In the last five years, the number of advisors moving to the independent Registered Investment Advisor ("RIA") space has increased significantly, with custodians and platform providers working together to help advisors reach their full potential. This move to independence brings new opportunities with it, including unique paths like the hybrid RIA model. Hybrid RIAs maintain both a brokerage and advisory business - a combination that can benefit their clients and businesses alike.

Get an overview of the different types of hybrid models. See if one aligns with your goals as you explore key topics:

• Momentum in the hybrid RIA channel
• The hybrid model defined
• Opportunity within the hybrid model
• Differences among the hybrid RIA models

Download this white paper to discover how the hybrid RIA model could help to transform your business.

Why are more and more advisors choosing independence? The answer is simple: The Registered Investment Advisor (RIA) model has become more than a place to break free from tradition. Custodians and platform providers work together to help position advisor teams to reach their full potential. It's now the destination for those in search of a better way of doing business – one where more freedom and control allows both advisors and their clients to thrive.

As you embark on your journey, consider the:

• Growth of the RIA channel*
• Benefits of independence
• Differences among the five business models for the modern RIA
• Experiences of advisors who chose independence

Download this white paper to discover the five business models for the modern RIA.

The value rally has recently fizzled, and growth stocks have regained ground, narrowing the performance gap considerably. However, despite strong fundamentals, growth stock valuations are extreme relative to value stocks. Our Asset Allocation Committee continues to favor value stocks as potential catalysts could be supportive.

“Deep Water Waves” represent the powerful long-term forces that face investors, fundamentally altering the economic, political, and public policy foundations for asset prices.

While it’s tempting to focus on passing market storms, Franklin Templeton Investment Institute explores these forces that look to shape the future of our world—and the investment landscape.

You’ve put time and effort into cultivating great relationships with your clients. As you prepare to leave the wirehouse for independence, learn how to mitigate risk, announce your departure, and create a seamless transition process for your assets.

ESG and SRI investing can no longer be considered a fad but navigating the ESG investment landscape can be confusing. This whitepaper describes 3EDGE Asset Management’s approach to sustainable, impact investing, including an emphasis on ETFs that help reduce the world’s carbon footprint.

See how 3EDGE’s ESG Strategies allow investors to put their capital to work in a way consistent with their values and with the confidence that they are working with a recognized leader in tactical, multi-asset investing -- actively adjusting client portfolios between risk-on and risk-off, depending on our mar­ket outlook.

The ongoing pandemic and resulting economic challenges have left many investors steering an unpredictable course. Meanwhile, the probable upward trajectory of tax rates will likely bring more challenges.

There are four hazards you and your clients should be aware of when considering how to manage taxes on investment portfolios. Request this client-ready guide today and learn more.

Now may be a great time to meet with your tax-sensitive clients and uncover taxable wealth opportunities. Actively managing taxes on investments despite tax rate uncertainty will help you and your clients be in the best position for building their after-tax wealth through the remainder of 2021 and beyond.

Investing overseas has long been a prudent strategy to increase diversification and alpha potential within an overall equity allocation. More recently, non-U.S. investment allocations have dwindled as the U.S. stock market has continued its ascent and investors have followed those gains. But all categories cycle eventually and irregularly, and equity markets are adept for catching investors off guard. While the list is long, we highlight four reasons investing internationally remains a sound investment strategy, and why investors should assess their equity allocations today to ensure they are properly diversified and well positioned for the next 10 years—and beyond.

What You Need to Know
Municipal bonds are the cornerstone of many portfolios, but efficiently navigating today’s complex, fragmented and ever-changing muni market can be overwhelming. Unfortunately, many managers research, evaluate and trade municipal bonds like it’s 1995, missing out on opportunities because they can’t find them in the chaos. The right technology can change that.

The dynamics of the passive investing boom have created both opportunities and risks for market participants. This case study explores these features and introduces a new asset class, Equity Plus Convexity, as a viable solution.

The business development companies (BDCs) sector could follow a growth path similar to REITs.

In March and April, our Asset Allocation Committee modestly decreased the allocation to equities, given elevated stock valuations and a moderating economic outlook. In our view, key performance drivers may peak in the near term, which could temper potential equity returns going forward.

Breaking away from your wirehouse is a life-changing decision. If you know it’s the best move for you and your clients, you’ve taken the first big step. We can help you with what comes next. Download our guide to learn about picking an affiliation model, choosing the right firm to partner with, and starting a new business.

Even with high valuations, we believe earnings growth can beat consensus expectations. In this environment, we’re not shying away from the risk-on trade.

The world is reopening – are your clients’ portfolios positioned for this future? Inflation fears top the list of investor concerns, but that’s not the only key issue. Our semi-annual Partner Perspectives: Markets at Mid-Year outlook provides insights and analysis into potential market-movers to help you and your clients prepare for the rest of 2021.

Eleven experienced portfolio teams at our independent affiliates discuss a wide range of potential opportunities and headwinds in the months ahead. Topics include:

• The inflation hedge that’s poised for accelerated growth.
• Why the Fed may be in the late stage of a high-stakes game of monetary Jenga.
• How COVID-19 transformed some areas of healthcare.
• The kind of small-cap opportunities that are positioned to rise – and the kind that may be headed for a reckoning.
• For international investors, emerging or developed?

Economic recovery from the pandemic appears set to strengthen across regions and countries in the second half of 2021. A key question is whether growth will be strong enough to meet earnings expectations without fueling inflation. Valuations for many equity averages are stretched, but there may be outperformance potential in some non-U.S. markets.

According to many studies, momentum has been one of the best performing factors over the long run while the Nasdaq 100 Index has been one of the best performing indexes for many years as well. In this study, combining the two together increased both absolute and risk-adjusted returns over the Nasdaq 100 Total Return Index alone.

What’s the story for the rest of the year? In his Midyear Outlook 2021, Commonwealth CIO Brad McMillan says it will depend on whether the economy can find its way through a maze of problems—including rising inflation, labor shortages, and supply-chain gaps. Despite these risks, we’ve made real progress, and a return to normal could soon be in sight.

Loomis Sayles' Macro Strategies team shares their latest views on the credit cycle and key drivers they're watching.

Historically, equities have tended to generate higher medium- and long-term returns than fixed income and cash assets. Our analysis suggests that over the 95 years that ended in December 2020, most investors could have accumulated larger balances by following higher-equity glide paths, even after experiencing large market declines near retirement.

It’s no secret that investors today are wrestling with their fixed income portfolios. On one hand yields remain historically low. On the other hand, fiscal and monetary forces seem poised to boost inflation and send rates higher. We’ve already witnessed this as we emerge from the pandemic, but how fast and how high will rates go? And more importantly, what will this do to traditional fixed income portfolios?

Victory Capital offers an innovative alternative income strategy that aims to capture attractive equity income while neutralizing the equity risk. Learn more about this approach, how it differs from some of the other alternative income funds, and why it might be appropriate as a long-term strategic allocation.

Leaving your wirehouse for the independent channel means you have an exciting opportunity to redefine yourself, what you do, and who you serve. Let our checklist help you create a strong brand identity that resonates with your ideal clients and sets you apart from the competition.

Find out what happens to advisor value when tax-smart planning and investing are offered to clients. In this year of historic government stimulus packages, it seems likely that taxes are only going up as we emerge from the global pandemic.

Discover how an active tax-managed investing approach can potentially provide significant value to your clients. Don’t miss out on this way to further sharpen your value with clients. How do you compare? Get the study.

Outperforming the market, requires looking different than the market. Actively managed, concentrated portfolios are one way to help diversify risk while adding to alpha potential and can be a welcome complement to passive allocations. At Diamond Hill, our equity strategies range from concentrated to highly concentrated—learn more about two of our highly concentrated strategies: Large Cap Concentrated and All Cap Select.

Metal and mining companies face some risk of being saddled with stranded assets, but the story for these companies is complex and nuanced.

Many investors typically focus on bank loans only when the Federal Reserve is expected to raise interest rates in the short term. While loans have historically performed well under those conditions, we believe the asset class can potentially add value as a strategic allocation in various market environments within the economic and interest rate cycles.

Thinking about leaving the wirehouse? Starting your own firm isn't for everyone, but it can be a rewarding journey for you and your clients. Read this case study to learn about two former wirehouse advisors who made the leap to independence, the challenges they faced, and the success they found.

Just over a decade ago, digital assets were a theoretical concept, announced to the world through an anonymous white paper. Today, Coinbase, a digital asset exchange, is trading on the Nasdaq exchange. Coinbase’s recent direct listing represents a watershed moment for the digital assets industry. Learn more about what Coinbase’s listing means for the growth of the digital assets ecosystem.

We believe risk assets have further to run as the credit cycle continues to move forward.

With shifting economic conditions and ongoing regulatory changes, timing can be everything when it comes to the success of your clients’ financial plans. Uncover key areas to focus on as you consider making important plan changes, including estate plans and charitable giving options, health care and life insurance, and beneficiary designations.

We are witnessing countries using yield curve control policies—despite many unknown factors and potential repercussions.

The challenges of the current fixed income environment may not be fully understood by investors. For that reason, we have identified three issues that we believe investors should consider: focusing on the diversification power of bonds, their performance potential, and their liquidity profile for 2021.

Signs of market euphoria are everywhere. Animal spirits are running hotter now than during the last market peak just before the coronavirus-induced lockdowns began. While this current stock market rally may continue for some time, it is not too early to identify the warning signs that may tip the onset of the next bear market. In his latest whitepaper, 3EDGE Asset Management’s President & CIO, Steve Cucchiaro, discusses how evaluating current market conditions in a historical context can add perspective and help to see the forest from the trees.

One of your best chances for growth comes from client interactions and networking activities. That’s where additional assets, opportunities, and referrals come from. Simply put, the more time you spend with clients and professionals already in your circle, the greater your productivity potential.

Sustainable investing in the United States continues to accelerate at a rapid pace. Here, we dive into the sustainable investing landscape and how the Shelton Green Alpha Fund (NEXTX) fits in a client portfolio with Portfolio Manager, Garvin Jabusch. NEXTX was the top U.S. Equity ESG Fund for 2020 according to Morningstar.

Engaging on ESG issues across our portfolios is part of our commitment to providing superior investment returns.

Examining your marketing strategies and committing them to paper can transform your ideas into a powerful platform for success. 5 Steps to an Effective Marketing Plan will help you create an organized, thoughtful written plan to raise your competitive profile and enhance your ability to attract and retain valuable clients.

Have major central bankers and fiscal authorities effectively pursued Modern Monetary Theory in practice, if not in name, as debt monetization has lost its stigma?

We believe key ingredients are in place for global financial markets to continue discounting the recovery phase of the credit cycle.

Much has been made of the demise of value investing in recent years. This paper will highlight:

• The current opportunity for value relative to growth
• The unique opportunity within value
• The most common counterarguments put forth by growth advocates

Learn how 529 plans can help you:

• reduce current and future tax liability

• pass wealth on to children, grandchildren and future generations

• fully control assets even though assets are outside your estate

After a year that offered the best of times and the worst of times, how might COVID-19 vaccines, a new administration and more global cooperation support a healthy rebound in 2021? Download our 2021 Market Outlook to get 3 strategies for the way forward.

What’s the story for the economy and markets in 2021? According to Commonwealth CIO Brad McMillan, the recovery has been steady and much faster than expected. Even with ongoing uncertainties surrounding the coronavirus and some anticipated setbacks, McMillan outlines why we may still be on track to something approaching pre-pandemic normal by the end of 2021. Download his 2021 outlook.

We have consistently observed that the market is inefficient at pricing specific risk. Loomis Sayles' full discretion investment style follows two core philosophies to help capitalize on this persistent inefficiency in corporate credit and drive excess return potential.

Financial professionals today are finding it harder to stand out from the crowd, in part due to increasingly restrictive selling agreements. For advisors and other professionals feeling frustrated or boxed-in, it could be worth exploring a move to a financial services provider that provides access to a wider range of investment products (including alternatives) and that prioritizes giving financial professionals the freedom and support to structure and operate their advisory business the way they see fit.

U.S. equities have had a great run for more than a decade. Investors may now be over-exposed to domestic stocks, particularly given the size of overseas equity markets and the number of idiosyncratic businesses within them.

Take advantage of the 2020 annual gift tax exclusion of up to $15,000 ($30,000 for joint filers), without incurring federal gift tax.

The Annual Gift Tax Exclusion for 2020 is $15,000 per individual. This planning assumes no other gifts being made to the donee by the contributor. Contributions to an account for a beneficiary between $15,000 and $75,000 can be prorated over a five-year period without incurring federal gift taxes or reducing an investor's unified estate and lifetime gift tax credit amount of $11.58 million (2020). If the account owner dies before the end of the five-year period, a prorated portion of the contribution will be included in his or her taxable estate. Federal gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given beneficiary in the year of contribution if the investor has used up his/her unified estate and gift tax credit.

All information contained herein is intended for general informational purposes only. Such information does not constitute legal, tax or financial advice on the part of Franklin Resources, Inc. and its affiliates. Investors should consult with their legal, tax and financial professionals concerning their personal circumstances. The information contained herein is derived from publicly available sources, but its accuracy cannot be guaranteed.

An investor should consider the Program’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement and Participation Agreement (www.scholars-choice.com/pds) contains more information and should be read carefully before investing. If an investor and/or an investor’s beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits such as financial aid, scholarship funds and protection from creditors that are only available to state taxpayers investing in such plans.

Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Investors, LLC, Legg Mason Investor Services, LLC, or Franklin Resources, Inc., or its affiliates and are subject to risks, including loss of principal amount invested.

Franklin Resources, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Scholars Choice is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Investors, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Investors, LLC and Legg Mason Investor Services, LLC are subsidiaries of Franklin Resources, Inc. Such entities became subsidiaries of Franklin Resources, Inc. in connection with Franklin Resources, Inc.’s acquisition of Legg Mason, Inc. in a transaction that closed on July 31, 2020. Thornburg Investment Management, Inc. is not affiliated with Franklin Resources, Inc.

©2020 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC is a subsidiary of Franklin Resources, Inc.

Fixed Income ETFs may help you achieve greater diversification, transparency and control. Make the most of your fixed income strategies through ETFs.

Electoral surprises spur stock and bond market turbulence, but sensibly diversified and balanced portfolios don’t depend on political outcomes.

Hotchkis & Wiley explores potential catalysts for improvement in an unloved industry.

• Poor investor sentiment in banks has created a rare valuation opportunity
• Banks are generally well-positioned to withstand low interest rates and pandemic-related credit losses
• Current bank valuations and capitalization levels create a compelling case for investing in this unloved industry

Implementing a comprehensive estate plan requires meticulous coordination of the financial, legal, and tax aspects of your client’s life. By asking the right questions and being prepared for issues that may arise, you can take a central role in the planning process and cement yourself as a trusted advisor. Our guide provides the steps you can take to help ensure that all your client’s needs and wishes are being met.

Key events related to fiscal policy, social distancing and COVID-19 could dictate US economic performance. Our outlook is broadly constructive.

Emerging markets have come of age, but to capture opportunities while avoiding risks, a disciplined, fundamental, balanced approach matters.

Hiring a next-gen advisor can benefit every aspect of your business and set you up for long-term success and growth. Download our free white paper to learn insights and actionable steps you can take to help you find the perfect candidate and retain top talent to position your firm for the future.

Delaware statutory trusts (DSTs) offer accredited investors a wide range of attractive benefits, including passive income potential and capital gains tax deferral under section 1031 of the Internal Revenue Code. Learn why DSTs make an ideal investment for a broad range of accredited investors.

Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts and qualified opportunity zone funds. Founded in 2012, the investor-centric company has completed more than $2 billion in transaction volume.

CIO Austin Hawley discusses the dramatic underperformance of value stocks relative to growth stocks over the past decade—and why a strategy focused on intrinsic value is still relevant. A shift toward a service- and knowledge-based economy focused on intangible assets, and the emergence of internet-based businesses means traditional definitions of value have become less useful. However, price remains an important factor in determining future returns.

We believe it's time for ESG investing to become a must-have ingredient in portfolios. Put ESG investing into action by exploring 3 trends we expect will drive ESG growth and opportunity:

• The Great Reset in a Turbulent 2020
• Investors Reshaping the Investment Industry
• Boomers Preparing to Transfer Wealth

Behavioral factors can significantly impact a client’s financial wellness. This executive brief focuses on four — Future Concept, Impulsiveness, Materialism and Financial Literacy — to provide insights into identifying and addressing each factor during financial coaching, which financial professionals can use to create the optimal plan for each client.

Infrastructure financing is coming to the municipal bond market. What can we expect?

Federal Reserve and other major central bank stimulus should benefit high-quality value stocks and foster inflation’s “green shoots” as the global economy emerges from recession.

Although many millennial women’s needs will overlap with their more established counterparts, younger female clients face unique challenges and opportunities. Our complimentary checklist shows how you can guide these clients to become more knowledgeable, empowered, and confident about their financial outlook. Learn more about why millennial women are an emerging clientele, ways advisors can serve them better, and the right questions to ask to encourage independence.

The pace of innovation is accelerating. See why Matt Moberg, PM of Franklin DynaTech Fund, thinks the fourth industrial revolution is just beginning.

As investors make post-pandemic plans, the US equity opportunity appears attractive. Plotinus reasons that a reallocation of crisis-driven cash positions and the geopolitical setting will favor broad allocation to the asset class. In an affront to convention, the white paper points out that US equities may act as a hedge against cash, not the other way around, as well as protection against the cost of lost opportunity. The firm offers added perspective on the role of artificial intelligence in exploiting stock-market positions.

Download Coach Through Biases - Yours and Your Clients' to learn how to reframe your client experience through ongoing engagement and conversations about risk — the risk of not meeting goals that is.

That's because when your clients think about risk, chances are they aren’t referring to technical terms like standard deviation. Coaching them throughout your relationship can help combat emotional decision-making and maximize the likelihood of achieving success.

After seven years of massive amounts of QE and nearly four of yield curve control, the BoJ has yet to sustainably keep inflation at its 2% target or revive GDP growth meaningfully.

The fund's portfolio managers explain their differentiated approach and why they believe it can deliver attractive returns in any market environment.

Since 2014, mega-cap stocks have substantially outperformed small-cap stocks. However, today we sit at the widest valuation gap between small caps and large caps in nearly two decades. This doesn’t seem to be a case of simple mean reversion. Rather, there have been several fundamental factors contributing to the performance gulf between large caps and small caps over the past few years—some of which have been more structural in nature, and many of which still exist today.

Supporting the beaten-down labor market is the Federal Reserve’s “major focus,” not inflation nor risk asset prices. Doing “whatever we can and for as long as it takes.”

As the economy moves into a credit repair phase, uncertainty related to the future implications of COVID-19 persists.

Digitization in banking and retail comes in the wake of a massive cellular network rollout, creating attractive investment opportunities in India.

Bain Capital Credit examines the historical performance of US equities, leveraged loans, and high-yield bonds in periods of high, low, and moderate GDP growth from January 1997 to September 2019. The authors use this data to make the case for why investors are better off holding credit assets through the cycle instead of attempting to time the markets.

A manager's alpha thesis can offer insight into an investment strategy's performance potential. Our growth equity alpha thesis is the differentiated philosophy & process behind what we do every day.

Dr. Michael Hasenstab and team examine the economic implications of the global pandemic, then look ahead to reopened economies and a post-virus world.

The continuing threat posed by the coronavirus, necessitating ongoing social distancing, means it is hard to gauge how long the current economic disruption might last. Consequently, we believe consensus expectations may be overestimating the trajectory for improvement and that a return to a “normalized” environment may take longer than anticipated.

In unsteady times, steady talk with your clients can make all the difference in enabling you to strengthen bonds and solidify trust with them. You don’t have to have all the answers—but an effective communications approach can help them feel anchored and ensure that your practice keeps thriving. Our complimentary guide outlines five clear-cut strategies for helping you talk through the uncertainty and position yourself as your clients’ solid ground.

While energy investment retrenches in the wake of COVID-19’s historic impact on oil and gas markets, consumers will benefit as economies reopen. Selective and patient investors should too.

Credit markets are moving fast. But periods of maximum uncertainty often make the most attractive entry points.

As investors struggle to find attractive yield-generating opportunities in a lower-for-longer interest rate environment, many are diversifying into corporate real estate. But not all real estate is created equal. Fundamental Income focuses on the Net Lease real estate sector, which encompasses corporate properties leased to single tenants under long-term, “triple-net” leases. Fundamental Income’s sector-defining approach can help financial advisors access total return strategies that target sustainable income and predictable growth. The key is long-term, contractual cash flows.

The coronavirus has dealt a severe and unexpected shock to people - and markets - worldwide. Our senior investment leaders examine where we go from here, outlining how they see a recovery taking shape once the crisis passes.

The Loomis Sayles municipal credit research team offers their current outlooks on key sectors.

Portfolios comprised of top-notch equities and bonds coming into the economic and market crises should do even better coming out of it.

Numerous surveys show that women often defer to their male partner regarding financial decisions. By doing so, they may be tragically unprepared to deal with their financial affairs in the event of divorce or death of a spouse. But there’s a solution: get women involved in financial planning by sharing your knowledge. Our free checklist details key steps toward helping female clients understand and gain control of their finances.

While times like these are challenging for investors, we believe they can also help sharpen conviction in underlying investments. We have not made any wholesale changes. With a longer-term approach to investing, we believe the fear of others will continue to present us with attractive opportunities.

In a rapidly evolving environment, our credit analysts offer their early takes on how key industries might fare.

We are monitoring two separate coronavirus scenarios, one in China and on in the U.S., in terms of when the health impact peaks and the extent of the economic slowdown. Against this backdrop, we highlight several actionable ideas.

Artificial intelligence has opened up the financial world to new opportunities. While an early focus has been on the role that AI plays in creating back-office efficiencies, we confidently explore the impact on asset management. A common approach is one in which AI assists the investment process, but further innovation addresses the impact of AI on decision-based trading. We conclude by suggesting that the industry is likely to grow comfortable with a hybrid approach to adopting artificial intelligence, with humans still driving the creative process, despite rapid AI adoption.

Loomis Sayles analysts dove deep into the rapidly evolving green bond market. Read on for our findings.

The Secure Act provides financial advisors multiple opportunities throughout the coming year and beyond to engage in meaningful interactions with their clients and industry contacts regarding the impact of the new rules, and potentially create new relationships with prospects. This whitepaper will help you take advantage of the gift that will keep on giving and learn more about how you can grow your business by leveraging the benefits of The Secure Act.

In this white paper, we reflect on the relative role, advantages and disadvantages of active vs. passive investing in emerging markets.

After false starts in the last few years, we believe emerging markets are set to deliver strong performance in the year to come.

Quantitative managers are creating investment strategies that harness AI. How should investors assess them?

Economic and corporate earnings growth will likely have to beat consensus expectations for investors to earn above-average returns in the year ahead.

Risk assets begin 2020 at lofty price levels. Are stocks fully valued, or rather a relative value versus global bonds?

Read a conversation with Thornburg Chief Investment Strategist Brian McMahon who surveys the unfolding investment landscape.

Get 3 portfolio strategies for the new year

Heading into 2020, there are a lot of positive signs in the market. However, the margin for error in 2020 will likely be as small as it’s been in a very long time. Read our 2020 ETF Market Outlook to find out how to:

1. Stay invested, but limit downside risks
2. Actively balance risk in the hunt for yield
3. Position to temper the impact of macro volatility

Register for access to our 2020 ETF Market Outlook

Value investing is a part of who we are and how we manage the Investment Grade Bond Strategy. Learn more about our research-driven, contrarian approach.

China has come to the forefront of investors’ minds, and has become a larger portion of global indices over the past years while dominating global headlines. We believe investors’ slow reaction to the rise of China as a global economic power creates an opportunity for investors who are willing to lead the pack.

Today’s investors are fully aware of the perils of downside stock market risk. There is also a concern for their need to have enough money to retire which has led to advisory discussions on ways to participate in market gains while mitigating principal drawdowns.

Do you have clients who are overspending, have lost sight of their goals, or are stuck in a state of inertia? This guide explains the steps you can take to help them regain control of their financial lives. Understanding the principles of behavior modification, including the five stages of change, is the key to leading clients to execute change and build true confidence. Plus, you won’t want to miss these tips on coaching best practices and keeping your empathy in check.

If you’re a wealth management firm considering outsourcing your investment operations, choosing the right managed account platform can be a time-consuming and difficult decision. When comparing platforms, it’s critical to ask the right questions and challenge the answers given so you fully understand the solutions that are offered. Download this paper to learn the key questions to ask your platform provider, and what the answers will mean for your business and your clients.

The financial services industry is evolving as a result of advancements in risk management strategies, new technology and deeper integration of products into the advice ecosystem.

“Improving Financial Outcomes and Client Confidence Through the Confluence of Human and Digital Advice,” discusses how the coordination of human and digital advice, modern product design, aggregated data, and technology-enabled solutions is helping clients visualize their entire wealth landscape and empowering advisors to provide greater clarity on how clients can improve financial results across all assets in a household.

Supply and demand growth in liquefied gas benefits some producers more than others. For investors in U.S. upstream gas producers and Gulf Coast LNG infrastructure, caveat emptor.

Many investors use point-in-time statistics for the most recent 30 or 90 trading days to assess the liquidity profile of an ETF. This is a problem because — with the exception of a few highly liquid ETFs — a fund’s liquidity profile can change in different market regimes, especially in periods of high volatility. This paper explores how ETFs’ liquidity dynamics impact total cost of ownership (TCO), underscoring why investors need to look beyond a single period statistic when analyzing liquidity.

History shows that once our recession forecast model reaches current levels, aggressive policy can delay recession, but not avoid it.

We examine how the shift favoring passive investment and the surge in artificial intelligence-based applications are crossing paths. These two factors are highly complementary in how they can be brought together to address investor concerns emerging in the post bull-market cycle.

In discussing artificial intelligence, we move away from a black-box mentality, framing both concept and practice. We believe that AI is just as understandable as any other investment approach, offering enhanced asset-management capabilities in a period of potentially greater volatility.

Despite the potential for choppy trade, we could see mid-single-digit returns over the next 12 months.

A growing number of companies are facing secular risks that could impair their long-term growth prospects. While this trend poses challenges for many traditional issuers of high yield bonds, it is also creating a new generation of companies in the high yield market that offer attractive opportunities.

Traditional muni indices are concentrated in higher quality bonds and may have more interest-rate risk.

Passive products that track traditional municipal bond benchmarks may give investors excessive exposure to duration (interest-rate) risk, because of the way traditional indices are constructed.

A strategic municipal bond approach, with a focus on diversification and the flexibility to navigate interest-rate risk and credit risk, may help address this challenge.

We surveyed retirees about their happiness and uncovered 5 common habits. See the results and help prepare your clients for a happy retirement.

In this issue of The Weather Report, we wonder what the ultimate end game is regarding China trade and tariffs (Road to Nowhere), explore renewed interest in the gold market (What's Going On With Gold – An Interview), consider the status of the market cycle and implications for the Fed and credit (Economic Hot Takes), provide our latest Interesting Reads, and analyze the state of the yield curve (U.S. Treasury Curve – How’d We Get Here?).

• Investors who own Master Limited Partnership (MLP) dedicated index ETFs or ETNs are facing a critical problem, and they may not even know it
• Since 2014, the number of midstream companies structured as MLPs has slowly and steadily decreased
• Midstream companies structured as C-Corporations (C-Corps) now account for nearly 40% of the market capitalization of the investible midstream universe
• What should investors do about it? Consider an index, and an investment product that tracks it (ticker: PYPE), that seek to identify and select the C-Corps and MLPs we believe best represent U.S. midstream energy fundamentals, agnostic of entity structure

The market has bid up Brazilian assets in anticipation of economic reforms, but the optimism should be well measured and individual securities well picked.

Uncover new opportunities to expand your practice and help your clients navigate the do’s and don’ts of IRA rollovers in retirement planning.

“There’s no free lunch” is an axiom often heard in both investing and economics. But what if there’s a way to limit the pain of market downdrafts and still gain from the rebounds? Can disciplined security selection, sound portfolio construction and calibrated rebalancing, as position size and market dynamics evolve, improve the odds for risk-adjusted outperformance, if not necessarily bagging something for nothing?

Why we think Asia high yield credit can offer a distinctive opportunity.

We expect modest total returns through year-end, as long as corporate earnings and the global economy continue to expand.

For yield-seeking investors, dividend-paying stocks may present a compelling risk-adjusted return opportunity over bonds.

Investors have become increasingly concerned about the sharp rise in BBB rated corporate debt, and it’s easy to see why. BBB debt has risen over 200% since 2008 and represents about 50% of the investment-grade corporate market’s debt.

Amid the hand wringing over whether the U.S. and China are coming closer together or further apart on a trade deal, a dark horse has emerged in sector investing that seems immune to the cyclic boom and bust of this headline-driven market.

Loomis Sayles Strategic Alpha is a benchmark-agnostic core bond alternative, offering the potential for greater diversification in a risk-aware framework.

The Fed is tasked with keeping prices stable, unemployment low and long-term interest rates moderate. The monetary alchemy with such unstable elements is coming under review.

Commonwealth Financial Network® offers a range of affiliation models for wherever you are—and wherever you're going—in your business evolution. Learn about the vast infrastructure, the people, and the indispensable service that are here to support you and your clients, whether you choose to maintain a mix of fees and commissions or you decide to operate as a fee-only advisor.

• After bottoming in December 2018, the ratio of U.S. stocks to international stocks is re-approaching the all-time highs that they hit in November thanks to strong performance from the Russell 1000®. As illustrated below, this ratio remains considerably above its historical average. In fact, its north of two positive standard deviations of the average.

• Specifically, U.S. shares have outperformed international shares by 3.11% year-to-date, 10.26% over the last 1 year, 4.91% annualized over the last 3 years and 7.07% annualized over the last 5 years. With increased long exposure to the U.S. and risk-controlled short exposure to international markets, the Russell 1000®/FTSE All-World ex US 150/50 Net Spread Index is up 13.77% on the year.

Given the rise of passive strategies in both equity and fixed income markets, today’s investors often hold actively managed strategies to a higher standard of performance than they have in the past. The failure of some “core bond” strategies to meet investor expectations has prompted them to search for alternative solutions.

The Weather Report provides insight into current events, market outlooks and topics we find interesting that may help you achieve success in reaching your clients’ financial goals. Inside this issue, you’ll find our analysis on current events, what to watch for when it comes to inflation and where the opportunities are in fixed income.

In one of its biggest six-month moves since 2016, the price of gold has rebounded about 10 percent from a 52-week low it set back in August 2018. But the precious metal once again found itself hitting resistance in the $1350-$1360 per ounce range. It’s now been about five and a half years since gold topped out at $1,400.

Despite sprinting higher so far this year, developing country equities appear well positioned to sustain their momentum, and with less volatility.

A simple, but yet extremely effective way to help save clients money and gain their trust is to provide cheaper highly correlated ETF alternatives to their mutual fund investments. Raltin runs 2.5 Billion correlations on all combinations of 40,000+ ETFs, mutual funds and stocks to find the most correlated ETF to mutual funds. Just go to Raltin.com and and search for the mutual fund to find ETF alternatives. For example, Raltin’s page for T. Rowe Price Blue Chip Growth Fund Inc (TRBCX) shows that the iShares Russell Growth ETF (IWF) has a 0.97 correlation to TRBCX.

Markets anticipating rebound in growth and continued economic expansion.

While defensive sectors continue to lead cyclicals by 3.23% over the last six months, cyclicals have bounced back over the last three, outperforming defensives by 5.43%, helping bring twelve-month performance firmly in the lead for cyclicals. The market leadership via cyclical sectors highlights the fact that market participants continue to favor firms with higher betas and greater economic sensitivity than the market thanks to reduced concerns about rising rates and optimism regarding China-U.S. trade relations.

Institutional-quality research for you and your clients. Guidance on investment management programs, equities, fixed income, and alternatives. A dedicated SRI/ESG resource. Direct access to our chief investment officer. That’s the value-add you get from Commonwealth Financial Network’s Investment Research team.

The resurgence of volatility in late 2018 took many investors by surprise, given all the prevailing signs of a healthy U.S. economy (e.g., strong gross domestic product (GDP) growth, low unemployment, robust corporate earnings). This volatility was driven by growing investor uncertainty—from interest rates and inflation to trade disputes and geopolitical tensions. 2018 was a year of divergence between economies and markets. While most countries saw their economies expand last year, the performance of their respective financial markets was poor.

Our 2019 Outlook from the Loomis Sayles Sector Teams shares insights and opportunities across every sector, from bank loans to currencies.

Ten charts illustrate the macroeconomic trends most likely to shape Fed policy and investment performance in 2019 and beyond.

Have clients that need help with an IRA rollover decision? This white paper is an investor-friendly look at all the options and considerations for retirement account rollovers. It’s a tool for advisors to help educate their clients on opportunities to explore, including self-directed investment choices, as well as mistakes to avoid.

Modest total returns and above-average volatility may define the risk asset landscape in 2019 as economic and corporate earnings growth slow.

Corporate profits and economic growth remain positive, but are past their peak. Investors may soon find that reaching the summit was the easy part. The real challenges occur in the climb down. Chief Investment Strategist Michael Arone, CFA and Head of SPDR® Americas Research Matthew Bartolini, CFA present three strategies to position for a market with potentially more downside than upside.

Guggenheim Investments’ recently published Fourth Quarter 2018 Fixed-Income Outlook reflects its investment management team’s view that the risk of a sudden widening in spreads next year is rising and could shock fixed-income investors who fail to position defensively now. “The key here is to manage this shift in a timely manner,” said Scott Minerd, Global CIO and Chairman of Investments. “Call it a jog to exit credit and liquidity risk.”

Some advisors today are rushing to sell their practices after very little forethought, and they could be leaving money on the table. If you want to get what your practice is worth, focus on four key tenets—business, management, financial, and market—to demonstrate your value to potential buyers.

Pacific Funds^SM Strategic Income Portfolio Manager Brian Robertson discusses the portfolio management team’s investment process and philosophy.

Growing your business through practice acquisition is a good goal, but it's a long-term strategy that can take years to accomplish. How can you meet your growth objectives in the meantime? By focusing on these client-facing activities that are proven revenue drivers.

Growth and inflation within the world’s largest economies should remain near current levels, keeping the positive operating environment for companies intact.

The Loomis Sayles Multi-Asset Income Team shares their approach to creating sustainable, consistent income through any market environment.

Pacific Funds^SM portfolio managers discuss how they were able to “stay the course” during the market volatility in early 2018.

Given an improving global growth story and rising asset prices, what do we expect for the remainder of 2018? In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market for the rest of the year.

Momentum in the US economy relative to the rest of the world should keep the Fed on its current path to higher short-term interest rates.

At a time of low expected returns, low current yields and economic uncertainty, individual investors are demanding new options. Recent advances in product design enable investors to access less liquid and illiquid institutional-caliber alternatives in a “user-friendly” format which preserves the integrity of the underlying strategy. These new product designs contrast mutual funds which may contain watered-down liquid versions of the original.

New thinking about liquidity, its role in a portfolio and improved access to a wide spectrum of alternatives enables investors to deploy less liquid strategies and capitalize on liquidity premiums.

Christopher Romanelli examines the factors that could support the high yield market in a world of tighter monetary policy.

Most investors, whether institutional or individual, tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky. Investors also tend to believe that investing in alternatives, such as managed futures, necessitates sacrificing some of their stock and/or bond asset allocation. This Insight explains how investors can have both the diversification benefits of managed futures, and their traditional stock/bond portfolio. Thus, the power of “&”.

In a recent Webinar, we introduced the Equinox “Ampersand” concept. Here, we try to provide not just a recap, but a more in-depth “under the hood” look at some of the details of the structure, to which we could not do justice during the relatively short Webinar. We also try to address some of the questions and concerns we have heard.

With current yields for high-yield bonds and floating-rate loans nearly equal, investors give up little income potential to move higher in the capital structure with loans, which helps reduce downside risk and volatility in their portfolio. The portfolio managers of Pacific Asset Management, manager for Pacific Funds ℠ Fixed-Income Funds, discuss how to navigate these markets.

The LOIS spread is at its widest point since the financial crisis. It may be unnerving, but we don't think it's a sign of trouble in the financial system.

Spikes in volatility levels can impact returns on a fund’s portfolio. The relatively low leverage point (1.25X) for Portfolio+ ETFs provide less impact of negative compounding over time for long-term investors.

We expect the upward trend in rates to continue, but at a fairly slow pace that shouldn’t disrupt risk assets.

In recent years, the retail industry has experienced major shake-ups in regard to shifting business models, including the increasing popularity of e-commerce. Businesses that rely on revenue exclusively from physical stores—once the all-important showrooms for goods and services—have not only become less relevant, but also less efficient from a cost perspective.

Part 3 of 3: Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky.

FX trading involves infinite complexities, opportunities and risks. Loomis Sayles breaks down some of the concepts and describes the firm's approach.

Part 2 of 3: Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky.

In recent years, the retail industry has experienced major shake-ups, including the increasing popularity of e-commerce. But the rise in e-commerce has not impacted all retail sectors equally. To understand the implications of this shift, we interviewed the portfolio managers of Rothschild Asset Management Inc., subadvisor for Pacific Funds℠ U.S. Equity Funds.

While many U.S. investors have shifted their holdings from actively managed accounts to indexed vehicles in an effort to capitalize on recent equity market tailwinds, the relative performance of passive strategies over the past decade doesn't necessarily justify that decision. This white paper from Baird Equity Asset Management explains why.

Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky. “The Risk Contribution of Stocks” is Part 1 of a 3-part series.

Virtually nobody disputes that Asset Allocation has the greatest impact on portfolio performance and yet most Advisor-designed portfolios are dominated by active funds trying to “win” through security selection.

If you want to construct resilient portfolios that can thrive under most market conditions (including periods like the 2008 Global Financial Crisis), it’s time to consider global adaptive asset allocation. We’ve prepared this exclusive whitepaper to explain why. Don’t miss it!

NAFTA is facing an existential threat. The US and its global trading partners could be entering uncharted territory.

In the current long bull market, many investors are wondering if the stock market can continue its steady rise. Are the markets and global economy “as good as it gets,” or is “the best yet to come” for equity investors? Chautauqua Capital Management explores this question in its recent market update and global outlook.

What’s ahead for major market sectors in 2018? Experts from research, trading and portfolio management at Loomis Sayles weigh in.

It’s tempting, and quite natural, to want to attribute strong performance in any given year to superhuman work ethic, insight, or talent. The fact is, our superb results this year reflect less on the value of our strategies, and more on the role of luck on short-term investment results. What made 2017 a perfect positive storm for certain multi-asset strategies? And what features make certain multi-asset strategies more likely to prosper in the years ahead? All this and a lot more insights in ReSolve’s 2017 Annual Review

Are low levels of volatility and continued growth sustainable? In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market in 2018.

While investing solely in a small-cap core strategy can provide a set-it-and-forget-it approach, those who believe in rebalancing or taking tactical views may prefer both small-cap value and small-cap growth strategies.

There’s no questioning Amazon's impact on the consumer sector. The market continues to reward the company for its ambition, demonstrated success in taking market share, disruption of traditional business models, and expansion into new verticals and channels. However, this doesn't mean other opportunities don't exist in the consumer space.

In this recent white paper, Baird Equity Asset Management explores what some have dubbed "The Amazon Effect" in the changing consumer sector. Read on for timely insight on the risks and opportunities in today’s markets.

“The “free lunch” of diversification is that it allows investors to keep more of their money invested in high return assets while lowering the overall risk of the portfolio. Learn how to build explosion resistant, bulletproof portfolios to weather the markets’ most hostile environments. We guarantee you’ve never learned about diversification like this before.

Adopt a rainmaking mind-set to boost revenue. Download our free template outlining the 20-point system that can help you stay focused on revenue-generating activities. Learn practical strategies and techniques you can start implementing today to increase referrals, optimize strategic alliances, network more effectively, market to clients and prospects, and hold yourself accountable for your own success!

Does the high yield bond market offer enough value at this point in the credit cycle?

Investors are much more likely to achieve their target returns, regardless of investment environment, by investing in diversified portfolios with scaled exposure along the Capital Market Line. We showcase a live case study and describe steps investors can take to achieve very attractive results.

Given relative-value considerations and the potential for a return of volatility, bank loans may serve as a strong complement to other risk factors in an overall diversified portfolio. In this article, Pacific Funds portfolio managers, JP Leasure and Michael Marzouk, discuss the loan market, outlook, and portfolio strategy for the remainder of 2017.

Uncertainty abounds in the global marketplace – what are the risks and opportunities, and what is an investor to do in today’s markets? Chautauqua Capital Management discusses how to invest in the current environment.

It’s been 10 years since Charles Schwab Investment Management, Inc. first launched the Schwab Fundamental Index Funds. Fundamental Index strategies were among the first to hit the market within the strategic beta universe.

Eight years into its run, the global expansion looks poised to continue. What might this mean for asset markets?

It’s a common misconception that credit and equity performance move in tandem. When can divergence occur and how can credit investors prepare?

Pacific Funds portfolio managers discuss the current market environment, fiscal and regulatory policy, and their broad positioning for the second half of 2017.

Many income-seeking investors may need a new approach in today's low-yield environment. Loomis Sayles can offer a unique solution.

The Fed is withdrawing from the MBS market, but we see a number of positives supporting agency MBS over the next 6 to 12 months.

Uncertainty was a major theme in the first half of 2017, which had a pronounced impact on the financial markets. In times like these, it’s important to work with investment managers who are experienced at navigating these markets. Pacific Funds^SM investment managers discuss insights, themes, and trends that may shape the market in the remainder of 2017.

Investor confidence in the global outlook for monetary policy, economic growth and inflation has kept risk appetite high and volatility contained. Can it continue?

The post-U.S. presidential election environment has seen a sharp rally in risk assets and economic optimism. In this note, David Weismiller, portfolio manager for Pacific Asset Management’s investment-grade bond strategies, discusses the market environment and current investment positioning.

After an extremely rapid industrial transformation, China sits at a crossroads that presents both compelling opportunities and significant risks. However, investing success demands a deep understanding of China’s long-term plans, political landscape and key trends. Brian Beitner, Managing Partner of Chautauqua Capital Management, discusses China’s complexities and inherent investment opportunities.

Recent trade actions against Chinese aluminum imports may result in higher tariffs. Ironically, the US and China have their interests aligned in this area.

The ongoing economic and profits recoveries mean global risk assets could see modest upside from here.

Will markets be able to climb the wall of optimism given the recent surge in consumer and business confidence driven by the policy actions of the new U.S. president's administration? Pacific Funds portfolio managers discuss market sentiment, potential economic growth, and their outlook for the balance of 2017.

In 2017, the risks to the euro area stem from politics, not the economy.

President Trump’s campaign promises may have important implications for the economy and the stock market. In this Q&A, our U.S. equity investment professionals discuss how the first 100 days of the new administration may impact the market.

We’re modestly optimistic about 2017, but there are a host of unknowns as we become acquainted with our new President Trump, what policies he may pursue, and how they will impact the world body politic. Loomis Sayles' sector teams weigh in on potential opportunities in the year ahead.

Uncertainty was a major theme in 2016, which had a pronounced impact on the financial markets. In times like these, it’s important to work with investment managers who are experienced at navigating these markets. In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market in 2017.

For the first time in quite a while, Washington could prove to be a source of positive earnings catalysts in the months ahead.

What a difference a few months can make. The world economy now looks to be on sounder footing, with economic data surprising to the upside, developed and emerging market economic momentum improving, global manufacturing recovering and the US profits recession ended.

Markets were in reflation mode during the final weeks of 2016, sending the 10-year US Treasury yield to its highest level in more than two years. While economic indicators have shown modest improvement, most of the rise in yields is built on lofty expectations. In the coming years, we think a strengthening macro backdrop may support modestly higher yields.

Donald Trump’s presidential upset has stunned financial markets, which had heavily discounted a Clinton victory. What might Trump’s policy proposals mean for markets and key components of the US economy going forward?

With the Fed poised to raise rates and equities trading close to historical valuation peaks, the prospect of lower returns and higher correlations between asset classes has left many investors seeking sources of return which are not correlated to traditional stock and bond performance.

Trend following is one strategy that has the potential to profit from rising rates without depending upon positive equity market performance, however, allocating to the space does present some unique challenges. In a new whitepaper, CSAM seeks to address key implementation questions regarding allocating to trend following, including why now might be an appropriate time to invest and how to fund and size an allocation.

We expect equities to continue their slow uptrend into next year.

Can the shift to value account for the improved relative results for many small-cap active managers in the last year?

Senior Global Economist James Balfour explores some of the key macro themes influencing global markets.

Fiscal policy developments could create bond market volatility going forward, but historically low interest rates are likely to persist.

How can the Fed uphold a dual mandate while recognizing the interdependence of global policies, economies, and financial conditions? Pacific Funds portfolio managers assess the new conundrum that Federal Reserve Board Chair Janet Yellen is facing and what it means for the remainder of 2016.