using account aggregation, RIAs can efficiently collect and identify the financial circumstances of clients and prospects.
  • Implement more security measures. RIAs will be increasingly targeted by attackers seeking to defraud advisors and investors. RIAs need to implement multi-factor authentication for website logins, encryption for data on mobile devices and laptops, and increase cyber-security training for advisors and employees to be prepared for attacks when they occur.

Charmaine Chin discussed the growth of the Franklin K2 Long Short Credit Fund and why one should consider this fund over more traditional options.

  • A fund for those concerned about interest rate risk or volatility in fixed income investments, seek total return through combination of current income, capital preservation (prevent loss in portfolio) and capital appreciation (increase in market price of asset). Assets are allocated across multiple alternative fixed income and credit strategies.
  • Historically, hedged fixed income strategies have strong results. In a growth of a $10,000 investment over a 20-year period (ending 9/30/16), hedged fixed income strategies accumulated to over $41,000. Even in negative periods, it outperformed investment grade credit and high yield bonds*.
  • Be aware that the fund is subject to risks. However, there is active management by experienced hedge fund experts as well as top quality risk management against potential risk exposures. (See slide 19 for other advantages). Offers multi-sector credit diversification, risk review and oversight for clear understanding of portfolio risk, etc.
  • FKLZX fund itself has an average annual return of 6.64%, outperforming its benchmarks of Merrill Lynch US 3-Month Treasury Bill Index and HFRX Fixed Income – Credit Index significantly (0.27% and 0.31% respectively) *.

***Past performance is not an indicator or guarantee of future performance.

If you would like to be part of RobustWealth’s future Advisor Insight Events, please email service@robustwealth.com.

Please refer to www.robustwealth.com disclosures. Views are only opinions and not guaranteed to be accurate.