Investment Advisor September 2007

Cover Story

  • Around the Table

    It's no surprise that regulation remains the greatest challenge for leaders of the 2007 Investment Advisor Broker/Dealers of the Year, flanked by recruiting, transitioning to...

Features

  • The Virtual Face to Face

    Dina Trebbe doesn't need convincing on how Web conferencing has improved her firm's relationship with its clients and investment advisors. "It's a wonderful tool," says...

  • Principled Performance

    Have you looked at clients' allocations to the financial sector lately? As the equity and bond markets digest years of mortgage and structured securities-related exuberance,...

  • Judgment Day

    In the Journal of Investment Consulting (Winter 2005-06) and in a series of articles in Investment Advisor (September 2005, February 2006, and March 2006), we...

  • Bloomsday

    This is the third of four articles, with an accompanying blog at www.investmentadvisor.com, describing the Road to Independence that will be traveled this year by...

  • Getting In

    "We think that due to the fee structure of alter-native investments, with the incentive fee and alignment of interest and so forth, some of the...

  • Blue-Collar Advisor

    Pittsburgh can be considered the epitome of blue collar America. Located at the confluence of the Ohio, Monongahela, and Allegheny Rivers it was an ideal...

Beginnings

  • No Assets, No Need For Insurance

    I read your cover story, "Protect Yourself" in the July issue. To say that it was well done, accurate, and completely correct, would be a...

  • Asset Allocation, September 2007

    To learn this month's recommended asset allocations of Investment Advisor's panel of distinguished economists and money managers, click here.

  • Sub-Prime Returns

    Squeezed between a credit panic and intense volatility in stock prices, some of the most highly regarded hedge fund managers have spilled huge amounts of...

  • Diamonds Among The Junk

    High-yield bonds--those fixed income securities rated below investment grade--have some advantages over more vanilla-type bond products. High yield or "junk" bonds offer higher interest rates...

  • Life After Ellyn McColgan

    Ellyn McColgan's abrupt resignation from Fidelity Investments last month is not only a big loss for the Boston-based fund company, but also for advisors. Ellyn...

  • For Young and Old Alike

    On July 20-22, the Financial Planning Association and the NexGen community co-hosted the second annual NexGen Conference for the profession's future leaders. More than 100...

  • Hedge Funds Continue to Deregister

    Hedge fund advisors continue to deregister from the SEC. During the past year, 732 hedge fund advisors (firms that advise at least one fund) have...

  • FINRA Interim Board

    The Financial Industry Regulatory Authority (FINRA), the newly combined NASD-NYSE regulatory agency, announced the appointment of a 23-member Interim Board of Governors on August 2....

  • Group Think

    Securities and Exchange Commission Chairman Christopher Cox announced that two new organizational units will be formed within the Office of Investor Education and Advocacy: The...

  • Changes

    Commissioner Roel Campos of the Securities and Exchange Commission announced August 9 that he intends to leave the Commission in a month's time to return...

  • Upgrades

    The Investment Management Consultants Association, Inc. (IMCA) is offering a new designation--the Chartered Private Wealth Advisor or CPWA. The first self-study session will start this...

  • The Lap of Luxury Investing

    It seems the world's 9.5 million high-net-worth individuals (HNWI) are quite fond of "investments of passion." Luxury collectibles (automobiles, boats, aircraft), jewelry, art, sports--related investments...

  • On the Other Side of the Fence

    Over the years, conversations with Bruce Harrington have yielded insights for Investment Advisor readers (and editors, for that matter) into areas as diverse as 529...

  • Catching up with... Frank Holmes

    There are a few people who always have a thoughtful point of view on investing, no matter what is going on in the markets. IA...

  • A Great Business to Be In

    If there was an overriding theme voiced by the leaders of the 2007 Broker/Dealers of the Year in an editorial roundtable discussion in Chicago on...

Columns

  • The Affluent and Retirement

    In addition to the details of a comprehensive advanced planning strategy, clients may wrestle with such personal challenges as the best way to transfer assets...

  • The Price of Duty

    Knowing that every financial advisor has a number of low-profit or even unprofitable clients, I often challenge the decision to maintain those relationships by posing...

  • Save Them From Themselves

    I don't often review books in these pages. For one thing, there are better forums for such pieces, and for another, there are very few...

  • Me? Worry About Inflation?

    January 1, 2006, was an important date in history: Not only did early hip-hop pioneer Grandmaster Flash turn 48 years old, but the first of...

  • Simplifying Financial Reporting

    The SEC's Advisory Committee on Improvements to Financial Reporting held its first meeting August 2 at SEC headquarters in Washington to discuss ways to tackle...

  • Stand By Me

    2008 ISN'T AS far away as it seems--especially if, like many advisors, you're beginning to think about your business plan for next year. How many...

  • Time Out

    Even though I don't have any gray hairs yet, I'm no stranger to burnout. In my first job out of college, I thought I was...

Conclusions

  • Failure to Compute?

    Are computer models that meet the statutory requirements set out in the Pension Protection Act (PPA) an effective tool to use to provide investment advice...

  • Changes Ahead for 403(b)s

    Retirement plan advisors, distributors, and providers are finding themselves responding on the fly to the trends shaping the 403(b) and 457 markets. The old model...

  • NEWS & PRODUCTS, SEPTEMBER 2007

    Participants who consistently held accounts in 401(k) plans from 1999 through 2006 increased their account balance at an annual rate of 8.7%, according to a...

  • Young Rebel With a Cause

    Among the younger generation of planners, Aaron Coates of Compass Wealth Advisors in Elkhart, Indiana, is a visionary. He embraces the revolutionary approach of letting...

  • A Trend Confirmed?

    Fee-based advisory revenues are higher than traditional commission-based revenues, for the first time, at Commonwealth Financial Network. It's not a change to advisory accounts from...

  • The Fair Value Pricing Gap Narrows

    "A more universal view of fair valuation policies and procedures exists today in the investment management industry," writes Paul Kraft, a partner in Deloitte &...

  • News & Products

    Morgan Stanley DW Inc. has been fined $1.5 million by the Financial Industry Regulatory Authority (FINRA), and ordered to pay more than $4.6 million in...

  • In the Meantime

    If you've been keeping up with the long-term care insurance controversy, you've read The New York Times article that started the brouhaha earlier this year--about...

  • Negotiating With Host

    Although in the financial services sector most "official" communication still depends on the telephone authorization, the signed letter, the wire transfer, or the mailed prospectus,...

  • After the Estate Plan . . .

    Don't you love it when a client follows your recommendations to the letter? Consider, for instance, the following common scenario: Taking your sage advice to heart,...

  • No Rest for the Planning Industry

    As the dog days of summer draw to a close, it may seem like a great time for the financial planning community to take a...

Sidebar Stories

  • Clustered Near the Top

    The good news for the independent broker/dealers who competed in the 17th annual balloting for Investment Advisor Broker/Dealers of the Year is that the vast...

  • How You Picked Them

    As the popularity of the Broker/Dealer of the Year competition has grown, so has scrutiny of the process from reps, home offices, outside observers, and...

  • Division I, Harbour Investments, Inc

    Harbour Investments, Inc. Founder, CEO, and President Nick Sondel Founded: 1987 Producing reps: 187 2007 estimated gross revenue: $27 million 2006 average annual gross production per rep: $130,000 Ratio of...

  • Division II, Brecek & Young Advisors, Inc.

    Brecek & Young Advisors, Inc. Chairman and CEO Christopher Ranney Founded: 1992 Producing reps: 291 2007 estimated gross revenue: $42.2 million 2006 average annual gross production per rep: $150,538 Ratio...

  • Division III, Capital Financial Group/H. Beck, Inc.

    Capital Financial Group/H. Beck, Inc. Founder, Chairman, and CEO Eric Meyers Founded: 1981 Producing reps: 624 2007 estimated gross revenue: $70 million 2006 average annual gross production per rep:...

  • Division IV, Cambridge Investment

    Cambridge Investment Research, Inc. Founder, President, and CEO Eric Schwartz Founded: 1981 Producing reps: 1,099 2007 estimated gross revenue: $235 million 2006 average annual gross production per rep: $207,000 Ratio of...

  • A Word of Thanks

    The Investment Advisor editorial staff wishes to extend special gratitude to the leaders of the 2006 Broker/Dealers of the Year for their willingness to share...

  • I'm really happy here. But if I weren't . . .

    Each year, there are several "fill-in-the-blank" fields on the Broker/Dealer of the Year ballot. One, for instance, asks which products and services reps would like...

  • Virtual Meeting Options

    GoTo Meeting Cost: Starting at $49 a month. Mac/PC?: Can join from Mac, but not host meetings. Hosted?Server based?: Both. Bells and Whistles: Record meetings and archive on desktop,...

  • About the manager

    Nicholas Kaiser is director, president, and equity portfolio manager of Saturna Capital, which is the investment advisor to Amana Growth and Amana Income Funds, in...

  • A Monte Carlo Case Study

    Recently, a client brought a life insurance illustration to me that he had received from his insurance agent. The insurance company illustration projected that if...

  • Diversifying by Vintage Year

    Another important source of diversification in private equity is by vintage year. The private equity market is built around single-use, closed-end funds; so the capital...

  • A Collective Effort

    In 1996, Charles Haines recognized that his Birmingham, Alabama financial planning and investment management firm had to start giving its clients exposure to alternative investments,...

  • Rydex's Innovative Managed Futures Fund

    The Standard & Poor's Diversified Trends Indicator on which the Rydex Managed Futures Fund (RYMTX) is based is an index composed of 14 sectors, equally...

  • P.J. DiNuzzo

    President, CIO DiNuzzo Investment Advisors, Inc. 1501 Third Street Beaver, PA 15009 Phone: 724-728-6564 Web site: www.dinuzzo.com E-mail: Info@DiNuzzo.com Year practice started: 1989 AUM: $221 million Number of advisors in firm: four lead advisors; one...

  • Football Lessons

    "I was a lineman my whole life. I played at 6'3", 240-something pounds," recalls P.J. DiNuzzo. "When you're blocking, you play all through junior high...

  • Behind the Numbers, with Gary Shilling

    "We're in a situation where people realize that there is a lot more risk taken in lower-grade investments like junk bonds and leveraged loans--they not...

  • Some More TIPS

    Among those clients who may be particularly interested in this type of strategy are: Existing or prospective municipal bond owners at risk of losing...

  • Interest Rate Refresher

    The various components are: Real Interest Rate is the compensation, over and above inflation, that lenders demand to lend their money. Inflation is by...

  • The Perils of Ignoring Gen Y

    Should advisors be going after Generation Y--today's twenty-somethings? A new global study by KPMG says these young folks, who are the next generation of wealth...

  • A Practitioner's View on the Merrill Rule

    Before we move on to portfolio management, let's discuss some of the recent developments concerning the broker/dealer exemption rule, aka the Merrill Lynch rule. The...

  • How We Define You

    Green: When you say [you're researching] "financial advisors," who do you mean--brokers, RIAs? Harrington: All of those. What's your term for the generic? I always say our...

  • Why Another Research Firm?

    Not a day goes by, it seems, when there isn't a new piece of research on the advisory industry, especially in the practice benchmarking area....

  • A Matter of Definition: Common E-Mail Terms

    Microsoft Gold Certified: Microsoft offers a Gold level of certification in many different applications, including Exchange, .Net, Windows, and more. The Gold Certification process is...

  • Communication Skills

    Learning how to communicate well--not only with clients, but with your colleagues and employees, is a prerequisite to success in your practice, to contentment among...

  • More Things to Watch For

    Steve Zaleznick, CEO of Long Term Care Quote, a company in Gilbert, Arizona, that sells LTC insurance, believes that it is "clearly here to stay,"...

Web Extras

  • Know What Else I Could Use?

    It would seem that reps participating in this year's survey are for the most part pretty satisfied with the products and services that their B/Ds...

  • Through the Years

    This is the 17th year that Investment Advisor readers have chosen Broker/Dealers of the Year. During the first four years of voting, the top five...