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Come join us for a discussion about the practical issues of incorporating ESG into your wealth management practice and how to mitigate them so everyone is happy. Three key areas addressed: standardization, customization, and clarity. REGISTER HERE: https://lnkd.in/gyi3EE2H Sponsored by First Rate Ventures #wealthmanagement #investmentadvisors #esg

In this article, Kendrick talks about some of the practical issues that arise when advisors try to deploy ESG to their retail clients, what ratings providers need to do to properly address ESG in retail wealth, and some steps advisors can take in the meantime. #wealthmanagement #ria #wealthtech #esg https://www.advisorperspectives.com/articles/2022/09/12/the-uncertain-future-for-esg-in-wealth-management

Capital markets assumptions are an estimate of the going-forward long-term returns for various asset classes or investments. For example, a firm might say they expect the US equity market to return an average of 7% per year over the next 20 years. Capital markets assumptions are a critical component of portfolio construction in wealth management but are now taking on an even larger role with the rise of financial planning. One approach to estimating Capital Markets Assumption

Capital markets assumptions are an estimate of the going-forward long-term returns for various asset classes or investments. For example, a firm might say they expect the US equity market to return an average of 7% per year over the next 20 years. Capital markets assumptions are a critical component of portfolio construction in wealth management but are now taking on an even larger role with the rise of financial planning. Instead of using a one-size-fits-all approach like hi

Capital markets assumptions are an estimate of the going-forward long-term returns for various asset classes or investments. For example, a firm might say they expect the US equity market to return an average of 7% per year over the next 20 years. Capital markets assumptions are a critical component of portfolio construction in wealth management but are now taking on an even larger role with the rise of financial planning. One of the key components of financial planning is th

#financialadvisors #rias #wealthmanagement #wealthtech #fintech #investments A scenario analysis is a risk measure where an advisor uses a computer model or some other method to predict the portfolio loss under certain adverse conditions. The most popular stress test is a market crash, but there are others frequently used as well, such as rapidly rising interest rates or commodity spikes. If there is a particular concern in the market at a given time, there is probably a scen

#financialadvisors #rias #wealthmanagement #wealthtech #fintech #investments Confidence bands are a way of explaining risk in terms of what a “bad” situation or “good” situation might look like, with the focus usually being on the former. They are generally a statistical measure that uses the volatility of a portfolio to calculate a certain probability of a particular loss. The most popular version is the “95% confidence” band. For example: “There is a 95% probability that yo

Risk numbers take the complicated notion of portfolio risk and distill it down to one, easy-to-understand number. This innovative solution was pioneered by Riskalyze, which basically named the genre with their flagship Risk Number®. The #1 Good: Most people find it to be intuitive. Portfolio risk is a very difficult concept, even for professionals. The huge innovation of the risk number is that it is intuitive to most people. If you understand speed limits on the highway (or