Wealth Management
The Vanguard Total Bond Market Index Investor Fund (VBMFX), launched in 1986, gives investors broad exposure to the U.S. investment-grade bond market and is managed by Joshua Barrickman since 2013.
Despite its long history, recent performance has been modest, with a 5-year annualized return of -0.62% and a 3-year return of 4.8%, both ranking in the bottom third of its category. However, the fund’s appeal lies in its low volatility, showing a 3-year standard deviation of 6.41% compared to the category average of 12.85%.
Cost efficiency is a major strength, as VBMFX’s expense ratio of 0.15% is far below the 0.93% category average, making it one of the cheapest options in its class.
Finsum: This fund could offer steady exposure to the bond market with minimal cost and volatility, for the right investor.
In an increasingly commoditized wealth management industry, broker-dealers must find smarter ways to grow, and that starts with helping advisors meet clients’ full financial needs. Clients today want holistic guidance that covers retirement income, wealth transfer, and protection against life’s risks, making insurance and annuities essential complements to traditional investments.
Yet, many advisors hesitate to offer these solutions due to product complexity, fragmented systems, and time-consuming compliance requirements. Modern technology can solve these challenges by creating integrated, end-to-end workflows that simplify quoting, applications, and compliance, freeing advisors to focus on clients instead of paperwork.
A unified digital platform can enhance accuracy, streamline documentation, and reduce operational risk, all while supporting scalability as regulations and client expectations evolve.
Finsum: Firms that embrace connected technology empower advisors to deliver comprehensive advice, deepen client relationships, and drive sustainable long-term growth.
Private infrastructure, once limited to institutions and ultra-wealthy investors, is quickly becoming more accessible as new funds open to individuals through financial advisors. A recent BlackRock survey found that nearly a third of wealthy family offices plan to expand or begin infrastructure allocations, reflecting growing confidence in the sector’s stability and income potential.
Demand is fueled by themes like artificial intelligence, which drives the need for more data centers and energy capacity, alongside global investment in essential assets like transportation and communications networks.
These strategies contrast with infrastructure ETFs and mutual funds, which focus on public equities tied to the sector and tend to prioritize growth over income.
Finsum: While private funds offer higher potential yields through the “illiquidity premium,” investors must weigh their limited liquidity and longer investment horizons.
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Two leading proxy advisors, ISS and Glass Lewis, have partnered with the Catholic University of America (CUA) to create investment voting guidelines grounded in the U.S. Conference of Catholic Bishops’ (USCCB) principles. The collaboration, led by CUA professors Andrew Abela and Nicholas Schmitz, aims to ensure that investors’ proxy votes align with Catholic moral and social teachings.
Under the new framework, proposals that conflict with Church doctrine—such as those funding abortion or gender-transition procedures—will be opposed, while issues without clear moral guidance will defer to company management or abstain.
After discussions with CUA, both firms recognized demand for authentic faith-based voting services and agreed to develop new policies faithful to Church doctrine.
Finsum: The guidelines, can help advisors of build better connection for clients of faith, by offering an ESG alternative.
Collective Investment Trusts (CITs) are becoming increasingly prevalent in retirement plans, with over 78% of defined contribution (DC) plans offering them, making them the second most common investment option after mutual funds. CITs serve as cost-effective, tax-exempt pooled investment vehicles offered through banks or trust companies, delivering many benefits of institutional accounts alongside accessibility for retirement plans.
Compared to mutual funds, CITs often feature lower administrative and compliance costs, and their fee flexibility and eligibility for smaller plans enhance their appeal for sponsors and advisors. They are available only to qualified retirement plans under ERISAand are not open to IRAs or certain other tax-advantaged arrangements
While CITs may mirror mutual fund strategies, slight performance differences can arise due to varying fee structures, cash flows, and corporate-wrapper mechanics.
Finsum: Fiduciaries should consider the switch from mutual funds to CITs, the transition process is relatively straightforward.
Markets entered 2025 on strong footing but were quickly rattled by earlier-than-expected U.S. tariff actions, delaying anticipated rate cuts and fueling volatility across equities, Treasuries, and currencies. AllianceBernstein expects moderate—not recessionary—growth in the second half, with fiscal and trade policy, Fed actions, and geopolitics serving as key macro drivers.
Credit markets have shown resilience, and despite tighter spreads, elevated yields make high-quality issuers—particularly BB-rated bonds—attractive for income and risk management. With inflation expected to peak by the third quarter, the firm favors short-to-intermediate bond maturities to balance yield opportunities against interest-rate risk.
Equity markets, while volatile in early 2025, have since broadened beyond U.S. tech leaders to global and value-oriented sectors, especially in Europe where banks and dividend payers stand out.
Finsum: Multi-asset income strategies as well-positioned for this uncertain backdrop, combining yield, diversification, and adaptability amid shifting policy and market conditions.