For Financial Professionals in the US

Five takeaways from the 2023 Forbes | Shook Advisor Summit

Michael Schweitzer, Head of Retail Distribution, North America, discusses five themes he took away from the Forbes | Shook Advisor Summit and how he thinks they will shape the advice industry in the coming years.

Michael Schweitzer

Michael Schweitzer

Head of Retail Distribution, North America

Jun 5, 2023
4 minute read

I recently had the pleasure of attending the Forbes | Shook Advisor Summit in New York City, where I joined and participated in a wide range of sessions and panels. It is always so rewarding and valuable to connect with clients and peers while also gaining some valuable perspective on the markets and our industry.

Based on discussions with industry leaders and presentations from some true investment luminaries, I came away focused on five themes. Some are already at work in today’s investing environment while others are set to shape the advice industry in the coming years.

  1. Fixed income is living up to its name. Rate hikes around the world mean that the low-yield environment so prevalent in recent years has finally given way to one in which the “income” part of fixed income is living up to its name. As a result, advisors are helping clients rediscover the role bonds play in portfolios. As they do, many are focused on extending duration and placing an emphasis on quality. The reset in rates has also reinvigorated 60/40 strategies, with low correlations between stocks and bonds once again providing the diversification investors have come to expect from a balanced allocation.
  2. A new era for active management? With experts predicting middling equity returns in the decade ahead, separating the haves from the have nots will be crucial to pursuing long-term investing goals. Against this backdrop, beta exposure strategies, or strategies designed to provide exposure to equities with a higher Sharpe ratio, may be challenged in providing meaningful returns, which could lend considerable appeal to actively managed strategies.1
  3. Another arrow in the portfolio construction quiver. For ultra-high net worth investors, a potentially appealing option is private credit, in which institutions and financiers make loans directly to companies. This sub-asset class has historically provided differentiated returns, and thus merits attention for advisors seeking to diversify the correlation profile and return sources of client portfolios.
  4. The great advisor retirement. Statistics show that over 100,000 advisors will retire in the decade ahead. Indeed, it’s a trend that’s well under way and is visible in the wave of consolidation that has already swept through the industry. Both trends offer opportunity for established advisors, many of whom will be charged with onboarding, training, and mentoring their successors. Among the greatest benefits will be the skills and fluencies that new (and presumably younger) advisors will bring, as well as the ability of those new advisors to make deeper inroads with clients from different generations.
  5. Time to cash in? With yields on cash-like instruments now in the 4%-5% range, clients may be tempted to park considerable assets in vehicles like money market funds and CDs. Their rationale? Await greater clarity before jumping back into higher-risk areas such as equities. Granted, cash is part of any sensible investing strategy, but embracing an outsized position at the expense of a balanced approach has often come with a downside – namely, being sidelined should stocks snap back. Advisors can add value by reminding clients that a steady all-weather asset allocation approach is crucial to capturing the market’s power and pursuing long-term objectives.

These are just a few of the factors facing advisors in today’s highly complex market and business environment. Whether you’re looking to adjust portfolios in response to these dynamics or seeking to evolve and optimize your practice, I’d encourage you to reach out to your Janus Henderson Director.

The deep experience of our Directors is complemented by the broad capabilities of our Specialist Consulting Group, whose experts can provide financial professionals with additional perspective on fixed-income markets and the outlook for equities. Additionally, our Practice Management Consultants can help you engage with risk-averse clients and share insights on how opportunistic advisors are positioning themselves to benefit from retirements and consolidation.

Lastly, our Portfolio Construction and Strategy Team and award-winning portfolio analytics platform can provide financial professionals with accessible and actionable reviews centered on goals.2


1 “Demystifying smart and alternative beta,” Capital Fund Management, 2017.

2 “AFTAs 2019: Best Analytics Initiative—Janus Henderson Investors,” American Financial Technology Awards, January 2020.

Correlation measures the degree to which two variables move in relation to each other. A value of 1.0 implies movement in parallel, -1.0 implies movement in opposite directions, and 0.0 implies no relationship.

Duration measures a bond price’s sensitivity to changes in interest rates. The longer a bond’s duration, the higher its sensitivity to changes in interest rates and vice versa.

Sharpe Ratio measures risk-adjusted performance using excess returns versus the “risk-free” rate and the volatility of those returns. A higher ratio means better return per unit of risk.

Fixed income securities are subject to interest rate, inflation, credit and default risk.  The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens.