Wealth Management
When financial advisors decide to change their broker-dealer, they often face the challenge of transitioning their clients smoothly. Many worry about the paperwork, duration, and impact on revenue.
Insights from advisors who transitioned to Osaic Wealth reveal that 75%-100% of clients typically move with them, and the process takes about 60-90 days, though some clients move later. Having dedicated support is crucial.
Proper preparation, clear client communication, and understanding new systems are key to a successful transition. Advisors also note that initial revenue may drop but generally stabilizes or increases within a year.
Finsum: Leveraging the new BD and technology can really aid in the transition.
Interval funds continue to gain popularity as investors become familiar with their benefits. New interval fund launches have increased since 2017, with 2024 on track for a record number.
Assets under management have grown 40% annually, reaching $80 billion by April 2024. These funds offer daily NAV pricing and subscription, but limit redemptions to quarterly intervals. This structure allows for investments in higher-return assets, better alignment of assets and liabilities, opportunistic buying, longer investment horizons for catalyst realization, and greater visibility of redemption requests.
Overall, interval funds combine traditional mutual fund features with unique advantages like a longer horizon allowing markets to less liquid investments.
Finsum: Interval funds offer a goldilocks like solution for certain investors.
As the MLB playoffs heat up, several teams are making significant strides towards the postseason. In the American League, the Baltimore Orioles and the New York Yankees are tied in their division, with strong performances bolstering their playoff aspirations. The Minnesota Twins and Cleveland Guardians are also in a solid position, holding a key spot in the AL Central.
Over in the National League, the Philadelphia Phillies and the Los Angeles Dodgers are dominant forces, both maintaining impressive records and positioning themselves well for deep playoff runs. The Milwaukee Brewers are not far behind, showcasing a balanced mix of pitching and offense that could make them formidable opponents.
Wildcard races are particularly intense this year, with teams like the Atlanta Braves and the San Diego Padres fighting hard to secure their postseason spots. Both teams have shown resilience, bouncing back from mid-season slumps to stay in contention.
Finsum: LA looks like the most secure place to catch the playoffs in 2024
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As the $1.7 trillion private credit industry faces a significant fundraising slump, firms like Adams Street Partners, Antares Holdings, and Hayfin Capital Management are focusing on Latin America. They're targeting pension funds and wealthy individuals.
Philippe Stiernon of ROAM Capital notes that scarce capital in the US and Europe is pushing managers to diversify. With institutional investors in the US and Europe at saturation points, funds are exploring Latin America for new growth.
This region offers safer investments compared to its volatile domestic debt markets. Stiernon describes Latin America as "the last major frontier for LP growth" in the alternative investments landscape.
Finsum: This presents an opportunity to ultra diversify and get truly uncorrelated turns as we move into a potentially tumultuous election cycle.
Actively managed exchange-traded funds (ETFs) are projected to quadruple their assets to $4 trillion globally by 2030, according to BlackRock.
These funds are gaining traction, making up 70% of U.S.-listed ETF launches in the first half of 2024, driven by investor demand for strategies that can navigate market volatility and offer potential outperformance. The growth of active ETFs has been facilitated by a 2019 SEC regulatory change, which lowered barriers to entry and encouraged innovation.
Despite their higher costs, active ETFs are increasingly popular for their tax efficiency and flexibility. BlackRock projects the overall ETF industry will double its assets to $25 trillion by 2030.
Finsum: Volatility is driving a lot of active investment inflows, but this trend is set to continue as so much uncertainty remains.
The Federal Reserve is expected to hold interest rates steady during its two-day policy meeting this week but signal potential rate cuts as soon as September, acknowledging that inflation is nearing the 2% target.
Recent data shows easing price pressures, with the PCE price index rising at just 1.5% annualized since March. Fed officials may change their inflation description from "elevated" to "moderately elevated," reflecting confidence that inflation will continue to decline.
Policymakers believe rate cuts might be necessary before inflation fully returns to the target. Fed Chair Jerome Powell will hold a press conference following the policy statement release detailing the future path of policy.
Finsum: The market is still pricing in two more cuts by the end of the year, we’ll see if that comes to fruition.