COVID-19 Has Redefined Infrastructure Needs: Implications for the Municipal Bond Market
Infrastructure financing is coming to the municipal bond market. What can we expect?
Monetary Policy Setting Stage for Stock Market Growth-to-Value Rotation?
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.
Financial Planning for Millennial Women: A Checklist for Financial Advisors
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.
Investing in Innovation
The pace of innovation is accelerating. See why Matt Moberg, PM of Franklin DynaTech Fund, thinks the fourth industrial revolution is just beginning.
Artificial Intelligence: The Post-Pandemic US Equity Strategic Allocation
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.
Explore 3 big reasons to break free.
Top Cyber Tips
A hack occurs every 39 seconds. Are you doing everything you can to protect your business?
11 easy-to-execute content ideas to help you jumpstart your podcasts and reach your audience.
Coach Through Biases — Yours and Your Clients’
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.
Is the Federal Reserve Taking the Measure of Japan’s Yield Curve Control?
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.
Loomis Sayles Global Allocation Fund Q&A
The fund's portfolio managers explain their differentiated approach and why they believe it can deliver attractive returns in any market environment.
Midyear Outlook 2020: Will Risks Create Detour On Road To Recovery?
So much has happened already that it may seem hard to believe we’re only halfway through the year. What can we expect for the remainder of 2020? An economic recovery looks promising, but a second wave of the pandemic could set us back. See what Commonwealth CIO Brad McMillan is watching and what other factors could affect how we end the year in our Midyear Outlook 2020: Will Risks Create Detour on Road to Recovery?
Small Cap Stocks: Selective Opportunity
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.
The Fed’s “Not Thinking” Singular Focus
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.”
Digitization Drives Transformation of Key Sectors in Indian Economy
Digitization in banking and retail comes in the wake of a massive cellular network rollout, creating attractive investment opportunities in India.
Holding Credit Through The Cycle
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 Differentiated Approach to Growth Equity Investing
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.
Navigating Uncertain Waters: Preparing for a Post-Pandemic World
Dr. Michael Hasenstab and team examine the economic implications of the global pandemic, then look ahead to reopened economies and a post-virus world.
SPONSORED: Consensus Expectations May Be Overestimating the Recovery Trajectory
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.
5 Strategies for Communicating with Clients in Changing Times
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.
The Salutary Effects of Coronavirus-Stricken Energy Prices
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.
Is it Prime Time for Credit?
Credit markets are moving fast. But periods of maximum uncertainty often make the most attractive entry points.
Fundamental Income: A Total Return Strategy Derived from Long-Term Contractual Cash Flows
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 Path to Recovery: What's Next?
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 Local Effects of a Global Pandemic: Loomis Sayles' Municipal Sector Outlook
The Loomis Sayles municipal credit research team offers their current outlooks on key sectors.
For Portfolio Resistance to COVID-19, Ingredients Matter
Portfolios comprised of top-notch equities and bonds coming into the economic and market crises should do even better coming out of it.
Achieving Financial Fitness: A Checklist for Your Female Clients
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.
SPONSORED Global Equities: Embracing Uncertainty
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.
Investment Outlook: China First to Face Wave of Uncertainty
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.
Redefining the Wall Street Cogito
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.
Beyond the Label: An Assessment of the Green Bond Market
Loomis Sayles analysts dove deep into the rapidly evolving green bond market. Read on for our findings.
The Secure Act – The gift that keeps on giving
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.
Outlook 2020: Slower Growth, with a Chance of Recession
This expansion cycle has lasted much longer than usual, and major market indicators have moved closer to recessionary levels. Does this mean there’s a downturn on the horizon? Brad McMillan, Commonwealth’s chief investment officer, looks at several factors that should determine where we’re headed and explains why a recession—if there is one—won’t be as bad as many fear.
Our Active Emerging Markets Solution vs. Passive Investing
In this white paper, we reflect on the relative role, advantages and disadvantages of active vs. passive investing in emerging markets.
Top Ten Reasons Emerging Markets Poised to Rally in 2020
After false starts in the last few years, we believe emerging markets are set to deliver strong performance in the year to come.
It's All About the Algorithm: Three Ways to Assess AI in Investment Strategies
Quantitative managers are creating investment strategies that harness AI. How should investors assess them?
Loomis Sayles Investment Outlook
Economic and corporate earnings growth will likely have to beat consensus expectations for investors to earn above-average returns in the year ahead.
Thornburg’s 2020 Outlook
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.
Threading the Needle: 2020 ETF Market Outlook
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:
- Stay invested, but limit downside risks
- Actively balance risk in the hunt for yield
- Position to temper the impact of macro volatility
Register for access to our 2020 ETF Market Outlook
Loomis Sayles Investment Grade Bond: Who We Are
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.
The Case for Greater China Exposure in Global Equity Portfolios
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.
Using NDX Option Strategies to Improve Risk-Adjusted Returns
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.
Behavior Modification Guide: How to Motivate Clients to Execute Change
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.
Understanding Model Marketplaces & Managed Account Platforms: 17 Questions to Ask
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.
Improving Financial Outcomes & Client Confidence Through the Confluence of Human & Digital Advice
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.
Rising LNG Tide Changes How It’s Priced and Traded
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.
Analyzing ETF Liquidity: It’s a Fluid Process
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.
Forecasting the Next Recession: Will Rate Cuts Be Enough?
History shows that once our recession forecast model reaches current levels, aggressive policy can delay recession, but not avoid it.
Managing the Return of Volatility: Using Artificial Intelligence to Protect Passive Investment
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.
Loomis Sayles' Investment Outlook
Despite the potential for choppy trade, we could see mid-single-digit returns over the next 12 months.
Secular Risk Creates New Opportunities in High Yield Bonds SPONSORED
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.
A Smarter Solution to Municipal Investing
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.
Why a Next-Gen Advisor Can Be Good for Your Business
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.
Five Habits of the Happiest Retirees
We surveyed retirees about their happiness and uncovered 5 common habits. See the results and help prepare your clients for a happy retirement.
The Weather Report
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?).
Midstream Metamorphosis: Is Your Midstream ETF/ETN Still Relevant?
- 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
Brazil’s Flight of the Chicken
The market has bid up Brazilian assets in anticipation of economic reforms, but the optimism should be well measured and individual securities well picked.
The Offense and Defense of Disciplined Portfolio Balance
“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?
Asia High Yield Credit: A Distinctive Emerging Markets Story
Why we think Asia high yield credit can offer a distinctive opportunity.
Loomis Sayles' Investment Outlook
We expect modest total returns through year-end, as long as corporate earnings and the global economy continue to expand.
Dividend Investing in a Low Rate Environment
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.
Can Anything Beat Tech? How ‘Bout Homebuilders?
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.
Strategic Alpha: A Potential Complement to a Core Bond Allocation
Loomis Sayles Strategic Alpha is a benchmark-agnostic core bond alternative, offering the potential for greater diversification in a risk-aware framework.
The Fed’s Dueling Mandates
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.
An Infrastructure That Future-Proofs Your Business
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.
Relative Weight Spotlight – Highlighting U.S. Outperformance
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.
Unlocking Relative Value: Optimizing Team Structure for Multisector Fixed Income Investing
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
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.
Gold and Gold Miners and Mergers. Oh My.
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.
Emerging Market Stocks Still Have Room to Run
Despite sprinting higher so far this year, developing country equities appear well positioned to sustain their momentum, and with less volatility.
New Low-Cost ETFs That Track Popular Mutual Funds
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.
Loomis Sayles' Investment Outlook
Markets anticipating rebound in growth and continued economic expansion.
Relative Weight Spotlight – Cyclicals Dominate Defensive Sectors
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.
How Commonwealth’s Investment Research Team Can Make a Difference for You and Your Clients
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.
Build Resilient Portfolios to Counter Volatility
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.
2019 Sector Teams' Outlook
Our 2019 Outlook from the Loomis Sayles Sector Teams shares insights and opportunities across every sector, from bank loans to currencies.
10 Macro Themes to Watch in 2019
Ten charts illustrate the macroeconomic trends most likely to shape Fed policy and investment performance in 2019 and beyond.
Rolling Over Your Retirement Savings
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.
Loomis Sayles' Investment Outlook
Modest total returns and above-average volatility may define the risk asset landscape in 2019 as economic and corporate earnings growth slow.
Navigating A Downhill Climb: 2019 ETF Market Outlook
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.
Fixed-Income Outlook: Jogging to the Exits
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.”
How to Command the Best Purchase Price for Your Business
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 Strategic Income Portfolio Manager Q&A
Pacific FundsSM Strategic Income Portfolio Manager Brian Robertson discusses the portfolio management team’s investment process and philosophy.
Strategies for Targeting Organic Growth
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.
Loomis Sayles' Investment Outlook
Growth and inflation within the world’s largest economies should remain near current levels, keeping the positive operating environment for companies intact.
Staying the Course
Pacific FundsSM portfolio managers discuss how they were able to “stay the course” during the market volatility in early 2018.
2018 Perspectives Mid-Year Outlook: Tailwinds, Headwinds, and Investment Implications
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.
Investment Outlook July 2018
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.
INVEST LIKE THE PROS: Using Liquidity Premiums to Drive Better Portfolio Outcomes
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.
High Yield in Variable Markets
Christopher Romanelli examines the factors that could support the high yield market in a world of tighter monetary policy.
Enhanced Portfolio Diversification: The Power of "&"
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 “&”.
May White Paper: Looking Under the Hood
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.
Loans or Bonds?
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.
Is the Widening LIBOR-OIS Spread Cause for Concern?
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.
Little Ado About Volatility
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.
Loomis Sayles Investment Outlook
We expect the upward trend in rates to continue, but at a fairly slow pace that shouldn’t disrupt risk assets.
Bricks and Clicks: The Changing Nature of Retail
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.
The Risk Contribution of Stocks: Part 3
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.
Loomis Sayles FX Trading: Capabilities, Strategies & Solutions
FX trading involves infinite complexities, opportunities and risks. Loomis Sayles breaks down some of the concepts and describes the firm's approach.
The Risk Contribution of Stocks: Part 2
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.
Bricks and Clicks: The Changing Nature of Retail
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.
When Active Beats Passive: A White Paper by Baird
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.
The Risk Contribution of Stocks
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.
The Importance of Asset Allocation vs Security Selection
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!
Why NAFTA Negotiations Are Stuck: A Look at Key Issues
NAFTA is facing an existential threat. The US and its global trading partners could be entering uncharted territory.
Is The Best Yet To Come For Equity Investors?
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.
Sector Teams' Outlook
What’s ahead for major market sectors in 2018? Experts from research, trading and portfolio management at Loomis Sayles weigh in.
2017 Year-End Review
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
Pacific Funds Perspectives Annual Outlook
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.
Value, Growth, or Both? A Framework for Allocating to Small-Cap U.S. Equity
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.
How to Navigate the Amazon Risk in the Consumer Space
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.
Skis And Bikes: The Untold Story Of Diversification
“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.
20-Point System Template
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!
The State of High Yield
Does the high yield bond market offer enough value at this point in the credit cycle?
Yes, You Can Eat Sharpe Ratios
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.
Portfolio Manager Viewpoints
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.
Navigating Risks and Opportunities in the Global Market
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.
A Decade of Results: The Past, Present, and Future of Schwab Fundamental Index Funds
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.
Investment Outlook: October 2017
Eight years into its run, the global expansion looks poised to continue. What might this mean for asset markets?
When Credit Diverges from Equity
It’s a common misconception that credit and equity performance move in tandem. When can divergence occur and how can credit investors prepare?
Fiscal Policy to the Forefront
Pacific Funds portfolio managers discuss the current market environment, fiscal and regulatory policy, and their broad positioning for the second half of 2017.
Risk-Adjusted Income: A Prescription for Yield-Starved Investors
Many income-seeking investors may need a new approach in today's low-yield environment. Loomis Sayles can offer a unique solution.
Agency MBS: Still Attractive for Now
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.
Pacific Funds Perspectives Mid-Year Outlook
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 FundsSM investment managers discuss insights, themes, and trends that may shape the market in the remainder of 2017.
Loomis Sayles' Investment Outlook
Investor confidence in the global outlook for monetary policy, economic growth and inflation has kept risk appetite high and volatility contained. Can it continue?
5 Best Practices for Philanthropists
Your clients look to you for guidance and advice when crafting long-term financial plans. Understanding your clients’ charitable interests and passions can provide a unique opportunity for you to expand your relationship and help create a long-term strategic plan that also impacts their favorite charitable causes. For additional insights on guiding your clients through the development of their charitable plan, Vanguard Charitable has gathered five best practices for philanthropists, drawing on years of experience working with donors and charities.
Sector Performance During the Summer Months
Portfolio Manager Viewpoint - Credit Markets
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.
Navigating the Investing Complexities of China
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.
Loomis Sayles' Investment Outlook
The ongoing economic and profits recoveries mean global risk assets could see modest upside from here.
Climbing the Wall of Optimism
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.
Euro Area Political Risks Rise To The Fore
In 2017, the risks to the euro area stem from politics, not the economy.
Down to Business: The Outlook for Stocks in the First 100 Days of the Trump Administration
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.
2017 Sector Teams' Outlook
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.
Equity Market Review and Outlook: Q4 2016
For the first time in quite a while, Washington could prove to be a source of positive earnings catalysts in the months ahead.
Top Five Macro Themes for 2017
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.
Under Control: How a Disciplined Approach Can Keep Investors Focused
Investing for the long term is not a new concept, yet an increasingly large body of research suggests that investors are prone to short-term thinking. Although behavioral finance has identified the importance of taking emotion out of investing, for many this is easier said than done. While behavioral modifications can help, we believe that a risk-controlled investment approach can help limit rash decisions, while keeping investors focused on the long term.
Bond Market Review and Outlook - Q4 2016
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.
Reshuffling the Deck: Industry Impacts of a Trump White House
A Trump White House: Potential Market Impacts of the US Election
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?
Managed Futures: How to Diversify with Trend Following
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.
Equity Market Review and Outlook
We expect equities to continue their slow uptrend into next year.
Quarterly Macro Insights: October 2016
Senior Global Economist James Balfour explores some of the key macro themes influencing global markets.
Bond Market Review & Outlook
Fiscal policy developments could create bond market volatility going forward, but historically low interest rates are likely to persist.
The New Conundrum
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.
Advisor Perspectives featuring Cognios' Thought Leader
Credit Migration: Worse Than You Think, Not as Bad as You Fear
Is This the Endgame for the Current M&A Boom?
Back to the Future: Revisiting the Scourge of Secular Stagnation
Equity Market Review & Outlook
Quarterly Macro Insights: July 2016
Bond Market Review & Outlook
Take a look inside the minds of modern investors.
Six Ways to Grow AUM with Financial Services Cloud
How to Exceed Client Expectations in Wealth Management
Quarterly Newsletter | Q1 16
The Modernization of Private Equity – Understanding and Implementing Private Equity Today
Managed Futures and CTAs: A Smorgasbord
Actively Managed Exchange-Traded Products at Age Seven
The timeless (and timely) case for high-yield bonds
Unlocking the Credit Cycle
Telemedia's New Reality Show: Cord-Cutting, Shaving and Cord-Nevers
Quarterly Macro Insights: April 2016
Rethinking Investment Returns & How Math Impacts Results
Allocating to “Liquid Alternatives” – The Importance of Correlation
Return on Equity: A Compelling Case for Investors
Understanding Today’s Affluent
The Dividends of a Quality and Growth Factor Approach
The Fed’s Clock Just Struck Thirteen
Managed Futures During Equity “Crises”– An Update
The New Core: Diversification Based Investing
The Best Time to Accumulate Long Credit Bonds May Be Now
A Comeback for Value: Pessimism Paves the Way
The Wild West of 2016
Growth Investing in Times of Market Volatility
Fees at a Crossroads: Adopting an advisory fee model that reflects your true value.
8 Steps Toward a Tech-Savvy Practice
Financial Turning Points: New Money, Old Habits
Diversifying with Alts
The Power of Mid-Caps: Investing in a "Sweet Spot" of the Market
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