- Asset managers roll out new ETFs to tap in to AI buzz “Exchange-traded funds focused on artificial intelligence are proliferating as asset managers offer investors new ways to tap in to the market enthusiasm for AI, even while it remains unclear which companies will emerge as the long-term winners from the latest technology revolution. More than one-third of the two dozen ETFs that include artificial intelligence or AI in their name have been launched in 2024 alone, according to data from Morningstar.” (Reuters)
- Model Providers Shift Focus to RIAs “The portion of registered investment advisors with assets in model portfolios is small. As of the end of 2023, 6% of independent RIA assets and 5% of hybrid RIA assets were managed by model portfolio users, reflecting about a 1% year-over-year increase, Apkarian said. But that's expected to change as RIAs seek to free up their time for clients and demand customization.” (FundFire)
- Why 15% of Funds Just Saw a Change to Their Rating “Today’s enhancement changes the Medalist Ratings we’ve assigned to around 15% of managed investments globally, with most of those changes being downgrades. In addition, we expect another 3% of vehicles to eventually see a rating change as a result of the enhancement in the next year or so.” (Morningstar)
- Franklin Templeton hit by record outflows as clients ditch troubled Western unit “Franklin Templeton is battling the worst quarter for outflows in its history, as reputational damage and poor returns spurred tens of billions of dollars of withdrawals from its fixed-income business just as rivals are being boosted by falling interest rates.” (Financial Times)
- Global active ETF assets surge past $1trn “Actively managed ETFs reached a new milestone of $1trn assets under management globally at the end of September, marking a dramatic shift in how investment products are delivered to investors. According to data from ETFGI, the growth represents a nearly 43% increase from $737.1bn AUM at the end of 2023.” (ETF Stream)
- Traded REITs Heat Up in Summer Rally as NAV REITs Stay Cool “The Stanger NAV REIT Total Return Index remained flat in Q3 after beginning 2024 with two consecutive quarters of modest positive returns. NAV REITs saw a 1.7% decrease in their quarter-over-quarter total NAV, excluding those that transitioned to private NAV REITs during Q3 2024. In contrast, traded REIT indices outside of The DI Wire coverage focus experienced a robust summer rally, delivering a 16% gain in Q3 2024, according to Stanger.” (The DI Wire)
- Wealth managers say alternative assets offer only limited protection from volatility “Part of the rationale for owning alternative assets is they can offer returns unlinked with those of equities or bonds, and perform best when those asset classes are doing less well. Matthew Yeates, deputy chief investment officer at 7IM, said: “If volatility dampening is the only goal, investors may be better off just owning more cash to bring volatility down.” (Financial Times)
- KKR sees more ‘wood to chop’ after nearly trebling wealth platform “The firm saw ‘real strength’ in its private equity and infrastructure wealth products over the past year, head of investor relations Craig Larson said on its Q3 earnings call.” (Private Equity International)
- Why Manager Selection Is Critical for Private Equity Investing “Advisors and their clients who seek to take advantage of the potential rewards of private equity investing should understand the performance dispersion between top- and bottom-performing managers, a factor that heightens both the risk and opportunity. Since private equity investments are designed to be long-term investments where capital can be locked up for years, getting the manager selection wrong can be a vexing obstacle to success.” (VettaFi)
- What Investors Told Us They Want From Advisors “Wealthy investors value advisors who can minimize their tax liabilities and provide individualized financial plans. According to the fees study, wealthy clients are willing to pay professional fees to advisors with expertise in complex financial and tax matters who can develop strategies that align with their specific circumstances.” (Morningstar)
0 comments
Hide comments
