Based on Cerulli Associates' research analysis of mutual fund and exchange-traded product trends in January, institutional investors expect to increase allocations to active investment strategies. According to the data, while mutual funds lost $1.9 billion to start 2023, a few asset classes are generating positive inflows. For instance, taxable bond mutual funds added more than $15 billion of inflows during January, while municipal bond mutual funds added $7.7 billion during the month. This bucked the trend in 2022 in which outflows were $148.7 billion. The release from Cerulli stated, “The gap between active and passively managed funds hit new lows in December 2022; however, [the] Cerulli survey [shows], most institutional investors still want a majority of their portfolios to be actively managed. A noteworthy number of institutional investors indicate increasing their allocations to active strategies in equities (28%) and fixed income (20%).” The release also stated that “Although mutual funds closed 2022 on a “sour note,”—having dropped 4.5% in December—they have so far reversed course in 2023, with assets climbing 5.8% to $17.2 trillion.” The report noted that the data was based on a survey administrated in the second quarter of 2022.

Finsum:According to the results of a recent Cerulli Associates report, institutional investors plan to increase allocations to active strategies as taxable bond mutual funds and municipal bond mutual funds saw a combined $22.7 in inflows during January.

U.S. government and corporate bond ETFs took a hit in February, as Treasury yields rose due to continuing fears over high inflation. According to a February 28 note from Lawrence Gillum, fixed income strategist for LPL Financial, “While bonds are back, 2023 may be bumpy. We don’t think we’ll see another year like 2022 anytime soon, but despite the higher starting yield levels, we could see periods of negative returns.” For instance, according to FactSet data, the Vanguard Total Bond Market ETF (BND) fell 2.7% last month, while the iShares 20+ Treasury Bond ETF (TLT) dropped 4.9% in February. When bond yields rise, prices of debt fall. However, shorter-duration Treasury bonds fared much better than longer-term U.S. debt last month as investors adjusted their rate expectations. For example, the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) posted a small return of 0.3% in February. In addition, two-year Treasury yields, ended February at 4.795%, up from 0.730% at the end of 2021 as higher yields have been attracting investors after rates surged last year.

Finsum:While longer-duration bond ETFs faltered last month due to continuing fears over inflation, shorter-duration Treasury bond ETFs such as the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) fared much better.

If you’re an advisor and looking to generate more leads for your business, a strong website is a must. Its where potential clients can find you. Susan Theder, chief marketing, and experience officer at FMG Suite recently laid out the five most important pages every advisor website must have in an article for Financial Advisor Magazine. According to Theder, the most important page is the Home page. It gives people their first impression of you and should answer the following questions: Who do you serve, what problems do you solve, and what’s your visitor’s next step? Another must-have page is the About Us page as it’s the “place they go to meet you virtually.” But it shouldn’t look like a resume. Instead, it should include your story, why and how you got into the business, and information about your support staff. Next is the Services page, where you can list your service offerings, but you should write it from the client’s perspective. Include the challenges they are likely facing and outline how you will solve them. The fourth page is the Blog page, where you can share content to demonstrate your expertise. The fifth and final must-have page is the FAQ Page, where users can find answers to the most common questions a potential client may have.

Finsum:In a recent article for Financial Advisor Magazine, Susan Theder of FMG Suite laid out the top five pages an advisor website must have, including a home page, an about us page, a services page, a blog page, and an FAQ page.

Technology-driven real estate investment manager Cadre recently announced the launch of an individual retirement account (IRA) solution, allowing investors to allocate their IRA funds into commercial real estate (CRE) through the Cadre platform. The firm expects the new investment option to continue to expand access to CRE, which is a tax-advantaged asset class with longer investment periods and attractive risk-adjusted returns relative to equities. The new product provides a solution for IRA investors who just experienced a challenging year in the market. CRE typically features more stability and longer holding periods than traditional IRA investments like equities. For instance, during recent market drawdowns like the Great Financial Crisis and Dot-Com recession, equities lost an average of 36% in value, while private real estate averaged a 31.86% gain over the same periods. According to the firm, this makes it a fit for investors hoping to harvest returns for retirement. Ryan Williams, Founder and Executive Chairman of Cadre stated, “I founded Cadre to provide more individuals with a tax-efficient tool that institutions and ultra-high-net-worth investors have traditionally used to build wealth.” By equipping investors with the ability to invest their IRA dollars, we aim to expand access to diversified, robust retirement portfolios – and by extension, generational wealth.”

Finsum:With investors experiencing deep drawdowns in their equity funds during market downturns, real estate investment manager Cadre has launched an IRA option for investors to access commercial real estate, which typically features more stability.

Orion Advisor Solutions recently unveiled significant enhancements to its technology during the opening session of the firm’s flagship Ascent conference. Founder and CEO Eric Clarke addressed an audience of 1,600 advisors and revealed the firm’s new Story Paths advisor-facing technology for its Orion Custom Indexing solution. The new technology will allow advisors to easily select from one of several user paths which allows the advisor to customize portfolios or tax transition legacy assets within a handful of steps and minutes. The announcement comes as consumer demand for more personalized services has increased with assets in direct indexed SMAs ballooning to $362 billion. Orion’s Custom Indexing solution, which was launched in 2018, allows registered investment advisors to differentiate their offering with personalized, professionally managed, low-cost portfolios. Clarke stated, “While other direct indexing solutions cater almost exclusively to wirehouse advisors, we set out to build a solution with a heavy emphasis on customization that meets the needs of the independent advisor.” The new Story Paths workflow enables advisors to create truly custom portfolios at scale, whether they’re aiming to track a traditional index, replicate a factor-tilted exposure, or overlay to an existing internal or third-party separately managed account. In addition, the new technology will streamline the portfolio customization and tax transition process to a matter of minutes compared to the industry normal of multiple days.

Finsum:Orion recently unveiled new enhancements to its direct indexing technology that will allow independent advisors to create truly custom portfolios at scale within minutes.