Episode Summary

R.J. Moore, newly minted CEO of Private Advisor Group, discusses with Jeff and Bruce the recent explosion of M&A activity and specifically, RIA valuations. Peter Yi of Northern Trust Asset Management joins as well to talk about Jeff's favorite topic of the day, inflation. Is it transitory, is it going to get worse, what to do about it, and just what exactly is 'stuck-flation'?

Episode Notes

Interview with R.J. Moore — 0:30 - 41:00

• Background on Private Advisor Group.
• The increased understanding (and valuations) of RIA firms among investors.
• How multiples and valuation approaches have shifted.
• How advisers should think about their own firm’s valuation.
• Fee compression or lack thereof.
• The role of private equity and where the endpoint might be in consolidation.

Interview with Peter Yi — 41:15-1:07:45

• The case for transitory inflation and a one-time step-up.
• The trend in wage growth and its role in inflation.
• The real trends in inflation and when the economy may get there.
• Fed targets and what it means for Fed policy.
• What does the risk scenario for inflation look like?
• When will the real trend resume?

Relevant Article:  As inflation gets real, advisers ponder strategies

Relevant Article:  How high can RIA valuations go?

Guest Bios:  

R.J. Moore brings over three decades of financial services industry experience and executive leadership to his role as CEO of Private Advisor Group. A passionate advocate for advisers and the end client experience, R.J. has been at the forefront of innovation and transformation across the profession.

Peter Yi is director of short-duration fixed income and head of taxable credit research for Northern Trust Asset Management. In this capacity, Peter manages the team responsible for registered money market mutual funds, offshore global cash funds, short-term investment funds, separately managed institutional client mandates and securities lending cash reinvestment. His daily responsibilities are to develop and oversee strategies for the cash management business. Peter also manages the taxable credit research teams within fixed income.