Morningstar Advisor - December 2012/January 2013 - (Page 49)

Morningstar Conversation How the Landscape for Advisors Is Changing Scott Burns Advisors taking more control of portfolios, demands for transparency will shape industry, two insiders say. The growth of exchange-traded funds is not just changing the way people invest. It’s also affecting the way advisors operate their businesses and work with clients. In today’s advisory world, the trend is toward efficiency and transparency, with advisors and clients demanding more control over investments and fees. To discuss this changing environment and the role that ETFs are playing in it, we hosted a panel Oct. 4 at the Morningstar ETF Invest Conference. Joining us was Paul Hatch, vice chairman of Morgan Stanley Smith Barney, the largest wirehouse with 17,000 advisors and $1.8 trillion in assets, and Mark Wiedman, the global head of iShares, the world’s biggest provider of ETFs. Below is an edited transcript of our discussion. Scott Burns: Today, I’d like to discuss the role of the financial advisor and how it’s changed. Paul, in your 29 years of experience, you started as an advisor and worked your way up the company. Is the role of the advisor more important, less important, or the same today as it was when you started? Paul Hatch: I don’t know if I would use the words “more important” or “less.” The role of the advisor has always been important. I think it would be fair to say that the role of an 49

Table of Contents for the Digital Edition of Morningstar Advisor - December 2012/January 2013

Morningstar Advisor - December2012/January 2013
Letter From the Editor
What Stands Between Me and Stupid
Why Do You Use Dynamic Funds of Funds?
Serving Clients and Community
How to Pick an ETF Managed Portfolio Strategy
Tactical View of Risk
Investments á la Carte
Investment Briefs
Unbundling ETF Managed Portfolios
Risks Loom Over Telecom Industry
Outsourcing Asset Allocation
ETF Managed Portfolios on the Rise
Age-Based Options Take Over 529 Industry
How the Landscape for Advisors Is Changing
Mark Egan Embraces Volatility
Alpha, Beta, and Now … Gamma
Performance Gaps
Gains in Momentum
Companies Where Management Teams Add Value
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Once and Future King

Morningstar Advisor - December 2012/January 2013