Latest / Bloomberg Intelligence / U.S JOLTS, India Elections

Transcript

U.S JOLTS, India Elections · Bloomberg Intelligence

0:02
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
0:09
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live
0:13
Speaker 2: weekdays at ten am Eastern on Apple Cardplay and Android
0:17
Speaker 2: Auto with the Bloomberg Business App. Listen on demand wherever
0:20
Speaker 2: you get your podcasts, or watch us live on YouTube.
0:25
Speaker 3: They also want to get back to the data as well,
0:27
Speaker 3: and that's Jolts number coming in a little lighter than estimated. Also,
0:30
Speaker 3: looking at the two year yield over the last five days,
0:33
Speaker 3: it's had a twenty three basis point move to the downside,
0:36
Speaker 3: and there's been a lot of money coming into the
0:37
Speaker 3: bond market. Is it short covering? Is it true buying?
0:40
Speaker 3: Is it really looking for a cut from the Fed?
0:42
Speaker 4: You know the person to ask for this, right, bloom
0:45
Speaker 4: It's not our Jersey.
0:46
Speaker 3: Bloomberg Intelligence TuS indust rate strategist standing by first job.
0:50
Speaker 5: Ira.
0:51
Speaker 3: Let me know what you think about the Jolts number
0:52
Speaker 3: so coming in a little lighter but nothing terrible.
0:55
Speaker 4: What's your reaction to it?
0:57
Speaker 6: Yeah, I don't think that you still have eight million
1:00
Speaker 6: job openings, right, So it's not like the it's completely
1:03
Speaker 6: fallen off a cliff, but we continue to see this
1:07
Speaker 6: modest pullback in the number of job openings, and you know,
1:11
Speaker 6: I was I was just trying to go through some
1:12
Speaker 6: of the data looking at things like quits rates and
1:15
Speaker 6: and the like, because I think that's the more interesting
1:17
Speaker 6: nuanced data that's comes with the joult report. We also
1:21
Speaker 6: have to remember it's a little bit it's a little
1:23
Speaker 6: bit dated compared to some of the more high frequency
1:26
Speaker 6: data that we get that's going to start being from
1:28
Speaker 6: May that that we start that we've already started to
1:30
Speaker 6: get with the ISM data yesterday. So this Joltz data,
1:33
Speaker 6: I think is interesting for trends looking at things like
1:37
Speaker 6: job leavers and and if job leavers are getting more
1:41
Speaker 6: higher wages when they leave, and and and the like.
1:44
Speaker 6: So you know, I need to dig into the data
1:46
Speaker 6: a little bit more. The dourables numbers were also kind
1:49
Speaker 6: of important because the durable goods orders had slipped in
1:54
Speaker 6: the second half of last year, and now they seem
1:56
Speaker 6: to be at a reasonably steady state now. So that's
1:59
Speaker 6: not a it's not showing that the economy is really
2:01
Speaker 6: falling off a cliff by any stretch, but maybe things
2:04
Speaker 6: are slung just a little.
2:07
Speaker 7: So I again, as Alex is pointing out, we've had
2:10
Speaker 7: a pullback, a noticeable pullback in rates here. I was
2:13
Speaker 7: looking at the ten year four point three four percent here,
2:15
Speaker 7: although the mortgage rate is still sitting stubbornly just above
2:18
Speaker 7: seven percent. Is this a technical move in the marketplace, Ira,
2:22
Speaker 7: or is this some fundamentals some folks kind of really
2:25
Speaker 7: putting some positions on one or the other.
2:27
Speaker 6: Yeah, people are definitely short covering a little bit, as
2:30
Speaker 6: well as maybe adding a little bit of duration risk here.
2:34
Speaker 6: You mentioned, Paul the twenty ishpass point rally in the
2:39
Speaker 6: in the two year note, and I think that s
2:41
Speaker 6: endemic of the idea that you know, we had basically
2:44
Speaker 6: priced out almost every cut this year, and we're now
2:46
Speaker 6: pricing in maybe the chance of a cut again, especially
2:49
Speaker 6: after yesterday's ism. Manufacturing numbers and the new orders numbers
2:54
Speaker 6: really slipped hard, and that has historically been a pretty
2:57
Speaker 6: decent indicator of where the economy's head it. So the
3:00
Speaker 6: market is getting in front of what it perceives, maybe
3:03
Speaker 6: as a deeper slow down than they had been expecting
3:06
Speaker 6: prior to seeing some of that data. You look at
3:09
Speaker 6: the tenure Yale and we're still we're at the bottom
3:12
Speaker 6: end of what's been a bit of a range talking
3:14
Speaker 6: about broadly speaking, four point three percent to maybe four
3:17
Speaker 6: point five four point six percent, And now that we're
3:20
Speaker 6: kind of at the lower end of that range, I
3:22
Speaker 6: suspect that you'll start to see the momentum slip. But
3:26
Speaker 6: but four point three percent is a pretty important technical level.
3:29
Speaker 6: We break below that, and we could wind up testing
3:31
Speaker 6: a low four percent kind of area once we do so,
3:36
Speaker 6: and it'll be interesting to see how many people have
3:39
Speaker 6: kind of stop losses there in terms of you know,
3:43
Speaker 6: once we break below that, the shorts might get really
3:46
Speaker 6: really nervous and wind up covering very dramatically, and you
3:49
Speaker 6: can often see pretty big moves on once that sorts
3:52
Speaker 6: of pickup.
3:53
Speaker 3: Steve, Well, yeah, that's what I was going to ask,
3:56
Speaker 3: because headed into jobs Friday.
3:58
Speaker 4: It's positioning.
4:00
Speaker 3: Is there one side or another in terms of too
4:02
Speaker 3: many longs, too many shorts?
4:05
Speaker 6: I don't think that there's too many at the moment.
4:08
Speaker 6: You know, the positioning data in treasuries is a little
4:10
Speaker 6: bit hard to come by because it's a matter of
4:13
Speaker 6: a matter of who actually owns it and aren't those hands,
4:16
Speaker 6: you know, sticky or not? And what you do see
4:19
Speaker 6: you look at things like the j p. Morgan Treasury
4:21
Speaker 6: Sentiment survey that they do with some of their customers,
4:24
Speaker 6: and that shows that that that investors are a little
4:28
Speaker 6: bit long, but not very long. You look at some
4:30
Speaker 6: futures positioning and certainly people have been lightening up their
4:33
Speaker 6: shorts in with using treasury futures. So all of those
4:38
Speaker 6: things really I think lead me to believe that we're
4:41
Speaker 6: probably not over our skis one way or the other.
4:44
Speaker 6: Unlike when we were at four point seven percent on
4:47
Speaker 6: the ten year yield, when a lot of people were
4:49
Speaker 6: really short and it seemed like, you know, if you
4:51
Speaker 6: got any pullback, it was going to wind up being
4:52
Speaker 6: pretty dramatic. So but but nonetheless, I think people are
4:56
Speaker 6: still a little bit skittish. People are still uncertain, and
4:59
Speaker 6: the the fact that people you know, aren't particularly in
5:03
Speaker 6: one risk or the other, then putting on that risk
5:06
Speaker 6: could wind up moving the market pretty dramatically. Because liquidity
5:09
Speaker 6: just isn't what it used to be in the treasury market.
5:12
Speaker 6: You could still see, you know, ten to fifteen basis
5:14
Speaker 6: point moves on things that you wouldn't expect there to
5:17
Speaker 6: be as dramatic of a movement. Yesterday's the Ism report
5:22
Speaker 6: as a case, in point, you know, a nine basis
5:23
Speaker 6: point movement in ten year treasuries on guess a bad report,
5:27
Speaker 6: but it wasn't like insanely bad by any stretch of
5:29
Speaker 6: the imagination.
5:32
Speaker 7: All right, Ira, next Wednesday, Fed Day, what are the
5:37
Speaker 7: smart people like you?
5:37
Speaker 5: What are you going to be listening for?
5:40
Speaker 6: Well, certainly you know we get Friday's payrolls report first, Paul,
5:44
Speaker 6: But yeah, next next week, it's really going to be
5:47
Speaker 6: what is what is the propensity? And has anything change
5:50
Speaker 6: from the last meeting in terms of they're being on
5:54
Speaker 6: hold consensus, So we suspect that their base case is
5:58
Speaker 6: going to be where holding rates where they are until
6:00
Speaker 6: it's clear that the economy is falling out of bed
6:03
Speaker 6: or inflation has is healthily going toward their target of
6:09
Speaker 6: two percent. And you know that that ladder on the inflation,
6:12
Speaker 6: it doesn't seem likely that you're going to get a
6:15
Speaker 6: significant downtick and inflation over the next couple of months.
6:18
Speaker 6: So you know, quite frankly, if if they don't cut
6:21
Speaker 6: in July, I doubt that the Fed will make its
6:23
Speaker 6: first cut in September for a couple of reasons. The
6:27
Speaker 6: election certainly is part of that. In the back of
6:29
Speaker 6: their minds. They won't never admit that, but I suspect
6:32
Speaker 6: that it is. But but if the data is not
6:34
Speaker 6: that bad from their standpoint, look, waiting six weeks, you know,
6:38
Speaker 6: cutting in November, you know that's that That's probably what
6:42
Speaker 6: we're going to be listening for, is what's there? What's
6:45
Speaker 6: their triggers?
6:46
Speaker 8: Right?
6:46
Speaker 6: And and you've heard some speakers talk a little bit
6:50
Speaker 6: differently than what Jay Powell said in early May, like
6:53
Speaker 6: talking about the potential for hikes if inflation were to reaccelerate.
6:57
Speaker 6: So it would be interesting to hear Jay Powell in
6:59
Speaker 6: the Prescot difference if he actually says something about that,
7:02
Speaker 6: because you refuse to do that in May. And if
7:05
Speaker 6: he comes out and says, yeah, we're a little bit
7:06
Speaker 6: more symmetric. Certainly if inflation goes up, we'll we'll have
7:09
Speaker 6: to hike more. He was given every opportunity to May
7:13
Speaker 6: to say that and he just didn't.
7:17
Speaker 3: All Right, last question here for us Ayra. You mentioned
7:20
Speaker 3: what are the Central Bank triggers? And I'm wondering if
7:22
Speaker 3: the spotlight it puts on the.
7:24
Speaker 4: ECB on Thursday.
7:25
Speaker 3: It feels like the June cut has been widely telegraphed
7:28
Speaker 3: and I'm wondering how you see those differentials really playing out.
7:33
Speaker 6: Yeah, So if the ECB doesn't cut as as is anticipated,
7:38
Speaker 6: then that then I think you can wind up seeing
7:40
Speaker 6: some pretty dramatic market action. You probably see front end
7:44
Speaker 6: yields go up a little bit globally, not only in
7:46
Speaker 6: Europe but also here in the US. The global rates
7:50
Speaker 6: markets have been reasonably correlated, although the ECB, the europe
7:55
Speaker 6: boon market, and German yields have diverged a little bit
7:59
Speaker 6: from the US. It really comes down to I think
8:01
Speaker 6: that the big moves that you'll probably see if something
8:03
Speaker 6: like that happens, will be in Fax. And I do
8:05
Speaker 6: think that the euro could move pretty dramatically and it
8:09
Speaker 6: may be strengthen quite a lot if the if the
8:13
Speaker 6: the ECB doesn't cut interest rates.
8:17
Speaker 7: All right, Irack, thank you so much for We appreciate that.
8:19
Speaker 7: Ira Jersey, interest rate strategist for Bloomberg Intelligence.
8:23
Speaker 2: You're listening to the Bloomberg Intelligence podcast. Catch us live
8:27
Speaker 2: weekdays at ten am Eastern on applecar Play and Android
8:31
Speaker 2: Auto with the Bloomberg Business aff You can also listen
8:34
Speaker 2: live on Amazon Alexa from our flagship New York station.
8:37
Speaker 2: Just say Alexa Play Bloomberg eleven thirty.
8:42
Speaker 3: The other big story we're keeping our eye on is
8:45
Speaker 3: India's election. The stock market is completely plummeted here, racing
8:48
Speaker 3: about three hundred and eighty six billion dollars in market value.
8:51
Speaker 3: The tally signal that Prime Minister in Norandom Mode's ruling
8:54
Speaker 3: party was struggling to win a majority of seats, and
8:57
Speaker 3: that was very much a surprise.
8:58
Speaker 4: And Neranda Mode is speaking right now as well.
9:01
Speaker 3: We've been waiting for this address to the nation and
9:02
Speaker 3: he's finally speaking, joining us dance from Bloomberg senior reporter
9:07
Speaker 3: in New Delhi.
9:08
Speaker 4: What do we know from what Random Modi is saying
9:10
Speaker 4: right now, Well.
9:12
Speaker 9: I mean it's looking like Mody, his BJP party, which
9:16
Speaker 9: has ruled India with quite a substantial majority for the
9:21
Speaker 9: last ten years, is going to be losing its majority
9:24
Speaker 9: in the parliament and is going to have to form
9:27
Speaker 9: a government with its coalition partners. So it's really a
9:31
Speaker 9: major electoral setback for Mody, an electoral setback for the BJP,
9:37
Speaker 9: and I mean, more than anything, just quite a surprise
9:41
Speaker 9: to everybody here today. I mean, the ruling party was
9:46
Speaker 9: going into this election very optimistic, very confident of expanding
9:50
Speaker 9: its majority in Parliament, of getting a two thirds majority
9:53
Speaker 9: with its alliance partners, and it's looking like a total
9:57
Speaker 9: reversal on all those fronts.
10:01
Speaker 5: So, Dan, what are the people saying here? What are
10:03
Speaker 5: the voters saying here? What don't they like?
10:05
Speaker 7: What are they pushing back on in terms of the
10:07
Speaker 7: Modi administration.
10:10
Speaker 9: Well, one message that's emerging is that there's a real
10:15
Speaker 9: sort of simmering discontent with the economy that propelled a
10:20
Speaker 9: lot of a lot of voters at the polls during
10:23
Speaker 9: during the selection. I mean, you know, we know that
10:27
Speaker 9: India's India is really a big economic success story, I
10:30
Speaker 9: mean eight percent economic growth in the most recent fiscal year,
10:34
Speaker 9: you know, a really a growing presence on the world
10:37
Speaker 9: stage and and a rising manufacturer. But below the surface,
10:42
Speaker 9: there's a lot of issues. There's issues with high levels
10:45
Speaker 9: of joblessness, rising inflation, widening inequality. I mean, these are
10:50
Speaker 9: all issues that have really you know, grown in in
10:55
Speaker 9: salience over the last ten years and that that Modi
10:59
Speaker 9: and the b JP have i have really struggled to address.
11:01
Speaker 9: And there these are issues that the opposition really seized
11:04
Speaker 9: upon in this campaign.
11:08
Speaker 4: All Right, Dan, thanks a lot.
11:09
Speaker 3: We really appreciate looking forward not to hear any more
11:11
Speaker 3: of what Dranda Movie will say in this national address.
11:14
Speaker 4: And Stump Bloomberg, Senior reporter in New Delhi.
11:18
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live
11:22
Speaker 2: weekdays at ten am Eastern on Apple car Playing and
11:24
Speaker 2: broyd Outo with the Bloomberg Business app. Listen on demand
11:27
Speaker 2: wherever you get your podcasts, or watch us live on YouTube.
11:33
Speaker 7: All right, Alix, here's the stuff that just gets me
11:35
Speaker 7: every time you come here. BNY Mellon is the world's
11:37
Speaker 7: largest custodian and Pershing is now the second largest business
11:41
Speaker 7: within BNY Melon.
11:42
Speaker 5: And I've done business.
11:43
Speaker 7: With Purging for thirty years, but every five years they
11:45
Speaker 7: have a different owner. It teams like, but it seems like
11:47
Speaker 7: they found a home here BNY. So we are in Nashville,
11:50
Speaker 7: Tennessee the Grand Gaylord oppuland Resort in Nashville for the
11:54
Speaker 7: bn Y Melon Insight Conference. Alex Steel and Paul Sweeney
11:57
Speaker 7: we're joined right now. We're very appreciative to get some
11:59
Speaker 7: time with Jim Crowley Global ahead of b and Y
12:01
Speaker 7: Mellon's perject business. He joins us here on site Jim,
12:04
Speaker 7: thanks so much for having us did this year. I
12:07
Speaker 7: know it's a you got two thousand financial advisors around here.
12:09
Speaker 7: They've all got their own agendas, But what's the theme
12:11
Speaker 7: you're trying to get across to the folks here?
12:14
Speaker 10: So two thousand advisors, correct and thought leadership people. So
12:20
Speaker 10: the theme that we're trying to get across is how
12:22
Speaker 10: do you take your business to the next level? Because
12:25
Speaker 10: we believe that scale, productivity, and growth are the lifeblood
12:30
Speaker 10: of our industry. And at bn Y Melon, who is
12:35
Speaker 10: by the way, celebrating its two hundred and fortieth year
12:39
Speaker 10: in business, we believe that there's so much value embedded
12:43
Speaker 10: in the bing Y Melon franchise that we can unlock
12:47
Speaker 10: and deliver these to financial advisors to help power their
12:50
Speaker 10: growth in the future.
12:51
Speaker 3: And what does that growth look like in the future?
12:54
Speaker 3: Like what's new today that wouldn't have been here a
12:57
Speaker 3: year ago?
12:57
Speaker 10: Well, I think what's new today is that people. People
13:00
Speaker 10: are more and more coming to the realization how complex
13:03
Speaker 10: this business is and becoming even more complex than the environment,
13:07
Speaker 10: whether it's macro things related to technology, regulation or just
13:12
Speaker 10: the economy and how much energy and how much investment
13:16
Speaker 10: dollars they have to invest in operating the business, So
13:19
Speaker 10: how can they outsource things to be more efficient, more productive,
13:23
Speaker 10: drive more scale, and sort of eliminate those binding constraints
13:27
Speaker 10: to their growth.
13:28
Speaker 7: You know, one of the great stories I think in
13:31
Speaker 7: personal wealth management is this whole transition or bequeathment, if
13:36
Speaker 7: you will, of the wealth of the baby boomer generation
13:39
Speaker 7: to the next generation. So, if I'm a financial advisor,
13:42
Speaker 7: I'm not just a stock and bond person.
13:44
Speaker 5: I got to think.
13:45
Speaker 7: About estates and wills and taxation and all that kind
13:47
Speaker 7: of stuff.
13:48
Speaker 5: How do you guys help them with that?
13:49
Speaker 10: Yeah, planning is certainly becoming more and more part of
13:52
Speaker 10: the formula, right, So investment management used to sort of
13:56
Speaker 10: be the core competency of a financial advisor, but now
13:59
Speaker 10: it's it's a different story.
14:01
Speaker 5: Right.
14:01
Speaker 10: You have to have a breath of large breath of
14:04
Speaker 10: services that you can offer to every one of your
14:07
Speaker 10: clients because their financial lives are becoming more and more complex.
14:09
Speaker 10: And so we put out in the marketplace a platform
14:13
Speaker 10: to offer all those things, whether it's planning, whether it's
14:16
Speaker 10: tax transition work, whether it's estate planning, and providing them
14:21
Speaker 10: with investment management tools and all the other products that
14:24
Speaker 10: they need in order to be successful with advisors.
14:26
Speaker 4: We were talking earlier about greyscale having a boost right
14:28
Speaker 4: behind you. Yeah, that's different, is it not?
14:32
Speaker 5: It is?
14:33
Speaker 10: It is different, And in fact, you know, if you
14:36
Speaker 10: take a three year sort of perspective on the business,
14:40
Speaker 10: we have this thought that almost every portfolio will have
14:44
Speaker 10: some tokenized asset in their portfolio in three years.
14:50
Speaker 3: Wow, how much of the portfolio well to be determined?
14:54
Speaker 10: Right, whether it's that five percent or that ten percent.
14:57
Speaker 4: That's a big difference if you're a bitcoin older.
15:00
Speaker 10: Big difference at yeah, sixty six or wherever we're at.
15:03
Speaker 5: Yeah, So tell us about security.
15:05
Speaker 7: If I think about a system, a financial system, I
15:07
Speaker 7: mean a Bloomberg. We take data security and the security
15:10
Speaker 7: of our system extraordinarily seriously, and I know that folks
15:13
Speaker 7: in the financial services industry have to do as well.
15:16
Speaker 7: So I'm a wealth manager out there trying to serve
15:18
Speaker 7: my clients. How do I feel secure about maybe your platform?
15:21
Speaker 7: We're just platforms in general.
15:23
Speaker 10: Yeah, So what comes along with being a two hundred
15:26
Speaker 10: and forty year old institution is this notion of resiliency
15:30
Speaker 10: and being a globally systematic important bank. We have a
15:34
Speaker 10: lot of help with making certain that all of our
15:36
Speaker 10: systems and all of our data are well protected and
15:39
Speaker 10: backed up. And so we take great pride in everything
15:43
Speaker 10: we do around cyber resiliency. And we also take great
15:46
Speaker 10: pride by the way and making data available to clients
15:50
Speaker 10: because these clients, these financial advisors, need those insights, and
15:54
Speaker 10: so we're working hard on trying to create the tools
15:57
Speaker 10: that they need to not only stay resilient in their
16:00
Speaker 10: operating environment, but also to create value with the data
16:03
Speaker 10: that we have.
16:04
Speaker 4: So, how many wealth advisors financial advisors are here? Two thousand?
16:08
Speaker 10: Well, give or take there are two thousand attendees. There
16:11
Speaker 10: are roughly one thousand, roughly fifty percent our advisors, and
16:16
Speaker 10: then you know, roughly the next half is going to
16:19
Speaker 10: be thought leaders exhibitors that are here, and then a
16:24
Speaker 10: group of us who are in client coverage business.
16:27
Speaker 3: Do we have too many wealth managers, too many financial advisors?
16:30
Speaker 10: Well, that's a very interesting question, you know, because I
16:33
Speaker 10: think this. I don't think we have enough wealth.
16:35
Speaker 5: Managers really in the US.
16:37
Speaker 10: The demand for I think wealth advice is only going
16:41
Speaker 10: higher given the complexity of the operating environment. And let's
16:45
Speaker 10: be let's be disorder, said the way it is, wealth
16:47
Speaker 10: managers are aging out of the industry, so we need
16:50
Speaker 10: to bring the next generation of wealth managers into the market.
16:55
Speaker 7: Sweeney Offspring number three is going into that business right now.
16:59
Speaker 4: Take Yeah, that's cool.
17:00
Speaker 7: Finally one out of forest following on Wall Street. I
17:03
Speaker 7: guess that's not a too bad of an average. How
17:05
Speaker 7: about consolidation in this business. There's a lot of you know,
17:09
Speaker 7: mom and pop advisors out there, and I would think,
17:12
Speaker 7: as you mentioned the complexity of the business, just managing
17:14
Speaker 7: the business getting so much more, is there going to
17:17
Speaker 7: see more consolidation do you think?
17:18
Speaker 10: I think the consolidation is going to continue, to call it,
17:21
Speaker 10: and we sort of see this separation happen. You have
17:25
Speaker 10: a large number of firms now who are becoming even
17:28
Speaker 10: larger as a result of not only organic growth, but
17:31
Speaker 10: inorganic growth, and that's going to continue to sort of happen,
17:34
Speaker 10: we believe. And then at the other end of the spectrum,
17:37
Speaker 10: there are several niche firms who are going to continue
17:40
Speaker 10: to operate as they do, who operate at scale in
17:44
Speaker 10: their market and stay at that size. But in order
17:48
Speaker 10: to get to that scale that I was just talking
17:50
Speaker 10: about a moment ago, as a result of M and A,
17:53
Speaker 10: you really do need more resiliency, more structure around what
17:58
Speaker 10: it is you're trying to do.
18:00
Speaker 3: So took the point if you put these points together,
18:02
Speaker 3: Lisa Mantaya, I was just talking about game Stop and
18:05
Speaker 3: Paul was horrified and rolled his eyes. But the idea
18:08
Speaker 3: that a lot of young people and not even young people,
18:10
Speaker 3: but people think they can do this themselves, that they
18:13
Speaker 3: don't need help, and that they have the tools online
18:15
Speaker 3: to manage their own money. How do you what do
18:18
Speaker 3: you tell them with that?
18:20
Speaker 10: I think that the tools are getting much much better
18:22
Speaker 10: for people to manage their own money, and the product
18:25
Speaker 10: availability and the education material is becoming much more prevalent
18:29
Speaker 10: in the marketplace. However, money is very emotional, and when
18:33
Speaker 10: you get to a certain asset level or wealth level,
18:36
Speaker 10: or your life complexity changes, having another person sitting there
18:41
Speaker 10: alongside of you to coach you through that and even
18:44
Speaker 10: out those emotional spikes is super important. So I think
18:48
Speaker 10: the wealth industry is really well positioned over the next
18:51
Speaker 10: number of years, as wealth expands and it is the
18:54
Speaker 10: fastest growing marketplace, that there's going to be a need
18:58
Speaker 10: for wealth advisors, more of them and their role and
19:03
Speaker 10: their value in the relationship is only going to get
19:05
Speaker 10: greater as more complexity ners.
19:08
Speaker 7: So since I've been on Wall Street more than thirty years,
19:10
Speaker 7: the story has been brokers leaving financial advisors, leaving the
19:14
Speaker 7: wirehouses and going out on their own.
19:16
Speaker 5: Yeah, that hasn't changed, has it.
19:18
Speaker 10: I don't think that has changed. I mean there is. Look,
19:22
Speaker 10: there's a shift in the industry. From when we started
19:25
Speaker 10: in the business, one hundred percent of the things that
19:28
Speaker 10: we did were commission based. Today the majority of the
19:31
Speaker 10: business that we have on our platform is advisory based.
19:35
Speaker 10: And so I think this idea of financial advisors, more
19:39
Speaker 10: and more of them needed for the industry, and the
19:42
Speaker 10: idea that some of them want to run their own
19:44
Speaker 10: business will continue to sort of be a trend. But
19:48
Speaker 10: I think more of those firms now, Paul, are looking
19:51
Speaker 10: to land someplace as opposed to start of building something
19:55
Speaker 10: fresh from the start, because it's pretty it's pretty hard.
19:59
Speaker 4: Jim, wonderful to chat with you. Thank you so much.
20:02
Speaker 3: I learned a ton Jim Crowley, Global head of b
20:04
Speaker 3: and Yatt Melling's pershing and good luck on your keynotes.
20:07
Speaker 10: You haven't given it yet, right, No, it's nott there all.
20:11
Speaker 4: Right deep teas there enjoy that as well.
20:14
Speaker 3: We have to wonder though, as people become more confident
20:17
Speaker 3: in their way of trading or operating, like are they how.
20:21
Speaker 4: Long are they able to put off a financial advisor?
20:23
Speaker 3: Does it come with the kid your first house? Like
20:26
Speaker 3: what is that trigger point to move the Yeah?
20:29
Speaker 5: Exactly.
20:30
Speaker 7: I mean I think this Jim was mentioning the complexity
20:32
Speaker 7: of managing money, whether it be you know, wealth management, taxes,
20:37
Speaker 7: you know, wills and estates on all.
20:38
Speaker 5: Those types of things.
20:39
Speaker 7: On the legal side of it as well, it gets
20:41
Speaker 7: pretty complex pretty quickly, and you start talking about real
20:44
Speaker 7: dollars and still met you that that is a big issue.
20:49
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live
20:53
Speaker 2: weekdays at ten am Eastern on Apple card Play and
20:56
Speaker 2: Android Auto with the Bloomberg Business app. You can also
20:59
Speaker 2: listen live on Amazon Alexa from our flagship New York
21:02
Speaker 2: station just say Alexa playing Bloomberg eleven.
21:08
Speaker 4: This is Bloomberg Intelligence Radio.
21:10
Speaker 3: We cover all the top news and business and finance
21:12
Speaker 3: through our lens of our Bloomberg Intelligence analysts. They cover
21:14
Speaker 3: two thousand companies and one hundred and thirty industries worldwide
21:17
Speaker 3: and every once in a while.
21:19
Speaker 4: He let us take the show on the road.
21:21
Speaker 3: We get to broaden our outlook, particularly in the areas
21:24
Speaker 3: that really concern you as an investor. And we are
21:27
Speaker 3: here from the unbelievably huge Gaylord opry landa resort in Nashville, Tennessee,
21:32
Speaker 3: for B and Y Melons twenty six Annual Insight Conference,
21:36
Speaker 3: speaking about two thousand over two thousand financial intermediaries from
21:39
Speaker 3: top asset management firms will be here. And joining us
21:44
Speaker 3: now to discuss all of it is Emily Schlosser. She's
21:46
Speaker 3: chief operating officer B and Y Melons Pershing and she
21:49
Speaker 3: joins us here on set.
21:50
Speaker 4: Wonderful to see you.
21:51
Speaker 11: Thanks a that it's going to be here now.
21:53
Speaker 4: The highlight is that you're talking to Keith Urban on stage.
21:56
Speaker 4: Is that that's happening today.
21:58
Speaker 12: That's happening on Thursday Thursday? Yes, and I agree it
22:02
Speaker 12: will be at the highlight.
22:03
Speaker 4: So are you interviewing or is he interviewing you?
22:05
Speaker 10: Oh?
22:05
Speaker 11: For sure, I'm interviewing him, just checking. Yes, Yes, he
22:08
Speaker 11: is the star of the show.
22:10
Speaker 4: And what do you guys to talk about?
22:11
Speaker 11: They're handful of things that we're going to cover.
22:13
Speaker 12: He has really interesting stories about his creative process, about
22:16
Speaker 12: overcoming diversity.
22:18
Speaker 11: He is a real emphasis on putting in.
22:21
Speaker 12: The hard work, which is something that we're sort of
22:23
Speaker 12: all about here at Bank of New York Mellon. So
22:26
Speaker 12: there are a lot of things that are analogous, and
22:28
Speaker 12: he will be giving us a little bit of a
22:31
Speaker 12: show too, So that'll be great.
22:32
Speaker 7: Hey, Emily, and we're looking around here, there's you know,
22:34
Speaker 7: lots of financial advisors, registered investment advisors, lots of asset
22:38
Speaker 7: management providers.
22:40
Speaker 5: What are some of the I guess it's operationally.
22:42
Speaker 7: What are the challenges that these rias deal with every
22:45
Speaker 7: day when they're trying to establish relationships with clients, bring
22:49
Speaker 7: in new assets, manage the assets that they have.
22:51
Speaker 5: What are some of the challenges they face?
22:53
Speaker 12: Yeah, I think ultimately it comes down to productivity and scale. Really,
22:58
Speaker 12: their biggest challenge is to free up advisors so that
23:01
Speaker 12: the advisors can spend more time with their clients. At Pershing,
23:06
Speaker 12: we've made it our mission to help advisors help more people,
23:09
Speaker 12: and we're doing that by creating the most connected and
23:13
Speaker 12: productive platform to power the future of wealth management and
23:16
Speaker 12: that notion of automation and allowing ris and broker dealers
23:22
Speaker 12: to operate at scales so that their advisors are spending
23:25
Speaker 12: less time doing administrative tasks and systems and more time
23:29
Speaker 12: out with their clients.
23:30
Speaker 11: That's really what it's all about.
23:31
Speaker 3: How hard it is to do all that to create
23:33
Speaker 3: that environment where people can just talk to their clients more.
23:36
Speaker 12: It's very challenging, and there's a reason why it's taken
23:40
Speaker 12: us kind of this long in the maturity of our
23:42
Speaker 12: industry to get to a point where we can really
23:45
Speaker 12: do that. We've seen studies that say advisors spend as
23:49
Speaker 12: much as sixty or seventy percent of their time doing
23:52
Speaker 12: administrative tasks, and so part of what we've done in
23:55
Speaker 12: rolling out a new advisory platform, which we launched at
23:58
Speaker 12: this conference last year, so it's the one year birthday
24:02
Speaker 12: of Wove, which is our advisory platform, is built from
24:06
Speaker 12: a from the ground up, an interconnected suite of tools
24:10
Speaker 12: for advisors to use to manage their day to day.
24:13
Speaker 12: So it's not a patchwork of stuff that we've bought
24:15
Speaker 12: and tried to sort of stitch together.
24:17
Speaker 11: This is really from the ground up. From its inception.
24:21
Speaker 12: It was designed to be totally interconnected so that data
24:24
Speaker 12: flows seamlessly across the applications. Everything works together and advisors
24:29
Speaker 12: no longer have to kind of swivel between different applications,
24:32
Speaker 12: which just consumes an enormous amount of their time.
24:34
Speaker 7: From a competitive perspective, from B and Y, Melon, how
24:39
Speaker 7: do you compete? What is it spending more on technology?
24:44
Speaker 7: How do you guys compete against your competitors out there?
24:47
Speaker 12: Yeah, well, none of our competitors have the force like
24:50
Speaker 12: we have with.
24:50
Speaker 5: This that the the world thopes.
24:52
Speaker 12: Of Fidelity Schwag or some of the big players in
24:55
Speaker 12: our space. And really what we have with the entire
24:59
Speaker 12: ecosystem of of New York Melon is completely unique because
25:02
Speaker 12: we do have a massive technology organization that we can
25:06
Speaker 12: bring to bear with incredible amounts of investment spent on
25:10
Speaker 12: things like resiliency, cybersecurity, as well as the latest and
25:15
Speaker 12: greatest in innovative tech generative AI. So we have this
25:18
Speaker 12: whole kind of force behind us from a technology perspective,
25:22
Speaker 12: and then we also have a world class investment management arm.
25:26
Speaker 11: We have world class treasury services and payments capabilities.
25:30
Speaker 12: So it really creates this whole wrapper around our core
25:34
Speaker 12: custody offering that amplifies what we can bring to the
25:37
Speaker 12: market in a way that nobody else can.
25:39
Speaker 3: I judge myself for asking this question, but I'm going
25:41
Speaker 3: to ask it anyway. As chief operating officer. How do
25:43
Speaker 3: you use AI?
25:44
Speaker 9: Oh?
25:45
Speaker 4: Generative AI?
25:46
Speaker 5: Oh?
25:46
Speaker 11: Interesting?
25:47
Speaker 12: So we are using AI in a lot of different ways.
25:50
Speaker 12: It's been available on our platform from some time, with
25:53
Speaker 12: natural language search and greater ability to navigate. All of
25:58
Speaker 12: our navigation prompts are customized based on what consumers use most.
26:04
Speaker 12: So it is learning along with the user to make
26:07
Speaker 12: the experience more user friendly and personalized.
26:10
Speaker 11: And we are.
26:11
Speaker 12: Leveraging tools that help us automate things like processing documents
26:16
Speaker 12: and running more of our operations straight through. We are
26:20
Speaker 12: we are playing quite heavily with generative AI, particularly internally
26:26
Speaker 12: for now, where we're able to kind of access information
26:31
Speaker 12: much more quickly and have the help of tools as
26:35
Speaker 12: we're kind of creating intel for our clients.
26:37
Speaker 7: How about cybersecurity just data security in general. I'm guessing
26:41
Speaker 7: that's a constant source of investment for you guys.
26:43
Speaker 5: How do you think about that? Yeah?
26:45
Speaker 11: Constant.
26:46
Speaker 12: It is one of the most impactful things that we
26:49
Speaker 12: can spend time on because the threats just keep amplifying
26:52
Speaker 12: kind of day over day. We see increasing threats from
26:56
Speaker 12: cyber challenges, and it's one of the reasons why having
27:00
Speaker 12: the Bank of New York Mellon behind Persians brand is
27:03
Speaker 12: so powerful. I mean, we are a two hundred and
27:05
Speaker 12: forty year old bank. We pride ourselves on being incredibly resilient,
27:10
Speaker 12: and we really are at the cutting edge of what's
27:13
Speaker 12: happening in the cybersecurity world.
27:14
Speaker 4: What are you most excited about for the rest of
27:16
Speaker 4: this year.
27:17
Speaker 12: I'm really excited about what some of the new technologies
27:21
Speaker 12: can bring in terms of productivity and scale. I mean,
27:23
Speaker 12: at its core, Generative AI is a productivity tool. Productivity
27:28
Speaker 12: is what we're all about, and I think it's one
27:30
Speaker 12: of the most kind of the biggest step changes in innovation.
27:34
Speaker 11: That we've seen in recent history.
27:36
Speaker 12: So I'm really excited to see what we can do
27:38
Speaker 12: with it.
27:38
Speaker 7: If you lose a group of advisors from your platform,
27:41
Speaker 7: why do they leave?
27:43
Speaker 11: Interesting? It doesn't happen often.
27:47
Speaker 12: I Sometimes it's because they have chosen to consolidate go
27:52
Speaker 12: through M and A with a company that uses a
27:55
Speaker 12: different provider, So that's often what would drive the change.
27:59
Speaker 12: Sometimes it's a change engine model, or they're looking for
28:02
Speaker 12: an exit strategy, so they sell their firm.
28:05
Speaker 11: Those would be the biggest drivers.
28:07
Speaker 3: Well, what are the biggest questions that you're getting right
28:09
Speaker 3: now new advisors?
28:10
Speaker 12: Yeah, the biggest questions I think do revolve around how
28:14
Speaker 12: do we just make ourselves more productive, more efficient? But
28:18
Speaker 12: then we also do have a lot of questions around
28:21
Speaker 12: how do we get more into the alternative space, how
28:24
Speaker 12: do we become more effective in providing investment offerings to
28:29
Speaker 12: our clients. So historically many advisors have also been portfolio managers.
28:35
Speaker 12: I think more and more we're seeing clients looking towards
28:38
Speaker 12: that centralized office of investment that can be leveraged as
28:43
Speaker 12: more of a central utility, so that each advisor is
28:46
Speaker 12: not trying to be a portfolio manager on their own right,
28:49
Speaker 12: but are spending more time on things like financial planning
28:52
Speaker 12: and building relationships with clients.
28:54
Speaker 4: Emily, we really appreciate it. Thank you so much.
28:56
Speaker 3: Emily Schlosser, a chief operating officer at Bmy Melon's person.
29:00
Speaker 4: Good luck with Keith Urban.
29:01
Speaker 11: Thank you be super exciting, excited.
29:04
Speaker 4: I love this for you. I want to get that.
29:07
Speaker 4: Thank you.
29:09
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live
29:13
Speaker 2: weekdays at ten am Eastern on Applecar Play and Android
29:16
Speaker 2: Auto with the Bloomberg Business. You can also listen live
29:20
Speaker 2: on Amazon Alexa from our flagship New York station Just
29:23
Speaker 2: Say Alexa playing Bloomberg eleven thirty.
29:27
Speaker 3: Hey, Alex Deel alongside Paul sw We need. This is
29:28
Speaker 3: Bloomberg Intelligence Radio. We bring you all the top news
29:31
Speaker 3: and analysts from our Bloomberg Intelligence arm. They cover two
29:34
Speaker 3: thousand companies and one hundred and thirty industries around the world.
29:37
Speaker 3: And for now we are lucky because they're broadcasting live
29:40
Speaker 3: from Nashville, Tennessee, at the Gaylord Opryland Resort for B
29:44
Speaker 3: and Y Melons twenty six annual Inside Conference with over
29:48
Speaker 3: two thousand financial intermediaries from top asset management firms and
29:51
Speaker 3: joining us right here on set. Ben Harrison, head of
29:54
Speaker 3: Wealth Solutions at B and Y Melons, pershings.
29:57
Speaker 4: Good to have you here, Ben, Thanks for stopping by.
29:59
Speaker 8: More thanks for having me.
30:01
Speaker 3: So your panel, which is Thursday is the future of
30:04
Speaker 3: financial Advice, Perspectives on the evolution of wealth management.
30:09
Speaker 4: That seems nice and broad for you. What are you
30:11
Speaker 4: going to say? What's on the docket, what's on your mind?
30:14
Speaker 8: Yeah, So it's going to be a great panel.
30:15
Speaker 13: We've got a number of industry experts that are going
30:18
Speaker 13: to join me, and what we're going to talk about
30:21
Speaker 13: is there's really been a bull.
30:23
Speaker 8: Market for financial advice.
30:24
Speaker 13: If you look back over the last ten years, the
30:28
Speaker 13: wealth business has grown from twenty three trillion to fifty
30:31
Speaker 13: two trillion. It's really fueling the need for investors to
30:35
Speaker 13: have great advice from advisors. The conundrum is we're not
30:39
Speaker 13: creating more advisors. So there's about three hundred thousand advisors,
30:42
Speaker 13: so it's really teeing up this productivity of imperative that
30:46
Speaker 13: advisors need to deliver more for their clients and do
30:50
Speaker 13: so with more scale.
30:52
Speaker 7: So we're speaking with Ben Harrison, head of Wealth Solutions
30:54
Speaker 7: at BNY Melon's Pershing here in Nashville. Ben, can you
30:58
Speaker 7: explain the different Can you explain to reason why I
31:00
Speaker 7: would leave a wirehouse like Merrill Lynch and become a
31:04
Speaker 7: registered investment advisor at an independent place.
31:08
Speaker 13: Sure, so a lot of that demand is being driven
31:13
Speaker 13: by investors. Investors really are seeking fiduciary advice, comprehensive, holistic advice,
31:21
Speaker 13: an advisor that sits on the same side of the
31:22
Speaker 13: table as them and isn't sold products, but really it
31:27
Speaker 13: purchases products to fulfill a goal based financial plan. So
31:33
Speaker 13: advisors are seeking an opportunity to be aligned with their
31:36
Speaker 13: clients and that gives them the opportunity to go out
31:41
Speaker 13: establish a registered investment advisor and have full control in
31:44
Speaker 13: order to complate experience.
31:46
Speaker 7: There's no more Maryland stockbrokers there, aren't they advisors too?
31:50
Speaker 5: Haven't they involved that business?
31:51
Speaker 13: Yeah, we've definitely seen a convergence in the business models
31:54
Speaker 13: towards this goal oriented, holistic advice. So there's there's absolutely
32:00
Speaker 13: you know, we're seeing that from both sides of the
32:01
Speaker 13: market right now, and that's creating a lot of competition
32:04
Speaker 13: in the space.
32:05
Speaker 3: Okay, so what is your advice for wealth managers say
32:08
Speaker 3: in the back half of this year?
32:10
Speaker 13: Yeah, so we've been experiencing a market that you know,
32:14
Speaker 13: continues to have tailwinds, but clients have a ton of
32:17
Speaker 13: complexity in their lives. So it's all about focusing on
32:21
Speaker 13: the client needs and having a very clear, optimal client
32:26
Speaker 13: profile and delivering the solutions that an investor needs in
32:32
Speaker 13: order to solve anything that they may need to deal
32:36
Speaker 13: with in their personal lives.
32:38
Speaker 7: Every town USA has a Smith Barney office. You know,
32:41
Speaker 7: are more in Stanley office size I should say a
32:43
Speaker 7: Merrill Lynch office.
32:44
Speaker 5: Plus three or four registered advisors offices.
32:47
Speaker 7: Does there need to be consolidation among the rias or
32:50
Speaker 7: is it better to be able to Hey, we're small,
32:53
Speaker 7: we're local, we know our clients.
32:56
Speaker 5: How's that trend evolving?
32:58
Speaker 13: Yeah, we're seeing a tremendous amount of solidation in the space.
33:01
Speaker 13: The mergers and acquisitions that we see in terms of
33:04
Speaker 13: aggregators and roll ups coming into the space and taking
33:08
Speaker 13: out some of the smaller firms and rolling them into
33:11
Speaker 13: wealth practices is absolutely happening. It's not slowing down. That's
33:16
Speaker 13: going to continue to accelerate. But at the same time,
33:19
Speaker 13: there is room for advisors to have unique value propositions
33:24
Speaker 13: for clients in communities. And what we've seen is that
33:29
Speaker 13: clients have a propensity to.
33:31
Speaker 8: Work with people.
33:32
Speaker 13: Despite the fact there are so many digital solutions and
33:36
Speaker 13: ways to leverage AI and other unique capabilities in the marketplace.
33:41
Speaker 13: Investors want to work with a person and if you
33:44
Speaker 13: can deliver a great value proposition, then you've got a
33:46
Speaker 13: business to be had.
33:48
Speaker 3: So what is the right ARIA model, the registered investment
33:51
Speaker 3: advisor model? Like, what is the right model for someone.
33:54
Speaker 13: I think it all depends on what the client need is.
33:58
Speaker 13: It depends on where they are in their in their
34:00
Speaker 13: life cycle. Are they at the stage of their life
34:03
Speaker 13: where they are accumulating assets.
34:06
Speaker 8: Are they at the stage of life where.
34:07
Speaker 13: They're planning for retirement or drawing down. Are they a
34:13
Speaker 13: massiffluent investor, are they a high net worth investor?
34:16
Speaker 8: Are they ultra high net worth investor? And there are.
34:18
Speaker 13: Flavors of registered investment advisors as well as broker dealers
34:23
Speaker 13: and as you mentioned, other financial professionals that solve for
34:28
Speaker 13: a variety of those different needs.
34:29
Speaker 5: We've been coming to this event for several years now.
34:32
Speaker 7: In a common theme has been you want your advisors
34:35
Speaker 7: to be able to spend more time with their clients,
34:38
Speaker 7: less time on the administrative work. Is that just a
34:41
Speaker 7: function of technology, integrating technology more into the everyday work
34:47
Speaker 7: of an advisor.
34:48
Speaker 13: Yeah, that's we've talked a little bit about that. In
34:50
Speaker 13: terms of this productivity imperative. We know that there's a
34:53
Speaker 13: you know, significant demand for advice. There is not as
34:57
Speaker 13: many advisors to fulfill that demand. So it's really incumbent
35:02
Speaker 13: that we have the right tools in technology so that
35:05
Speaker 13: advisors can spend more of their time with clients and
35:09
Speaker 13: less of their time working on the back office or
35:13
Speaker 13: the tools in which to do so. That's a big
35:16
Speaker 13: focus on our strategy at Pershing in our mission to
35:20
Speaker 13: help advisors help more people, and a lot of the
35:23
Speaker 13: tools and technology that we are showcasing at this event
35:26
Speaker 13: does just that. We're excited about rolling out some of
35:29
Speaker 13: the new things that we have with our Wove platform.
35:32
Speaker 4: Here's something just broader.
35:34
Speaker 3: You know, everyone's just living longer and there's a question
35:37
Speaker 3: as to sort of like when should.
35:38
Speaker 4: You retire, how much money do you really need for retirement?
35:41
Speaker 4: And nobody really knows the answer to any of this.
35:44
Speaker 3: How do you talk to clients about that? Because I
35:46
Speaker 3: have to think that that is.
35:47
Speaker 4: A huge worry.
35:48
Speaker 3: And when you normally retire at like sixty five, but
35:51
Speaker 3: then you're dying at seventy, that's one thing, but that's
35:53
Speaker 3: not happening anymore.
35:55
Speaker 13: Yeah, you're absolutely right, and this is something that advisors
35:59
Speaker 13: really need to work with and investors need to really
36:04
Speaker 13: consider the lifespan that they potentially have in front of them,
36:09
Speaker 13: including health benefits and healthcare. That we see this idea
36:15
Speaker 13: of advisors delivering more, it's getting well beyond just investments.
36:19
Speaker 8: It used to be an investment game.
36:21
Speaker 13: Now it is a planning game of all the complexities
36:24
Speaker 13: of one's lives, whether it be healthcare, whether it be
36:27
Speaker 13: long term care, whether it be benefits that.
36:31
Speaker 8: Advisors need to think about.
36:32
Speaker 13: So we're seeing lifetime income becoming a very important tool
36:37
Speaker 13: that's utilized in a comprehensive portfolio, insurance, tax, all of
36:43
Speaker 13: these things.
36:44
Speaker 3: I have permanent life insurance, Like I got that when
36:47
Speaker 3: I was like thirty six, because I'm so terrified of
36:50
Speaker 3: like what happens when there is no social security and
36:53
Speaker 3: I'm like eighty and I need assisted.
36:54
Speaker 13: Living absolutely, And for the emerging population coming up to
37:00
Speaker 13: be completely different for us than it was for generations
37:03
Speaker 13: ahead of us.
37:04
Speaker 4: Well, what are some other big themes that you guys
37:06
Speaker 4: talk about a lot?
37:07
Speaker 3: Like what's the next year? What are we gonna be
37:08
Speaker 3: talking about next year at this conference?
37:11
Speaker 13: So there's a there's a lot on the horizon that
37:13
Speaker 13: we think about each and every day in our business.
37:16
Speaker 13: We see artificial intelligence, you know, playing a big role
37:21
Speaker 13: in the marketplace right now. We see alternative investments continuing
37:25
Speaker 13: to emerge and rise in terms of getting into the
37:31
Speaker 13: retail investing population. You hit on a couple of the
37:36
Speaker 13: other things in terms of the longevity of portfolios and
37:42
Speaker 13: that people are living longer. So there's there's a tremendous
37:45
Speaker 13: amount of things that people are thinking about in terms
37:50
Speaker 13: of navigating how you how you contend with that with
37:54
Speaker 13: your personal finances.
37:56
Speaker 3: What do you think about alternative investing in terms of
37:58
Speaker 3: the conversation with well both managers right now.
38:01
Speaker 13: Yeah, we've definitely seen an uptick in terms of the
38:04
Speaker 13: appetite for alts in retail investors portfolios.
38:10
Speaker 8: We know that they've been utilized.
38:12
Speaker 13: In institutional portfolios for years and years, and now they
38:17
Speaker 13: are taking a strong place in the individual investor portfolio.
38:23
Speaker 8: And we're moving away from.
38:25
Speaker 13: Sixty forty type of allocation to one that includes alternative
38:30
Speaker 13: investments as an important part of the individual investor portfolio.
38:34
Speaker 3: Ben, thanks so much. We really appreciate you stopping by.
38:36
Speaker 3: I know it's quite busy for you, but thank you.
38:38
Speaker 3: Ben Harrison, head of Wealth Solutions at BNY Mellon's Pershing
38:42
Speaker 3: and joining us right here in Nashville, Tennessee.
38:46
Speaker 2: You're listening to the Bloomberg Intelligence Podcast. Catch us live
38:50
Speaker 2: weekdays at ten am Eastern on applecar Play and Androud
38:54
Speaker 2: Auto with the Bloomberg Business App. You can also listen
38:57
Speaker 2: live on Amazon Alexa from our flagship New York's Just
39:00
Speaker 2: Say Alexa playing Bloomberg eleven.
39:04
Speaker 5: Out Steal. Paul Sweeney. We are live in Nashville, Tennessee.
39:07
Speaker 7: We are at the Gaylord Opryland Resort and National here
39:12
Speaker 7: for the BNY Mellon Insight Conference. I've got about two
39:14
Speaker 7: thousand financial advisors here and they're talking about the future
39:17
Speaker 7: of the wealth management business. Our next guest is Serena
39:20
Speaker 7: Dollar book Bookshire. She is the chief product officer for
39:22
Speaker 7: B and Y Melling's Purge and joining us live here.
39:25
Speaker 7: What kind of products are you hearing from your wealth
39:27
Speaker 7: advisors about?
39:29
Speaker 5: Digital?
39:31
Speaker 11: Absolutely so on the digital.
39:33
Speaker 5: Side, crypto.
39:34
Speaker 7: I'm thinking generally broadly defined, you know, what kind of
39:36
Speaker 7: do they are they asking you about crypto?
39:39
Speaker 1: I think that there is you know, maybe reduced interest
39:43
Speaker 1: in that at the moment, but I think that you know, overall,
39:46
Speaker 1: you know, there we we we we exist to serve
39:49
Speaker 1: a wide variety of products that's on our shelves, and
39:51
Speaker 1: so as we continue to monitor the regulatory landscape around that,
39:56
Speaker 1: you know, we we you know, that's that's something that
39:59
Speaker 1: you know, we can school in the future. But as
40:01
Speaker 1: I would say from a broader digital standpoint, really, you
40:04
Speaker 1: know what we hear the most of is around productivity
40:07
Speaker 1: and scale and ultimately, really how do we help our
40:09
Speaker 1: advisors do their best work by ultimately giving them time
40:13
Speaker 1: back through connected tech, connected data and connected experiences.
40:17
Speaker 3: And we're speaking with Serena and Dalla Brookshire, chief product
40:19
Speaker 3: officer at BNY. Melon's pershing which time about product innovation.
40:22
Speaker 3: So what's the product that you've launched, say in the
40:26
Speaker 3: last year that has really helped those issues that you're
40:29
Speaker 3: trying to address, just making wealth advisors more efficient and
40:33
Speaker 3: more able to spend time.
40:34
Speaker 4: With their clients.
40:35
Speaker 1: Yeah, so some of them you'll hear about later this afternoon.
40:38
Speaker 1: But what I can share where I feel like there's
40:40
Speaker 1: a lot of really good energy around this is within
40:42
Speaker 1: our net next three sixty platform. We've built a lot
40:45
Speaker 1: around personalization and so how that takes shape investing in
40:49
Speaker 1: aimergent capabilities is ultimately personalized menus, personalized navigation. We actually
40:55
Speaker 1: recently implemented a feature around asking a question to really
41:00
Speaker 1: reduce the time spent on reporting and compliance related analytics,
41:05
Speaker 1: and ultimately something that took upwards to twenty to thirty
41:07
Speaker 1: minutes now takes a mere matter of seconds. So that's
41:10
Speaker 1: one innovation that we're really excited about and want to
41:13
Speaker 1: continue to press on as we think about different ways
41:16
Speaker 1: for our advisors and their teams to do more with less.
41:19
Speaker 7: But they always open to technology, or to some folks
41:23
Speaker 7: just like in life, you know, less open to me
41:25
Speaker 7: maybe if you haven't older or something like that.
41:27
Speaker 1: I mean, product adoption certainly has a spectrum of early
41:30
Speaker 1: to late adopters, but ultimately, right as you think about
41:33
Speaker 1: ways that actually benefit you, we've seen a lot of adoption,
41:37
Speaker 1: right because ultimately, as you've probably heard in some of
41:39
Speaker 1: these other segments, right, there's a finite amount of advisors today,
41:43
Speaker 1: a proliferation of high quality advice, and we just advisors
41:47
Speaker 1: need to adapt their practices and how they work to
41:49
Speaker 1: meet those demands.
41:50
Speaker 3: How does it usually work, Like do your clients come
41:52
Speaker 3: to you and say, hey, I really need help with
41:53
Speaker 3: this or is it you being like you really need
41:56
Speaker 3: help with that.
41:56
Speaker 4: You just don't know it yet.
41:58
Speaker 1: Great question, and actually part of one of the one
42:01
Speaker 1: of the things that we instituted in this new Product
42:03
Speaker 1: organization was really around how we work, and so part
42:06
Speaker 1: of our philosophy is you need to be client obsessed,
42:09
Speaker 1: data driven, and we need to have direct sort of
42:11
Speaker 1: co creation with our client base, and so that's something
42:14
Speaker 1: that we've been really kind of pushing towards. And so
42:17
Speaker 1: ultimately it's a combination of us looking at market data,
42:20
Speaker 1: monitoring the trends, working hand in hand with our advisors
42:23
Speaker 1: to understand kind of the pain points, observing them directly,
42:26
Speaker 1: you know, looking at say do gaps, what do you say,
42:28
Speaker 1: what do we hear, what do we observe? And then
42:30
Speaker 1: and figuring out ways to kind of build solutions that
42:33
Speaker 1: really are steeped in that problem space.
42:35
Speaker 4: So what's a say do gap? I've never heard this before,
42:36
Speaker 4: and you know, it's it's like when we say.
42:38
Speaker 1: You want to lose weight, but then you're you know,
42:40
Speaker 1: your pantry is full of potato chips, right, So it's
42:42
Speaker 1: sort of that say do gap around what you say
42:44
Speaker 1: and what you actually do and sort of a.
42:45
Speaker 4: GAPTI and I want more sleep, but then I don't
42:47
Speaker 4: go to betterly correct Okay, yeah, okay.
42:51
Speaker 7: So I talk to us about like, what are some
42:53
Speaker 7: of the trends you're seeing there in products?
42:56
Speaker 5: What do you what are your clients asking you for
42:59
Speaker 5: more of better of that kind of thing.
43:01
Speaker 1: Yeah, So on the digital side, as I mentioned, right,
43:04
Speaker 1: they want you know, streamlined workflows. They want more efficient
43:07
Speaker 1: ways to onboard clients. They want ways to sort of
43:10
Speaker 1: scale their practice. They want new tools to connect all
43:14
Speaker 1: of the various systems and data so that they have
43:17
Speaker 1: a swivel chair so they don't have to sort of
43:19
Speaker 1: context switch in the moment. And we're finding that on
43:23
Speaker 1: average that saves almost about two plus hours a day.
43:26
Speaker 1: And then from an investment standpoint, right, there's a lot
43:29
Speaker 1: around you know, alternatives being sort of a growth area, right,
43:33
Speaker 1: especially with the expansion of the private markets and just
43:37
Speaker 1: overall impact on investment outcomes and then clearly right growth
43:41
Speaker 1: and ETF So looking for different flavors to fill the portfolio.
43:44
Speaker 4: Maybe one lass.
43:45
Speaker 1: Single add is just you know, we we see more
43:49
Speaker 1: and more investors driving the conversation son of investors want
43:56
Speaker 1: an advisor that quote unquote gets me, right, and so
43:59
Speaker 1: what that means and seventy percent actually want an advisor
44:02
Speaker 1: that shares their personal values and so what that means
44:05
Speaker 1: As an advisor, you got to know your clients.
44:07
Speaker 4: Really, really well.
44:08
Speaker 1: And you got to be able to spend the time
44:09
Speaker 1: with them. And so ultimately, what we're trying to do
44:12
Speaker 1: here is help help advisors help more people. And so
44:15
Speaker 1: we believe that the combination of these sort of investment
44:17
Speaker 1: solutions and connected digital solutions gets advisors closer to that
44:22
Speaker 1: What are some of.
44:23
Speaker 3: The problems that you foresee that product will need to
44:26
Speaker 3: solve for that just don't have answers yet.
44:30
Speaker 1: That doesn't have answers yet. I mean, I think that
44:33
Speaker 1: you know, looking at broader sort of access, you know,
44:37
Speaker 1: I think we're starting to see a lot of democratization
44:39
Speaker 1: of products and sort of bringing institutional products more down market.
44:43
Speaker 1: I think that you'll continue to see more of that
44:45
Speaker 1: as a trend, just so more and more people have
44:48
Speaker 1: access to high quality advice and high quality products. And
44:52
Speaker 1: then I think, you know, as you look at managed
44:54
Speaker 1: accounts and advice more generally, like how do you ensure
44:57
Speaker 1: the most efficient way to deliver that? I think those
44:59
Speaker 1: are some areas and then maybe one more is just
45:02
Speaker 1: we're seeing more and more clients really want to have
45:06
Speaker 1: like their full balance sheet together. They want the ease
45:08
Speaker 1: of seeing if you are an advised client to have
45:11
Speaker 1: your wealth solutions and your banking together makes sense, and
45:14
Speaker 1: so that's where you're going to start to see some
45:17
Speaker 1: of that also come together over time.
45:19
Speaker 5: Serena, thanks so much for joining us.
45:20
Speaker 7: Really appreciate it, Serena Dala Brokshire, Chief product Officer bny
45:24
Speaker 7: Melling's purge and joining us live here in this vast
45:27
Speaker 7: what do we call them? This room here, like I just, oh,
45:29
Speaker 7: my goshitorium.
45:31
Speaker 4: It is enormous.
45:32
Speaker 10: It is huge.
45:33
Speaker 7: It's huge, and this is where it's all happening. So
45:35
Speaker 7: here we're Nashville where the Gaylord grand Old Opry. I
45:40
Speaker 7: did some business with the Gaylord family back in the
45:41
Speaker 7: day when they owned TNN to cable network and they
45:45
Speaker 7: owned country music television. So in addition to all these
45:49
Speaker 7: resorts they have here, so some good times stand here.
45:52
Speaker 5: But this place is massive. It's got everything you want
45:53
Speaker 5: down here.
45:54
Speaker 7: It's a great place to have a conference because plus
45:56
Speaker 7: you also have access to Nashville when all the stuff
45:58
Speaker 7: that's there.
45:59
Speaker 3: I feel like resort is like an understatement though, Like
46:01
Speaker 3: I literally have an app that I had to use
46:03
Speaker 3: to get directions somewhere to get from my hotel room
46:05
Speaker 3: to hear like Google Maps.
46:07
Speaker 4: That's not resorts.
46:08
Speaker 5: That's I don't know's it's Vegas. It's kind of like Vegas.
46:12
Speaker 5: It's like.
46:14
Speaker 4: We will certainly hit your step count. Yes, I'm hoping.
46:17
Speaker 4: I'll check on that for you.
46:18
Speaker 2: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
46:23
Speaker 2: and anywhere else you'll get your podcasts. Listen live each weekday,
46:27
Speaker 2: ten am to noon Eastern on Bloomberg dot com, the
46:30
Speaker 2: iHeartRadio app, tune In, and the Bloomberg Business app. You
46:33
Speaker 2: can also watch us live every weekday on YouTube and
46:37
Speaker 2: always on the Bloomberg terminal