The Mutual Funds Channel

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.

Advisors and Clients Walking past Each Other on Sustainable Investment

Did you know that more than $12 trillion in assets under management are engaged in one or more strategies of sustainable investment in the United States? This comprises more than 25 percent of the professional managed assets across the country and is a 38 percent growth from 2016 figures.

The Fund That Isn’t Following the ESG/SRI Herd

In the U.S., between one quarter and one third of all assets managed are done so with an ESG or SRI mandate. Outside the U.S., that percentage is even higher. The Vitium Global Fund, formerly the Vice Fund, buys what most ESG/SRI investors scorn, stocks in the tobacco, alcoholic beverage, gaming and aerospace/defense industries.

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 the Fed Gearing Up for a New Round of Quantitative Easing? Here Are the Possible Signs

“This is not QE. In no sense is this QE.” That was Jerome Powell in early October, answering a reporter’s question on whether the Federal Reserve’s intervention in the overnight U.S. repo market constituted another round of quantitative easing (QE).

Gundlach on the Biggest Risk Facing Bond Investors and the Likely Next President

Fear among bond investors is focused on rising rates, but Jeffrey Gundlach says you should worry about something more sinister. In his webcast yesterday, he also offered his updated 2020 presidential election prediction.

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.

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.

PREP: Important Steps to Consider When Building an Outcome Oriented Portfolio

What steps are needed to help build a successful portfolio? One of our divisional directors shares his perspective.

Plausible Performance: Have Smart Beta Return Claims Jumped the Shark?

To get the attention of smart beta investors in a crowded marketplace, some smart beta providers are laying claim to performance that appears implausible. So what is plausible? We look at historical live performance to answer this important question.

SMA Vehicles Facilitate New Retail Investment Opportunities in Emerging Markets Poised for Growth

With many investors seeking to diversify their equity exposure as the U.S. bull market charges into its historic 10th year, asset managers are now providing innovative and cost-effective SMA offerings that provide US investors access to the full breadth of the emerging market universe; a feature not previously available.

The Myth of Overdiversification

There is a tendency to think that owning a handful of stocks may be a bit riskier but have an equal likelihood of outperforming the market as a whole. This is wrong for two reasons.

Investing in an Economic Downturn

Yes, there is a downturn in the Global economy, numerous factors are combining together in what seems like a perfect storm of negativity to depress the global economy and quell even the hardiest of investors from any attempts at risk taking. Nothing could, or may I say should, be farther from the truth.

Neil Hennessy’s Forecast for 2020

We discuss Neil Hennessy’s thoughts on the market as 2019 concludes, along with his 2020 outlook. Neil explains the key tenets of his investment strategy and why he thinks the market is not overvalued. Neil spends a great deal of his time talking to advisors and he discusses the key themes he is hearing.

The Middle-Class Cost of Medicare for All

While most Americans support providing free medical care to those who need it most, not imposing an additional cost on the middle class has never been accomplished by any country that has universal health care.