Morningstar Advisor - April/May 2013 - (Page 12)
Advisor Profile
Driven to Succeed for Clients
and Family
By Kate Stalter
Luke Wiley wants to write the book on helping clients reach
their potential.
Don’t tell Luke Wiley something can’t be done.
For the Cincinnati advisor, that would only
be a challenge to help him achieve a new goal.
Wiley grew up in a military family. He credits
his parents for instilling a sense of possibility
in their three sons. “My parents never
said, ‘Don’t do it,’ or ‘What if you fail?’ They
always said, ‘Give it a shot.’ ”
That guidance propelled him to earn a soccer
scholarship to the University of Cincinnati
and triple-major in finance, accounting, and
real estate. An accounting professor introduced
him to a friend at Merrill Lynch in Cincinnati.
Wiley joined the advisory in 1997, at age 22.
He stayed there until early 2009, when he and
his brother Zach joined UBS and formed
Wiley Wealth Management. The firm has about
$260 million in assets under management.
Focus on Client Service
During their years at Merrill, the brothers grew
to appreciate the importance of client service.
Today, their client base consists largely
of Procter & Gamble employees, retirees, and
their families. The firm uses what is called
the Supernova client service model, pioneered
at Merrill Lynch and detailed in the
book The Supernova Advisor, by Rob Knapp.
Wiley acknowledges that getting up and
running with the Supernova model is labor
12 Morningstar Advisor April/May 2013
intensive, “but once you do, you have the
whole year mapped out. My clients know
the exact date and time I’m going to call them.
It creates a tangibility of service. What
we do is a little gray, so we wanted to take
client service to a whole new level. That’s
allowed us to build a special brand within the
Procter & Gamble community.”
Ninety percent of Wiley’s clientele are P&G
families, and he says the firm’s retention rate is
nearly 100%. Every new client in 2012 was
a P&G family. Referrals are a key component of
Wiley’s marketing.
“I ask clients what they value the most about
working with us, and then I talk with them,
brainstorm with them, to identify other people
who could benefit from the same value,” he
says. “Thankfully, they don’t keep us a secret.”
Behavioral psychology is among Wiley’s
interests. He says that people have beliefs and
thought patterns that limit their potential.
He strives to overcome them himself and to
help his clients do the same. His study
of psychology also applies to his research into
investor and market behavior. Wiley cites
the influence of writers such as Oaktree Capital
Group chairman Howard Marks, Harvard
Business School professor Michael Porter,
and hedge fund manager Seth Klarman, author
of a hard-to-find 1991 investing book called,
Margin of Safety: Risk-Averse Value Investing
Strategies for the Thoughtful Investor.
Buying the Beaten Down
The Klarman book was instrumental
in the development of Wiley’s trademarked
“52-Week Low Formula” for identifying
beaten-down stocks with good potential for
price appreciation.
He appreciated Klarman’s view of stocks
trading at new lows and began doing his own
research into the potential for such
companies. That led him to a proprietary
five-step filter for uncovering small-, mid-, and
large-cap stocks that showed particular
strengths, but were trading at 52-week lows.
That research in turn led him to Morningstar
and its ex-research director, Pat Dorsey. Dorsey,
who is now director of reseach at the Sanibel
Captiva Trust Co., and a group of researchers at
Morningstar helped Wiley back-test his
strategy. Satisfied with the results, Wiley
began using the 52-Week Low Formula in client
portfolios. Today, about one third of his clients’
equity positions are in the strategy.
Wiley is writing a book about the strategy. He
is in discussions with publishers and expects
the book to be released by year-end. Mary
Buffett, author of Buffettology and other books
about the investing methods of her former
Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2013
Morningstar Advisor - April/May 2013
Contents
Contributors
Letter From the Editor
The Pursuit of Happiness and Financial Advice
What Strategies Do You Use to Control Risk?
Driven to Succeed for Clients and Family
How to Assess a Portfolio’s Bond Risk
Luck, Skill, and Investing
Investments á la Carte
Investment Briefs
Investing’s No- Brainers Have Costs
A Defensive Ride
Risk On/On Risk
The Risk of Being Overconfident
Year of Living Dangerously
The Risk-Parity Approach
A Guide to Mutual Funds Running Risk-Parity Strategies
What Moats Tell Us About Risk
Risk’s Wake-Up Call
Seeing Is Believing
Why Investors Lag the Returns of Their Funds
Liquidity Signals
Pump Them Up
Golden Oldies Keep on Truckin’
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Our Social Blind Spot
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