According to research reported in the latest edition of Cerulli Edge, the demand for financial planning increases with market volatility. Cerulli said that investors experiencing market volatility for the first time are more open to receiving advisor guidance. The report noted that eighteen percent of investors working with an advisor do not have a financial plan in place, but they do consider one important. In light of that figure, Cerulli recommends that advisors consider re-introducing their financial planning services, especially during periods of high market volatility, since some clients may not be aware of their planning offerings. The research noted that advisors who offer financial planning find that their clients are better positioned to stay the course and remain calm when market performance declines, which enables advisors to develop stronger client relationships. Scott Smith, Director of Advice Relationships at Cerulli Associates, said the following, “Financial planning shifts the focus to progress made toward achieving goals rather than investment performance. This frames volatility in the context of a bigger picture, which helps clients feel prepared when market shocks arise.”

Finsum:Based on a new Cerulli research report, clients are better positioned to stay the course during market volatility if their advisors offer financial planning.

According to a new research survey by Stanford University, investor support for ESG and their willingness to potentially lose money on ESG causes varied by age, wealth, and specific ESG issues. The survey found that investors 58 years old and over were the least likely to support ESG objectives in general, while investors between the ages of 18 and 41 were the most likely to put their savings at risk to support various ESG initiatives. More than one-third of younger investors said they would be willing to lose 11% to 15% of their retirement if that meant encouraging companies to have gender and racial diversity mirroring the general population. Only 3% of the older investors said they would forfeit the same amount for those goals. Two-thirds of older investors said they were unwilling to lose any money to support diversity. Stanford also found that wealthier young investors were the biggest ESG champions. Young investors with at least $250,000 would be willing to lose about 14% of their retirement savings, while young investors with savings less than $50,000 said they would only be willing to lose 6%. In terms of specific ESG issues, the survey found that investors cared more about environmental issues than social issues and governance.

Finsum:A recent ESG survey conducted by Stanford found that wealthy younger investors are more willing to potentially lose money on ESG initiatives than older or less wealthy individuals.

F.L.Putnam Investment Management Company recently announced the launch of a new platform that will allow advisors to execute direct investments in alternatives. The platform is designed for registered investment advisors and features proprietary investment manager research on a curated list of hedge funds, private equity, private real estate, private credit, and venture capital from Atrato, F.L.Putnam's consulting practice. Advisors will be able to access the research with +SUBSCRIBE, an alternative investment order management system for non-traditional product transactions. Through +SUBSCRIBE, RIAs will be able to review Atrato's manager due diligence, the manager's data room of fund materials, and execute transactions into a tailored menu of alternative investments. Tom Manning, CEO of F.L.Putnam had this to say about the launch, "As RIAs grow and scale, the need for sophisticated investment advice, tools, and capabilities increases exponentially. With our platform, advisors will have access to a fully customizable, state-of-the-art solution that allows them to research and confidently allocate to alternative investments on behalf of their clients."

Finsum:RIAs can now access manager research and execute direct investments in alternative assets through F.L.Putnam’s new investment platform.