The Power of Outsourcing Investment Management
Financial advisors face an industry in transition. Clients want more personalized, ongoing advice and financial planning support, not just a portfolio. And they want to see value in every advisor interaction to justify the fees they pay. Is outsourcing the most overlooked way to alleviate client-advisor strain?
Loomis Sayles' Investment Outlook October 2021
Markets tend to get a little bumpier at this stage of the expansion, but we believe risk assets should still perform well.
Annuity Innovation in the RIA World
Registered investment advisors (RIAs) and financial professionals working within trust companies have been resistant to using annuities for years. In this paper, K. Orian Williams, JD, LL.M, CFP®, highlights exciting new developments in many advisory-friendly annuities. Forward-thinking fiduciary financial professionals may just change their views about these viable strategies.
Recent advisory annuity Innovations:
- Ability to bill on the clients’ assets without triggering taxes or reducing benefits
- Tech-enabled and easier to use
- No withdrawal charges
- Institutionally priced investment options
The Many Uses of Advisory Annuities for Fiduciary Financial Professionals
Modern annuities are sophisticated strategies that can address the core financial-planning areas of retirement: income, tax, and legacy planning. In this paper, K. Orian Williams, JD, LL.M, CFP®, explores the many ways advisory annuities can be useful to fiduciary financial professionals within these important areas and how they can be used to enhance clients’ portfolios.
Annuities can be used to:
- De-risk portfolios using advisory indexed annuities as a bond/fixed-income complement
- Relocate tax-inefficient investments into mirrored tax-deferred subaccounts
- Move clients from commissionable annuities that no longer serve their needs
- Provide income strategies
- Defer and potentially reduce high taxes within irrevocable trusts
SPONSORED If Taxes Increase, Are Your Clients’ Portfolios Ready?
Investors have renewed interest in tax-efficient investment models in search of better after-tax returns. Municipal bonds can be impactful in a tax-efficient portfolio, but equity tax-efficiency can be harder to find. Investors could consider tax-advantaged investment vehicles, dedicated tax-efficient strategies, and active mutual funds with tax-efficient alpha.
A Quick Guide to Charitable Giving Options
Clients looking to give to charity often already know where they want their money to go based on a personal connection or passion for a particular cause. Where they’ll need your help is deciding how to make those donations.
A Quick Guide to Charitable Giving Options reviews a variety of giving methods—offering potential benefits and other considerations for each—and includes a glossary of related terms. With it, you’ll be better equipped to help your clients find the right giving method based on their philanthropic goals.
For many investment advisors, the ’08 financial crisis and COVID-19 pandemic highlighted just how valuable the Registered Investment Advisor (RIA) model can be for their businesses. With more freedom and control to do what’s best for their clients, independence has helped advisors soar when the odds are stacked against them. In this four-part white paper, we share insights from real RIAs on how the RIA model has helped them navigate turbulent times, the unique advantages they’ve enjoyed through independence, and why now is the best time for you to make the transition.
Download this white paper to discover how the RIA model has helped advisors thrive, with discussions centered around:
- The strengths of the independent model, with firsthand accounts from RIAs who overcame challenges and better served their clients
- Facing the future head-on and how advisors are positioning their firms to beat future challenges
- How independence, and the flexibility it offers, is within your reach
- Seizing the opportunity to break away when it is needed most
Schwab Tech Smarts, Insight #1
The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.
This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.
In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.
We’ll cover powerful and practical tech insights and guidance, including:
- Ways technology can help you anticipate client needs and deepen relationships
- How technology can make firms more agile and secure
- Advice based on real-world success
Download this case study to learn how your firm can power a better client experience.
What Kind of Independent Advisor Will You Be?
The kind of support a Registered Investment Advisor (RIA) receives is based on their personal and professional goals. Whether you want to pursue independence as an owner, an affiliate, or a teammate, Schwab can help you through the transition and support you throughout the life of your business.
In this white paper, we highlight the five most common RIA profiles while exploring topics like:
- The different levels of control an RIA can have over their business
- The benefits of platform provider support, upfront financial support, and existing infrastructure
- Ways to pursue independence without being self-employed
No matter which path to independence you choose, custodians and platform providers will be ready to help you reach your full potential. Download this white paper to learn more.
Mastering the Moment
As a Registered Investment Advisor (RIA), knowing how the industry will change and what tomorrow’s clients will want can make you unstoppable. At Schwab Advisor ServicesTM, our mission is to equip you with the innovative products and solutions that firms and investment advisors need to maximize their potential.
In this white paper, we paint a picture of the future of the investment industry – and how independent RIAs will thrive in it – with attention given to these specific areas:
- The needs of high-net-worth investors
- Growth through mergers and acquisition (M&A) activity
- Cultures centered on innovation
- Technology that moves us forward
- The era of dramatic pricing changes
These critical trends have put RIAs in a position to excel, and as a trusted custodian, we are here to help you seize the opportunity. Download this white paper to learn more.
More and more advisors are choosing independence to create the future they imagine for themselves and their clients. Custodians and platform providers work together to help position advisor teams to reach their full potential.
As a Registered Investment Advisor (RIA), you serve clients and design your business the way you know is best. Download this white paper and take a closer look at:
- RIA channel growth
- Benefits of independence
- Differences among RIA models
- Economics of RIA firms
- Planning considerations
- The custodian’s role
You’ll also receive time-tested steps and a roadmap for making your own transformation.
Schwab Tech Smarts, Insight #2
The past year has taught us to reimagine how we connect, learn, and work. As an independent RIA, having the right digital tools and platforms can offer a simpler, faster, and more secure way to support your clients and manage your business.
This case study explores how Clear Sky Wealth’s Stephanie Barnier has boosted her firm’s efficiency by going independent and customizing her tech stack using Schwab’s flexible, best-in-class technology platform. Now, she’s running a modern, digitally enabled practice that is known for being client-forward, fast-acting, and flexible.
Her story covers key findings about tech you can use in your journey, including:
- How tech can give you an edge right from the start
- What committing to a digital-first approach truly entails
- Being ready to support clients in any environment
- Surprising opportunities tech offers
- Her simple three-step plan for taking your tech further
To read more about Stephanie’s story and hear her advice about choosing the tech that’ll make your firm ready to support clients in any environment, follow the link below.
The Economics of Independence
The Registered Investment Advisor (RIA) model is an opportunity to build your own brand and put your clients first – but how do the economics work? Is the transition to independence worth the cost? Does the earning potential compare to wirehouse and independent broker-dealer models?
In Schwab Advisor Services’ latest white paper, The Economics of Independence, we evaluate key areas related to the financial success of a firm. By comparing revenue potential, cost control, and business equity, you can have a better idea of how the economics of independence stack up against those of your current practice.
Download this white paper to explore the rewards of independence.
Learn why billion-dollar teams are breaking away to pursue the independent model and redefine the advisor industry.
- Discover the converging forces fueling the Registered Investment Advisor (RIA) movement.
- Learn the advantages teams gain as RIAs.
- Explore the highly evolved support ecosystem including custodians and platform providers.
- See why experts are calling this the dawn of a new RIA era.
Download this white paper to learn more about how the RIA model is changing the advisor industry.
Choosing Your Custodian
There’s no denying that the Registered Investment Advisor (RIA) model brings more freedom and control to those who pursue it. But did you know that choosing the right custodian can make an even greater impact on your future? Schwab Advisor Services™ goes far beyond the basics, with in-depth assistance to help you choose the business model and solutions that are best for you – and continues to support you for the long haul.
Our white paper can help you decide what’s important to consider when choosing a custodian. We’ll go over various topics, including:
- Four essential steps to success
- Different services a custodian can offer
- The value of a benchmark study
Download this white paper to see how the right custodian can impact your business.
Going Independent as a Hybrid RIA
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.
Charting Your Own Course
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.
SPONSORED Sticking with Value
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: Long-Term Drivers That Face Investors
“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.
Client Retention Checklist for Breakaway Advisors
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.
A Tactical Approach to ESG Investing
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.
4 Tax Hazards You’ll Need to Overcome in 2021
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.
4 Reasons to Invest Internationally
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.
Technology Enables Municipal Investing at the Speed of Alpha
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.
Head, Shoulders, Knees, and… Tails? How Passive Investing is Changing the Structure of Markets
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.
BDCs: Tailwinds for Growth in an Overlooked, Underfollowed Sector
The business development companies (BDCs) sector could follow a growth path similar to REITs.
SPONSORED A Moderating Outlook for Equities
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.
So, You Want to Break Away from Your Wirehouse—Now What?
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.
Investment Outlook July 2021
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.
Partner Perspectives: Markets at Mid-Year 2021
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?
SPONSORED Positioning for a New Economic Landscape
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.
Applying Momentum to the Nasdaq-100 Index
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.
Midyear Outlook 2021: The Long and Winding Road Back to Normal
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.
What's Next for the Credit Cycle?
Loomis Sayles' Macro Strategies team shares their latest views on the credit cycle and key drivers they're watching.
SPONSORED A Different Perspective on Sequence-of-Returns Risk
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.
Hunting for yield in all the right places
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.
Building a Brand Identity: A Checklist for Breakaway Advisors
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.
Russell Investments: 2021 Value of an Advisor Study
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.
Concentrating on Success
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.
The Challenge of Stranded Assets in Metals and Mining
Metal and mining companies face some risk of being saddled with stranded assets, but the story for these companies is complex and nuanced.
SPONSORED Loans May Provide Solid Returns in Multiple Rate Environments
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.
Breaking Away to Break Through
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.
Coinbase Listing Signals Digital Assets Maturity
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.
Investment Outlook April 2021
We believe risk assets have further to run as the credit cycle continues to move forward.
How To: Auditing Clients’ Financial Plans
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.
Yield Curve Control: An Experiment in Real Time
We are witnessing countries using yield curve control policies—despite many unknown factors and potential repercussions.
SPONSORED Three Critical Questions Facing Fixed Income Investors in 2021
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.
Market Euphoria: How Long Can it Last?
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.
Strategies for Targeting Organic Growth
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.
Insights on Sustainable Investing
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.
The Loomis Sayles Global Fixed Income Team Approach to ESG & Corporate Issuers
Engaging on ESG issues across our portfolios is part of our commitment to providing superior investment returns.
5 Steps to an Effective Marketing Plan
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.
Has MMT Infected Central Bankers?
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?
Loomis Sayles Investment Outlook January 2021
We believe key ingredients are in place for global financial markets to continue discounting the recovery phase of the credit cycle.
The Revival of Value Investing
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
Estate Planning: Benefits of a 529
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
2021 ETF Market Outlook: The Way Forward
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.
Outlook 2021: A Return to Normal?
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.
Credit Check: the Full Discretion Approach to Credit Selection
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: Expand Your Opportunities in an Evolving Financial Advisory Landscape
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.
Why International Equities?
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.
Squeeze 6 Years of Gifting into just 2 Months
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.
Everything You Need to Know: Fixed Income ETFs
Fixed Income ETFs may help you achieve greater diversification, transparency and control. Make the most of your fixed income strategies through ETFs.
Keeping Portfolio Balance in Election-Driven Market Volatility
Electoral surprises spur stock and bond market turbulence, but sensibly diversified and balanced portfolios don’t depend on political outcomes.
Banks: Investing in an Unloved Industry
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
An Estate Planning Blueprint for Financial Advisors
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.
Loomis Sayles' Investment Outlook
Key events related to fiscal policy, social distancing and COVID-19 could dictate US economic performance. Our outlook is broadly constructive.
Backing Strong Businesses Amidst a Changing EM Landscape
Emerging markets have come of age, but to capture opportunities while avoiding risks, a disciplined, fundamental, balanced approach matters.
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.
Introduction to Delaware Statutory Trusts
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.
Value Investing, Evolved
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.
ESG Investing: From Tipping Point to Turning Point
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
THE IMPACT OF BEHAVIORAL FINANCE ON THE PSYCHOLOGY OF INVESTING
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.
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.
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.
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.”
Investment Outlook July 2020
As the economy moves into a credit repair phase, uncertainty related to the future implications of COVID-19 persists.
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.
Pandemic and Price War: Industry Analysis of the Current Environment
In a rapidly evolving environment, our credit analysts offer their early takes on how key industries might fare.
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.
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.
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.
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.
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.
Building Your Business with IRA Rollovers
Uncover new opportunities to expand your practice and help your clients navigate the do’s and don’ts of IRA rollovers in retirement planning.
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.
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.
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.
Multi-Asset Income: Sustainable Income Focused on Quality and GRIT
The Loomis Sayles Multi-Asset Income Team shares their approach to creating sustainable, consistent income through any market environment.
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.
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?
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.
Aluminum: Where the US and China Align
Recent trade actions against Chinese aluminum imports may result in higher tariffs. Ironically, the US and China have their interests aligned in this area.
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.
When does active beat passive in small-cap?
Can the shift to value account for the improved relative results for many small-cap active managers in the last 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
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
For more information on submitting your thought leader White Paper contact: [email protected] or (781) 376-0050