Wealth Management
Plan sponsors continue to grapple with low engagement and limited financial literacy when it comes to retirement income within defined contribution plans, according to a new DCIIA study. Many employers are hesitant to implement retirement income solutions due to competing priorities, legal risks, and a lack of internal resources or formal decumulation strategies.
Complexity, lack of standardization, and concerns over liquidity and portability further complicate adoption. However, plan sponsors anticipate growing interest in lifetime income options through 2025 and 2026, especially as peer adoption increases.
Safe harbor provisions from SECURE 2.0 are expected to encourage adoption by reducing perceived legal liability, and DCIIA will expand its research later this year to better understand these barriers and opportunities.
Finsum: Solutions that offer personalization, flexibility, and simplicity are most appealing, though widespread uptake may hinge on stronger education and clearer evaluation tools.
Although it's common to think small-cap stocks suffer most during recessions, the data tells a more nuanced story. Analysis of developed markets shows that in 64% of years when GDP declined, small caps actually outperformed large caps—a rate even higher than their typical performance advantage.
This finding challenges the belief that economic slowdowns always disadvantage smaller firms. One reason may be that financial markets are inherently forward-looking, often pricing in future recovery well before it's visible in economic data.
As a result, the size premium—where small caps outperform—can still emerge during downturns. Ultimately, small-cap strength isn't strictly tied to GDP trends, underscoring the importance of long-term diversification over short-term predictions.
Finsum: This is much different than the interest rate driven volatility several years ago, this could be a great time to capitalize
Raymond James is addressing a quieter challenge in the wealth management sector: helping independent advisors scale their teams amid growing client demands. This week, the firm introduced Talent Sourcing, a new in-house recruitment service that offers personalized hiring support, including candidate outreach and screening tailored to each advisory team's needs.
The service aims to bridge the talent gap across roles ranging from junior advisors to specialized support staff, allowing advisors to focus on growth without sacrificing service quality. It arrives as competition for top advisory talent intensifies, especially following LPL's $2.7 billion acquisition of Commonwealth Financial.
By providing a vetted shortlist of candidates, Talent Sourcing complements Raymond James’s broader suite of advisor tools, including its Paraplanning Services launched last year.
Finsum: Ultimately, this initiative not only strengthens internal practices but also positions the firm to meet evolving client expectations for more comprehensive, value-added financial services.
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Meta is quietly re-entering the crypto landscape, years after shelving its high-profile Libra project amid intense political pushback. The company is now exploring the use of stablecoins—cryptocurrencies pegged to traditional currencies—for global payouts, especially to creators, and has hired fintech veteran Ginger Baker to guide the effort.
Discussions with crypto infrastructure firms remain in the early stages, but the focus is on leveraging stablecoins to reduce cross-border payment costs and eliminate wire transfer fees.
Meta’s renewed interest follows a wave of stablecoin momentum across the financial industry, including moves by Stripe, Visa, and Fidelity, and a regulatory environment that may soon offer clearer rules. Unlike its earlier crypto attempt, Meta appears more cautious and flexible this time, showing openness to different stablecoin providers without tying itself to a single issuer.
While Libra ended in failure, Meta’s second try reflects a broader industry shift—and the company’s ongoing drive to stay competitive in digital payments and fintech innovation.
Dodge & Cox Emerging Markets Stock earned a Medalist Rating upgrade to Silver from Morningstar, thanks to increased confidence in its disciplined mix of qualitative judgment and quantitative screening, particularly valuable in navigating under-researched segments of emerging markets.
This hybrid approach, while unusual for the firm, uses a valuation-weighted model to flag potential opportunities, especially among smaller-cap names, before handing decisions over to the fundamental research team. Since its 2021 inception, the fund has delivered solid performance, outperforming a majority of its peers and its benchmark. Its portfolio, broader than other Dodge & Cox offerings, includes over 200 holdings with considerable overlap in top names with the firm's international strategy.
The JPMorgan US Research Enhanced Equity fund also saw a Morningstar upgrade, thanks to a highly stable and experienced 19-person analyst team that has consistently driven strong stock selection within a benchmark-aware framework.
Finsum: Now, could be a good opportunity to capitalize on certain EM as trade disrupts markets.
Structured notes can offer attractive returns, but they come with notable risks that investors should carefully consider. One of the primary concerns is liquidity risk, as these products often lack a secondary market, making it difficult to sell before maturity without potentially accepting a steep discount.
Market risk is also a factor, since structured notes are tied to the performance of underlying assets that may be volatile, especially when linked to speculative markets. Even if a note includes downside protection, extreme fluctuations can still lead to losses.
Default risk is another major issue, as the investor’s return ultimately depends on the solvency of the issuing institution. In the event of a bankruptcy—such as Lehman Brothers’ collapse—investors may lose their entire principal regardless of market performance.
Finsum: However, when structured thoughtfully, these notes can offer enhanced yields, downside buffers, or tailored exposure to specific markets not easily accessed through traditional investments.