Have you ever wondered exactly what stocks and bonds make up your mutual fund? While diversification and professional management are huge benefits, you may want a timelier picture of your investments than these vehicles allow. This is where separately managed accounts (SMAs) offer a distinct advantage.

Unlike mutual funds, SMAs provide direct ownership of the underlying securities in your portfolio. This transparency lets you see exactly what you're invested in, empowering you to adjust more quickly if desired.

For instance, making informed and timely decisions is particularly useful when aligning your values to your portfolio. SMAs, with their immediate transparency and ability to customize holdings, allow for quicker adjustments if needed.

On the other hand, mutual funds typically update their holdings lists every quarter, which may be too much of a delay for your liking. And, by the time you see that report, the fund may have already bought or sold securities. With an SMA, you and your advisor have real-time access to your holdings, enabling you to stay on top of your investments and adjust as market conditions or your personal preferences evolve.

Finsum: The timely transparency of separately managed accounts is important to investors seeking to align their portfolio to their values.

Many advisors are apprehensive about contemplating a switch to a new firm. They fear the process will be complicated and full of risk. But what if the recruiting process itself could be a valuable source of insight?

As the saying goes, "how a person does one thing is how they do all things." This principle often applies to organizations as well. Finding a firm that prioritizes a smooth and transparent transition can be a strong indicator of how they'll be as a partner in the future.

A transparent and efficient onboarding experience demonstrates the firm's respect for your time and commitment to setting you up for success. Transparency throughout the process also demonstrates the firm's commitment to open communication, a cornerstone of any successful long-term relationship.

Don't let the fear of a complex transition process hold you back from exploring new opportunities. Use the recruiting process as an opportunity to gain valuable insights into the organization's culture and working style. By prioritizing transparency and ease of interaction, you can find a firm that truly values you and sets you up for a thriving long-term partnership.

Finsum: Financial advisors searching for a new firm can use the recruiting process to gain key insight into how the firm truly operates.

BlackRock (BLK) has unveiled plans to acquire SpiderRock, a prominent provider of technological solutions tailored for financial institutions. This acquisition is set to bolster BlackRock's Aladdin platform, a key player in the world of separately managed accounts (SMAs). 

By integrating SpiderRock's state-of-the-art technology into Aladdin, BlackRock aims to enhance its SMA capabilities, particularly in risk management and trading strategies. According to Cerulli Associates, SMAs are projected to see their assets under management surge to $4 trillion by 2026 from $2.7 trillion, driven primarily by heightened client demand for personalized portfolios offering tax advantages. This strategic move underscores BlackRock's commitment to leveraging advanced analytics within the management sector, enabling clients to optimize operations and mitigate risks more effectively. 

Through this acquisition, BlackRock is poised to pioneer innovative SMA solutions, driving efficiency and productivity across operations and meeting the demand for tax optimization. This development signals a significant step forward in BlackRock's journey toward becoming a leader in SMA, offering tailored solutions to address the evolving needs of investors and wealth managers worldwide.

Finsum: SMAs are fighting atop the industry with model portfolios to be the customized solution. 

Lincoln Financial Group unveils the 1 Year S&P 500® Dual Trigger (Dual Trigger) account option for its fixed indexed annuities, offering growth potential in all market conditions with 100% downside protection. 

Consumer concerns about inflation, investment losses, and market volatility have driven demand for such products, with 61% of consumers seeking investments balancing growth and protection. With industry projections expecting fixed indexed annuity sales to reach nearly $100 billion in 2025, Lincoln Financials’ enhancements aim to simplify strategies, providing growth opportunities while safeguarding against volatility. 

Additionally, Lincoln introduces the 1 Year S&P 500® 10% Daily Risk Control Trigger for its OptiBlend® fixed indexed annuity, offering potential for higher trigger crediting rates in certain markets. With a commitment to helping investors protect their savings, Lincoln Financial expands its annuity product portfolio to offer clients more choices for building wealth and confidence in retirement, working with over 22,000 financial professionals in 2023 to provide new annuity contracts.

Finsum: The recent uptick in annuity products appears to be driven by demographic shifts and boosted demand. 

Many have speculated that one of the catalysts for the rally in bitcoin is due to precious metals investors shifting allocations. Both assets offer protection against inflation and appeal to investors concerned about long-term monetary and economic instability. Gold and bitcoin have also enjoyed strong performances in recent months and are trading at or close to all-time highs.

However, this conjecture is not correct, according to JPMorgan. It doesn’t see outflows from gold ETFs into bitcoin ETFs. Instead, the bank notes that institutional investors, retail investors, and hedge funds have been buyers of futures of both assets since February. Since February, about $7 billion of bitcoin and $30 billion of gold futures have been bought. It also notes that both assets are extended over a short-term timeframe, leading to the risk of a pullback.

JPMorgan also believes that MicroStrategy’s recent purchase of $1 billion in bitcoin in 2024, in addition to its $1 billion purchase in Q4 of last year, has also contributed to upward pressure for bitcoin. According to the bank, this does lead to more risk in crypto as “bitcoin purchases by MicroStrategy add leverage and froth to the current crypto rally and raise the risk of more severe deleveraging in a potential downturn in the future.”

Finsum: Many believe that one of the catalysts for the rally in bitcoin is that precious metals investors are shifting allocations. However, this is not correct, according to JPMorgan.