Top 2020 Trends & New Year Updates
As we head into year-end, we wanted to share some thoughts on 2020's top industry trends along with a sneak peek at exciting New Year updates to the Seeds platform. We know what advisors who recognize these trends can accomplish, especially with a little help from their friends at Seeds.
Top 2020 Trends
1. Forces Of Nature.
A pandemic and climate crises brought corporate behavior into the national conversation. How companies protect employees, consumers, and the earth will remain in sharp focus for investors. The "ignorance is bliss" mindset of the past has given way to more proactive shareholder interest and engagement.
2. Investment Validity.
Almost every large asset manager has recognized the validity of ESG not as a separate asset class but as fundamental risk analysis as ESG exposure has become a core component to the valuation process. Morningstar, for example, just announced that all fund ratings will now incorporate ESG data. We believe this trend will only continue to grow in the new year.
3. A New Administration.
A new presidential administration will further the focus on companies' ESG performance as new rules and regulations on corporate practices and reporting standards, particularly related to climate issues, seem likely to take effect. This fundamental shift could further drive investor dollars toward more sustainable and socially responsible companies.
4. Client Expectations.
Clients more than ever seek advisors willing to discuss values. 84% of advisors admit values-aligned investing can improve client relationships, while only 21% of advisors discuss values-aligned investing.* Advisors who proactively engage clients on values can differentiate, while those who don't risk attrition.
*Source: InvestmentNews.
New Year Updates
1. Deeper impact metrics.
Seeds is teaming up another non-profit data provider to offer more detailed impact metrics within the Seeds dashboard so advisors will be able to show clients a more compelling story about how their portfolio stacks up against the broader universe.
2. Partnership with large asset manager.
Seeds is teaming up with a large asset manager to present municipal bond allocations within the Seeds dashboard, along with detailed impact metrics related to each issuance and the overall portfolio, helping advisors tell a more complete "impact story" across multiple asset classes.
3. Core Fixed Income.
We're rolling out additional fixed income strategies within the dashboard so advisors can present more holistic, risk-based asset allocations for every client. The ability to present a complete, values-based, multi-asset-class portfolio within one client experience will be one-of-a-kind in the industry.
4. Investor Profiling
Seeds is about showing clients how their advisor better understands their needs. Through the Seeds diagnostic, advisors can currently assess how each investor prioritizes Earth, People, and Corporate Integrity issues. In the New Year, Seeds will roll out a deeper diagnostic, allowing advisors to create "Investor Profiles" to better understand each client's Approach, Perspective, and Mindset when it comes to investing. Is your client a Complex Contrarian, Team Player, Change Maker, or something else? With investor profiling, advisors can also deliver more resonant thought leadership content through the portal.
Here's to all of the Change Makers. Happy New Year, everyone!
