It was 22 years ago that Donald Rumsfeld made his famous quote about “known knowns” and “known unknowns” but it’s a useful phrase in today’s uncertain economic and investment market landscape.
As we head into 2025 with plenty of known unknowns, or things we know we don’t know, such as the pace of Fed rate cuts, the extent and impact of presidential policy changes, and geopolitical unrest, perhaps we should focus on the known knowns, those things we do know.
A new research report from BlackRock and advisory industry consultancy The Ensemble Practice urges advisors to focus on the things they not only know about, but can control, in their quest for organic growth.
Specifically, the report says that advisors should not confuse growth that’s driven by market performance with the successful operation of their practice.
It highlights how some things we know about are partly or entirely out of advisors’ control, such as market-driven changes and net total change in AUM as client distributions adjust to Boomers retiring and taking withdrawals.
But there are controllables for advisors including targeting the right clients, ensuring effective lead generation strategies, building a pipeline of younger investors including heirs of existing clients, and ensuring that employees are satisfied.
Many of the keys to driving organic growth have been incoming over several years including the need for a strong digital presence and tools to meet the demands of younger generations of clients. Younger clients will also expect your practice to align with their values and create emotional connections, and to understand that they may consider their finances to be more complex than previous generations.
For better client retention – which usually directly impacts AUM - the reports suggests aligning firm compensation and strategic objectives to ensure both profitability and workforce stability. This includes creating clear roles, career paths, and competitive compensation structures to foster employee loyalty.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
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