Wealth Management
Macquaire Asset Management, an Australian financial services company with $575 billion in assets and major presence as an operator in the background of the ETF market, launched its first US-listed ETFs this week. Macquaire has previously been involved with ETFs as a custodian, market marker, and advisory firm as well as providing seed capital for other funds.
Now, it’s making a more aggressive move into ETFs in 2023. Earlier this year, it partnered with BondBloxx to serves as a subadvisor to the BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA), which launched in September.
This week, it launched 3 ETFs. The Macquaire Global Listed Infrastructure ETF (BILD) and the Macquarie Energy Transition ETF (PWER) are equity funds offering thematic exposure. It also launched a fixed income ETF - the Macquarie Tax-Free USA Short Term ETF (STAX). STAX invests in tax-exempt US bonds with maturities 1 and 5 years.
This continues a major theme of 2023 which has been the proliferation of active ETFs. Macquaire has also indicated that it plans to launch more active ETFs in the coming years in the US and globally.
Finsum: Macquaire Asset Management is listing its first ETFs. The firm has previously been a player in the ETF space in background roles as a custodian, market marker, advisory, and seeder of funds.
Having a strategy to acquire new clients is necessary for any financial advisory practive to grow and thrive. Yet, there are multiple paths to accomplishing this goal. Some examples are cold calling, digital marketing, in-person networking, etc.
While the tactics can vary, the principles are the same. This entails identifying your target client, figuring out your unique value proposition, and identifying the best medium to reach prospects in a way that is complementary to your personality.
It can also be helpful to spend more time with your existing clients. This will strengthen these connections and increase the chances of getting a referral. These types of referrals have a higher chance of conversion given a stronger foundation of trust. It’s also a reminder that the most important job of an advisor is to build relationships which can only be done by spending time with clients and prospects.
By making financial planning a family affair, you can increase your chances of serving the next generation. This will give you an opportunity to spend time and build a relationship with multiple family members which could ultimately be assets in terms of recruiting, retention, and finding leads.
Finsum: There are many tactics when it comes to landing new clients for financial advisors. However, many successful strategies have some important principles in common.
Direct indexing is not just a buzzword; it can be a game-changer in the world of wealth management. This comprehensive guide featuring six insightful sections is designed to equip you with a wealth of knowledge to confidently navigate the direct indexing landscape. Stay ahead of the ever-evolving investment landscape. Get the guide today.
More...
Financial advisors constantly strive to find the perfect balance between serving their existing clients and attracting new ones. Often, they view their core value proposition as managing customized portfolios tailored to each client's unique needs. From this perspective, they believe spending less time constructing bespoke portfolios could negatively impact client relationships. However, a counterintuitive approach suggests the opposite: using model portfolios can create more time for genuinely serving clients.
While it may seem a paradox, spending less time on portfolio construction and more time listening to clients can significantly improve service. Building trust and understanding client needs requires dedicated time for genuine conversations and insightful questions. By freeing time from portfolio management, advisors can focus on building deeper relationships with their clients, focusing on what truly matters most to them.
Moreover, using model portfolios doesn't mean sacrificing portfolio quality. These portfolios are typically managed by professionals with access to a larger team of experts and a more comprehensive range of investment options than most advisors have access to.
Embracing model portfolios as a time-saving tool allows advisors to shift their focus from portfolio construction to client service. This seemingly counterintuitive approach often leads to higher client satisfaction and increased referrals, leading to a more successful practice.
Finsum: Consider how model portfolios can enhance client service for advisors by saving time on portfolio construction and focusing on client relationships.
The cryptocurrency industry stands on the precipice of a potentially pivotal moment, with several applications for crypto-based ETFs awaiting approval by the US Securities and Exchange Commission (SEC). Recent activities suggest the SEC is actively preparing to issue its decisions, potentially within the next few months.
The world's largest asset manager, including BlackRock, has expressed increasing confidence in the SEC's approval of their spot Bitcoin ETF applications, possibly as early as January 2024. While the outcome remains uncertain, the SEC's recent engagements with applicants and its compressed 21-day public comment window indicate a focused and potentially accelerated decision-making process.
These developments have fueled speculation in the market, with some attributing the recent rise in Bitcoin prices to the anticipated SEC decision. Others cite the upcoming Bitcoin halving event in 2024 as a contributing factor.
Regardless of the specific drivers, the next few months will likely greatly impact the cryptocurrency landscape. The SEC's decisions on these ETF applications could have significant implications for investor access, market liquidity, and the overall development of the crypto asset class.
Finsum: Anticipation for SEC's decision on crypto ETFs grows, hinting at major shifts in market access to crypto-based investment vehicles.
Based on the most recent annuity sales data, it's a good bet they are seeking a combination of growth and protection. According to LIMRA, the financial services research and education organization, sales of registered indexed-linked annuities (RILAs) set a record in the third quarter of 2023 at $12.6 billion, up 19% year-over-year.
In a recent posting on the organization's website, Todd Giesing, assistant vice president LIMRA Annuity Research, stated that "Investors still seem focused on the value of protection and growth potential that RILAs offer."
And while RILA sales set a record, the overall annuity market is also having a good year. In the news release for their most recent U.S. Individual Annuity Sales Survey, LIMRA reported that "With economic conditions continuing to be favorable for annuities, total sales increased 11% year-over-year to $89.4 billion in the third quarter of 2023."
One additional highlight from the survey is worth noting. Fixed indexed annuity (FIA) sales were $23.3 billion in the third quarter, up 9% from the prior year's results.
Finsum: LIMRA reports registered indexed-linked annuities sales, reflecting a strong investor preference for investment growth and protection.