With the year-end planning season upon us—and with much discussion surrounding if and when a recession will hit—it may be an opportune time to discuss rebalancing strategies for reducing risk in your clients' portfolios. These options are designed to build robust portfolios for the long term, offering strategic and tactical approaches to investing that generate the most attractive returns for investors over time.

Here, we'll discuss three such strategies, including the types of market environments that may be suitable for each one. 

The participant experience in qualified retirement plans has come a long way since investors were asked to create their own portfolio from a simple list of standard funds. A better experience began to emerge as plan participants were offered a “prepackaged” choice of target-date funds (TDFs), which have become increasingly popular. Today, a new trend is taking shape, as many plan sponsors are now considering whether the benefits of managed 401(k) accounts make them worth adding to their lineup.  

One of the hardest tasks for advisors is identifying investment opportunities for your clients that check the right boxes. Sure, names like Apple, Microsoft, and Facebook seem like a safe bet. But it’s the diamonds in the rough that can elude even experienced investment professionals. So, where do you begin when it comes to sourcing fresh ideas?

A 2018 report from the U.S. Forum for Sustainable and Responsible Investment found that, in the U.S. today, $12 trillion in client assets are held in socially responsible investing (SRI) offerings—a 38-percent increase over the $8.7 trillion in 2016. The study also says that $46.6 trillion in total assets are under professional management nationally. What does this mean? One in four managed dollars in the U.S. has a sustainable, responsible, or impact focus.

Here's a scenario I think you'll be familiar with: at the end of a productive meeting, a prospective client hands you a pile of her current investment statements. You haven't yet secured her business, so analyzing these documents will be crucial in convincing the prospect to leave her current advisor. But what's the best way to approach this task?