By Founder and CEO Scott J. Savage
It’s no secret that the pace of innovation these days is supersonic. We all see the online videos of near-daily rocket launches and miraculous landings. We witness artificial intelligence (AI) advancements that astound us and, if we’re honest, may make us a little uncomfortable. Everywhere we look, new technology is invading our lives. And everyone seems to be asking the same question: how do we discern a good “innovation” from a not-so-good one?
Throughout our history, embracing innovation and change has been a big part of who we are. In 1940, the Investment Advisors Act was passed, requiring specific investment advisors to register with the SEC and adhere to fiduciary standards.[1] Believe it or not, it took more than fifty years for that new way of doing business to catch on. The registered investment advisor (RIA) model was completely foreign to the broker/dealer, commission-based salespeople who made up most of the industry at the time.
Even though we adopted the RIA model at our founding in 1995, we were among the first. That’s something we’re proud of. Back then, it was still considered a bold move—but we believed it was the right way to serve clients, and we still do.
MarketPlus® Investing has its roots in innovation. Historically, that’s played a role in defining the “Plus.” It’s about looking at the world, the nation, and the financial markets to find the innovations, evaluate them, and decide which ones meet our standards. Few make the cut.
On the plus side, the investment managers we partner with provide us—and therefore you—access to investments most people don’t even know exist. Advancements in technology, the size of SJS, the nature of our clients, and our relationships have opened doors to rare investment opportunities that are off-limits to most firms. Embracing innovation continues to set us apart.
An innovation we’re less favorable about? The trend toward private equity and its impact on our industry. Private equity-backed consolidators are buying up RIA firms at a rapid pace. That’s an innovation that doesn’t interest us in the least. In fact, we see it as a step backward for clients. We assure you that SJS will remain fiercely independent, which means putting your needs—not the interests of outside investors—first.
These are just two examples. The fly on the wall in our office witnesses regular conversations about innovations we find—and that find us. What technologies are a no? What are a wait-and-see? Which ones are a yes? How do we adapt? In every one of those conversations, you are top of mind.
Not all innovation is created equal. The good ones stand the test of time and improve outcomes. The bad ones? They usually reveal themselves soon enough. Our job is to know the difference—so you don’t have to worry about it.
Let’s stay ahead together. Reach out to your advisor anytime to continue the conversation! We’re here to answer your questions and help you stay confidently ahead—no matter what’s coming next.
Important Disclosure Information & Sources:
[1] “Laws and Rules”. U.S. Securities and Exchange Commission, sec.gov.
There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.
Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice.
Statements contained in this report that are not statements of historical fact are intended to be and are forward looking statements. Forward looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.