According to findings from Vestwell’s fourth annual Retirement Trends Report, advisors who serve the small plan market expect to see “significant practice growth” in 2023 as both employer and employee demand for advisor services is at all-time highs. The report, which surveyed thousands of advisors, employers, and their workforces, noted that an overwhelming majority of both small business employers and employees (90%) are interested in utilizing the support of an advisor to guide them through their plan options. The report also found that employers said the services they value most from advisors are investment recommendations and management (65%), educating employees (62%), plan design recommendations (57%), plan administration (54%), and fiduciary oversight (50%). In addition, 47% of employers said personalized investment recommendations for their employees were a value-add from advisors. Also of note, 70% of advisors reported that market volatility has not affected their retirement business in the small plan market within the last year. As part of the report, Vestwell stated, “Despite volatile financial markets, employers are considering upgrades to their plans and are interested in professional advice, while a plurality of advisors believe their practice will expand due to small plan growth. In other words, the small business market is on track to become a big business.”

Finsum:Based on the findings of a new report, the small plan market is expected to see significant growth this year as employer and employee demand for advisor services are at all-time highs.

Veriti Management LLC recently announced it is rebranding as First Trust Direct Indexing. The provider of tax-advantaged, direct indexing solutions also announced the appointment of Robert Hughes as Chief Executive Officer, taking the reins from Veriti Co-Founder and Managing Partner James Dilworth. Hughes will focus on integrating Veriti’s direct indexing capabilities and technology with the extensive resources and distribution network provided by its new affiliate, First Trust Portfolios L.P. Veriti was acquired by First Trust Portfolios last July. The deal lets First Trust bring direct indexing to its advisor clients, while potentially exposing Veriti to a larger market. The affiliation between the two companies comes at a time when there is strong demand for more tax-efficient, personalized investment solutions. First Trust Direct Indexing seeks to turn volatility into an asset through tax loss harvesting strategies, which have the potential to increase an investor’s after-tax returns. Hughes had this to say about the rebranding and his appointment, “First Trust Direct Indexing is well positioned to help advisors solve the dual demands of individualized account customization and a smart approach to seeking tax alpha that can tilt client portfolios to their satisfaction. I’m excited to be joining at a pivotal time for our business and the industry.”

Finsum:Following the acquisition of Veriti by First Trust Portfolios last July, the firm is rebranding as First Trust Direct Indexing and appointing Robert Hughes as CEO.

LPL recently announced that Jonathan Blakelock, an army veteran, who operates Blakelock Financial Group in the Houston suburb of Kingwood, Texas, has joined LPL Financial’s broker-dealer, RIA, and custodial platforms. Blakelock and his six-member support staff joined LPL from Ameriprise, where he and the team oversaw about $180 million in advisory and brokerage assets. He started his career in 2007 and has grown his business organically over the years, now serving more than 400 clients in 17 states. His practice offers a comprehensive suite of advisory services, ranging from small businesses to retirement and tax planning strategies, to family finances and divorce financial planning. Blakelock said that he made his decision to move to LPL based on a need for greater flexibility and choice, particularly in the area of financial planning, a cornerstone of the practice. He stated the following in a new release, “LPL has several advanced planning programs to choose from, along with more mutual funds and innovative solutions to deliver better experiences for my clients. This move will give me more tools and flexibility, while still providing oversight that my clients want. It also allows me to brand my business and have more control in the way we operate.”

Finsum:Jonathan Blakelock and his six-member support staff made the move from Ameriprise to LPL based on a need for greater flexibility and choice, particularly in the area of financial planning.

No matter where you look, fixed-income analysts are proclaiming 2023 as the year of the bond. But why will that be the case? According to fund firm Nuveen, “The anticipated rate decline, along with the higher starting yield, creates an attractive outlook for bonds this year.” The firm believes that the high starting yields this year could be setting the stage for a bond market comeback. According to Nuveen’s latest fixed-income report, over the last four and half decades, years that feature higher yields early on often produce higher returns by the end of the year. For example, in 1982, when the starting yield was 14.6 percent, the bond market gained 32.6 percent over the next 12 months. After consecutive rate hikes in 2022, the bond yield in early 2023 is at the highest level since the global financial crisis. The firm also believes that a slowdown in rate hikes could generate higher returns. While the Fed raised rates aggressively last year to curb inflation, it has indicated plans to move more gradually this year with recession fears growing. Since bond prices move inversely with yields, the firm says a drop in yields could create “potential price return opportunities.”

Finsum:Fund firm Nuveen is bullish on bonds this year due to an anticipated rate decline and a high starting yield.

After two years of surging growth, this earnings season could mark the beginning of energy company profits coming back down to earth. That is according to Wall Street analysts who believe Big Oil has passed its peak. However, the ride down is expected to be slow, with companies still expected to bring in large profits for some time. Last year was a boon to oil and gas companies. The energy sector ended the year up 64.56% as sky-high oil and gas prices were one of the largest contributors to inflation. The sector thrived with a hawkish Fed, high inflation, economic uncertainty, and Russia’s invasion of Ukraine. But analysts don’t believe this will continue for much longer. HSBC Global Research analysts wrote in a note that “Although 2023 should remain a solid year for the integrated oils, there is less headroom than we envisaged just a couple of months ago given the correction in oil prices and halving in European gas prices.” In addition, Bank of America estimates that earnings for the fourth quarter from oil and gas producers will be down 11% from third-quarter levels. Doug Leggate, a Bank of America research analyst, wrote in a recent note that “In our view, upcoming earnings for the US oils will be one of the most consequential in several years. It is now clear that the best quarter for many US oils has passed.”

Finsum:While oil and gas companies thrived in last year’s conditions, Wall Street analysts think profits will eventually come back down to earth due to a recent correction in oil prices and the halving of European gas prices.