Writer: Joshua Andino
2 min read September 2022 — From rising interest rates to big-name relocations, over the last year Charlotte’s financial leaders have grappled with increased costs, new clients and global instability, all while working to see their business and the wider region come out ahead. In the recently published Invest: Charlotte 2022, financial leaders were asked to reflect on the changes they’ve witnessed over the last year both for their industry and their business.
How has demand for your services changed over the past year?
Ron Fleischman, Branch Manager & Executive Director, UBS Wealth Management USA
Financial planning is becoming a bigger emphasis in our work with clients. The pandemic has given people a chance to reflect on their plans and so we leverage our expertise to provide more in-depth financial planning than we have in the past. With virtual platforms increasing our efficiency, we have been able to make more time for these meetings and for our clients. Charlotte is also a very big banking community that has grown tremendously and it is great for our industry. More companies are bringing their executives here and a number of those people want a local relationship with a wealth adviser, which presents an opportunity for our FAs to sit down with them and develop new plans.
Russell Mansfield, Senior Vice President & Branch Director, RBC Wealth Management 
Years ago, people would come to us for individual categories of planning, but now we are hearing more of “Are we okay financially? Do we have enough to retire? Do we have enough to send our kids to college?” That’s our sweet spot nowadays and part of why we provide a comprehensive level of service. Our clients are more attuned to risk and are allowing RBC Wealth Management to help manage that risk. We have had quite a few pre-retirees who became retirees earlier than planned since the pandemic; this has been a unique shift. Most of our clients are older but we are trying to develop relationships with younger generations, and it helps to be tech-savvy to keep their interest. In our experience, younger people want to have access to their portfolios on their phones, and rarely insist on face-to-face meetings, so we are learning to adapt to that. The firm has made significant improvements in our technology the past few years so advisors have the best tools and insights to help all clients with their financial goals.
Alex McAlister, Chief Executive Officer, Sterling Capital Management LLC
As we think about investing, market volatility creates a lot of opportunities. On the fixed income side, if rates are falling, anyone can buy credit bonds in the marketplace and feel like they are making good decisions because as rates fall and credits narrow, you get good performance. But this can obscure who is really doing their homework once rates go back up and risk becomes more pronounced. Now we’re in an environment where the Federal Reserve is beginning to raise rates. It’s beginning to matter much more which equities you actually own, what the earnings are and the prospects and individual growth parameters of each of those companies.
What are the trends you’re keeping an eye on?
Fleischman: For a while, we had historically low interest rates and in that time it has become difficult to find fixed income investments for those who want them. We have also seen a significant demand for borrowing with rates so low. Mortgages have picked up and as rates start to go up, people will start to think about refinancing or buying. The key element is to make sure you are discussing with your clients how these can affect them specifically. We do not have a cookie-cutter approach to financial planning and customize everything we do with our clients. We have the ability to stress-test portfolios against rising interest rates. We can look at a specific relationship with a client and if rates go up a specific amount, we will know the impact on their investments.
Mansfield: Short term, we look at the money clients need right now, like for a car or home or tuition, and park those assets. The economic environment will improve, but it’s hard to say when and for the long term investor, now is a good time to be investing. We’ve rebounded from the pandemic alright, but with the uncertainty in Ukraine, climbing inflation, and rising interest rates, it has created a number of new obstacles. We choose to stay positive and guide our clients to their goals during these turbulent times.
McAlister: I do think we are going to see a scaling back of globalization. The past 25 years have seen rapid expansion of supply chains spread out globally in order to secure the lowest prices. Since the beginning of the pandemic and the crisis in Ukraine, we’ve seen that a lot of countries are rethinking their supply chain. A lot of companies have found themselves in a position where they are missing a key component that they were outsourcing globally without any good controls over the delivery time frame. The fact is, if you onshore more of your supply chain, it will increase cost, but it can create better predictability to deliver the finished product and know what your time frames and inventory are.
What is your outlook for the financial sector in Charlotte and your organization over the next few years?
Fleischman: We are going to continue down the road we are on. Interest rates and inflation will be on the forefront and we will see more importance placed on a financial plan when you have those big changes. We want to make sure our clients are on track to meet their specific goals by analyzing where they are now and where they need to be. When you have those big shifts, it is important to revisit the plans more frequently. The most important thing we can do is sit down with our clients and review any changes in their lives to make sure they are comfortable with where they are headed with those goals.
Mansfield: We want to maintain and grow our presence in Charlotte. We’re dedicated to giving back to the community and handling our clients’ investments with extreme care. We won the RBC Community Service Award as the best branch in the RBC Wealth Management system, and that is something we will get back to now that the pandemic is receding. We have been on a high growth trajectory even over the pandemic, in both asset bases and talent. We are at $1.6 billion in assets now.
McAlister: We have been through a range of cycles during our 50 years in business. We embrace volatility because we believe it creates opportunities for enterprising managers to go out and make an impact. Our goal is to continue adding incremental returns on a risk-adjusted basis for our clients. That volatility is very present in the market right now and Sterling will continue to prosper from it.
For more information, visit:
https://www.ubs.com/us/en/wealth-management.html
