Wealth Management

Model portfolios simplify portfolio management, allowing financial advisors to deliver customized investment strategies without starting from scratch. Leveraging technology, advisors can access high-quality, ready-made models that can be adjusted to meet specific client needs. 

 

Customizing these portfolios provides a balance between using institutional expertise and offering personalized service. Advanced analytics tools are seamlessly integrated, enabling advisors to filter, screen, and select the best-performing assets based on millions of data points.

 

Tracking performance over time with precision ensures that clients see accurate, realistic outcomes. This approach gives advisors a competitive edge, allowing them to scale their practice while maintaining individualized attention.


Finsum: Having the analytics at your fingertips can really aid in distilling complex information to clients.

The financial volatility of recent years has made it clear that traditional retirement strategies may no longer suffice. The old 60/40 portfolio split between stocks and bonds has proven inadequate, as demonstrated in 2022 when both asset classes declined significantly.

 

 Retirees now face unique challenges such as sequence of return risk and inflation, which require a more adaptive investment strategy. Alternative investments, like private equity and venture capital, can offer opportunities for diversification and potential outperformance over traditional assets. Meanwhile, alternative strategies, such as long/short equity and merger arbitrage, provide potential protection during market downturns. 

 

Despite their complexity and potential downsides, incorporating alternatives can help retirees achieve a more resilient portfolio that balances growth, income, and capital preservation.


Finsum: Moreover, stocks and bonds are experiencing increasingly high correlation in returns compared to the last four decades, which should draw more inflow into alternatives. 

Major U.S. banks have continued to reduce their holdings in state and local government debt, decreasing their exposure by $3 billion in the third quarter. This trend was led by JPMorgan Chase and Bank of America, which together accounted for over half of the reduction. 

 

Other institutions, including State Street, Citigroup, and Morgan Stanley, also cut back on their municipal bond investments. This marks the third consecutive quarter of declining investments, the longest such retreat since 1996, driven largely by the reduced tax benefits following the corporate tax cuts. 

 

The banks' diminished demand has negatively impacted long-term municipal bonds, which have underperformed other maturities. However, the third-quarter reduction indicates a slower pace of the overall pullback compared to earlier in the year.


Finsum: Now might be an opportunity for those seeking value to consider munis as they are getting such little attention. 

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