Advisors Need to Bring Clients’ Kids into the Conversation
Parents are looking for guidance on how to talk to their children about money. Retirement Director Ben Rizzuto explains how advisors can address this need while establishing themselves as the family’s primary wealth manager – all without putting their other client relationships at risk.
Topical Questions Amid a More Political Economy
From Fast Food to Fitness: The Rise of Whole Business Securitizations (WBS)
The emerging WBS (Whole Business Securitizations) market is gaining popularity with issuers, as it can offer them lower-cost borrowing. In turn, the market may offer opportunities for investors because the securities are collateralized by sticky cash-flow streams based on stable royalty income.
Active versus Passive in Retirement Plan Menus: Avoiding a Black-and-White Mindset
Catching Falling Angels: Finding Opportunities in Crossover Credit
Widen Your Competitive Advantage by Narrowing Your Niche
Shaking off complacency takes courage and creativity, often with the rewards seeming like more effort than they’re worth. As you take stock of your client base, it’s easy to focus on quantity rather than quality. For example, I coach an advisor who for the better part of a year had been stuck on one challenge. Every time we had a conversation, he would tell me that while his business was in fine shape overall he felt ambivalent toward a larger number of his clients than he would like.
The Importance of Being Active: Why Passive Exposure in High Yield Is Not Enough
The U.S. high-yield market’s modest return last month obscured significant divergence of returns within the index. Portfolio Managers Seth Meyer and Brent Olson discuss why this dispersion demonstrates that opportunities exist in high yield, and why they believe active management is a key component of capitalizing on those opportunities.
Trade Wars, ESG and Demographics in China
In this Q&A, May Ling Wee, a Portfolio Manager for the Chinese Equities strategy, responds to key concerns for investors in China, including the impact of trade friction; environmental, social and governance (ESG) factors; and demographic issues.
Summertime Limbo – How Low Can Yields Go?
Revamping the Client Segmentation Process
Busy is not the same as effective. In our “always-on” environment, we are constantly trying to keep up with what’s in front of us at any given moment. This approach does not lend itself to long-term planning, daily stress management or reflection on the question, “Am I doing the right things to create success in my business?”
Tariffs Come to Main Street
Markets reacted negatively – and for good reason – to last week’s news that the Trump administration would introduce tariffs on most of the Chinese exports not already included in earlier rounds of the trade dispute. This latest round consists of products catering most directly to consumers and, given that personal consumption comprises roughly 70% of the U.S. economy, this one may hurt.
UK Politics: New Leader, Old Problems
Drug Pricing Reform Shifts Course
Last week, the Trump administration abandoned plans to overhaul drug rebates in Medicare while a federal judge ruled against listing prescription drug prices in TV ads. But U.S. drug reform is far from over, with implications for investors, says Portfolio Manager Andy Acker and Health Care Research Analysts Luyi Guo and Rich Carney.
Are Markets Heading Toward a Binary Outcome?
Investment management tends to be a field of specialization, with much time spent conducting in-depth research into a particular asset class. Yet it also can prove advantageous to take a more holistic view of the broader market to glean insight into its future trajectory and that of the economy.
Mid-Year Market GPS: Disruptive Forces
European Elections: Centrists Struggle but No Breakthrough for the Far Right
The European Parliament elections on May 23 produced damaging results in varying degrees for both the European Parliament and the main parties in the UK. Bethany Payne, a Global Bond Portfolio Manager, explains the main points and provides a brief assessment of the impact on markets.
The Booming U.S. Stock Market … Will It Last?
Stein’s Law, a principle from the late Herbert Stein, chairman of the Council of Economic Advisers during the Nixon administration, states, “If something cannot go on forever, it will stop.” Mr. Stein’s words are a good reminder that knowing if and when to act is never easy.1 The idea seems relevant today in another context: the stock market, which has been booming. After realizing an 18% average annualized total return since the low in early March 2009 (i.e., the bottom of the Global Financial Crisis) through the end of April 2019, investors in the U.S. stock market may ask themselves: “Will this last?”
Greater Clarity on Fed Policy, But Not on Financial Market Outcomes
A central component of U.S. monetary policy over the past decade has been forward guidance, that is, transparency on future policy moves. As recently as last summer, Federal Reserve (Fed) officials maintained the drumbeat of additional rate hikes, speaking often of an elusive neutral rate. Also laid out was their planned balance sheet roll-off of Treasuries. Officials’ rhetoric shifted in December as they announced the central bank would effectively pause its normalization program.