Wealth Management
Closed-end funds (CEFs), around since 1893, function much like pooled mutual funds but differ in that they have a fixed number of shares trading on public exchanges after their IPO.
Unlike mutual funds, which create or redeem shares daily to match investor flows, CEFs trade like stocks, meaning their prices can swing above or below the fund’s actual net asset value (NAV). This market pricing dynamic allows investors to potentially buy a dollar’s worth of assets for 90 cents, creating attractive opportunities to purchase CEFs at discounts.
In addition, CEFs can use leverage to amplify returns, which often translates to higher distribution yields than traditional funds. However, investors should generally avoid paying a premium above NAV, just as they wouldn’t pay $1.10 for a dollar.
Finsum: CEFs trading at reasonable discounts with strong yields may offer a compelling addition to income-seeking portfolios, combining discounted asset value with robust payouts.
There’s something uniquely magical about playing golf in the fall, when the crisp air and vibrant foliage transform each round into a sensory celebration.
- At The Equinox Golf Resort & Spa in Vermont, brilliant reds, golds, and ambers create a postcard-perfect setting against the backdrop of the Green Mountains.
- In Pennsylvania’s Pocono Mountains, Jack Frost National Golf Club combines dramatic elevation changes with fiery autumn leaves for unforgettable panoramic views.
- Arcadia Bluffs in Michigan pairs Lake Michigan’s sweeping shores with a kaleidoscope of colors that makes every fairway feel like an artist’s canvas.
- Farther south, Linville Golf Club in North Carolina’s Blue Ridge Mountains offers golfers a spectacular blend of mountain terrain and rich fall hues, turning each hole into a living painting.
- Finally, Pumpkin Ridge Golf Club near Portland, Oregon, wraps players in misty mornings and a colorful tapestry of evergreens and deciduous trees, creating an almost mystical experience.
Finsum: Together, these destinations prove that fall golf is more than a game—it’s a journey into nature’s most beautiful season.
A new provision quietly inserted into President Donald Trump’s latest tax bill would give private equity firms expanded tax breaks when they acquire companies and burden them with debt. This language, buried in the One Big Beautiful Bill Act, would increase the allowable deduction on interest payments—effectively subsidizing leveraged buyouts that often result in layoffs, wage cuts, and bankruptcies.
Despite the provision’s potential to drive billions in tax savings for Wall Street, lawmakers have downplayed its implications, describing it only as an increase in business interest deductibility.
By altering how interest deductions are calculated—without raising the 30% cap—the bill could hand private equity firms up to a 15% increase in write-offs, according to legal and budget analysts. Over the next decade, this tax tweak is projected to cost the government $200 billion in lost revenue, deepening concerns about corporate accountability and tax fairness.
Finsum: If CNL capital is a well-positioned private equity firm that could be in a good position to benefit to these legal changes.
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Tax-efficient investing is gaining momentum, with separately managed accounts (SMAs) emerging as a preferred tool for personalization and tax savings. Unlike mutual funds or ETFs, SMAs allow investors to directly own securities, enabling tailored strategies like tax-loss harvesting.
Assets in tax-managed SMAs have surged past $500 billion, a 67% increase since 2022, with direct indexing leading the way due to its scalability and precision. Asset managers are now extending tax overlays to active equity strategies, though the process is more complex due to potential conflicts with managers’ top stock picks.
Meanwhile, model portfolios are incorporating tax-aware transition tools to help advisors move clients into new strategies with minimal tax impact, further expanding the reach of tax management across investor segments.
Finsum: Fixed-income SMAs offer fewer tax opportunities but can still provide benefits during periods of rate volatility or credit stress.
Model portfolios have transformed from basic investment templates into versatile, sophisticated tools that support a wide range of advisor and client needs. Today, assets in model portfolios are projected to grow to $11 trillion by 2028, fueled by the rising demand for customization and outcome-oriented investment strategies.
The most common models remain asset allocation portfolios, especially those built with open architecture, which allows advisors to incorporate both in-house and third-party managers for added diversification and cost efficiency.
Alongside these, outcome-oriented models—such as those focused on income generation, downside protection, or tax optimization—are gaining popularity for their ability to align with specific client goals. Building block models, which emphasize a particular asset class or investment objective, also offer advisors greater control in tailoring portfolios around their core expertise.
Finsum: As the model portfolio landscape matures, advisors are increasingly choosing providers that offer a full spectrum of solutions to enhance both operational efficiency and client personalization.
Semiliquid investment vehicles—including interval funds, tender-offer funds, nontraded REITs, and nontraded BDCs—are becoming a significant bridge between public and private markets, offering investors periodic liquidity and access to traditionally illiquid asset classes.
These vehicles have grown rapidly, with U.S.-based semiliquid assets reaching $344 billion by the end of 2024, driven primarily by demand for private credit strategies that generate consistent income without necessitating frequent redemptions. However, their appeal comes with steep costs: average expense ratios exceed 3%, far above the fees of mutual funds and ETFs, and many carry layered management, incentive, and acquired fund fees that create high performance hurdles for investors.
Leverage plays a substantial role in returns, particularly in credit-focused funds, where income appears more attributable to borrowed capital than superior asset selection. Semiliquid private equity vehicles, on the other hand, have largely underperformed, often failing to match the S&P 500.
Finsum: These structures expand access to private markets, but investors must weigh the benefits of income and diversification against liquidity constraints.