Brinker Capital Launches Brinker Investment Services

We are happy to announce the official launch of Brinker Investment Services—a division of Brinker that will be dedicated to serving the audience of independent Registered Investment Advisors. Heading up the BIS team is Bill Simon, Managing Director.

Concurrent with the launch of BIS, we are also happy to announce our partnership with Schwab and the availability of our offerings on their Advisor Services platform. To support this new distribution channel, we’ve brought Frank Pizzichillo on board as RIA Regional Director.

Please click here to read the official press release.

Becoming an Obvious Expert Beverly D. Flaxington for Brinker Capital

One of the best ways for financial advisors to generate new business is to become “known”. Known as the expert, as the advisor with insights, and as the person who has something important to say. Many investors like to work with someone they perceive as knowledgeable and well-rounded.
How best to become an obvious expert? The first important piece is to be seen and heard. This can be done through using a PR (public relations) strategy and through social media. PR includes things like being interviewed on radio and television, being written about in newspapers and periodicals, and issuing press releases or other news stories. Social media includes things like LinkedIn, Twitter and Facebook, and means engaging in online discussion and information boards to talk about your expertise.
Some advisors shy away from the media because they don’t know what to say. As a first step, think about what interesting angles you can address relative to important topics in the news. Don’t limit your thinking to just the stock and bond market movements; think about trends for retirees and/or divorcees, multi-generational issues, or any other newsworthy trend that can connect back to your process or philosophy with regard to investing or planning.
Consider some of the following to establish your credibility as the obvious expert:
(1) Radio and television interviews are “free” advertising. Read and watch different journalists and reporters. Find out what they often report on. Write an email or a note to respond to some information they’ve given and your angle on their story. Make friends with your local media. Reporters and journalists are looking for new, fresh angles all the time.
(2) If you want to put more effort into it, consider doing your own blog talk radio show. You can pay a nominal fee to get set up on one of the major networks such as Live365 or blogtalkradio. With your own show you are responsible for coming up with content for each program, but you can always leverage other relationships such as COIs (Centers of Influence) like realtors, attorneys or accountants. Having your own show means you would be the interviewer instead of the interviewee. However, it allows you to get your thoughts and ideas across to an audience each week or month, depending on the show schedule.
(3) Create audio or video recordings of any interviews you have, or just record yourself telling case stories about how you work with clients. Circulate the audio or video to the press and also post it on your website.
(4) Issue a press release about something interesting happening at your firm. This could be the launch of a new website, a new angle on your service offerings, or a new hire to your firm. Anything happening at your firm can be newsworthy. Send press releases out over many of the free services available, such as this or this
(5) Engage in social media. As you pursue relationships with the younger generation (i.e. anyone under 40 years of age), they will immediately search you out on Google or some other engine to find whatever they can about you. It’s imperative to have a presence of some kind. Have an updated LinkedIn account, follow people on Twitter or create an account, if your compliance department allows it. Have a blog if you can, or at minimum post to other’s blogs when you have a response or idea to share.
Put a focus on becoming known, being seen and staying out in the public eye.

There are many opportunities to do so. Consider the ones that are right for your practice.

Newspaper Lampshades, Designer Cartoon Strip Handbags and the Savvy Advisor by Sue Bergin

Newspaper Lampshades, Designer Cartoon Strip Handbags and the Savvy Advisor
by Sue Bergin

Why is it that old letters from a strangers’ estate sale made into wallpaper is suddenly the “in thing” in interior design? Why would anyone in her right mind walk around in a dress that is made to look like yesterday’s newspaper? Are people really turning old, used books into cell phone docking stations? And, Dooney & Bourque’s comic strip handbags? What’s up with those?

These are all examples of what marketing and communication firm JWT calls “Objectifying Objects,” when it describes one of the top 10 trends for 2012.

According to JWT, as objects are replaced by digital and virtual counterparts, people will be drawn to the physical and tactile facsimiles.

Savvy marketers are catching on to the fact that digital messages are getting lost in the atmosphere and that “objects,” like good old fashion snail-mail, may have greater impact.

According to JWT, marketers spent nearly 25% less on direct mail campaigns in the years from 2007 to 2009. In 2010-2011, the pendulum swung. Digital mail began to see single digit gains. In further proof, JWT sites that the U.S. Postal Service projects marketing mail will rise 14% by the year 2016.

The bottom line is this. A single scrawled note on handsome stationery could make an even greater impression than a steady stream of tweets. This could explain why, despite the paperless wave and skyrocketing mobile and tablet sales, U.K. retailer John Lewis reported a 79% year-over-year increase in writing paper sales in mid-2011.

The allure of the handwritten note is best summed up by the best-selling author, Neil Pasricha, in his wildly popular bog, 1,000 Awesome Things:
“(T)he biggest reason why getting something handwritten is great is because it’s just so darned rare. I mean, for most people, you’re more likely to see Halley’s Comet crash into Big Foot while he’s riding the Loch Ness Monster than to actually get a full-blown note from a friend.
So I say treasure those handwritten notes, when you get ‘em, if you get ‘em. And if you don’t, there’s a pretty easy way to start receiving them. Man, just send a couple.”

1. http://www.jwtintelligence.com/2012/07/snail-mail-renaissance-write-home/

2. http://1000awesomethings.com/2008/11/14/895-getting-something-with-actual-handwriting-on-it-in-the-mail/

Understanding Behavioral Style in Developing New Business – Part 2 by Bev Flaxington

In Part 1 of this two-part blog on behavioral selling, we discussed how behavior style impacts communication and why it is crucial for the successful advisor, business development representative or client services person to understand this science. Now, in Part 2, we give some sales examples.

If an advisor learns how to identify her or his own behavioral style, and learns all the nuances around it, he or she can learn the styles of buyers and influencers. Then, he or she can adapt their behavioral style to increase the probability of true connection with prospects and for developing long-term relationships – even with people very different from themselves. For business development people, this leads to an increased ability to close more business with new and existing prospects and clients. For client service folks, this means the ability to manage a long-term relationship even when there’s no real “click” of personalities.

In Part 1 we described the four styles – D for Dominance, I for Influencing, S for Steadiness and C for Compliance. Everyone has a “core” style, e.g. one dominant style out of these four; having determined that your prospect or client prominently displays the characteristics of one, your objective is to communicate with him or her accordingly. Here are some characteristics of each and how you’d approach them.

“D” – Interested in new & unique services or products; very “results” focused; makes quick decisions
“I” – Interested in showy and flashy products; focused on the “experience” (is it, or does it allow for, fun!); makes quick decisions
“S” – Interested in traditional products; very trusting and is looking for trust; is slow in decision making
“C” – Interested in proven, time-tested products; needs and seeks information; is very slow in decision making

As an example of communicating based on this knowledge, we’ll take the “I”. We’ll call this client Mr. Jones. He, like other core “I”s, is effusive and upbeat – an extrovert. They have a high need to verbalize ideas and their key emotion is optimism. Their expectations of others are high and their conflict response is to run away. Their stress reliever is interaction and socializing with people. Descriptors for them include inspiring, persuasive and trusting.

To further help you determine what core style you’re dealing with, there are four communication factors that are giveaways for each of the four styles. These factors are 1) Tone of Voice, 2) Pace of Speech and Action, 3) Words Used and 4) Body Language. In our example, how can you tell you’re interacting with a core “I”? Key on the communication factors for instant clues:
• Tone of Voice – it will be energized, enthusiastic, friendly and colorful
• Pace of Speech and Action – s/he will exhibit fast speech and fast action, and be fast toward people
• Words Used – fun, excitement, immediate, now, today, new and unique
• Body Language – you’ll feel the fast pace, the fast movement and orientation toward people.

Now that you’ve identified Mr. Jones as a high “I”, you must calibrate your own natural style for communicating with him. So if you are, say, a high “C” – as many advisors are – you need to make sure that you pick up your pace a bit, smile and nod your head to show that you’re fully engaged with the high “I,” keep the focus on them and ask questions, respond to their small talk and give them as much time as possible to verbalize. For a core “C” (or “S”) advisor, this can be exhausting – but you can relax after the meeting, which will be more successful if you adapt!

By taking the time to listen, observe and ask good questions, advisors can discern the behavior style of prospects and clients – and open whole new relational opportunities in the process. Next time, we’ll discuss some of the questions you can ask to help you determine style.

Understanding Behavioral Style in Developing New Business – Part 1 by Bev Flaxington

Have you ever been taken completely by surprise by a client or prospect? Or have you ever been unable to close a sale because you just couldn’t “get through” to them? Today, investors are being bombarded by so many advisors and business development people – all trying to connect and persuade them to become clients. However, one of the most fundamental ways to connect with prospects is often overlooked by those in a selling role: understanding behavioral styles and adapting one’s communication approach to the people s/he’s trying to persuade.

You may have at one time taken a training course on relationship-building, face-to-face selling skills, or something similar, but the key to understanding the buyer’s perspective necessarily begins with an understanding of behavioral style. This is because behavioral style is the crux of understanding communication style – and true communication is the key to developing great relationships in both your personal and professional life.
So, is it really true that your likelihood of signing new clients could come down to your behavioral style? Research conducted in 1984 and validated again every year since has proven three things: 1) people buy from people with similar behavioral styles to their own, 2) people in a selling type of role tend to gravitate towards people with behavioral styles similar to their own, and 3) if people in a selling or business development type role adapt their behavioral style to that of the prospect, sales increase.

Many advisors, business development and client service personnel have excellent communication skills, but have difficulty in relationships with prospects and clients – and don’t understand why. Something just doesn’t feel right, but they’re not sure how to diagnose the problem or modify their behavior for greater success. Often times, it’s not technique (i.e. the questions asked, presentation or negotiating skills, etc.) but rather a lack of understanding of one’s own behavioral style and motivators, and of knowing that behavioral differences can cause significant communication difficulties that hamstring closing a prospect or an ongoing relationship with clients.
One scientific way to understand behavioral style is through an assessment called DISC (Dominance, Influencing, Steadiness, Compliance). Based upon the work of Carl Jung, the DISC approach was invented by William Moulton Marston, inventor of the lie detector and holder of a Harvard MBA, over 80 years ago. The statistically based profiles show a person’s preferred styles on four scales of behavior – Problems, People, Pace and Procedures:

• Dominance (“D” factor) How one handles problems and challenges
• Influence (“I” factor) How one handles people and influences others
• Steadiness (“S” factor) How one handles work environment, change and pace
• Compliance (“C” factor) How one handles rules and procedures set by others

Depending on our differences in style and approach, we can either get along very easily together (because we’re so much alike!) or we can have significant clashes in our relationship.

A person’s behavioral preferences have everything to do with their communication approach and style. People who operate with very different styles have a difficult time “hearing” one another and communicating effectively. For instance, if I communicate only within my own behavioral comfort zone, I will only be effective with people who are just like me. However, in the corporate environment we are dealing every day with colleagues, prospects, clients and management – all of whom can be very different behaviorally. Not only is communication difficult where there are differences, but often individuals become hostile and conflict-oriented toward one another. Significant time, effort and corporate money is wasted because people are unable to “get along” and work together effectively toward common corporate goals. (Refer to the Brinker blog “Dealing with Difficult Clients” for a complementary discussion of this topic.)

In the next blog, we’ll take a “deeper dive” into behavior style – how you can identify it in your prospects and use this knowledge to improve your selling effectiveness.

Brinker Capital Market Commentary –July 5, 2012 by Amy Magnotta

After the “risk on” environment to start the year pushed risk assets sharply higher, we experienced a pull-back in the second quarter. The deepening crisis in the Eurozone and evidence of slower global growth weighed on the global financial markets and drove investors to the relative safety of the U.S. government bond markets.

Some positive factors remain, but the macro risks continue to dominate. We expect
continued sluggish growth in the U.S. because of ongoing deleveraging, regulatory
uncertainty and the looming fiscal cliff in 2013. While U.S. corporations are in good
shape with strong earnings and high levels of cash on their balance sheets, they are hesitant to put it to work because of the uncertain environment. We still lack sustained growth in real personal incomes, which is key to greater levels of consumption and stronger economic growth going forward. While the Federal Reserve remains accommodative and stands ready to act further, the effectiveness of their monetary policy tools is diminishing.

The Eurozone has begun to take steps toward addressing their sovereign debt crisis, but more needs to be done. Policymakers must also contend with a deepening recession in the region, which will send debt/GDP ratios even higher. The need for a bailout of Spanish banks prompted leaders to announce somewhat more aggressive measures at their recent summit. It remains unclear whether these policy options will actually be put into place; however, it appears that Europe is beginning to lay out a path forward, which is a positive.

While growth in developed markets is weak, growth in emerging markets has also slowed. Investors continue to watch China’s actions to see whether a hard landing can be averted. One positive corollary of a slowdown in global growth is receding inflationary pressures and lower commodity prices. Lower retail gas prices are a boost to the disposable incomes of consumers.

The unresolved macro risks will keep the markets susceptible to bouts of volatility as we enter the second half of the year. The U.S. Presidential election will likely add to that volatility. Because of massive government intervention in the global financial markets, we will continue to be susceptible to event risk.
Amy Magnotta, Portfolio Manager
Brinker Capital Inc., a Registered Investment Advisor

Some is More Like 6.5 Million

LinkedIn, social media darling of financial advisors, recently confirmed a security breach. It was reported that 6.5 million encrypted passwords were compromised and that some were posted on a Russian hacker website.

LinkedIn has invalidated all compromised passwords and notified the impacted members.

While only approximately 10% of LinkedIn’s 161 million user base have suffered from this security breach, it does serve as a healthy reminder to the remaining 90%–create a unique password for every online account you maintain.

Out of sheer convenience, many advisors use the same password for access to social media sites, mobile applications, and even financial accounts. This practice leaves the user vulnerable if the password falls in the wrong hands.

There are many digital tools on the market to help generate strong passwords and organize them more efficiently than with the current method of a sticky note in your top drawer, or a card in your Rolodex.

According to LifeHacker, a wildly popular blog that recommends downloads, websites and digital shortcuts, the best password managers are:

KeePass
RoboForm
LastPass
SplashID
iPassword

To read LifeHacker’s full review of these password management systems, click here.

Staying Ahead of the Curve Despite Recent Volatility

After a strong surge in global financial markets in the first quarter of 2012, risk assets – equities, commodities, corporate credit – have sold off thus far in the second quarter. Uncertainties over global growth and Europe have reentered markets. At Brinker Capital, we are not surprised that some of the euphoria is being worked off. We would not be surprised to see further consolidation.

Several of our fundamental and technical indicators were showing signs of concern earlier this spring. At the end of the first quarter, the various Brinker discretionary portfolios reduced exposure to risk assets. Future signposts suggest the volatility could continue.

For those of you who follow our market outlook and quarterly portfolio calls, this might be familiar material. Some of the indicators we monitor were flashing warning signals:

  • Event risk – European elections, particularly in France and Greece, along with stalling reform initiatives in Spain and Italy.
  • Market fundamentals – economic indicators such as consumer and CEO confidence and economic surprises appeared to be peaking. The S&P 500 appeared to have discounted a lot of good news in valuations.
  • Sentiment – though investors maintained bullish sentiment (low levels of short interest), corporate insiders were selling stock in 2012, a change from insider purchases seen last fall.

As a result, we reduced risk exposures across our various discretionary portfolios.

  • Destinations and Personal Portfolios reduced exposure to risk assets and were positioned underweight risk compared to a neutral positioning.
  • Crystal Strategy I reduced its portfolio beta from positive to now a modestly negative beta by reducing risk and adding inverse exposures designed to rise in falling markets.

We will continue to monitor the following signposts over the near term and actively manage our broadly diversified portfolios as appropriate.

  • U.S. – Fed meetings later in June and prospects for further Quantitative Easing. Later this summer, we need progress on addressing the massive fiscal cliff to be reached early in 2013, regardless of the outcome in November elections.
  • Europe – second round of Greek elections on June 17 and progress (or absence thereof) regarding further European integration (bank deposit guarantee, adding capital to weak banks, stabilization in bond yields).
  • China – further, but moderate, monetary and fiscal stimulus, enough to avert a hard landing, but not enough to bail out weak global growth or produce sizzling China growth. The government is happy to see cooling in property markets.

Springboard Collaborative’s Alejandro Gac-Artigas works with Brinker Capital on a Video about his Initiative with written Commentary by John Coyne

Every once in a while you meet a young person who is so bright, energetic and dedicated to his or her calling that you want to do everything you can to help them succeed.

That’s how I felt about Alejandro.

I first met Alejandro Gac-Artigas through my relationships with Teach for America. I just knew that he would grow to be a great educator.

Brinker Capital provided financial support to help Alejandro earn his master’s in education from the University of Pennsylvania. We felt that it was an investment in not only Alejandro, but also the thousands of lives we knew he had the potential to impact.

It was a good investment. Alejandro has made us very proud.

After Alejandro’s first year teaching, he noticed something that caused him great concern. His returning students’ reading skills were about 20% behind where they had left off at the end of the prior year. When he shared his observation with other teachers, they put a name to it. They called it, “the summer slide.”

The Summer Slide

With limited access to books or computers and fewer high-quality educational interactions with their parents, elementary-aged students in low-income communities regress academically over the summer. Through his research, Alejandro discovered that summer reading losses amount to a two-year wedge between low- and higher-income peers by eighth grade.

The Springboard Collaborative

Determined to make sure his students didn’t fall behind, Alejandro founded the Springboard Collaborative. Springboard Collaborative combines targeted student instruction with parent training in an incentivized system that closes the literacy gap. He piloted a summer enrichment program in 2010. It was a tremendous success. The Teach for America organization was so impressed with Alejandro’s efforts, it named him, Social Entrepreneur of the Year.

We’re delighted to support Alejandro’s efforts to expand Springboard Collaborative in an effort to equalize the educational opportunities afforded to all young people.

Website: springboardcollaborative.org

Follow on Twitter @SpringboardPHL