The Active Management Channel

Matthews Asia - Opportunities in Emerging Markets

The emerging markets (“EM”) equity asset class has evolved considerably over the past decade such that many active EM equity managers may find it challenging to create long-term alpha over the benchmark. Countries such as China and India are moving to the fore, historical drivers of growth are changing and technology, innovation and health care are becoming a larger part of the opportunity set. It has been difficult for EM investment teams to keep up with these changes. My guest today, David Dali, wrote those words in a recent commentary, and we discuss how he and his team are positioning to adapt to that changing landscape.

Expecting a Market Downturn? Make Sure You’re Following the “Noah Rule”

Predicting a major economic or financial event—whether that’s a recession, market downturn or even your own retirement—requires that you also take action. Otherwise your prediction was meaningless.

What Boris Johnson’s Election Victory Means for UK Assets

We expect to see flows back into UK equity and credit now that some of the Brexit uncertainty has been removed.

Insured municipals offer investors additional assurance

Insured bonds continue to pay interest and principal even if an issuer defaults.

Median Household Income by State: 2018 Update

The median US income in 2018 was $63,179, up from $29,150 in 1984 — a 117% rise over the 34-year time frame. However, if we adjust for inflation chained in 2018 dollars, the 1984 median is $51,742, and the increase drops to 22.1%.

All Asset All Access, December 2019

Research Affiliates discusses why they believe value investing is still alive and well and explains how changes to the display of expense ratios seek to enhance clarity for investors.

Is Now the Time to Overweight Real Estate?

With REITs posting strong returns this year, should investors overweight them?

Salve for a Constrained Repo Market, or Potential Funding Destabilizer?

The recent repo squall shined a spotlight on “sponsored repo” transactions, a growing segment of the U.S. overnight funding market.

Sifting Through the Froth

Positive returns across asset classes in 2019 may limit tax loss selling in closed-end funds, but we see potential long term value in select sectors where investors can still buy assets at a discount.

World Markets Update

All eight indexes on our world watch list posted gains through December 9, 2019. The top performer is our own S&P 500 with a gain of 25.64% and in second is France's CAC 40 with a gain of 26.65%. In third is Germany's DAXK with a gain of 21.71%. Coming in last is Hong Kong's Hang Seng with a gain of 5.43%.

Do Long-Only Portfolios Effectively Capture Factor Returns?

Factor performance, as conceived by Fama and French and refined by others, is based on adding the returns of a “long” portfolio of securities that most embody the factors to a “short” portfolio that least represent the factors. But it is common practice for mutual funds and ETFs to use only the long portfolio. New research show that this approach does effectively capture the returns of the underlying factors.

Ending a Busy Year for the Federal Reserve

Rate cuts and overnight operations were important developments this year. Where will the Fed go from here?

How Captrust Blends Organic and Inorganic Growth

One of the fastest growing and most active acquirers has been CAPTRUST, an RIA based in Raleigh, NC. In October, it acquired the wealth management business of Boston Advisors. In August, South Texas Money Management joined CAPTRUST. In June, it announced the addition of McQueen, Ball & Associates and Cornerstone Capital Advisors to its growing team. In 2018, CAPTRUST saw 21.5 percent revenue growth and $65 billion in new client assets. The firm now has more than 200 advisors across 43 locations and advises on more than $300 billion in client assets across its wealth management, retirement plan, and endowment and foundation lines of business.

Supercharge Your Gold Position With Precious Metal Royalty Companies

One of the best ways to “supercharge” your gold position is with precious metal royalty and streaming companies. Think Franco-Nevada, Wheaton Precious Metals, Royal Gold and others.

What's Next for China A-Shares Inclusion in MSCI Indices

Improvements in accessibility are expected to accelerate further inclusion in the near term.