(Brussels)

In the US, the Fed has only started kicking the tires on climate change talks at its regional branches. However…see the full story on our partner Magnifi’s site.

(New York)

Treasury yields sank last week, before rebounding strongly late in the week…see the full story on our partner Magnifi’s site.

(New York)

There has been rising anxiety of late that the growing assets in ESG stocks have created a valuation bubble in the most popular shares in the category. The idea is that rush into ESG has funneled a ton of capital into a relatively small group of shares, “artificially” inflating valuation. However, the Financial Times argues that there is definitively no bubble in these stocks. In fact, they are not valued any more richly than any average basket of shares. Overall, the average PE ratio of a global basket of ESG stocks is the same for an average basket of all stocks: 14x.

FINSUM: This is actually quite a relieving study, as there have been some very lofty AUM growth figures thrown around lately for ESG. And in case you are nervous, the same metrics/comparison listed above also hold for US/domestic ESG stocks.

(New York)

They do not get a great deal of attention, but annuities are having a real moment this year. Total annuities sales jumped 4% in Q1 versus the prior year. That is a pretty nice job for a product many would not think of as “fresh”. Variable annuities drove the gains, with a 7.5% quarterly jump.

FINSUM: Annuities have several tailwinds right now. The giant mass of baby Boomers entering retirement is one, Generation X liking annuities more than older generations is another, as are increasingly accommodative regulatory policies for annuities, such as their inclusion in retirement plans.

(New York)

Any advisor will have noticed the big industry push towards model portfolios, and in particular, model ETF portfolios. To many, this might be a “what gives?” moment. The reason why is actually a simple one for both advisors and asset managers. For asset managers, models can be a very nice singular location to gather up assets. For advisors, it is all about saving time and getting the best of a wide array of ETFs. Model portfolio can allow advisors to get access to a range of best-of-breed products without the need to proactively take the time to diversify client Dollars into those funds.

FINSUM: Model portfolios are going to keep growing. They are generally a win-win for both advisors and managers.