Latest news with #investmentadvisors
Globe and Mail
22-05-2025
- Business
- Globe and Mail
LPL Financial and Momentum Wealth Partners Welcome Beacon Financial
SAN DIEGO, May 22, 2025 (GLOBE NEWSWIRE) -- LPL Financial LLC announced today that Beacon Financial has joined LPL Financial's broker-dealer, Registered Investment Advisor (RIA) and custodial platforms, aligning with Momentum Wealth Partners, an existing firm supporting LPL-affiliated advisors. The Beacon Financial team of 10 advisors reported having served approximately $850 million in advisory, brokerage and retirement plan assets* and joins LPL from Cetera. Based in Toledo, Ohio, Beacon Financial is led by Principal Owner and CEO Greg Kopan, AIF®, a seasoned financial services veteran with nearly two decades of industry experience. Kopan founded Beacon Financial in 1997 with the goal of helping clients build a more secure financial future. Today, Beacon Financial is a multi-generational practice leveraging multiple perspectives to work toward predictability for their clients' wealth horizon. 'Our clients range from business owners and professionals to those nearing or in retirement, and we take a comprehensive approach to understanding each of their needs and goals to create a personalized and tailored plan to help them meet their short- and long-term goals,' Kopan said. Looking to pair their client-centered philosophy with the desire to provide their clients with an elevated experience, the team spent 10 months researching firms and doing their due diligence before selecting LPL and Momentum as the best partners for their business goals. 'LPL stood out to us for several reasons,' Kopan said. 'First, LPL has a strategic succession planning team, and that's incredibly important as we are a multi-generational practice, and the future of the firm is always top of mind. LPL's robust integrated and streamlined technology also stood out because we have a lot of older clients, and I am confident that having a single sign-on will be a positive change for them. Another deciding factor is that LPL understands our concerns around cybersecurity and is committed to helping combat the issue. Last year, LPL spent more than $500 million on technology infrastructure and cybersecurity to help advisors keep their businesses — and their clients — safe.' Kevin Frank, Momentum Wealth Partners Managing Partner and Co-founder, stated, 'At Momentum, our mission is to empower advisors to achieve their professional goals by providing strategic planning, personalized support and an unwavering partnership — the same type of partnership that the Beacon Financial team provides to their clients. We look forward to a successful partnership for years to come.' Scott Posner, Managing Director, Business Development, said, 'We welcome the Beacon Financial team and are honored they turned to LPL and Momentum Wealth Partners for the next phase of their business. At LPL, we are committed to helping advisors provide differentiated experiences by delivering innovative capabilities and strategic resources that make it easier for advisors to manage their practices and build long-term value with their clients.' Related Advisors, learn how LPL Financial can help take your business to the next level. About LPL Financial LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of approximately 7 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to — run thriving businesses. For further information about LPL, please visit Securities and advisory services offered through LPL Financial LLC ('LPL Financial'), a registered investment advisor and broker-dealer, member FINRA/SIPC. Beacon Financial, Momentum Wealth Partners and LPL Financial are separate entities. Throughout this communication, the terms 'financial advisors' and 'advisors' are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial. We routinely disclose information that may be important to shareholders in the ' Investor Relations ' or ' Press Releases ' section of our website. *Value approximated based on asset and holding details provided to LPL from end of year, 2024.
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Investor complaints often follow market turbulence. Here's how to protect your practice
Periods of market turbulence are often followed by a rise in client complaints. For advisors to protect their businesses, they should reach out to clients, confirm investment suitability and document client conversations scrupulously. 'When markets are up and people are making money in their portfolios, they tend to be pretty happy. They tend not to be asking too many questions,' says Sarah Bradley, ombudsman and chief executive officer of the Ombudsman for Banking Services and Investments (OBSI). 'But when they're under financial pressure or losing money, that's when they're going to be paying more attention to their investments.' Complaints usually come after a lag as investors second-guess investment decisions. The top two reasons investors complained last year, according to OBSI's annual report, were investment suitability and service issues (110 complaints in each category), with the latter encompassing a wide range of problems, from instructions not followed to delays in returning calls. 'Complaints tend to flow from a loss of trust,' Ms. Bradley says. 'If consumers are experiencing something negative and unexpected – something they didn't anticipate, that they hadn't prepared for or that they think they didn't agree to – that leads to a sense of unfair treatment. And that leads to a loss of trust and can lead to complaints.' She sees risk in the current environment, when there's so much public discussion about market movements and what may come next. That can provoke strong emotions, including fear. But she also sees this as a good opportunity for advisors to double down on the know-your-client (KYC) process, including checking in to ensure it's up to date. Advisors should view their firm's compliance requirements as a baseline minimum to build upon, she advises. And they should keep very good records, including KYC and know your product (KYP) documentation and meeting notes. Ensuring clients' investments are aligned with their objectives despite market movements, being forthright about investment risks, and setting clear expectations around communication can minimize negative surprises and complaints, Ms. Bradley says. When something unexpected does happen, she adds, it's important to reach out proactively, correct errors promptly, and be transparent, open and honest. Gillian Dingle, partner with Torys LLP in Toronto and co-head of the firm's securities defence practice, says investor complaints are more likely when there's a sector-specific decline in the markets rather than broad-based volatility. 'When everybody is down, it's difficult for investors to view that as something that is the fault of their advisor,' she says. 'Whereas if the market generally is stable but one particular area is down, it's easier for an investor to become concerned that that's because my advisor made an unsuitable investment decision for me.' Investment suitability is the most common cause of complaints that cross her desk, with investors claiming they're more conservative than their advisor thought. That reinforces the point advisors need to dedicate time and effort to understanding clients through KYC and other processes, and rebalance appropriately when market performance leads to portfolios overconcentrated in one sector or another. Ms. Dingle recommends ensuring client discussion summaries are time-stamped – for example, advisors sending an e-mail to themselves or, even better, to their client. That can help prove the notes weren't reverse-engineered after a complaint was filed. 'Clear notes are hugely helpful in suitability complaints for establishing – yes, they understood my recommendation, my recommendation was well-founded, and they agreed,' Ms. Dingle says. The Canadian Investment Regulatory Organization (CIRO) hasn't yet seen a spike in investor complaints related to recent volatility. But, like Ms. Bradley, Alexandra Williams, CIRO's senior vice-president of member regulation and corporate strategy, says there's often a lag. People will reach out directly to their advisor first to discuss their concerns – although she says it's even better when advisors initiate those conversations. 'It's important to gauge how folks are doing,' she says. 'Some clients can withstand it, [but] some clients might feel much more afraid or concerned, and then advisors can dig into that and have good conversations.' The top category of complaints in CIRO's latest enforcement report was unsuitable investments (22 per cent), which again supports the idea that advisors need to check and double-check that their clients are invested appropriately. Of course, that's critical at all times, which is why Ms. Williams says it's essential always to maintain sound, scalable communication and due diligence practices. While it's probably safe to say that almost no one – advisor nor client – likes to see high levels of volatility and uncertainty in the markets, Ms. Williams sees this as a chance to stay close to clients, listen to their worries and update KYC information and adjust portfolios accordingly, if necessary. Advisors should keep in mind they don't have to have all the answers when they do these check-ins with clients, she says. It's about having the conversation, making the connection and reinforcing the relationship. 'It's stressful, but that's where advisors step into the relationship and show that real value of their expertise and experience,' she says.
Globe and Mail
12-05-2025
- Business
- Globe and Mail
13 U.S. companies combining profitability and value for outsized returns
What are we looking for? Profitable businesses trading at attractive valuations. When it comes to long-term investing, two of the most powerful drivers of performance are return on invested capital (ROIC) and valuation. Return on capital measures how efficiently a company turns its investments into profits and is an essential indicator of business quality and durability. Meanwhile, valuation metrics like enterprise value over EBITDA (EV/EBITDA) help investors gauge how much they are paying for those profits. Combining robust profitability with low valuation can lead to outsized returns, making this duo a cornerstone of disciplined, fundamentals-based investing. The screen We screened the U.S. universe using the following criteria: For informational purposes, we also added price-to-earnings ratio and dividend yield. More about Inovestor For 25 years as a pioneering Canadian fintech, we've consistently pushed the boundaries to empower investment advisors with advanced, easy-to-use investment strategies. Discover more about our journey and offerings on our website. What we found Lantheus Holdings Inc. LNTH-Q develops imaging agents to improve disease detection and treatment. The company stands out with a stellar ROIC of 63.4 per cent, the second-highest of our list, reflecting highly efficient use of capital. Despite a recent six-month price dip of 8.4 per cent, Lantheus maintains solid fundamentals with a robust three-year annualized cash flow growth of 45.7 per cent. Trading at an EV/EBITDA ratio of 7.6 and 12.2 times earnings, the valuation appears reasonable given its robust financials. Dropbox Inc. DBX-Q is a cloud-based file storage and collaboration platform. With an impressive ROIC of 83.5 per cent, the highest of our list, Dropbox delivers exceptional returns on capital, and its respectable 13.2 per cent three-year cash flow growth shows steady performance. The stock has gained 6.5 per cent in the last six months, indicating positive market sentiment. Despite operating in the valuation-rich tech space, Dropbox trades at a conservative P/E of 11.3, suggesting potential value in the eyes of long-term investors. Altria Group Inc. MO-N, a leading force in the tobacco industry, is known for its strong cash flow and steady shareholder returns. With an impressive ROIC of 39.8 per cent, the company demonstrates outstanding capital efficiency within a mature sector. While Altria offers the highest dividend yield on our list at 6.9 per cent, this comes at the expense of growth, with a modest three-year annualized cash flow increase of just 3.7 per cent, the lowest among our list. Investors are advised to do further research before investing in any of the companies listed in the accompanying table. For more details about these stocks, subscribe to the Inovestor for Advisors platform for free. Anthony Ménard, CFA, is vice-president of data management at Inovestor.
