Looking Ahead to 2021: Our 25th Year
Rich Todd, CEO, Co-founder, Principal
As we look ahead to our 25th year in business, Innovest is a stronger and better firm than a year ago. In 2020 we maneuvered through the Covid-19 crisis, highly volatile markets, emotional and uncertain times, and the scramble to serve clients remotely. Our team worked very hard and served clients well as we focused on a key, core value – “dedication to the client.” Communicating effectively and proactively with clients was vital as we mastered virtual meetings and conducted a number of webinars to keep clients informed. Our theme for 2020 was “building relationships.” Although no one was fully prepared for the shutdown, we believe that we were able to grow our relationships with clients by working hard and being creative.
While the 2020 investment markets turned out to be good for clients, the year included the fastest 30%+ decline in the history of the S&P 500. Our mantra at Innovest is “Process over Prediction.” Our focus on process entailed rebalancing portfolios after a significant decline in risk assets, which added nicely to clients’ returns as markets rebounded. Portfolio rebalancing is difficult because it “leans against the wind.” In early 2020, we added to equities and other investments that the market had taken down in value, while concurrently reducing what had performed well – high quality bonds. We are confident in our proven approach.
Innovest had a record year in revenue, and we maintained our promise that clients will benefit from our growth. Our formula is not complicated. If we keep our clients and grow modestly (35 new clients in 2020), we will continue to offer terrific opportunities to our professionals. The most important way that clients benefit from our growth is by having high-caliber professionals join our firm. At the beginning of the pandemic, we acquired California-based Advisory Consulting Group, and we are excited about the experience and expertise that Robert Stebbins and Rick Rodgers are adding at Innovest. Rick is a former Innovest partner. Retaining our quality professionals is important as well; our historical employee retention rate is over 90%. In 2020, we were pleased to welcome new employees Steven Fraley, Peter Girard, Kendra Jensen, Alexandra Johnson, and Dustin Roberts. We had some key promotions at Innovest as well. Congratulations to those promoted during the year: Cos Braswell, Pam Cruz, Clair DeLine, Zach Heath, Brett Minnick, Sloan Smith, and Brooks Urich.
The Innovest NexGen Society, led by Sloan Smith and Jared Martin, continues to expand. NexGen focuses on developing leadership skills for Innovest’s next generation of leaders. Kyli Hanson, Caitlin Markel, Kenny Senour, and Abigail Thomas were selected to join the Society in 2020.
We are excited about a new enrichment program, “Character Strengths,” which is benefiting our Innovest team of 52 strong. Each month, small groups concentrate on improving a personal character quality and turning it into a good habit. The program started with a concentration on helpfulness, and December’s focus was generosity. Team leaders are Mike Corbett, Kathy Lalone, Christine Hudek, Bill Fender, Eileen Pohs, Pam Cruz, and Cheryl Wilks.
Each year recognition and bonus cash awards are given to our top employees. We are proud of Kyli Soto, recipient of the Bill Fender Mentorship Award, Marleen Zakovich, who won the Service to Others Award, and Nancy Swanson, recipient of the 212° Award. Our top award, The Founders Award, was presented to Sloan Smith.
For the seventh year, Innovest was an Arrupe Jesuit High School Work Study Partner, employing a team of four students. The students’ compensation from working at our firm goes directly to the school to offset some of the costs of their high-quality Jesuit prep school education. This program is also a gift to Innovest and our team; we are humbled by the positive influence that we have on these terrific students. Volunteering is an important hallmark of Innovest’s culture. Led by Kathy Lalone, we coordinated 15 volunteer events for employees and their families, including a First-Responders Lunch, Project C.U.R.E., Project Angel Heart, Love for Our Elders, and a school-supply drive at Annunciation Catholic School.
Thought leadership and supporting the investment and fiduciary community are important values at Innovest, as well. Our professionals spoke at 12 different conferences in 2020. In addition, 15 times in the year we either authored articles or were interviewed by journals, blogs, or periodicals.
We firmly believe that our culture is key to our success at Innovest. Developing our professionals not only advances their experience, knowledge, and character, but creates an environment that is highly rewarding to them. The Innovest environment is also very attractive to prospective employees. We are confident that our clients are beneficiaries of our culture, which is one of the reasons why our client retention is 97%+.
A positive client experience is the lifeblood of our firm. We are honored by our client relationships and their terrific loyalty and support over the past 25 years. We look forward to the challenges and opportunities of the new year. All the best for a wonderful 2021!