Wealth Management
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.
Edward Jones has launched a new private client service, Edward Jones Generations, targeting individuals with at least $10 million in investable assets. This strategic shift marks a significant expansion beyond the firm’s traditional Main Street clientele, positioning it to compete more directly with established wealth management giants like Morgan Stanley and UBS.
The new offering delivers a suite of high-touch services, including access to alternative investments, trust and estate planning, business succession strategies, and collaborative tax and legal advising with partners like EY and Husch Blackwell.
In addition to personalized planning, clients will benefit from dedicated teams and access to lending, cash management, and sophisticated portfolio construction support. The move aligns with Edward Jones’s broader strategy to evolve its business model, including the promotion of team-based advising and a strong emphasis on advanced certifications like the CFP designation.
Finsum: Be sure to think about how your firm can support the types of clients you are seeking.
Jefferies analysts are bullish on specialty engineering and construction (E&C) firms, arguing they are uniquely positioned to benefit from the ongoing surge in infrastructure spending. Key long-term drivers such as electrification, grid modernization, and expansion of gas midstream networks are fueling demand across the sector.
Despite outperforming broader benchmarks this year—up 12.1% year-to-date versus 2.6% for the S&P 500—Jefferies believes the sector still has room to run. They cite robust tailwinds like increasing project backlogs, margin expansion, strong renewables demand, and a tightening skilled labor market.
With forecasted EBITDA and EPS growth far outpacing that of the S&P 500, analysts see current valuation premiums as justified, reflecting a re-rating of the sector.
Finsum: While potential changes to the Inflation Reduction Act pose a risk, expect larger firms to consolidate market share and emerge stronger.
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Despite intense geopolitical tension following U.S. and Iranian missile exchanges, gold prices have struggled to maintain momentum above $3,400 an ounce. Analysts attribute gold’s muted safe-haven response to the conflict’s regional containment and investor focus on broader market dynamics.
UBS argues that gold’s value lies more in its role as a portfolio diversifier than a short-term geopolitical hedge, emphasizing its historical strength in times of uncertainty. According to the World Gold Council, central banks and portfolio managers rank gold highly for diversification, stability, and as a store of value—especially amid unpredictable U.S. policies under the Trump administration.
UBS maintains a bullish $3,800 price target for gold, citing continued central bank and ETF demand, and also highlights high-yield corporate debt from gold miners as an underappreciated investment opportunity.
Finsum: With mining companies showing strong balance sheets and free cash flow, M&A activity is expected to rise, offering investors alternative ways to gain from the sector’s resilience.
Advisors are rapidly embracing direct indexing, with 76% already using or planning to adopt it within a year, especially among wirehouse and younger “NextGen” advisors. FTSE Russell’s latest survey shows 74% of advisors view direct indexing as essential for serving high- and ultra-high-net-worth clients, who benefit most from its tax-efficient, personalized strategies.
Despite high awareness—92% of advisors say they’re familiar with the concept—barriers like complexity, lack of client demand, and tech integration challenges persist. Notably, 79% of advisors expect friction in implementation, even though most current users report it’s easier than expected, suggesting a disconnect that education could help address.
Adoption is strongest among wirehouse firms and younger advisors, who view it as critical for staying competitive in wealth management.
Direct indexing’s appeal lies in its ability to offer customization, tax benefits, and risk management—features increasingly in demand by affluent clients.
As concerns mount that President Trump’s trade policies could slow the U.S. economy, investors are shifting to value funds, which are seen as more resilient in downturns. Lipper data shows U.S. growth ETFs saw $3.6 billion in outflows this month, while value ETFs gained $1.8 billion in inflows.
Value funds, focused on sectors like banks and utilities, offer stability through cash-rich and undervalued companies, making them appealing amid rising volatility. Tech-heavy growth stocks, including the “Magnificent Seven,” have led the recent selloff as fears of overvaluation and slower economic growth take hold.
Value stocks currently trade at a 41% discount to growth stocks, a wider gap than the 10-year average, drawing attention to funds like the AAM S&P 500 High Dividend Value ETF and Acquirers Small and Micro Deep Value ETF.
Finsum: Small and mid-cap value stocks may now offer better opportunities, especially as investors question the safety of tech giants.