The Franklin Templeton Fixed Income team believes that sustainable investing will be a dominant investment trend in the coming years, with structural tailwinds that could help improve financial returns.
The notoriously saturated $7.7 trillion ETF industry is this year poised for the second-highest number of closures, as the pandemic-era day trading boom fizzles out.
The global economy is still overwhelmingly powered by fossil fuels, with more than 80% of primary energy sourced from coal, oil, and gas, as of 2021.
The Canadian economy is buckling under the weight of higher interest rates, household debt and immigration.
In mid-September, Rockefeller Asset Management, the asset management arm of Rockefeller Capital Management, and KraneShares, a leading global ETF provider specializing in China, climate, and uncorrelated assets, launched the KraneShares Rockefeller Ocean Engagement ETF (ticker: KSEA). The fund invests in public companies with significant impact on oceans and ocean resources, reflecting the meaningful investment opportunities within the blue economy.
KSEA aims to generate competitive returns and improve ocean health through shareholder engagement activity focused on pollution prevention, carbon transition, and ocean conservation. Holdings include companies from diverse sectors such as aquaculture, commercial fishing, waste management, renewable energy, and logistics, among others.
My guest, Casey Clark, will discuss this new ETF.
India is once again leading flows into US exchange-traded funds tracking emerging markets, boosting one of the most popular trades in 2023 as declining US yields and a weakening dollar turn investors toward assets in the developing world.
November was kind to fixed income investors as bonds posted their best month of 2023. High yield corporate debt participated in that rally as highlighted by the fact that the largest junk bond exchange traded fund is higher by nearly 4.3% over the past month.
Across Wall Street, analysts and investors had cheered 2023 as the year of emerging markets, only to be burned by a relentless climb in US Treasury yields. Now, as the Federal Reserve looks set to end its most aggressive monetary tightening campaign in a generation, they’re at it again.
Even with $2.4 trillion in ETF assets spread across more than 400 ETFs, there’s a pending offering from BlackRock that caught my eye.
Back in the Great Financial Crisis era, someone quipped that the federal government had become a giant hedge fund with an army attached. That wasn’t far off. Various agencies and entities were absorbing all kinds of risky assets to stabilize an overleveraged system.
Our 2023 Manager ESG Survey shows that transparency around DEI data is increasing among investment managers. The results reveal that equity product managers in particular are more inclined to share DEI data compared to managers in other asset classes.
OpenAI’s power brokers seem to have decided that the quickest fix for last week’s dysfunction is to borrow a page from corporate America’s playbook by adding some establishment figures to its board.
“Let me tell you about the very rich. They are different from you and me.” F. Scott Fitzgerald could have added that they are also generationally different from each other.
Free-cash-flow yield is the surplus cash after expenses and investments divided by the price of the security. Free-cashflow yield has been used for a long time by active hedge funds. Now it has become part of the indexing landscape, competing for assets with other quantitative approaches. It has historically outperformed in markets that favored value stocks and shown resilience in growth markets. My guest today will explain why, in today's intangible asset-driven economy, traditional metrics like price to earnings and price to book face challenges, making free cash flow a more relevant valuation metric. We will discuss how advisors should think about free cash flow and the steps VictoryShares & Solutions has taken to enhance traditional approaches.
All investments involve some degree of risk.
Researchers working inside a unit of BlackRock Inc. estimate that a reform of public financial institutions could free up as much as $4 trillion in additional investment to help emerging markets tackle the fallout of climate change.
If investors needed another sign the heyday for meme stocks has passed, an exchange-traded fund designed to ride the pandemic-era rise of retail traders is shuttering after just two years.
As banks pull back from many types of lending, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the GFC.
The cosmos, the final frontier, the galaxy beyond: Our collective fascination with outer space has always been intense. But with companies and public figures now dedicating huge sums of money to space exploration, it seems a new kind of space race has been born. In this episode of The Active Share, Hugo sits down with Chris Impey, an astronomer, educator, and author, to discuss the potential economic, environmental, and geopolitical ramifications of space exploration.
ESG fund managers who turned to big tech as a low-carbon, high-return bet are growing increasingly anxious over the sector’s experimentation with artificial intelligence.
Growth prospects for renewable energy will be a central plank of discussions when world leaders start gathering next week in Dubai for COP28.
I find for many the same is true with ETFs and capital gains. However, the ETF pie continues to expand with newer investors each year. The persistent lack of a capital tax gain burden simply for holding onto an investment is worthy of celebration.
Fossil fuels, particularly oil, are difficult to replace due to their availability, affordability and energy density. Low-carbon alternatives, like solar energy, need large amounts of space to produce comparable amounts of energy to oil.
A new psychological contract is transforming the modern workplace, highlighted by an increase in collective actions and changing employee expectations.
The run-off election looks tight in Argentina, where I’m attending a Young Presidents’ Organization (YPO) event in Buenos Aires.
A movie that I’m quite fond of is 25th Hour, a Spike Lee joint about three friends in post-9/11 New York City. One of them, played by Barry Pepper, is a bond trader.
In a recent VettaFi Viewpoints video episode, Dave Nadig, a financial futurist at VettaFi, sat down with Pat Chiefalo, head of ETFs & Indexed Strategies at Invesco Canada, to talk all things cross-border investing to give investors a deeper understanding of what is going on in Canada.
As I write this, we’re just about three months out from kicking off Exchange 2024 in Miami, Florida. Obviously, I and the whole team here at VettaFi would love it if you came.
Senior Investment Analyst Ashley Fritz addresses three major misconceptions around ESG investing in the EM corporate space.
The price of gold just had its best October in nearly half a century, defying tough resistance from surging Treasury yields and a strong U.S. dollar. The yellow metal rallied an incredible 7.3% last month to close at $1,983 an ounce, its strongest October since 1978, when it jumped 11.7%.
Emerging-market borrowers are piling back into global bond markets, selling about $20 billion in dollar notes in just a few days, all too aware that the window of opportunity may snap shut as suddenly as it opened.
Here are tips for handling prospect objections and how every advisor can improve client meetings.
With less than two months left in 2023, this maybe another disappointing year for broad-based ex-US developed market equity funds. This includes a slew of passive exchange traded funds.
One of the most frequently mentioned criticisms of Bitcoin mining is that it’s energy-intensive. Making that matter worse is that the industry is a massive consumer of fossil fuels, arguably inviting that criticism.
We’ve always intended for the unique collaboration between AllianceBernstein (AB) and Columbia University to serve the broader asset-management industry. Asset owners and managers alike are eager to explore the complex issues of climate change and its potential effect on investments and investment decision-making.
Global investing is easily accessible through the financial markets. Many investors prefer to stick to companies and industries they are familiar with.
Federal Reserve Chair Jerome Powell said the US central bank will continue to move carefully but won’t hesitate to tighten policy further if appropriate.
A recent study found significant differences in how our brains process in-person meetings and Zoom calls versus in-person meetings.
Amid soaring interest rates in the U.S., third-quarter issuance of ESG, sustainability, and related debt declined. But annual issuance of such debt is poised to be elevated — a theme that could carry over into 2024.
Our 2023 Manager ESG survey reveals that while more investors are implementing engagement and proxy voting strategies, there is still room for improvement.
Identifying problems is great. Identifying solutions is even better, especially when the politicians who are supposed to be solving our big problems don’t even try.
A transition away from fossil fuels is likely required to avert a significant warming of the planet. Rising temperatures could lead to crop failures, storm intensification, ocean acidification and deoxygenation, and infrastructure damage, among several other risks.
All of a sudden there is a flurry of activity around artificial intelligence policy. President Joe Biden is scheduled to issue an executive order on the topic today. An AI safety summit is being held in the UK later this week. And last week, the US Senate held a closed-door forum on research and development in AI.
While environmental, social, and governance criticism remains elevated (and loud) and interest rates are affecting the performance of the related equities and exchange traded funds, ESG-committed investors can find relief on multiple fronts.
Private credit is being sought—with the goals of income and capital preservation—to achieve real capital growth and drive portfolio returns among retail and institutional clients alike.
For the 90 days ending October. 20, the S&P 500 Energy Index jumped 6.1%, while the broader S&P 500 slumped nearly 7%. Due in part to geopolitical concerns, oil prices are trending higher, providing support to the energy equity thesis.
Investments in alternative energy have become unattractive due to higher interest rates, not changes in government policies, adoption or pricing of green technologies.
ESG isn’t a new concept. In recent years, it’s gained more attention and assets thanks partly to the proliferation of related ETFs.
Drugmakers don’t have to dominate a healthcare portfolio. Equity investors should cast a wide net across the sector to find innovation and growth.
Russell Investments’ 2023 Manager ESG Survey, now in its ninth year, continues to offer valuable insights into the evolving landscape of ESG practices within the investment management industry.
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
In 2021, almost two-thirds of respondents said they considered environmental, social and governance (ESG) factors when investing. In 2022, that number was 60%, and this year it’s 53%, according to the annual ESG Attitudes Survey from the Association of Investment Companies.
Is there a lesson here for financial advisors? Indeed, there are two.
There is a growing movement among investors to align their portfolio to their values or belief systems. Advisors can use Direct Indexing products and Separately Managed Accounts to help their clients pursue faith- or values-based investing.
As my team and I talk with our clients, we’ve reflected on how generative AI can help enhance client service, decision-making, and more.
Psychology in markets is always fascinating. In February 2009, I wrote “8 Reasons For A Bull Market.” While in hindsight, it is easy to see that was the right call, overall, psychology was highly negative at the time.
We see promising potential in countries with younger populations and forward-looking policies, such as India, Indonesia, and Mexico.
Savvy investors are aware that geopolitical tensions and uncertainty can significantly influence the financial markets.
By placing personalization at the forefront, advisors make the financial journey more than just a series of transactions – it becomes a curated experience tailored to each client.
With the widely followed Markit iBoxx USD Liquid High Yield Index down almost 3% over the past month and in the red on a year-to-date basis, this might not be one of those times.
One mark of true brilliance is the ability to make complex ideas seem simple. I think this is why so many of us fondly remember our early schoolteachers.
Though time will continue to reveal its staying power, environmental, social, and governance (ESG) thus far has proven that it has its place in the investment community.
Not so long ago, families, businesses and governments were effectively living in a world of free money.
Plenty of ink has been spilled about how much money has gone into active ETFs in 2023, and from a pure top-line flows perspective, it’s true.
Real estate investors need to allocate considerably more resources to climate-proofing old buildings rather than erecting new structures, to keep up with net zero regulations and avoid being saddled with stranded assets.
The third quarter was a story of dashed hopes in emerging markets, with the unraveling of some of the most profitable trades in the asset class.
The degree of success of muni impact bonds often stems from showing issuers how they’ll be graded.
Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.
However, the regulators made asset management news with their focus on “truth in advertising.” Despite their well-intentioned efforts, it will remain paramount for investors to do their homework and look inside the portfolio.
If you are tiring of the green energy revolution and can’t quite get on board with the mission to Mars, yet still would like to join a worthy cause with the potential to transform millions of lives, allow me to make a recommendation: transparent hospital pricing.
VettaFi’s Todd Rosenbluth discusses potential ETF industry impact of the SEC adopting amendments to the “Names Rule” and also covers several recent topics including the first defined maturity TIPS ETFs and Schwab’s fee cuts. BNY Mellon’s Matt Camuso offers a framework for incorporating actively managed ETFs into a portfolio. Neuberger Berman’s Hakan Kaya goes in-depth on their Commodity Strategy ETF (NBCM) and offers an outlook for the commodities complex.
Environmental, social, and governance policies and investing have become targets of political derision. That doesn’t dampen the need for corporations and governments to pursue agendas tied to climate change and diversity, equity, and inclusion.
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
Honeywell International Inc. is a global leader in diversified technology and manufacturing. As sectors like aerospace and construction undergo rapid changes, there’s a demand for solutions that boost efficiency while prioritizing safety.
With the rapid pace of urbanization, there’s an increasing demand for efficient and sustainable power solutions, and ABB’s advancements in smart grids and renewable energy integration are pivotal in meeting the demands of this transition.
Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem.
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
The Franklin Templeton Fixed Income team believe that issuers that think critically about the environment in which they operate could outperform throughout the full market cycle compared with those who are slower to adapt.
In arguably quiet fashion, active managers are performing admirably in 2023. An impressive percentage of active equity and fixed income funds beat their benchmarks in the first half of the year.
Celebrating an exciting milestone: Franklin Income Fund turns 75. Learn more about this flagship strategy and read some fun facts from back in 1948.
In a significant turnaround for its aviation sector, Mexico’s air safety rating was upgraded from Category 2 back to Category 1 by the Federal Aviation Administration (FAA). The upgrade could be a game-changer, offering opportunities for both Mexican airlines and their U.S. joint venture partners.
Today, I am going to do something that I've never done. I am going to start a two-part series describing what is in my personal portfolio and why. Let me start by offering two caveats: This letter is in the “do as I say and not as I do” category.
AI, with its data analysis and predictive power, can revolutionize investing. However, humans remain a crucial part of the process. Franklin Templeton Investment Solutions provides use cases into how different investors can harness AI to achieve their desired outcomes and workflows.
From the dense Amazon jungle to wide stretches of Malaysian palm oil plantations, agricultural practices have been stripping the world of vital forests for decades.
A strong brand voice is the foundation of a firm's identity, fostering trust, credibility, and familiarity with clients and the public.
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
In the final part of our series on global supply chains, portfolio managers Inbok Song and Sherwood Zhang look at the companies that are reconfiguring their networks and portfolio manager Vivek Tanneeru gives his assessment on the investment opportunities.
An efficient avenue for asset managers and fund issuers to avoid regulatory scrutiny of products with the environmental, social, and governance (ESG) label is to ensure that those funds live up their ESG ETF billing. That can be accomplished with data-intensive approaches.
Bond investors have been looking for an approach that delivers attractive, repeatable, uncorrelated active returns. Is their wait over?
Xylem is a leading innovator of water solutions. This Knowledge Leader harnesses smart technology to provide water, wastewater, and energy solutions to a diverse range of sectors, from agriculture and aquaculture to commercial buildings and energy.
ESG
Growing Green: Cultivating a Sustainable Future Through an Ecosystem Service Valuation
The Franklin Templeton Fixed Income team believes that sustainable investing will be a dominant investment trend in the coming years, with structural tailwinds that could help improve financial returns.
Bursting of Pandemic-Stock Bubble Fuels Big Wave of ETF Closures
The notoriously saturated $7.7 trillion ETF industry is this year poised for the second-highest number of closures, as the pandemic-era day trading boom fizzles out.
The Energy Transition and What It Means for Institutional Investors
The global economy is still overwhelmingly powered by fossil fuels, with more than 80% of primary energy sourced from coal, oil, and gas, as of 2021.
Weighty Matters for Canada
The Canadian economy is buckling under the weight of higher interest rates, household debt and immigration.
The New “Clean Ocean” ETF
In mid-September, Rockefeller Asset Management, the asset management arm of Rockefeller Capital Management, and KraneShares, a leading global ETF provider specializing in China, climate, and uncorrelated assets, launched the KraneShares Rockefeller Ocean Engagement ETF (ticker: KSEA). The fund invests in public companies with significant impact on oceans and ocean resources, reflecting the meaningful investment opportunities within the blue economy.
KSEA aims to generate competitive returns and improve ocean health through shareholder engagement activity focused on pollution prevention, carbon transition, and ocean conservation. Holdings include companies from diverse sectors such as aquaculture, commercial fishing, waste management, renewable energy, and logistics, among others.
My guest, Casey Clark, will discuss this new ETF.
India Boosts Emerging Market ETFs as US Yields Dip, Dollar Falls
India is once again leading flows into US exchange-traded funds tracking emerging markets, boosting one of the most popular trades in 2023 as declining US yields and a weakening dollar turn investors toward assets in the developing world.
Prudence Still Necessary in Bond Market
November was kind to fixed income investors as bonds posted their best month of 2023. High yield corporate debt participated in that rally as highlighted by the fact that the largest junk bond exchange traded fund is higher by nearly 4.3% over the past month.
Yield Hunt Is Finally Back On for Buyers in Emerging Markets
Across Wall Street, analysts and investors had cheered 2023 as the year of emerging markets, only to be burned by a relentless climb in US Treasury yields. Now, as the Federal Reserve looks set to end its most aggressive monetary tightening campaign in a generation, they’re at it again.
A Pending BlackRock ETF to Watch
Even with $2.4 trillion in ETF assets spread across more than 400 ETFs, there’s a pending offering from BlackRock that caught my eye.
Healthcare, a Minor Major Problem
Back in the Great Financial Crisis era, someone quipped that the federal government had become a giant hedge fund with an army attached. That wasn’t far off. Various agencies and entities were absorbing all kinds of risky assets to stabilize an overleveraged system.
Diversity in Investment Management: What Are the Latest Trends and Insights?
Our 2023 Manager ESG Survey shows that transparency around DEI data is increasing among investment managers. The results reveal that equity product managers in particular are more inclined to share DEI data compared to managers in other asset classes.
OpenAI Exposes the Clash of Governing Money and Mission
OpenAI’s power brokers seem to have decided that the quickest fix for last week’s dysfunction is to borrow a page from corporate America’s playbook by adding some establishment figures to its board.
Billionaire Heirs Have a How-to-Spend-It Problem
“Let me tell you about the very rich. They are different from you and me.” F. Scott Fitzgerald could have added that they are also generationally different from each other.
The Advantages of Free-Cash Flow in Portfolio Construction
Free-cash-flow yield is the surplus cash after expenses and investments divided by the price of the security. Free-cashflow yield has been used for a long time by active hedge funds. Now it has become part of the indexing landscape, competing for assets with other quantitative approaches. It has historically outperformed in markets that favored value stocks and shown resilience in growth markets. My guest today will explain why, in today's intangible asset-driven economy, traditional metrics like price to earnings and price to book face challenges, making free cash flow a more relevant valuation metric. We will discuss how advisors should think about free cash flow and the steps VictoryShares & Solutions has taken to enhance traditional approaches.
All investments involve some degree of risk.
BlackRock Unveils Path to Unleashing $4 Trillion Investment Boom
Researchers working inside a unit of BlackRock Inc. estimate that a reform of public financial institutions could free up as much as $4 trillion in additional investment to help emerging markets tackle the fallout of climate change.
Meme-Stock ETF Shuts After Failing to Attract Day Traders
If investors needed another sign the heyday for meme stocks has passed, an exchange-traded fund designed to ride the pandemic-era rise of retail traders is shuttering after just two years.
Opportunities in Private Credit: Stepping in as Banks Step Out
As banks pull back from many types of lending, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the GFC.
42: Cosmic Capitalism
The cosmos, the final frontier, the galaxy beyond: Our collective fascination with outer space has always been intense. But with companies and public figures now dedicating huge sums of money to space exploration, it seems a new kind of space race has been born. In this episode of The Active Share, Hugo sits down with Chris Impey, an astronomer, educator, and author, to discuss the potential economic, environmental, and geopolitical ramifications of space exploration.
‘AI Blowback’ Angst Grips ESG Investors Who Bet Big on Tech
ESG fund managers who turned to big tech as a low-carbon, high-return bet are growing increasingly anxious over the sector’s experimentation with artificial intelligence.
Climate Funds Look to Regain Footing After Three Down Years
Growth prospects for renewable energy will be a central plank of discussions when world leaders start gathering next week in Dubai for COP28.
Loyal ETF Investors Rewarded With No Tax Bills
I find for many the same is true with ETFs and capital gains. However, the ETF pie continues to expand with newer investors each year. The persistent lack of a capital tax gain burden simply for holding onto an investment is worthy of celebration.
The Energy Transition, Part 2: The Transition Challenge
Fossil fuels, particularly oil, are difficult to replace due to their availability, affordability and energy density. Low-carbon alternatives, like solar energy, need large amounts of space to produce comparable amounts of energy to oil.
A Changing World: The New Psychological Workplace Contract
A new psychological contract is transforming the modern workplace, highlighted by an increase in collective actions and changing employee expectations.
A Time of Gratitude and Opportunity
The run-off election looks tight in Argentina, where I’m attending a Young Presidents’ Organization (YPO) event in Buenos Aires.
25th Hour
A movie that I’m quite fond of is 25th Hour, a Spike Lee joint about three friends in post-9/11 New York City. One of them, played by Barry Pepper, is a bond trader.
Cross Border Investing? Asset Allocation, Factors & Volatility
In a recent VettaFi Viewpoints video episode, Dave Nadig, a financial futurist at VettaFi, sat down with Pat Chiefalo, head of ETFs & Indexed Strategies at Invesco Canada, to talk all things cross-border investing to give investors a deeper understanding of what is going on in Canada.
Exchange 2024: How Do You Build on Sand?
As I write this, we’re just about three months out from kicking off Exchange 2024 in Miami, Florida. Obviously, I and the whole team here at VettaFi would love it if you came.
EM Corporates & ESG: A Surprisingly Strong Opportunity Set
Senior Investment Analyst Ashley Fritz addresses three major misconceptions around ESG investing in the EM corporate space.
Japan’s New Gold Era: The Yen’s Decline Sparks Unprecedented Demand For Safe Havens
The price of gold just had its best October in nearly half a century, defying tough resistance from surging Treasury yields and a strong U.S. dollar. The yellow metal rallied an incredible 7.3% last month to close at $1,983 an ounce, its strongest October since 1978, when it jumped 11.7%.
A $20 Billion Week Marks Market Reopening for EM Bond Sales
Emerging-market borrowers are piling back into global bond markets, selling about $20 billion in dollar notes in just a few days, all too aware that the window of opportunity may snap shut as suddenly as it opened.
How to Stop Taking Client Objections Personally
Here are tips for handling prospect objections and how every advisor can improve client meetings.
It Pays to Be Selective With Developed Market Equities
With less than two months left in 2023, this maybe another disappointing year for broad-based ex-US developed market equity funds. This includes a slew of passive exchange traded funds.
Bitcoin Miners Have Room to Increase Renewable Energy Use
One of the most frequently mentioned criticisms of Bitcoin mining is that it’s energy-intensive. Making that matter worse is that the industry is a massive consumer of fossil fuels, arguably inviting that criticism.
Investing Lessons from Climate School, Class of 2023
We’ve always intended for the unique collaboration between AllianceBernstein (AB) and Columbia University to serve the broader asset-management industry. Asset owners and managers alike are eager to explore the complex issues of climate change and its potential effect on investments and investment decision-making.
Navigating Global Equity Markets
Global investing is easily accessible through the financial markets. Many investors prefer to stick to companies and industries they are familiar with.
Powell Says Fed to Be Careful, Won’t Hesitate to Hike If Needed
Federal Reserve Chair Jerome Powell said the US central bank will continue to move carefully but won’t hesitate to tighten policy further if appropriate.
How to Improve Zoom Engagement
A recent study found significant differences in how our brains process in-person meetings and Zoom calls versus in-person meetings.
ESG Bond Market Poised to Rev Up
Amid soaring interest rates in the U.S., third-quarter issuance of ESG, sustainability, and related debt declined. But annual issuance of such debt is poised to be elevated — a theme that could carry over into 2024.
ESG Engagement Survey – Creating a Complete Picture
Our 2023 Manager ESG survey reveals that while more investors are implementing engagement and proxy voting strategies, there is still room for improvement.
Debt Scores
Identifying problems is great. Identifying solutions is even better, especially when the politicians who are supposed to be solving our big problems don’t even try.
The Energy Transition, Part 1: A Primer on the Clean Energy Transition
A transition away from fossil fuels is likely required to avert a significant warming of the planet. Rising temperatures could lead to crop failures, storm intensification, ocean acidification and deoxygenation, and infrastructure damage, among several other risks.
New Laws to Regulate AI Would Be Premature
All of a sudden there is a flurry of activity around artificial intelligence policy. President Joe Biden is scheduled to issue an executive order on the topic today. An AI safety summit is being held in the UK later this week. And last week, the US Senate held a closed-door forum on research and development in AI.
ESG Still Priority Among CFOs
While environmental, social, and governance criticism remains elevated (and loud) and interest rates are affecting the performance of the related equities and exchange traded funds, ESG-committed investors can find relief on multiple fronts.
Opportunities in Private Credit for Institutional Investors
Private credit is being sought—with the goals of income and capital preservation—to achieve real capital growth and drive portfolio returns among retail and institutional clients alike.
Investors Still Enthusiastic About Energy Sector
For the 90 days ending October. 20, the S&P 500 Energy Index jumped 6.1%, while the broader S&P 500 slumped nearly 7%. Due in part to geopolitical concerns, oil prices are trending higher, providing support to the energy equity thesis.
What Happened to ESG Stocks?
Investments in alternative energy have become unattractive due to higher interest rates, not changes in government policies, adoption or pricing of green technologies.
Work to Be Done to Improve ESG Adoption
ESG isn’t a new concept. In recent years, it’s gained more attention and assets thanks partly to the proliferation of related ETFs.
Healthcare Investing Finding Growth Beyond Pharmaceuticals
Drugmakers don’t have to dominate a healthcare portfolio. Equity investors should cast a wide net across the sector to find innovation and growth.
2023 Manager ESG Survey: Climate Risk Dominates
Russell Investments’ 2023 Manager ESG Survey, now in its ninth year, continues to offer valuable insights into the evolving landscape of ESG practices within the investment management industry.
Seeking Balance in Sustainable Multi-Asset Investing
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
The Tyranny of ESG Has Run Its Course
In 2021, almost two-thirds of respondents said they considered environmental, social and governance (ESG) factors when investing. In 2022, that number was 60%, and this year it’s 53%, according to the annual ESG Attitudes Survey from the Association of Investment Companies.
Two Lessons from a Jar of Jellybeans
Is there a lesson here for financial advisors? Indeed, there are two.
How To Talk to Your Clients About Values and Faith-Based Investing
There is a growing movement among investors to align their portfolio to their values or belief systems. Advisors can use Direct Indexing products and Separately Managed Accounts to help their clients pursue faith- or values-based investing.
How to Use AI Without Compromising Your Brand’s Identity
As my team and I talk with our clients, we’ve reflected on how generative AI can help enhance client service, decision-making, and more.
Bond Valuations Are Cheap.
Psychology in markets is always fascinating. In February 2009, I wrote “8 Reasons For A Bull Market.” While in hindsight, it is easy to see that was the right call, overall, psychology was highly negative at the time.
There’s More To Emerging Markets Than China
We see promising potential in countries with younger populations and forward-looking policies, such as India, Indonesia, and Mexico.
Weaponized Migration And Its Implications For Investors
Savvy investors are aware that geopolitical tensions and uncertainty can significantly influence the financial markets.
Capturing Investor Mindsets to Create a More Meaningful Investing Experience: “The Change Maker”
By placing personalization at the forefront, advisors make the financial journey more than just a series of transactions – it becomes a curated experience tailored to each client.
With Corporate Bonds, Quality Is a Difference Maker
With the widely followed Markit iBoxx USD Liquid High Yield Index down almost 3% over the past month and in the red on a year-to-date basis, this might not be one of those times.
Weaponized Migration And Its Implications For Investors
Savvy investors are aware that geopolitical tensions and uncertainty can significantly influence the financial markets.
The Big Cycle
One mark of true brilliance is the ability to make complex ideas seem simple. I think this is why so many of us fondly remember our early schoolteachers.
Follow the Leaders in ESG With This Active ETF
Though time will continue to reveal its staying power, environmental, social, and governance (ESG) thus far has proven that it has its place in the investment community.
The 5% Bond Market Means Pain Is Heading Everyone’s Way
Not so long ago, families, businesses and governments were effectively living in a world of free money.
2023’s Overactive Active ETF Flows Are Mostly a Mirage
Plenty of ink has been spilled about how much money has gone into active ETFs in 2023, and from a pure top-line flows perspective, it’s true.
UBS Executive Calls For a Retrofit Revolution in Real Estate
Real estate investors need to allocate considerably more resources to climate-proofing old buildings rather than erecting new structures, to keep up with net zero regulations and avoid being saddled with stranded assets.
The Bull Case for Emerging Markets in 2023 Is Finally Shattering
The third quarter was a story of dashed hopes in emerging markets, with the unraveling of some of the most profitable trades in the asset class.
How Muni Impact Investors Can Help Issuers Ace Their ESG Tests
The degree of success of muni impact bonds often stems from showing issuers how they’ll be graded.
Pave Paradise
Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.
ETF Homework Remains Despite SEC Efforts
However, the regulators made asset management news with their focus on “truth in advertising.” Despite their well-intentioned efforts, it will remain paramount for investors to do their homework and look inside the portfolio.
Transparency Is the Cure for High Hospital Prices
If you are tiring of the green energy revolution and can’t quite get on board with the mission to Mars, yet still would like to join a worthy cause with the potential to transform millions of lives, allow me to make a recommendation: transparent hospital pricing.
SEC “Names Rule”, Active Management, & Commodities
VettaFi’s Todd Rosenbluth discusses potential ETF industry impact of the SEC adopting amendments to the “Names Rule” and also covers several recent topics including the first defined maturity TIPS ETFs and Schwab’s fee cuts. BNY Mellon’s Matt Camuso offers a framework for incorporating actively managed ETFs into a portfolio. Neuberger Berman’s Hakan Kaya goes in-depth on their Commodity Strategy ETF (NBCM) and offers an outlook for the commodities complex.
Why ESG Investing Still Matters
Environmental, social, and governance policies and investing have become targets of political derision. That doesn’t dampen the need for corporations and governments to pursue agendas tied to climate change and diversity, equity, and inclusion.
6 Steps to Tax-Efficient Onboarding of Clients With Direct Indexing
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
Mastery in Sustainable Energy Innovation
Honeywell International Inc. is a global leader in diversified technology and manufacturing. As sectors like aerospace and construction undergo rapid changes, there’s a demand for solutions that boost efficiency while prioritizing safety.
Wired for the Future
With the rapid pace of urbanization, there’s an increasing demand for efficient and sustainable power solutions, and ABB’s advancements in smart grids and renewable energy integration are pivotal in meeting the demands of this transition.
Thematic ETF Trends to Watch Entering 2024
Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem.
BlackRock, State Street Among Money Managers Closing ESG Funds
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
Weathering the Storm: Exploring Climate Change Adaptation and the Investor’s Imperative
The Franklin Templeton Fixed Income team believe that issuers that think critically about the environment in which they operate could outperform throughout the full market cycle compared with those who are slower to adapt.
Assessing Allure of Active Management
In arguably quiet fashion, active managers are performing admirably in 2023. An impressive percentage of active equity and fixed income funds beat their benchmarks in the first half of the year.
A Pioneering Income Strategy Celebrates 75 Years
Celebrating an exciting milestone: Franklin Income Fund turns 75. Learn more about this flagship strategy and read some fun facts from back in 1948.
Why Mexico’s Category 1 Air Safety Status Spells Good News For Investors
In a significant turnaround for its aviation sector, Mexico’s air safety rating was upgraded from Category 2 back to Category 1 by the Federal Aviation Administration (FAA). The upgrade could be a game-changer, offering opportunities for both Mexican airlines and their U.S. joint venture partners.
What's in My Personal Portfolio?
Today, I am going to do something that I've never done. I am going to start a two-part series describing what is in my personal portfolio and why. Let me start by offering two caveats: This letter is in the “do as I say and not as I do” category.
Copilot, Not Autopilot: How Generative AI Augments, but Doesn’t Replace Active Management
AI, with its data analysis and predictive power, can revolutionize investing. However, humans remain a crucial part of the process. Franklin Templeton Investment Solutions provides use cases into how different investors can harness AI to achieve their desired outcomes and workflows.
Tree Spotting: Detecting Deforestation Risks One Company at a Time
From the dense Amazon jungle to wide stretches of Malaysian palm oil plantations, agricultural practices have been stripping the world of vital forests for decades.
How to Maintain an Unwavering Brand Voice
A strong brand voice is the foundation of a firm's identity, fostering trust, credibility, and familiarity with clients and the public.
Gen Z Clients: The Active ETF Investing Generation?
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
Investing in an Emerging World Order. Part 3
In the final part of our series on global supply chains, portfolio managers Inbok Song and Sherwood Zhang look at the companies that are reconfiguring their networks and portfolio manager Vivek Tanneeru gives his assessment on the investment opportunities.
Deeper Data Dependency Could Advance ESG ETF Usage
An efficient avenue for asset managers and fund issuers to avoid regulatory scrutiny of products with the environmental, social, and governance (ESG) label is to ensure that those funds live up their ESG ETF billing. That can be accomplished with data-intensive approaches.
Systematic Fixed Income: A Breakthrough in Bond Investing
Bond investors have been looking for an approach that delivers attractive, repeatable, uncorrelated active returns. Is their wait over?
Pioneering Water Solutions for a Thirsty World
Xylem is a leading innovator of water solutions. This Knowledge Leader harnesses smart technology to provide water, wastewater, and energy solutions to a diverse range of sectors, from agriculture and aquaculture to commercial buildings and energy.