Goldman Sachs Asset Management has rolled out the Goldman Sachs Access U.S. Preferred Stock and Hybrid Securities ETF (GPRF), marking its fifth ETF launch in 2024. This new fund targets high monthly income by investing in U.S. preferred stocks and hybrid securities, which currently offer yields between 6-7%, benefiting from the expected Federal Reserve rate cuts.

This strategy is designed to maximize yield while providing diversification benefits, as preferred stocks typically have lower correlations to core investment-grade fixed income. 

Following the fund’s introduction, GPRF has quickly accumulated nearly $20 million in inflows. The launch of GPRF complements Goldman’s ongoing expansion into municipal bond ETFs, adding to the firm’s growing portfolio, which now includes 43 ETFs.

Finsum: ETFs are an interesting way for investors to get exposure to preferred stock. 

Wealth managers rely heavily on platforms such as broker/dealers and custodians, with many considering switching due to operational needs or better financial arrangements. Additionally in a new study, a staggering 85% are willing to change for the right opportunity, but most don’t actively plan to make changes by 2025 or 2026, as inertia and the demands of their practices often hold them back. 

Successful managers are more likely to switch platforms, driven by the need for enhanced operational support and favorable terms. Factors like financial arrangements, operational quality, and business development support are key in deciding platform affiliation.

Strategic relationships, particularly with centers of influence, are also critical for sourcing ideal clients. Wealth managers must critically assess platforms’ offerings and strategic positioning to ensure they meet their needs.

Finsum: It’s really critical that the broker dealer is offering as many business development opportunities so advisors can succeed. 

A proposed California bill is aiming to tighten oversight of private equity investments in healthcare, requiring these firms to obtain state approval before acquiring medical businesses. This type of regulation would significantly slow down medical and healthcare acquisitions for PE in a crucial state, which could have severe consequences for the industry. 

Backed by unions, consumer advocates, and the California Medical Association, the legislation addresses concerns that private equity deals often lead to higher costs, reduced care quality, and decreased access to essential services. However, hospitals and other opponents argue that such regulations could deter much-needed investments. 

The bill, while excluding for-profit hospitals, targets a broad range of healthcare entities, reflecting increased scrutiny of private equity’s impact on the sector. Proponents see the measure as crucial for safeguarding patient care, whereas critics warn of potential adverse effects on healthcare funding. 

Finsum: There is a lot of money for private equity on the sidelines right now, hopefully regulation doesn’t slow down what could be a huge fall quarter.