Morningstar Magazine - April/May 2018 - 6

Contributors

Magazine

Morningstar's Behavioral Science Team

Stephen Wendel

Sarah Newcomb

Ray Sin

Samantha Lamas

Michael Leung

This issue's Spotlight showcases the work
of members of Morningstar's behavioral science
team, led by Stephen Wendel. In "Better
Than an Algorithm" (Page 31), Ray Sin, Samantha
Lamas, and Michael Leung provide an overview
of how financial advisors can thrive in the
age of robo-advisors. "We've fleshed out what
behavioral coaching means in concrete
ways," Sin says. "We are trying to envision what
being a financial advisor will mean five to 10
years in the future, to meet the needs of current
and future investors."
Behavioral economist Sarah Newcomb draws
practical steps from her research expertise
that will help advisors coach clients to better
investing behavior. ("Stop Teaching, Start
Coaching," Page 34.) "The lesson here is not that
knowledge doesn't matter," she says. "Rather,
it's that people need someone to tell them
just enough, at just the right time. Lectures
never stick."
Finally, Wendel distills the findings of his latest
paper, recently published in the Journal of
Financial Planning. ("Coaching to Mitigate Panic,"
Page 37.) A novel simulation model of investor
behavior demonstrates that asset allocation alone
doesn't serve investors as well as a proposed
behavioral approach. New behavioral tools
will enable advisors to mitigate client panic and
improve their outcomes.

Editor-in-Chief Jerry Kerns
Managing Editor Laura Lallos
Editorial Board David Blanchett, Andrew Carter, Elizabeth Collins, Lee
Davidson, Adam Fleck, Sylvester Flood, Jon Hale, Thomas Idzorek, Ben
Johnson, Paul D. Kaplan, Haywood Kelly, Dan Kemp, Grant Kennaway,
Laura Lutton, Alex Morozov, Daniel Needham, Don Phillips, Jeffrey Ptak,
Hal Ratner, Tricia Rothschild, Anthony Serhan, Christopher Traulsen
Contributors Christine Benz, David Brenchley, Monika Dutt, Beth Foos,
R.J. Hottovy, Eric Jacobson, Samantha Lamas, Alina Lamy, Tom Lauricella,
Vishnu Lekraj, Michael Leung, Rudy Luukko, Ali Masarwah, Kevin
McDevitt, Sarah Newcomb, John Rekenthaler, Madison Sargis, Ray Sin,
Jake Spiegel, Cameron Stanfill, Aron Szapiro, Lorraine Tan, Ronald van
Genderen, Ralph Wanger, Stephen Wendel, Michael Wu, James X. Xiong
Art Director Alex Skoirchet
Designers Tim Curley, Zach Sherwood
Illustrator Katherine Streeter
Photographers Matthew Gilson, Christopher Lane, David Woolfall
Proofreader Mike Eiler
Publisher Leslie Marshall
Design Directors Jason Ackley, Renee Benz
Director of Advertising Sales Mary Uribe
Regional Sales Directors Dan Atkinson, Tony Lignelli, Stuart Roge
Morningstar, Inc.
CEO Kunal Kapoor
Managing Director, Design David Williams
Chief Marketing Officer Rob Pinkerton
Head of Brand Kristin Mateja
How to Reach Morningstar Magazine
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Morningstar magazine is published bimonthly by Morningstar, Inc.,
22 W. Washington St., Chicago, IL 60602. An annual subscription
for delivery in the U.S. is $60. All exhibit data in this magazine is provided
by Morningstar and Ibbotson Associates unless otherwise noted.

Katherine Streeter

6

Morningstar April/May 2018

Illustrator Katherine Streeter's mixed-media
collages are both narrative and surreal:
"I enjoy using metaphor in poetic ways for very
literal subjects." The topics of her work
range from finance and healthcare to essays and
poetry. Of her work in this issue, Streeter
says, "My approach to illustrating the topic of
behavioral coaching was from an emotional place.
I really love working psychological twists
into my art, and there is a lot of psychology in
finance. I focused on the connection between
the advisors and the investors." She also illustrated
our February/March 2015 issue, and her art
has been exhibited and printed in industry annuals
such as American Illustration and The Society
of Illustrators.

© 2018 Morningstar. All Rights Reserved. The information contained
herein: (1) is intended solely for informational purposes; (2) is proprietary
to Morningstar and/or its content providers; (3) may not be copied
or distributed; (4) is not warranted to be accurate, complete, or timely;
and (5) does not constitute investment advice of any kind. Neither
Morningstar nor its content providers are responsible for any damages
or losses arising from any use of this information. Past performance
is no guarantee of future results. "Morningstar" and the Morningstar logo
are registered marks of Morningstar, Inc.
Disclosure Morningstar licenses its indexes to certain providers,
including BlackRock Institutional Trust Company, N.A., First Trust, and
Deutsche Bank, for use in exchange-traded funds and exchange-traded
notes. These ETFs and ETNs are not sponsored, endorsed, issued,
or sold by Morningstar. Morningstar does not make any representation
regarding the advisability of investing in ETFs and ETNs that are
based on Morningstar indexes.

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Table of Contents for the Digital Edition of Morningstar Magazine - April/May 2018

Contents
Morningstar Magazine - April/May 2018 - Cover1
Morningstar Magazine - April/May 2018 - Cover2
Morningstar Magazine - April/May 2018 - 1
Morningstar Magazine - April/May 2018 - 2
Morningstar Magazine - April/May 2018 - Contents
Morningstar Magazine - April/May 2018 - 4
Morningstar Magazine - April/May 2018 - 5
Morningstar Magazine - April/May 2018 - 6
Morningstar Magazine - April/May 2018 - 7
Morningstar Magazine - April/May 2018 - 8
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Morningstar Magazine - April/May 2018 - 11
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Morningstar Magazine - April/May 2018 - Cover3
Morningstar Magazine - April/May 2018 - Cover4
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