Good afternoon and welcome to The ASX Today for Thursday, I’m Jon Davidson. The good mood was still palpable after Commonwealth’s big jump on Wednesday, a second day of gains in that stock helped push the ASX to a fresh record high on Thursday, though really we’re more or less where we were last October.Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.The Japanese Nikkei also hit a fresh record today as J ...

Core Insights - An Ohio-based advisory team with approximately $2 billion in client assets is transitioning to LPL Financial from Fifth Third Private Bank [1] - The new firm, Moto Wealth Partners, will operate under LPL Financial's W-2 advisor affiliation model, focusing on high-net-worth and ultra-high-net-worth clients [2] Group 1: Team Background and Motivation - Breanne Bovara and Derrick Petry, the advisory duo, have extensive experience, with Bovara registered at Fifth Third since 2017 and Petry having joined in 1999, eventually becoming vice president and senior portfolio manager [2] - The team aims to provide support during significant life changes and desires independence and fiduciary flexibility in their new role [3] Group 2: LPL Financial's Offerings - LPL Financial offers operational freedom and advanced tools to enhance client experiences, including access to cutting-edge technology and integrated planning resources [4] - A recent strategic relationship with Wealth.com allows LPL advisors to utilize an estate planning platform, enhancing their service offerings [4] Group 3: LPL Financial's Growth and Retention - LPL is in the process of acquiring Commonwealth, which has 3,500 advisors and $305 billion in assets under management, with a goal to retain 90% of advisors during the transition [5] - As of the third quarter of the previous year, LPL had retained nearly 80% of Commonwealth's assets through advisor retention efforts [5] Group 4: Market Dynamics - Analysts at Wolfe Research noted a slowdown in attrition from LPL by December, with Raymond James being the primary beneficiary of departing Commonwealth representatives [6]

Core Insights - LPL Financial LLC has welcomed financial advisors Spencer W. Rand, CFP and Michael J. Williams, CFP from Rand, Williams & Associates, LLC, who manage approximately $260 million in advisory, brokerage, and retirement plan assets [1][8] Group 1: Company Overview - LPL Financial is one of the fastest-growing wealth management firms in the U.S., supporting over 32,000 financial advisors and approximately 1,100 financial institutions, with around $2.3 trillion in brokerage and advisory assets [7] - The firm provides a variety of advisor affiliation models, investment solutions, fintech tools, and practice management services, allowing advisors and institutions to select the business model and technology resources that suit their needs [7] Group 2: Advisors' Background - Spencer W. Rand and Michael J. Williams each have over 20 years of experience and have been partners since 2012, with Rand being a second-generation advisor [2] - The firm was originally established 40 years ago by Spencer's father, serving educators, non-profits, and airline industry professionals, and has expanded to cater to multiple generations of high-net-worth individuals [2] Group 3: Client Engagement Philosophy - Rand emphasizes understanding each client's perspective on money, aiming to help clients feel confident and empowered in their financial decisions [3] - Williams highlights the importance of leveraging each team member's unique skills and strengths, fostering open dialogue to achieve the best outcomes for clients [3] Group 4: Reasons for Choosing LPL - Rand, Williams & Associates, LLC sought flexibility and advanced technology for their clients, leading them to choose LPL Financial [4] - Williams noted that LPL's efficient organization, focus on advisor feedback, and commitment to technology, compliance, and security were key factors in their decision to move [5] Group 5: Company Commitment - Scott Posner, managing director of business development at LPL, expressed a commitment to providing innovative technology and comprehensive business solutions to help advisors enhance their practices and client value [6]

Group 1: Nvidia's Earnings and Market Position - Nvidia reported earnings that exceeded analysts' estimates, reinforcing its status as a leading AI chipmaker and a member of the "Magnificent Seven" large-cap technology companies [1] - The "Magnificent Seven" includes Nvidia, Apple, Amazon, Alphabet, Meta, Microsoft, and Tesla, which are known for generating significant interest and profits in the stock market, particularly within the S&P 500 index [1] Group 2: Investment Strategies and Portfolio Management - A portfolio manager suggests that investors should consider buying multiple stocks similar to Nvidia to enhance their investment strategy [2][4] - The BlackRock Foundation and Commonwealth survey indicates that over half (54%) of low- and moderate-income households invest in capital markets, highlighting a growing trend in investment among these demographics [3] - The portfolio manager emphasizes the importance of defining long-term return drivers in equities, such as profitability and value, and advocates for diversifying investments rather than concentrating on a few stocks [5][6] Group 3: Risk Management and Diversification - The portfolio manager argues that having a concentrated portfolio of a few stocks increases volatility and risk, suggesting that a broader portfolio can mitigate this risk [6][7] - Systematic risk, which is inherent to the equity market, is compensated, while non-systematic or idiosyncratic risk, associated with holding a limited number of stocks, does not provide similar compensation [7] - The example of Tesla is used to illustrate idiosyncratic risk, where unexpected decisions by its CEO could impact stock performance [8] Group 4: ETFs as a Diversification Tool - The portfolio manager recommends that average investors focus on financial planning and consider low-cost, passive, and diversified exposure to markets through exchange-traded funds (ETFs) [9] - ETFs are highlighted for their advantages, such as rarely making capital gains distributions and allowing investors to manage tax implications more effectively compared to mutual funds [11][12]

Core Insights - The article discusses the balance between investing in individual stocks versus index funds, emphasizing that while individual stocks can be appealing, they are generally more volatile and risky [1][6][18] Group 1: Individual Stock Investment - A significant portion of low- and moderate-income Americans, 54%, are investing in capital markets, with a preference for individual stocks over mutual funds and ETFs [3] - Investment experts recommend starting small when investing in individual stocks, suggesting that only a small percentage of a portfolio should be allocated to them, especially for retirement savings [5][6][7] - It is advised to avoid overconcentration in any single stock, with a guideline that no single position should account for more than 5% to 10% of the overall portfolio value [9][10] Group 2: Diversification Strategies - Diversification is crucial, meaning holding different types of assets across various sectors and markets, which can mitigate risks associated with individual stocks [12][13] - Experts suggest that investors should own at least 25 diversified stocks to spread risk, while others recommend focusing on 5 to 10 stocks with a strong track record [14][15] - The article highlights that many individual stocks may underperform, and it is the few successful investments that will drive overall returns [20] Group 3: Market Performance Expectations - The article notes that actively managed funds often underperform the market, and this trend applies to amateur stock pickers as well [17][18] - Investors should not expect to consistently beat the market by selecting individual stocks, as many will not perform well [19][20]

Core Insights - A group of Commonwealth Financial Network teams, managing nearly $400 million in assets, is transitioning to Savvy Advisors following LPL Financial's acquisition of Commonwealth [1][5] - This shift is part of LPL's strategy to retain 90% of Commonwealth advisors, with Savvy's total wealth manager count exceeding 100 as a result [1] Group 1: Team Details - The departing teams include Innovative Financial Solutions, managing $250 million, which will rebrand as Mosaic Wealth Advisors at Savvy, focusing on tax, retirement, and financial planning [2] - Horizon Advisory Group from Houston, managing $108 million, and Atticus Wealth Management from Macomb, managing $37 million, are also joining Savvy, with services ranging from personal financial planning to investment management [3] Group 2: Advisor Motivations and Platform Benefits - Advisors are attracted to Savvy for its expertise, technology, marketing resources, and flexible multi-custodial platform, allowing them to chart their own career paths [4] - Savvy operates on Fidelity and Schwab platforms, which is beneficial for Commonwealth advisors transitioning to Savvy [4] Group 3: Acquisition Context and Defections - LPL Financial acquired Commonwealth for approximately $2.7 billion, with Commonwealth having 3,000 advisors and $305 billion in assets under management at the time of the acquisition [5] - Since the acquisition, nearly 250 advisor defections from Commonwealth have been reported, with advisors moving to various firms including Cetera and Raymond James [6] Group 4: Competitive Landscape - Rival firms are attracting Commonwealth teams with competitive pay packages and advanced technology platforms, with Savvy maintaining a connection to Fidelity Investments' custody platform [7]

Core Insights - Osaic has expanded its independent advisor network by adding Four Pillars Investment Management, which brings approximately $143 million in assets [1][4] - Four Pillars is the latest firm to transition to Osaic from Commonwealth, joining other firms like Virtus Wealth Solutions and Gallagher Financial Services [1] - The partnership aims to enhance client service and provide Four Pillars with access to Osaic's extensive resources, including technology and a wider range of financial products [2][4] Company Overview - Four Pillars Investment Management is led by investment advisor John T Evans and includes team members Pamela Evans and Jennifer Moss [2] - The firm focuses on serving families, individuals, and small businesses in Southwest Florida, offering investment management, business succession planning, and retirement strategies [3] Strategic Alignment - Four Pillars chose to partner with Osaic due to its alignment with the firm's values and commitment to client service [2][4] - Osaic's resources are expected to support Four Pillars in expanding its client base and enhancing service offerings [3][4]

Core Insights - LPL's acquisition of Commonwealth for $2.7 billion has triggered a recruitment surge, with many advisors opting for alternatives like Osaic despite LPL's resources [1][4] - Advisors from Commonwealth express concerns about LPL's culture and the potential loss of personal touch, indicating that size does not guarantee preference among advisors [1][3] Group 1: Advisor Sentiment - Advisors from Commonwealth are prioritizing minimal disruption and high-quality service, as highlighted by Thomas Hinck's emphasis on quick responses over impersonal service [2] - Concerns about LPL's size and its impact on culture are prevalent among Commonwealth advisors, with fears that the personal touch may diminish over time [3] Group 2: Transition Dynamics - LPL asserts its commitment to maintaining Commonwealth's culture and providing a seamless transition experience for advisors, emphasizing a frictionless, paperless conversion process [4] - Several former Commonwealth firms have already transitioned to Osaic, indicating a trend of advisors seeking alternatives post-acquisition [4]

Market Overview - The Australian share market rose 0.7% to 8864.9 points, driven by bullish hopes for lower interest rates in the United States [1] - Ten out of eleven sectors ended higher, with significant gains in the property sector, banks, and major miners, while energy stocks experienced declines [1] Property Sector - The property sector increased by 1.3%, with notable performances from Goodman Group (up 2% to $34.37), Scentre (up 1.5% to $4.20), and Stockland (up 1.4% to $6.35) [2] - The banking sector also saw a rise, with Commonwealth Bank increasing by 1.3% to $169.97, contributing to a 1.2% overall sector gain [2] Banking Sector - NAB shares rose by 1.2% to $43.54, Westpac increased by 1.4% to $38.48, and ANZ was up 1.1% to $33.19 [3] - The banking sector's performance was influenced by job losses, which paradoxically led to higher share prices [2] Mining Sector - The materials sector rose by over 1%, with BHP up 1.3% to $40.81, Rio Tinto up 1.1% to $115.44, and Fortescue Metals up 0.86% to $18.80 [3] Gold Stocks - Gold stocks performed exceptionally well, with Regis Resources up 6.4% to $5.80, Bellevue Gold up 7.2% to 97¢, and Capricorn Metals up 3.8% to $12.32 [4] - The rise in gold prices, reaching as high as US$3,639 an ounce, was attributed to uncertainty surrounding US inflation [4] Energy Sector - The energy sector faced challenges due to lower crude oil prices, with Woodside Energy shares down 3.4% to $24.22 and Santos down 2.2% to $7.59 [5] - APA Group shares increased by 0.3% to $8.96 following a draft decision by the Australian Energy Regulator affecting revenue forecasts [5] Virgin Australia - Virgin Australia's shares rose by 0.3% to $3.22 despite a $50 million final payout to former CEO Jayne Hrdlicka, indicating strong market performance [6] Upcoming Central Bank Actions - The US Federal Reserve is expected to cut the Federal Funds Rate by 25 basis points to a range of 4% to 4.25%, which could significantly impact market sentiment [7][8] - The Bank of Canada is also anticipated to cut rates by 25 basis points to 2.5%, while the Bank of England and Bank of Japan are expected to maintain their current rates [9] Dividend Payments - An additional $2.4 billion in dividends will be paid out in Australia, which may put pressure on share prices as companies begin trading ex-dividend [10]

SEI Investments (SEIC) FY Conference Summary Company Overview - SEI Investments provides outsourced technology and investment solutions to banks, financial institutions, and asset managers [2] - The company manages and services $1.6 trillion of client assets [2] Core Offerings - SEI has two core offerings: 1. Technology and operations group 2. Asset management [6] - The company operates in four divisions, with 70% of revenue coming from the Investment Manager Services (IMS) space, primarily in alternative managers [8] Historical Context - Founded in 1968, SEI started in private banking and went public in 1981 [12][13] - Significant growth in the 1990s with expansion into Canada and Europe, and the establishment of three new offerings [15] - A notable investment in 1994 in LSV yielded substantial returns, generating about $2 million weekly [16] Challenges and Strategic Shifts - The early 2000s were marked by challenges due to the dot-com bubble and financial crisis, leading to stagnation [17][18] - SEI struggled to adapt to the shift from active to passive asset management [20] - A leadership transition occurred in 2022 with Ryan Hickey becoming CEO, marking a shift towards bold strategies [25][27] Recent Performance and Leadership Changes - Under Ryan's leadership, sales events increased by 25%, margins improved by 300 basis points, earnings per share rose by 55%, and share price increased by 46% [36] - A complete overhaul of the leadership team was initiated to address stagnation and competition [30][31] Strategic Focus Areas 1. **Expansion of Asset Management**: Targeting larger Registered Investment Advisors (RIAs) and enhancing product offerings [39][41] 2. **Operational Excellence**: Emphasizing cost management and automation, with a focus on AI and offshoring [46][48] 3. **Enterprise Mindset Shift**: Transitioning from a vertical to a horizontal strategy to enhance collaboration across divisions [49][50] 4. **Capital Allocation**: Maintaining a strong balance sheet with no debt, while considering strategic acquisitions for growth [52][54] Future Opportunities - SEI is well-positioned in the alternative investment space, particularly in private credit [44][56] - The company sees significant potential in asset management, especially with the recent leadership changes [57] Conclusion - SEI Investments is undergoing a transformative phase under new leadership, focusing on growth in asset management, operational efficiency, and strategic capital allocation to enhance shareholder value [55][58]