- Morningstar’s 2025 Investment Outlook for Financial Advisors “As we look for opportunities heading into 2025, our focus naturally shifts to regions outside the United States, where we believe investors may achieve better risk-adjusted returns. Our asset-class valuation models point to low-single-digit returns in the United States, while we expect some of the most attractive opportunities abroad to deliver double-digit returns over the next decade.” (Morningstar)
- How Morgan Stanley Stepped Up its Courtship of Near-IPO Employees as Wealthy Clients “Morgan Stanley is looking to add employees of startup companies as wealth management clients as U.S. investment banks prepare for a revival of initial public offerings. Last week, the bank signed an agreement with Carta, a shareholder management company for startups backed by private equity and venture capital firms. Carta estimates about 2,000 of its 40,000 clients are headed toward an IPO.” (Inc.)
- Active ETFs Gain Appeal Across Wealth Management “Active management is gaining momentum across the ETF space as issuers capitalize on the migration of money away from mutual funds. The growing appeal of active management, in both equity and fixed income ETFs, also coincides with a frothy point in the equity markets that historically presents opportunities for active strategies to generate alpha.” (ETF.com)
- Why the election rally could continue “The rally was supported by hopes for stronger growth and a lighter regulatory touch, particularly in financials. With the election and initial market reaction now behind us, what should investors expect into the end of the year? I would focus on a few themes: continued equity strength, led by cyclical stocks, and a steeper yield curve.” (BlackRock)
- Fund Providers Flock to Vanguard’s ETF Share Class “The new year opened the floodgates. Another 30 mutual fund providers have submitted requests with the SEC since Jan. 1, 2024. Industry giants State Street and BlackRock threw their hats into the ring at the end of October.” (Morningstar)
- Trump, Bessent May Open Gates to Flood of Crypto ETFs “Experts predict a wave of applications for smaller digital currencies, as well as more crypto options ETFs, crypto index funds and others that trade in multiple currencies when the administration takes over in January. Ahead of the new administration, issuers recently applied to create ETFs that offer exposure to lesser-known currencies like HBAR/Hedera, Ripple and Solana.” (ETF.com)
- Unlocking the Future of Portfolio Management for RIAs “RIAs are allocating a more significant proportion of client portfolios to private market investments. Our survey data shows that while only 32% of firms allocate 20% or more to private markets today, 53% plan to invest over 20% of their portfolios into private market investments in the future.” (KKR)
- Strong Private Credit Outlook Fuels M&A Interest “Private equity, venture capital and real estate deals also fell slightly from last year. Despite this, alternative asset manager M&A was stronger than dealmaking in traditional asset management, which saw more of a slowdown due to high interest rates and fears of a recession, the Piper Sandler report stated.” (FundFire)
- Megatrends Revolutionizing Public, Non-Listed REITs “As a public non-listed REITs attorney, I see vast amounts of inbound capital flow. Most every institutional public non-listed REIT sets up offshore feeder funds enabling non-U.S. money to flow into the portfolio.” (The DI Wire)
- Trump Tariffs on Canada and Mexico Put These ETFs in Focus “More than 83% of Mexican exports and 75% of Canadian exports head to the United States, making these tariffs a huge threat to their economies. The tariffs could also disrupt Asian auto and electronics manufacturers that rely on Mexico as a low-cost production hub for U.S. markets.” (Zacks Investment Research)
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