Kestra Investment Management recently announced the launch of its first two model portfolios series. The portfolios, which are exclusively designed for financial professionals associated with Kestra, are structured to maximize opportunities for clients, by providing options based on a client’s risk preference, desire for growth, and tax sensitivity. Both portfolio series have tax-aware versions, are low-cost, and flexible to fit a wide range of client needs. The Strategic Series has a long-term focus with multiple risk profiles. It is designed to be an efficient, streamlined solution with low turnover while still maintaining exposure to potential economic growth. The Dynamic Series is more active and has a higher level of trading activity for investors looking to benefit from changes in economic and market trends. The Kestra Investment Management team will manage the model portfolios. The team will analyze potential investments, use a rigorous due diligence process to select the best-suited funds, monitor portfolio allocations to opportunistically make changes, and regularly rebalance those allocations to keep each portfolio model aligned with its goals.

Finsum: Kestra launched two model portfolio series, one with low turnover and another with a higher level of trading.

The advent of digital advice has not only made investing easier but has also allowed client interactions to become more seamless. With more client interactions moving online, do online content and advice still put a client's best interest first? That’s a question the SEC, industry lawyers, and other regulators are contemplating. While online firms such as Robinhood came under scrutiny for gamifying investor behavior, something as simple as an investment calculator on an advisor website can be construed as a recommendation. Last August, the SEC issued a request for comment about broker-dealers’ and investment advisors’ digital engagement practices. Keith Kessel, a senior principal consultant at ACA Group, told Financial Advisor IQ that the SEC “is trying to ascertain in what set of scenarios would a recommendation or solicitation exist versus what are those engagement practices that are outside of the purview of the scope of the solicitation of the suitability rule and/or Regulation Best Interest regulation duty as such.” He also noted that the SEC’s request for comment “emphasizes the regulator’s concern about the blurring of the lines between engagement and advice.”

Finsum: As more client interactions occur online, the SEC is trying to determine what constitutes advice and what constitutes engagement.

According to a global two-phase survey from Morningstar Indexes and Sustainalytics, asset owners are not, by and large, implementing ESG factors in their portfolios. The Voice of the Asset Owner survey asked 500 global asset owners in 11 countries their thoughts on ESG. Survey findings revealed that only 29% of asset owners reported that they consider ESG factors for at least half their holdings. The reason for the low figure was attributed to concern over the impact on returns, a lack of available products, and the reluctance of both clients and stakeholders. However, the survey also showed that 85% of asset owners believe ESG factors are material to investment policy, while 70% said that ESG factors have become more material over the past five years. Asset owners that participated in the survey included OCIOs, family offices and sovereign wealth funds, pension funds, and insurance providers. Two-thirds of the respondents noted that the quality of ESG data, indexes, ratings, and tools have improved. However, about half stated that data and ratings would stand to benefit from improvements in accuracy, timeliness, and greater objectivity.

Finsum: A recent survey revealed that while many asset owners believe ESG factors are material to investment policy, only 29% consider ESG factors for at least half their holdings.

Many investors are now adding private credit investments to their portfolios according to a global survey of institutional investors conducted by State Street Global Advisors. The survey report, The Future of Fixed Income, asked institutional investors how they view the fixed income market and how they’re allocating their investments amid the current market volatility. The findings were based on answers from 700 pension funds, endowments, foundations, and sovereign wealth funds, as well as wealth and asset managers. The results also found that investors have become more open to systematic fixed income strategies to help them fight the impact of rising prices and inflation. In addition, 51% of survey respondents stated their interest in increasing allocations to bank loans and 42% want to increase their allocation to inflation-linked bonds over the next 12 months. The findings also showed that investors are embracing index-tracking investments to gain efficient access to attractive sectors due to fee pressure and increased transparency. Over one-third of the respondents said that more than 20% of their fixed income portfolio is allocated to index strategies. The figure rises to 57% for investors with AUM over $10 billion.

Finsum: A survey conducted by SSGA noted that institutional investors are shifting their fixed income allocations amid the current market environment.

With, oh, say, Gilligan’s Island in its crosshairs, it hasn’t exactly been smooth sailing for proponents of investment strategies associated with environmental, social and governance data, according to law.com.

In fact, reems have been put to the old laptop revolving how Russia’s invasion of Ukraine culminated in geopolitical questions related to why Russia received ESG focused funds to begin with. Then what happened? Markets scram south and, in the process, a plethora of large ESG funds got hammered because, stemming from their massive holdings in tech stocks that took a beating, they registered losses worse than those absorbed by benchmarks.

McKinsey & Co. consultants, in a new paper, “Does ESG Really Matter—and Why,” go through a plethora of reasons ESG, of late, drew heavy duty criticism. At the end of day, the current turbulence surrounding its specific components aside. they concluded the underpinnings of ESGs and the adherence of “social licenser to them, way down the road, still will be integral to companies.

Meantime, mark the calendar, because a comeback’s on the docket. The Electronic Sports and Gaming Summit – or ESGs 2022 –  recently proclaimed that, in the upcoming event, Riot Games will be a Platinum Exhibitor, according to ungeek.ph.

The event will take place Oct. 28-30 at the SMX Convention Center at the Mall of Asia complex in Pasay City.

Riot Games, of course, is world renowned for delivering gamers the largest, most played esports titles. Eventually, it spawned a gaggle of related media.