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Taking the Indie Leap; Rethinking REITs: June Research Features—Slideshow

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For advisors, going independent requires not just careful cost-benefit analysis but also a focus on their clients’ confidence—and their own. Ellen Uzelac’s cover story in the June issue of Research magazine probes what’s involved in making such a leap of faith, and looks at advisors who have done it.

In the issue’s Finke on Finance feature, Michael Finke takes a fresh look at real estate investment trusts. REITs lost much of their reputation for safety during the financial crisis, but more recently their fortunes have revived. Finke assesses the distinctive features of this asset class.

The Edward Jones brokerage firm has a new recruiting strategy. Jane Wollman Rusoff brings you inside the big regional, describing how it hopes to get bigger and what it’s doing to make that happen. The results so far have been notable.

The Great Indie Leap of Faith

A new wave of advisors is flirting with the independent channel—a move fraught with uncertainty, tinged with promise, and dominated by one core question: Will my clients follow me?

“A lot of research describes the transition to independence in behavioral and demographic terms. It does so with facts and figures about how many advisors are likely to move, the number of models they’ll choose from, and the percentage that are likely to be happy,” says Barnaby Riedel, chief research strategist for Riedel Strategy, a Newport Beach, Calif.-based market research and communications firm. “Yet advisors, almost universally, talk about the move as a kind of leap of faith. If you miss that kind of leap, and the quality of the decision-making, you miss the most important aspect of the advisor experience.”

Read the full article.

Is the Time Right for REITs?

The financial crisis of 2008 laid waste to any illusions that real estate investment trusts (REITs) operated in a safer world than traditional equities. The old saw that stable rental flows and hard assets provided a safe harbor from market turbulence went out the window as REITs fell even harder than stocks during the great recession. Equity REITs returns dropped by 32% in September 2008 alone. Then they dropped another 23% in October. Nothing like losing half your investment in two months to remind an investor that all corporations are at the mercy of markets.

Since their epic fall in the great recession, REITs have rebounded big time. A recent pause in rising REIT prices has many wondering whether now is the right time to take profits on equities and avoid the risk of holding bonds in a rising interest rate environment. So let’s take a fresh look at REITs in the 21st century to see whether they make sense in a modern portfolio.

Read the full article.

Where Edward Jones Is Tapping Talent

Edward Jones is so fired up about expanding its troop of advisors that it has recruited recruiters from wirehouses—Merrill Lynch, Morgan Stanley, Wells Fargo—to help comb the country for choice candidates. For a regional, Jones is big; now it wants to get bigger.

Read the full article.

See more of the June issue of Research.


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