- Managers Compete to Hire Alts Product Specialists “In a recent survey of 36 wealth managers, Broadridge found that 65% wanted asset managers to hire more alts product specialists. And managers are scrambling to meet this demand. Two-thirds of managers offering alts capabilities said they had plans to expand their specialist teams, according to a Cerulli Associates survey conducted this year.” (FundFire)
- New 'Anti-Woke' ETF Targets Pro-ESG, DEI Companies “The new fund, called the Azoria 500 Meritocracy ETF, will trade under the ticker symbol SPXM. It's not clear specifically which companies will be excluded, but in a speech, Azoria Partners founder James Fishback stated three-dozen companies employ diversity, equity, and inclusion (DEI) strategies in their hiring decisions.” (ETF.com)
- Asset managers make existential dash into private assets “The sector’s largest players are striking bold acquisitions, unveiling novel partnerships with private capital groups, or working with their advisers to plot new strategies for their future. Many boardrooms believe they are engaged in no less than a fight for survival in an increasingly competitive investment landscape.” (Financial Times)
- Here’s how investors will be affected by BlackRock’s $12 billion purchase of private-credit provider HPS “Another direct impact will be felt by millions of Americans who own annuities investments with insurance companies, which are putting more of their money into private credit to boost returns for individuals.” (Marketwatch)
- Most LPs Wary of Sports Investments, Survey Finds “The biggest risk associated with investing in funds focused on sports, gaming and media rights is high and unproven valuations, according to 87% of the LPs surveyed. Other risks identified included an unproven return track record (85%), the inability to generate growth and unclear valuation plans (72%), that underlying investments might be viewed as “trophy” assets (68%), potential adverse publicity (59%) and a fund’s own internal abilities to assess such funds (55%).” (Chief Investment Officer)
- ETFs Pull in $1T YTD for First Time Amid Market Leap “Markets have jumped across almost all industries and segments, with rallies in so-called Mag 7 stocks that include Nvidia Corp. and Tesla Inc. helping to draw in new investors. The S&P 500, as measured by the S&P 500 ETF Trust (SPY) has gained 29% this year while financial stocks, as measured by the Financial Select Sector SPDR Fund (XLF), beat that with a 35% gain.” (ETF.com)
- The Multi-Period Conundrum of Private Market Performance Metrics “It is worth noting that, with private fund investments, ‘deposits and withdrawals’ are neither possible nor in the control of clients, i.e. investors. Contributions and distributions are decisions made by the portfolio manager and, as such, passively received by clients. Consequently, while IRR may be an internal yardstick for General Partners, it is not as informative for the Limited Partner in the context of the overall portfolio.” (CAIA)
- After Bitcoin Hits $100,000, Where Does Crypto Go Next? “Cryptocurrencies are known for their high volatility. Prices can fluctuate significantly in short periods, induced by market sentiment, regulatory news, technological developments, and macroeconomic trends.” (Morningstar)
- Goldman, Franklin Templeton Quit Climate Action Groups “Goldman Sachs and Franklin Templeton are each leaving groups aimed at encouraging banks, asset managers and other companies to trim carbon emissions and lead the fight against climate change.” (FundFire)
- Active ETFs gain ground on more passive benchmark trackers “Actively managed ETFs have outshone this rate, albeit from a low base, particularly in the US where they have risen 700 per cent since 2019 to $806bn at the end of October, data from Morningstar shows. They now account for 8.1 per cent of money held in US ETFs, while their share of inflows hit a record 27.9 per cent in the first 10 months of this year.” (Financial Times)
- Will Private Markets Morph Into ETFs? BlackRock Thinks So “At least part of the difference is about what can be earned managing those assets. So-called alternative assets such as private markets tend to garner far higher management fees than public ones—especially passive funds like many ETFs. Here is a simple way to illustrate: KKR, a private asset giant, is valued at $140 billion, just shy of BlackRock’s $162 billion. But KKR manages about 1/18th of the total assets.” (The Wall Street Journal)
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