>> PLEASE WELCOME TO THE STAGE
AREAS GLOBAL HEAD OF WEALTH MANAGEMENT RAJ DHANDA, CITI GLOBAL HEAD IDA LIU AND SAIRA
MALIK WITH KAILEY LEINZ. KAILEY:
LET YOU GUYS GET SETTLED. HELLO EVERYONE WE ARE HERE TO
TALK ABOUT NEXT-GENERATION WEALTH AND AS WE KNOW A LOT CAN
CHANGE FROM GENERATION TO GENERATION.
THE MACRO ENVIRONMENT, THE TYPE OF INVESTING PEOPLE WANT TO DO.
SOME OF THESE ARE BAD AND SOME OF THESE ARE STRUCTURAL CHANGES.
I LIKE TO BEGIN WITH HOW YOU'RE THINKING ABOUT STRUCTURAL
CHANGES IN THE ECONOMY. I WILL START WITH YOU. SAIRA:
GREAT TO BE HERE. I'LL TALK ABOUT TWO IMPORTANT
THEMES AND THAT HAS TO DO WITH ASSET ALLOCATION AND MONEY IN
MOTION. WE LEARN THE HARD WAY LAST YEAR
THAT DID NOT GIVE US THE RESULTS WE WANT.
I THINK IT HIGHLIGHTS THE IMPORTANCE OF DIVERSIFICATION
INTO ALTERNATIVES. THEY CAN PROVIDE THREE THINGS
TO THE PORTFOLIO, INFLATION PROTECTION AND DIVERSIFICATION
AREAS LIKE PRIVATE CREDIT WHICH TEND TO BE MORE RESILIENT
DURING PERIODS OF ECONOMIC WEAKNESS.
SECOND IS MONEY IN MOTION. OVER THE NEXT COUPLE YEARS WE
WILL SEE THE LARGEST TRANSFER FROM WEALTH BUILDERS TO WEALTH
INHERITORS. TRILLIONS OF DOLLARS WILL
CHANGE HANDS. THIS HAS A LOT TO DO WITH HOW
FINANCIAL ADVISORS ARE THINKING ABOUT HELPING PEOPLE MANAGE
THEIR MONEY. TWO AREAS THAT ARE IMPORTANT
FOR BUILDING BONDS EARLY AND TRUST. OUR SURVEY SHOW WEALTH
INHERITORS WILL SIGNAL FINANCIAL ADVISORS IF THEY FEEL
LIKE THEY TRUST THEM. FOR FINANCIAL ADVISORS IT HAS
TO DO WITH BUILDING BONDS EARLY WITH THOSE WEALTH INHERITORS.
STUDIES ALSO SHOW A GROUP IF FA GETS TO KNOW WEALTH INHERITOR
IN THEIR TEENAGE YEARS THERE'S ABOUT 85% CHANCE THE INHERITOR
WILL STICK WITH THE FA AND IF A FINANCIAL ADVISOR GETS TO KNOW
THEM AS A YOUNG ADULT THAT PERCENTAGE OF KEEPING THAT
DROPS TO ABOUT HALF. KAILEY: IF YOU ARE ALSO THINKING ABOUT
STRUCTURAL CHANGES, DO YOU AGREE, --? IDA:
NEXGEN AND MILLENNIALS ARE AN INCREDIBLE MARKET FOR US.
15 TRILLION OF WEALTH WILL BE PASSED BY THE END OF THIS
DECADE. WE THEM TO DO THREE THINGS FOR
NEXGEN AND MILLENNIAL CLIENTS. FIRST IS TO EDUCATE, EMPOWER
AND ELEVATE OUR NEXGEN CLIENTS AND WHAT WE DO IS WE'VE ASKED
THOSE CLIENTS AROUND THE WORLD WHAT DO YOU NEED FROM A WEALTH
MANAGEMENT PARTNER? WE HAVE NEXGEN ADVISORY BOARDS
AROUND THE WORLD. WE SOLICITOR BACKED FEEDBACK
AND NOT SURPRISINGLY THERE'S THREE THINGS THAT EMERGE.
THEY WANT EVERYTHING TO BE AS SIMPLE AS POSSIBLE.
EASY TO DO ON THEIR IPHONE, IPAD SPRAYED THEY WANT TO BE
ABLE TO FULLY ON BOARD IN A NEW INSTITUTION DIGITALLY.
WE'VE GOT TO MAKE SURE THAT THAT TECHNOLOGY AND DIGITAL
ENGAGEMENT IS VERY HIGH AND VERY EASE-OF-USE FOR NEXGEN
MILLENNIAL CLIENTS. THEY REALLY CARED DEEPLY ABOUT
BEING EDUCATED. AND FORMING WONDERFUL NETWORKS
BUT IT'S NOT JUST ABOUT FINANCIAL EDUCATION.
OR MARKET EDUCATION. EVEN THOUGH THAT'S VERY
IMPORTANT. IT'S ALSO ABOUT ELEMENTS OF
LEADERSHIP, BUSINESS SUCCESSION AND THE LIKE BUT IT'S EQUALLY
IMPORTANT THAT WE PROVIDE THOSE TYPES OF TOOLS FOR NEXGEN
MILLENNIAL CLIENTS. OVERALL ON INVESTMENTS, THERE
TENDS TO BE AN APPROACH FOR NEXGEN MILLENNIAL CLIENTS.
THAT THEY WANT TO ACHIEVE REALLY GOOD THINGS WITH THEIR
INVESTMENT DOLLARS. THEY WANT TO INVEST WITH IMPACT.
WE ARE DOING A LOT AROUND THAT FOR NEXGEN MILLENNIAL CLIENTS. SO EVERYTHING FROM GREEN BONDS
AND HOUSING BONDS TO CONSTRUCTION PORTFOLIOS WHETHER
IT'S ON THE ENVIRONMENT, WE HAD A CLIENT WHO SAID THEY THOUGHT
PLASTIC FOR THE NUCLEAR WASTE OF THE CENTURY.
WE BUILT PORTFOLIO AROUND THAT. LASTLY EXPRESSING THOSE VIEWS
THROUGH ALTERNATIVE AND PRIVATE ACKLEY MANAGERS AS WELL ON
BEHALF OF OUR NEXGEN MILLENNIAL CLIENTS. KAILEY: SHE WAS TALKING ABOUT HOW THE
PORTFOLIO DIDN'T EXACTLY WORK AS INTENDED, IS IT DEAD.
HOW ARE YOU THINKING ABOUT IT HERE. RAJ:
THE PORTFOLIO ALLOCATION MAY BE FOR THE LAST GENERATION.
I THINK THE NEXT GENERATION SHOULD EMBRACE WHAT IS
ULTIMATELY A 50-50 PORTFOLIO. 60/40 IS 100 PUBLIC ZERO, I
GREW UP IN THE PUBLIC MARKETS, AT A LARGE BANK. AT AREAS ALL WE DO IS PRIVATE
MARKETS. THE STRUCTURAL CHANGES, HIGHER
RATES INFLATION, THE VOLATILITY IN THE PUBLIC MARKETS.
10 OR 12 YEARS AGO WE WERE WORRIED THAT THE PUBLIC MARKETS
WERE BECOMING TOO CORRELATED. VOLATILITY WAS APPROACHING
GIVEN ALL THE CONCENTRATED POSITIONS IN THE INDICES AND SO
ON, THERE WERE REAL SHORTCOMINGS IN THE INVESTMENT
LANDSCAPE. WE REALLY THINK THERE WILL BE
ASKED FINANCIAL GROWTH IN THE PRIVATE MARKETS AND IN
PARTICULAR LED BY PRIVATE CREDIT. AS WE ALL KNOW BANKS ARE
LENDING LAST. COMPANIES ARE STAYING PRIVATE LONGER.
AND SO THERE'S REAL DEMAND FOR THE SOLUTION THAT PRIVATE
CREDIT OFFERS. ON THE OTHER HAND IT'S A
FLOATING RATE UNCORRELATED INCOME STREAM.
WITH RETURNS MUTED IN THE NEXT DECADE.
NOT WHAT THEY WERE IN THE LAST 10 OR 15 YEARS THEN NAIL A TO
DOUBLE-DIGIT RETURN THAT IS SENIOR IN THE CAPITAL STRUCTURE.
PROVIDES REALLY GREAT VALUE TO PORTFOLIOS.
WE ARE SPENDING A LOT OF TIME. KAILEY:
WE SEEM TO BE ON THIS ASSET ALLOCATION POINT.
WE HAVE OUR POLL OF THE AUDIENCE WOULD LIKE TO TAKE
HOLD -- LOOK AT WHAT ASSET ALLOCATION SHOULD FOCUS ON. EQUITIES ALTERNATIVES, IF YOU
LOOK ONE WAY RAJ MIGHT GO ON THIS.
JUST TO COME TO YOU AS WE TALK ABOUT THIS.
WHAT WOULD YOUR SELECTION BE AND OBVIOUSLY ALTERNATIVES A
PRETTY WIDE BASKET SO WE MIGHT WANT TO BREAK THAT DOWN. SAIRA: I FEEL IT MIGHT BE AGAINST MY
RELIGION NOT TO SAY IT NOT TO EQUITIES BUT I DO THINK
ALTERNATIVES ARE AN IMPORTANT PART OF THE PORTFOLIO.
TALKING ABOUT THE BENEFITS AND DIVERSIFICATION SO BREAKING IT
DOWN FOR EXAMPLE IF YOU ADDED 20% ALTERNATIVES RANGING FROM
FARMLAND, TIMBERLAND INFRASTRUCTURE TO A PRIVATE
PORTFOLIO. STUDIES SHOW IT COULD ADD 25
BASIS POINTS OF ANNUALIZED RETURNS AND REDUCE YOUR RISK BY
100 BASIS POINTS. FARMLAND AND TIMBERLAND HAVE
BEATEN CPI OVER THE PAST FEW DECADES ANNUALIZED BY 8% AND 6%
RESPECTIVELY. GIVEN WHAT WE ARE SEEING NOW, A
CYCLE DRIVEN BY HIGHER INFLATION AND HIGHER INTEREST
RATES. WHEN YOU ASK WHAT IS STRUCTURALLY CHANGED, JUST
LOOKING AT RATES AND INFLATION TODAY VERSUS WHAT WE'VE SEEN IN
THE PAST FOR MUCH OF OUR CAREERS.
THE AVERAGE FEDERAL FUNDS RATE WAS A LITTLE BIT UNDER 1%.
IF YOU LOOK AT THE FOUR DECADES PRE-THE GFCI, THE AVERAGE
GENERAL FUNDS RATE WAS ON THE 6%. I THINK WE ARE GOING BACK TO
WHAT WE SAW BEFORE THE GLOBAL FINANCIAL CRISIS RATHER THAN
WHAT WE'VE SEEN FOR THE LAST DECADE OR SO.
CLIENTS NEED TO GET USED TO HOW WE WILL POSITION CLIENTS SO
THEY CAN MEET THESE HIGHER LEVELS OF INFLATION AND DEAL
WITH THESE INTEREST RATES. KAILEY: EQUITIES 50 -- 44%.
CASH IS 2%. YOU DON'T WANT TO TOUCH IT?
THINKING ABOUT WEALTH INVESTING FOR THE LONG TERM. IDA:
OUR RECOMMENDATION IS 404020. THE REASON BEING WE STILL SEE A
LOT OF OPPORTUNITY IN THE FIXED INCOME SIDE.
LOOKING AT WHERE THE TREASURIES ARE YIELDING.
WHERE SHORT-TERM MUNICIPAL'S ARE YIELDING BRAIDED SO VERY
ATTRACTIVE CASH ALTERNATIVES IN THE FIXED INCOME ON THE EQUITY
SIDE WE LIKE A LOT OF DIFFERENT CYCLES.
A LOT OF DIFFERENT AREAS AND INDUSTRIES IN THE EQUITY AREA
PARTICULARLY AROUND HEALTH CARE, AROUND THE TECH AND
DIGITIZATION. WE REALLY LIKE THE TRANSITION
FROM FOSSIL FUELS TO CLEAN ENERGY SO WE THINK THERE'S A
LOT OF OPPORTUNITIES THERE AS WELL.
LASTLY ON THE ALTERNATIVES. OUR VIEW IS 20% BECAUSE THERE ARE SO MANY OPPORTUNITIES AND
INVESTORS ARE DEFINITELY PAY THAT LIQUIDITY PREMIUM.
MANAGERS CAN TAKE ADVANTAGE OF SOME OF THE MARKET DISLOCATIONS
WE'VE SEEN OVER THE LAST 1.5 YEARS. THERE'S PRETTY ATTRACTIVE
PRIVATE CREDIT AND OTHER OPPORTUNITIES. RAJ:
ALTERNATIVES I THINK IS A BIT OF A MISNOMER. I'M NOT SURE AN ALTERNATIVE BS.
PRIVATE MARKETS HAVE EVOLVED, INITIALLY PRIVATE EQUITY WAS
WHERE THERE WAS SIGNIFICANT GROWTH AND IT PROVIDED AN
EXCESS RETURN. COMMERCIAL REAL ESTATE PROVIDED
UNCORRELATED YIELD OF THE LAST FOUR TO FIVE YEARS.
NOW PRIVATE CREDIT COMES TO THE FOREFRONT.
IN LARGE PART BECAUSE THE PUBLIC FIXED INCOME MARKETS NOW
SEEM LIKE EQUITIES UNPRECEDENTED VOLATILITY.
PORTFOLIO CONSTRUCTION IS WHAT DRIVES A LOT OF THE ADVICE WE
GIVE. IN AREAS WE'VE DONE PRIVATE
CREDIT LONGER THAN ANYONE. THE SECRET IS REALLY THAT THE
INSIGHT INTO THE MIDDLE MARKETS IS DEEPER IF YOU HAVE A
ORIGINATION FOOTPRINT THAT ALLOWS YOU TO LEND TO 3000 TO
4000 COMPANIES. THE WILSHIRE 5000 IS REALLY
ABOUT 3000. AND SO THE DIVERSITY YOU GET IN
THE PUBLIC MARKETS IS SHRINKING. THE OPPORTUNITY IN THE PRIVATE
MARKETS YOU CAN HAVE AN EXPOSURE TO REAL ASSETS AND
INFLATION HEDGE. YOU CAN STILL HAVE SOME PRIVATE
EQUITY EVEN IF THE ECONOMY MAY FACE SOME SOFTENING FOR YOU
STILL WANT PRIVATE EQUITY. AS I'VE SAID A COUPLE OF TIMES.
KAILEY: I WANT TO RETURN TO THE IMPACT
INVESTING AS WE TALK ABOUT HOW THINGS DIFFER FROM THE
GENERATION TO ANOTHER. IS THAT SOMETHING THAT THE
WEALTH INHERITORS WERE ABOUT TO SEE HISTORY MAKING WEALTH
INHERITANCE? HOW MUCH PRIORITY DO THEY PUT
ON THAT. IS THAT WHAT DRIVES THEIR
INVESTMENT STRATEGY. IDA: I BELIEVE IN THE FUTURE WE WILL
BE TALKING ABOUT ESG OR INVESTING AS A SEPARATE CLASS.
IT WILL BE PART OF THE PORTFOLIO.
THE CONVERSATIONS WE ARE HAVING WITH INVESTORS PARTICULARLY
PRONOUNCED WITH THE NEXGEN CLIENTS AND MILLENNIAL CLIENTS
IS THEY CARE DEEPLY ABOUT DOING GOOD WITH THE INVESTMENT
DOLLARS AND THE IMPORTANT FACT IS THEY DO NOT HAVE TO GIVE UP
A COMPROMISE ON RETURNS TO DO GOOD WHICH MAKES IT EVEN THAT
MUCH MORE COMPELLING. I THINK EVERYBODY IS ON THE
JOURNEY TOGETHER WHETHER YOU'RE PASSIONATE ABOUT THE
ENVIRONMENT, MAKING SURE WE ARE CREATING A BETTER ENVIRONMENT,
A BETTER FUTURE FOR OUR KIDS AND GENERATIONS, THESE ARE
THINGS THE NEXT GENERATION CLIENTS ARE WORKING ON A BASIS.
WE HELP OUR CLIENTS EXPRESS NUMEROUS DIFFERENT VIEWS AND
THROUGH VERY HIGHLY CUSTOMIZED PORTFOLIO STRATEGIES.
WHETHER YOUR INTEREST IS ON THE ENVIRONMENT, WHETHER IT'S ON
DIFFERENT FACTORS THAT ARE IMPORTANT TO YOU WE CAN HELP
YOU EXPRESS THOSE IN A HIGHLY CUSTOMIZED WAY THROUGH OUR ESG
PLATFORMS. KAILEY: HOW ARE YOU THINKING ABOUT
INVESTING IN THOSE THEMES? SAIRA:
FIRST JUST THINKING ABOUT LUMP INHERITORS.
THEY'RE TRYING TO PROVIDE INCOME FOR RETIREMENT, PASSING
ALONG INHERITANCE TO THEIR CHILDREN AND GRANDCHILDREN AND
THIRD IS MAKING SURE THEIR MONEY IS DONATED TO THE AREAS
THEY BELIEVE IN. IT'S IMPORTANT. AS THE WORLD MOVES TO A GLOBAL
NET ZERO TARGET AND WHETHER WERE PREPARED FOR THAT, THE
SHIFT TO RENEWABLES, THEY SHOULD BE THE LARGEST SOURCE OF
ELECTRICITY BY 2028. ONE PART THAT'S IMPORTANT IS
INPUT INTO RENEWABLE ENERGY SUCH AS COPPER, LITHIUM, COBALT
AND THE LAST 25 YEARS WE REDUCED COPPER PRODUCTION BY
HALF. THAT'S AN AREA WHERE COMMODITIES CAN BECOME
SOMETHING PART OF THE PORTFOLIO. THIS CAN BE A LOT OF DEMAND FOR
COMMODITIES. NOT ONLY IS IT AN INVESTMENT
ISSUE WE NEED TO LOOK AT BUT ALSO WEALTH INHERITANCE.
THEY ARE ENGAGED IN THAT AREA. KAILEY:
AS WE TALK ABOUT THE PEOPLE INHERITING THIS WEALTH WILL IT
BE AS EASY TO BUILD IT GOING FORWARD?
IT FEELS LIKE IT'S HARDER TO MAKE MONEY NOW THAN IT WAS FOR
THE PRIOR GENERATION. IDA IS SHAKING HER HEAD. RAJ:
I THINK THERE ARE SOME LESSONS THAT DO GET PASSED ON AND I
THINK TIME IN THE MARKET IS IMPORTANT. LIQUIDITY AND THE VOLATILITY IN
THE PUBLIC MARKETS CAN MAKE IT HARD TO STAY IN THE MARKETS. I THINK THE NEXT GENERATION IS
SEEING THAT TIME IN THE MARKET IS INCREDIBLY VALUABLE.
COMPOUND IS INCREDIBLY IMPORTANT. THEY ARE FASCINATED BY THE
BREATH OF THE PRIVATE MARKETS WHETHER IT'S AGRICULTURAL,
INFRASTRUCTURE, TRADITIONAL PRIVATE EQUITY.
SO THE INVESTMENT SOLUTIONS THAT ARE AVAILABLE TODAY IN THE
PRIVATE MARKETS OF REALLY CHANGE THE LANDSCAPE.
YOU HAVE OPPORTUNITY TO BUILD CORE ALLOCATION THROUGH
OPEN-ENDED STRATEGY, BE OPPORTUNISTIC THROUGH
TRADITIONAL DRAWDOWN FUNDS. ALL OF THAT HELPS THE NEXT
GENERATION HAVE A LASTING DURABLE ALLOCATION TO THE
PRIVATE MARKETS WHICH WASN'T REALLY POSSIBLE IN THE PRIOR
GENERATIONS WHEN THE LACK OF ALTERNATIVES IN THE PRIVATE
MARKETS LED YOU TO FOCUS PENSIVELY ON STOCK AND BOND.
IDA: THE GLOBAL WEALTH MARKET HAS
GROWN BY 10 PLUS PERCENT. IN THE LAST DECADE WE'VE HAD
MOSTLY A WHOLE MARKET UNTIL A YEAR AND A HALF AGO.
THE WEALTH CREATION CONTINUES TO GROW MASSIVELY AND RAPIDLY
BUT WHAT'S INTERESTING IS THE CREATION OF THAT WEALTH, THE
DYNAMICS HAS CHANGED. THE NEWLY CREATED WEALTH IS
BEING DRIVEN BY MORE ENTREPRENEURSHIP, MORE
DEVELOPMENT, MORE CREATIVE IDEAS.
THE WORLD IN WHICH WE SIT IN TODAY AND THE OPPORTUNITIES WE
SEE AHEAD IS ALL ABOUT THE DISRUPTIVE INNOVATIONS THAT
WILL HAPPEN. HEALTH CARE, TELEMEDICINE, DRUG
DISCOVERY IN CLEAN ENERGY, ALL OF THE THINGS THAT ARE
HAPPENING ON CLEAN ENERGY TECH, NUCLEAR FUSION, ROBOTICS AND
THE LIKE. WHEN YOU MOVE BACK INTO THINK
ABOUT THE DIFFERENT DISRUPTIVE TECHNOLOGIES WE WERE TALKING
ABOUT, SO MUCH CREATIVITY AND ENTREPRENEURSHIP.
SO MANY OPPORTUNITIES WHERE THIS WEALTH IS COMING IN.
KAILEY: I WANT TO COME BACK TO THE ROLE
OF THE FINANCIAL ADVISOR. WE LIVE IN AI WORLD NOW IT SEEMS. ARE THEY STILL CAN WANT
A HUMAN HELPING TO MANAGE THEIR MONEY OR WHAT ROLE DO YOU SEE
THAT AUTOMATION PLAYING IN FINANCIAL ADVISING GOING
FORWARD. SAIRA: INHERITORS WILL GO TO THEIR
FINANCIAL ADVISOR FIRST. THE FINISHED -- THE FINANCIAL
ADVISOR HAS TO BE ON THEIR TOES TO MAKE SURE --
CHATGPT CAN ALSO BE A SOURCE OF INFORMATION.
THAT'S IMPORTANT FOR FINANCIAL ADVISORS TO MAKE SURE THEY ARE
OFFERING ADVICE. I STARTED IN THE INDUSTRY IN
1995 AND IF YOU LIKE HISTORY DOESN'T APPEAL -- REPEAT BUT IT
OFTEN RHYMES. TODAY WE ARE ASKING OURSELVES
THE SAME QUESTIONS WITH AI COMING OUT, ARE WE IN A TECH
BUBBLE. SO GOING FORWARD I THINK IT'S
IN TO BE MORE CHALLENGING BUT PEOPLE HAVE TO THINK ABOUT WHAT
ARE THE DIFFERENT FACTORS THAT DRIVE THE PORTFOLIOS.
MORTGAGES WILL BE HIGHER, INFLATION WILL BE MORE OF AN
ISSUE. WE HAVE SO MANY OTHER ASSET
CLASSES. ALTERNATIVES IS AN AREA.
ASSET CLASSES THAT CAN CONSISTENTLY BEAT ALLOCATION.
WE GET ACCESS TO INSTITUTIONAL INVESTORS.
I THINK THAT'S GOING TO BE WHAT HELPS ALL OF THESE NEXT
GENERATION OF WEALTH INHERITORS MEET THE BENCHMARK AND RETURNS
ON THEIR PORTFOLIOS. RAJ: WE PARTNER WITH THOUSANDS OF
FINANCIAL ADVISORS. WE SEE THEIR ROLE IS CRITICAL
GOALS. THIS IS DEEPLY FRAGMENTED. WITH INDIVIDUALS TRYING TO HAVE
ACCESS TO ALL THE VARIOUS SOLUTIONS.
THE FINANCIAL ADVISOR WILL REMAIN AT THE CENTER OF THE
DISTRIBUTION PLATFORM. ANYTHING THAT AI DOES TO EASE
THE METHOD OF DISTRIBUTION, SHARING EDUCATION, TO DELIVER
THOUGHT LEADERSHIP SEAMLESSLY. ALL OF THE THINGS WE ARE
EXCITED ABOUT. KAILEY: YOU WERE TALKING ABOUT HOW
THESE NEXGEN CLIENTS WANT EVERYTHING TO BE EASY AND IS
TECHNOLOGICALLY ADVANCED AS POSSIBLE.
HOW ARE YOU THINKING ABOUT IT AT CITI? IDA: WE MOVE FROM PAPER ACCOUNT
OPENINGS WITH A STACK OF PEOPLE IN -- PAPER AND SIGN HERE TABS
TO FULLY DIGITAL ONBOARDING WHERE YOU CAN GET AN ACCOUNT
OPEN IN THREE MINUTES BRADYS OF THE ADVANCEMENTS WE ARE DOING
AND TO COMPLEMENT WHAT MY FELLOW PANELISTS OF SAID WE
HAVE TO ENGAGE WITH TECHNOLOGY IN A WAY THAT SUPPORTS
UNHEALTHFUL. WE WILL ALWAYS BE ADVISORS AT
THE FRONT AND CENTER TO CLIENTS AND THEIR FAMILIES.
THAT'S VERY IMPORTANT THAT YOU HAVE THAT HUMAN TOUCH.
THAT'S NOT TO SAY WE CAN HELP COMPLEMENT OUR TEAMS WITH
ADVANCEMENTS THAT ARE HAPPENING, NATURAL LANGUAGE
PROCESSING TO MAKE THOSE CONVERSATIONS MORE PRODUCTIVE.
KAILEY: WE TALKED WHAT IMPACT INVESTING
AND HOW THEY ARE THINKING ABOUT THAT.
HOW ELSE ARE THEY DIFFERENT. ARE THERE ANY OTHER THEMATIC
CHANGES YOU ARE STARTING TO PICK UP ON? SAIRA:
THEY MUCH MORE WANT TO BE INVOLVED IN THE PROCESS.
THIS GOES BACK TO MAKING SURE THE FINANCIAL ADVISOR IS --
SECONDLY INHERITORS ARE MUCH MORE OPEN TO WORKING WITH
MULTIPLE FINANCIAL ADVISORS. I THINK THEY NEED TO BE THE
ORCHESTRATOR OF THE WEALTH INHERITORS PORTFOLIO WORKING
WITH FINANCIAL ADVISORS AND PROVIDING SOURCES OF
INFORMATION SO THAT THEY CAN GET THE LIONS SHARE OF THE
ASSETS. FINANCIAL INCLUSION IS AN AREA
WHERE WE CAN MAKE A LOT OF PROGRESS. LARGEST MINORITY COHORT IN THE
UNITED STATES PAID LESS THAN ONE THIRD HAVE A FINANCIAL
PRODUCT OR ACCOUNT. THIS GOES BACK TO TRUST. PEOPLE
TEND TO TRUST OTHERS WHEN THEY THINK THEY ARE MORE SIMILAR TO
THEM AND THE LACK OF DIVERSITY IN THE INDUSTRY I THINK HURTS
NOT ONLY OUR INDUSTRY FROM A GROWTH POINT OF VIEW BECAUSE
THEY'RE MISSING BEING ABLE TO GROW WITH THESE DIFFERENT
COMMUNITIES BUT PROHIBITS US FROM CLOSING THE WEALTH GAP.
WE KNOW ONE OF THE FASTEST WAYS TO GENERATING WEALTH IS BEING
INVESTED IN THE MARKET. KAILEY: AS YOU'RE TALKING ABOUT THEY
ARE MORE ENGAGED AND WANT TO TAKE A MORE ACTIVE ROLE IN
THIS, IS THIS THE POINT FOR ACTIVELY MANAGING WEALTH?
NOT PASSIVELY DOING SO? RAJ: CERTAINLY ACTIVE MANAGEMENT
WILL BE AT THE FOREFRONT. THE PLAYBOOK HAS CHANGED IN THE
LAST SIX TO NINE MONTHS. RISK ON AND THE NET LONG
POSITION WAS REALLY ALL YOU NEEDED.
TODAY AND FOR THE NEXT 10 OR 15 YEARS WE HAVE A NEW PARADIGM,
THE VOLATILITY, THE SOFTENING ECONOMY.
EVERYONE NEEDS TO REFLECT ON THEIR PLAYBOOK AND STEP BACK AND THINK ABOUT >> AND THAT IS
THE PERFECT NOTE TO END ON. THANK YOU SO MUCH.
