CONTRIBUTORS
Tony Davidow, CIMA®
Senior Alternatives Investment Strategist
Franklin Templeton Institute
In this episode of the Alternative Allocations podcast series, I had the opportunity to discuss the evolution of the advice industry with my good friend Christine Gaze, President of Purpose Consulting Group, and Chair of the Investments & Wealth Institute (IWI). I sat down with Christine at the IWI’s annual conference, “Experience 2025,” which marked the organization’s 40-year anniversary.
I began by asking Christine about how the industry has evolved over the last 40 years. We discussed the formation of the organization which was originally known as the Investment Management Consultant’s Association (IMCA), which offered the Certified Investment Management Analyst (CIMA) designation. The founders of IMCA sought to form an organization focused on providing objective advice, offering cutting-edge research that leveraged academia and institutional consulting.
As the membership expanded, and the skills necessary to serve client needs grew, IMCA introduced the Certified Private Wealth Advisor (CPWA) designation, and then acquired the Retirement Management Analyst designation (RMA). To reflect the broader mandate the organization’s name was eventually changed to IWI. IWI provides thought leadership and education through certificate programs, conferences, and publications.
With growing interest from advisors, alternative investments have been a focus over the last couple of decades. I suggested that alternatives are no longer a “nice to have” solution, but in fact a “need to have” to serve the needs of high-net-worth investors.
Christine agreed, “. . . high-net-worth clients are demanding access to alternatives, and I think that puts advisors in a difficult position, if they haven’t institutionalized the process for incorporating alternatives.” “I think that it's important that advisors have a perspective on alternatives, a point of view and a strategy, not something they're figuring out when the client shows up in the lobby.”
We discussed the challenges and the need for better education for both advisors and investors. Christine noted “. . . the very best advisors prepare their clients to be good clients and to make good decisions, when the sun is shining so that they act appropriately when it starts to rain.”
This is a particularly important message during these periods of volatility and uncertainty. We need to prepare clients for market uncertainty and the inevitable shocks to markets. Alternative investments may be valuable tools to provide valuable diversification and alternative sources of growth and income.
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WHAT ARE THE RISKS?
All investments involve risks, including possible loss of principal.
Investments in many alternative investment strategies are complex and speculative, entail significant risk and should not be considered a complete investment program. Depending on the product invested in, an investment in alternative strategies may provide for only limited liquidity and is suitable only for persons who can afford to lose the entire amount of their investment. Diversification does not guarantee a profit or protect against a loss.
Past performance does not guarantee future results.