News Mentions & Press Releases

The Coming Automation of Wealth Management

September 4, 2015
CLS Investments — CLS Investments - Life & Health Advisor

OMAHA, NE–(Marketwired – September 01, 2015) – CLS Investments, LLC (“CLS”), a third party money manager and a leading manager of exchange-traded funds (“ETFs”), released its latest white paper in its Advisor IQ series today, The Coming Automation of Wealth Management and What it Means for Today’s Financial Advisor.

The white paper reveals findings on the emergence of the “robo advisor” as a catalyst to a broader trend among advisors to have a tenuous relationship with technology.

The white paper explores broader industry trends, advisor perceptions of robo technology, practice management implications, how to deploy a robo solution, and the future of wealth management. The key takeaway from the CLS research is that advisors need to take heed and start to embrace technology more broadly, not just in the robo category, but also in front and back offices to drive necessary efficiencies in a world of compliance, security, and pricing pressures.

– See more at: http://www.lifehealth.com/the-coming-automation-of-wealth-management/?utm_source=iContact&utm_medium=email&utm_campaign=e-newsLink&utm_content=stc#sthash.8x2mfYvi.dpuf

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Robo Reliance

September 2, 2015
WealthManagement.com Staff — WealthManagement.com

Apparently even advisors trust an algorithm to manage investments. In a recent survey of 134 independent financial advisors, 60 percent said they would trust a so-called robo-advisor to help manage and oversee client assets. And a vast majority (almost 98 percent) said they believed human and robo advisors can coexist together within the industry,according to CLS Investments’ survey. Yet 78 percent of advisors surveyed felt robo advisors were a “potential” to “significant” threat to their business going forward. But at least one robo won’t be around to create problems. Plumvo, a website aimed at helping consumers build and maintain financial plans, emailed users this week to let them know it plans to shut down the site on Sept. 15.

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CLS Investments, LLC (“CLS”), a third party money manager and a leading manager of exchange-traded funds (“ETFs”), released its latest white paper in its Advisor IQ series today, The Coming Automation of Wealth Management and What it Means for Today’s Financial Advisor. The white paper reveals findings on the emergence of the “robo advisor” as a catalyst to a broader trend among advisors to have a tenuous relationship with technology.

The white paper explores broader industry trends, advisor perceptions of robo technology, practice management implications, how to deploy a robo solution, and the future of wealth management. The key takeaway from the CLS research is that advisors need to take heed and start to embrace technology more broadly, not just in the robo category, but also in front and back offices to drive necessary efficiencies in a world of compliance, security, and pricing pressures.

“Financial planning is at the crossroads of a technological shift, amongst both financial planners themselves and the clients they serve,” said Todd Clarke, CEO of CLS Investments. “In the years ahead, the impact of developments like robo advisors and other advancements in client facing technologies will continue to push traditional advisors to find new ways to manage wealth, leading to a whole new breed of advisor.”

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Stocks Tumble on Weak Chinese Data

September 1, 2015
Carrie Driebusch & Josie Cox — The Wall Street Journal

U.S. stocks tumbled Tuesday after weak manufacturing data in China fueled investors’ worries about the world’s second-largest economy.

The Dow Jones Industrial Average slumped 408 points, or 2.5%, to 16120. The S&P 500 declined 2.5% and the Nasdaq Composite fell 2.2%.

Shares in Europe and Asia posted losses. The price of oil, which had rallied in recent days, slumped.

After calmer sessions on Friday and Monday, traders and investors said they were hoping last week’s volatility had passed. However, signs of turbulence returned Tuesday.

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New products and changes introduced over the last week include a bond index fund from Vanguard; an additional Hatteras fund and increased availability of an existing fund; and enhancements to an Allianz Life variable annuity.

Also, Envestnet added a CLS Investments strategy to its network and Guardian Retirement Solutions expanded its investment option lineup.

Here are the latest developments of interest to advisors:

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Performance Gap

September 1, 2015
Maria Brill — Financial Advisor

Over the last couple of years, the dramatic appreciation of the U.S. dollar against the euro, yen and other currencies has led to a huge performance gap between ETFs that hedge currency exposure and those that don’t. For example, the unhedged iShares MSCI EAFE (EFA) ETF fell by about a half of 1% for the year ended May 31. During the same period, its currency-hedged iShares counterpart, which enjoyed the price appreciation of foreign markets but didn’t feel the pain of a strengthening dollar, rose nearly 16%.

While the latest currency seesaw isn’t unprecedented, it drives home the point that currency movements are an important component of foreign fund returns. When foreign currencies are strong compared with the dollar, U.S. investors in funds that don’t hedge get a boost from currency translation, and they lose out when foreign currencies weaken and the dollar gets stronger.

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If you are a client of NorthStar Financial Services Group LLC and you are determined to meet one of the company’s executives at its headquarters in Omaha, Neb., you might end up at the other “star” in the Omaha, Neb. constellation — Starbucks Coffee. In fact, Ron Carson, CEO of Carson Wealth Management Group, and Eric Clarke, president of NorthStar’s subsidiary, Orion Advisor Services LLC, had coffee there yesterday morning.

Ok, maybe the two CEOs just like their drinking caramel macchiatos in anonymity.

But the dislocation to a retail coffee chain comes about as the holding company for Clarke’s Orion Advisor Services, CLS Investments LLC, Gemini Alternative Funds, Gemini Fund Services, LLC, Gemini Hedge Fund Services, Northern Lights Compliance Services and Northern Lights Distributors finds itself putting employee desks in its conference rooms to accommodate company overflow. Even that isn’t enough. The company rented the second floor of a local Union Bank branch (who knew bank branches even had second floors?)and 40 more NorthStar employees will need to call that home for now.

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“We feel that investors need to broaden out their approach and look at the global markets for opportunity,” said Grant Engelbart, portfolio manager at CLS Investmentsbased in Omaha, Neb. “Simply owning a broad-based global ETF such as iShares MSCI (ACWI) can be lucrative over time.”

He said these ETFs can be purchased with no commissions at various brokerage houses…

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OMAHA, NE–(Marketwired – August 24, 2015) –

CLS is part of a group of 10 strategists included on the newly-launched Network
CLS’s strategy utilizes risk budgeting, relative strength, and asset class risk analysis to build and diversify portfolios seeking to help investors meet their specific goals
The ERS Fund Strategist Network provides advisors with additional investment management tools to serve their plan sponsor and participant clients
CLS Investments, LLC (“CLS”), a third party money manager and a leading manager of exchange-traded funds (“ETFs”), today announces its inclusion in the newly-launched ERS Fund Strategist Network (“Network”). ERS is a majority-owned subsidiary of Envestnet, Inc. (NYSE: ENV). Plan advisors utilizing the Network will have access to CLS’s “Core Plus ETF” Strategy, which is developed on the back of the firm’s proprietary risk budgeting methodology…

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OMAHA, NE–(Marketwired – August 24, 2015) –

CLS is part of a group of 10 strategists included on the newly-launched Network
CLS’s strategy utilizes risk budgeting, relative strength, and asset class risk analysis to build and diversify portfolios seeking to help investors meet their specific goals
The ERS Fund Strategist Network provides advisors with additional investment managementtools to serve their plan sponsor and participant clients
CLS Investments, LLC (“CLS”), a third party money manager and a leading manager of exchange-traded funds (“ETFs”), today announces its inclusion in the newly-launched ERS Fund Strategist Network (“Network”). ERS is a majority-owned subsidiary of Envestnet, Inc. (NYSE: ENV). Plan advisors utilizing the Network will have access to CLS’s “Core Plus ETF” Strategy, which is developed on the back of the firm’s proprietary risk budgeting methodology…

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