Displaying items by tag: technology

Family offices are increasingly pivoting away from traditional investments and embracing alternative assets such as private equity, real estate, and venture capital. According to J.P. Morgan’s Global Family Office Report, nearly half of family office portfolios are now in private markets, reflecting their long-term horizons and ability to capitalize on illiquidity premiums. 

This shift allows for higher potential returns and smoother valuation changes compared to the volatility of public stocks. Many family offices also leverage their entrepreneurial roots for direct investments, contributing expertise and networks to private companies. 

Beyond diversification, these offices adopt goal-based strategies tailored to multigenerational needs, ensuring alignment with unique family objectives. 

Finsum: As they navigate evolving trends like generative AI and private market rebalancing, family offices continue to balance innovation with prudent risk management.

Advisors remain divided on the adoption of direct indexing, despite its increasing popularity and benefits like tax efficiency and portfolio customization. A recent survey revealed that while 34% of respondents currently use or plan to use direct indexing, 39% have no plans to adopt it, and 28% are open to considering it in the future. 

Experts view the 62% engagement or consideration rate as promising but notes barriers such as high account minimums and misunderstandings about the strategy. Advocates highlight its advantages, including tax loss harvesting, personalized portfolios aligned with client values, and competitive performance compared to traditional ETFs. 

However, misconceptions persist, particularly around how capital loss generation works without sacrificing returns. 

Finsum: Advisors should start exposing themselves to direct indexing because we will see costs decrease and the tool become more standard over the decade. 

Technology stocks have had an excellent 2024, driven by the growing demand for AI services and digital transformation. Generative AI has spurred substantial investments from major tech companies like Alphabet, Meta, and Microsoft. 

This surge in demand is also benefiting the semiconductor industry, with global sales expected to grow by 16% in 2024, reaching $611.2 billion. As the tech sector continues to thrive, the Nasdaq Composite has gained over 26% year-to-date, with the momentum expected to continue into 2025. 

Stocks such as American Superconductor, Vertiv, Toast, and Impinj have seen impressive gains and are well-positioned to capitalize on the ongoing growth in AI and technology. These companies, with strong growth prospects, have become attractive investment opportunities amid the sector's favorable outlook.

Finsum: There still seems to be positive momentum for AI technology now but its medium-term outlook to be profitable still is suspect. 

Over the past year, the U.S. stock market has risen by an impressive 30%, despite a recent 2.1% drop. This robust growth highlights opportunities in high-growth tech stocks that excel in innovation and scalability. 

Companies like PowerFleet stand out, forecasting a 29.7% annual revenue growth and significant earnings improvement due to strategic expansions such as its Fleet Complete acquisition. Live Nation Entertainment also shines, with substantial revenue driven by concerts, ticketing, and sponsorships, leveraging its global presence to dominate the live entertainment industry. 

Meanwhile, Triumph Group has gained investor attention with a 66.9% one-year stock increase, supported by upward earnings revisions and strong fundamentals. 

Finsum: These examples underscore the dynamic potential of select tech and entertainment stocks in the current market.

TradePMR has introduced Fusion SYNC, an AI-powered tool designed to ease the custodian transition process for registered investment advisors (RIAs). By allowing advisors to upload complete client data and automatically transferring it to TradePMR’s Fusion platform, Fusion SYNC aims to reduce manual data entry and speed up transitions, potentially cutting transition time from weeks to days. 

The tool also cross-checks for errors, minimizing the need for manual corrections and improving data accuracy. Jon Patullo, TradePMR’s chief product officer, emphasized that Fusion SYNC aims to ease the burdens of custodial transitions, helping advisors maintain client trust through streamlined service. 

With 40% of advisory assets expected to change hands in the next decade, Fusion SYNC positions TradePMR as an early AI adopter in custodial services. 

Finsum: Lean into technology, and particularly AI when it comes to changing custodians as it can greatly aid the data transfer process.