Latest RIA Trends

At Great Valley Advisor Group, our unique operating model provides us the opportunity to keep our finger on the pulse of the latest trends for advisors and RIAs around the country. Here are three trends to keep an eye on as we head into the second half of 2023.

Technology and Digital Solutions in RIA Practices

We’ve already covered the impact of AI and machine learning extensively, however as the finance industry and advisors are still learning and understanding the impact of those specific tools; at GVA we have built a best-in-class suite of technology tools, integrated into all facets of our advisors operations.

We built our RIA practice for scale by utilizing automated compensation tools, trading and rebalancing platforms, financial planning and account management solutions, compliance and oversight software, the most robust data and analytics reporting tools, all connected to our customized Salesforce CRM.

We also partner with a group of companies to handle general firm best practices, our infrastructure of web design, marketing, social media, document management, internal communications, and other tools enable each of our advisor and RIA partners to focus solely on client service and growth while GVA and our technology solutions handles the rest.

The Growing Demand for ESG Investing among RIA Clients

Investors are increasingly recognizing the importance of considering not only financial returns but also the impact of their investments on the environment and society. The environmental aspect of ESG investing focuses on companies’ efforts to minimize their ecological footprint and promote sustainability. This includes reducing carbon emissions, conserving resources, and implementing renewable energy solutions. The social dimension emphasizes a company’s commitment to ethical practices, fair labor standards, diversity and inclusion, and community engagement. Governance refers to the transparency and accountability of an organization’s leadership. Strong governance practices ensure that companies adhere to ethical standards, maintain integrity in decision-making processes, and protect shareholder rights.

Global sustainable investment assets reached $35 trillion in 2020. This indicates a growing interest among investors who seek both financial returns and positive societal impact from their investments. Investor preferences have also shifted towards responsible investing. Younger investors are particularly inclined towards ESG-focused investments as they align with their values. Market trends indicate that companies with strong ESG performance often outperform their peers financially in the long run, demonstrating that responsible business practices can go together with profitability.

This trend bears watching, as we’ve seen multiple examples of companies pandering to specific groups to gain an edge while betraying their core customer base and losing brand equity. However, shifting trends in ESG or any other asset class are no problem for a GVA advisor. The GVA Asset Management Team is dedicated to helping our advisors manage client asset allocation, integrate industry-leading research, and report audited performance. GVA advisors manage client assets smarter, faster, and better.

Holistic Financial Planning and Wealth Management Services

By adopting a comprehensive approach to wealth management, RIAs can gain a deeper understanding of each client’s unique financial situation and goals, thus building stronger client relationships and providing a more valuable service.

By considering all aspects of a client’s financial situation such as income, expenses, investments, insurance, estate planning, and tax considerations, GVA advisors develop customized strategies that align with their clients’ specific needs. A comprehensive approach allows for a more accurate assessment of risk tolerance and long-term objectives. Utilizing the GVA technology stack and leveraging our asset management team, an advisor can provide a multitude of portfolio options, advanced reporting metrics, and ongoing rebalancing. Our advanced account management and trading platforms enable us to support a wide variety of preferences and strategies regardless of a client’s situation or goals.

Our advisors can address potential gaps or overlaps in their clients’ financial plans, ensuring coverage in all necessary areas and building a deep, trusted relationship between advisor and client. Clients appreciate this attention to detail and feel confident knowing that their entire financial picture is being considered, while advisors know that their strategies are supported by a strong compliance and back-office team, as well as an efficient operations platform.

Additionally, offering holistic financial planning services allows RIAs to provide ongoing support and guidance throughout various stages of their clients’ lives. As life circumstances change – whether it be marriage, children, career transitions or retirement – having an experienced advisor who can tap into the vast GVA network ensures the best possible client outcomes. An advisor who focuses on all aspects of wealth management can provide their clients with the peace of mind that all their financial needs are being met.

We will continue to track the latest industry and financial trends both specific to RIAs and advisors and the global economic picture overall. Be sure to check out all the content in our Insights tab, the weekly market insights, blog posts, and videos are incredibly valuable.

Securities offered through LPL Financial, member FINRA/SIPC. Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor and separate entity from LPL Financial.

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