Displaying items by tag: funds
Muscle of exchange traded funds
Exchange traded funds are packing a considerable wallop in the construction of portfolios, according to a global survey on institutional investors on the fixed income market, reported pioonline.com.
They’re strutting an "expanded role in portfolio construction," as reflected by a recently released by survey sponsor State Street Global Advisors, survey sponsor.
Participating in the survey were 700 global institutional investors who oversee asset allocation decisions at pensions funds, wealth managers, asset managers, endowments, foundations and sovereign wealth funds. Administered by an independent firm unaffiliated with SSGA, the survey took place in the middle of the year.
"Our 2022 survey shows that the role of ETFs in asset allocation is expanding to non-core sectors," said the report, "The Role of ETFs in a New Fixed Income Landscape. We can see the increase in use, as compared to our 2021 fixed income survey."
Meantime, in August, etf.com reported on the apparent hyper popularity of longer duration US Treasuries and investment grade corporate debt ETS among investors in Europe. That has come in the face of lingering doubt over escalating inflation and the reaction by the Fed.
Bloomberg Intelligence data was revealing: it showed fixed income yields attracted more than $4.2bn over the past three months as of the time of reporting.
Actively doing investors a solid
Doing a solid or two for investors; hey, the more the merrier, right? So, when it comes to active fixed income, it’s said that active managers dispense important expertise, which explains why they can bill slightly more than passively managed funds. When it comes to fees, of course, they tend to be a bit easier on the pocketbook, according to ftadviser.com.
But – and isn’t there typically one – the debate among bond investors is more nuanced. Here’s the upshot: to some, because of the immense size of the bond market and since it’s so liquid, pinpointing the market inefficiencies that put active managers, or are supposed to, in a position to deliver value’s a little, well, trickier.
That said, this just in: it’s snot incumbent on active managers to be perfect. Yep; seriously.
In fact, during the past 70 years, studies of market indices show, these managers can land on the wrong side of the market approaching 40% of the time, according to naaim.org. And even then still equal a buy and hold return. When the market’s in an upturn, the deeper an investor reaches into their pocket, the more performance leverage they generate.
ESGs getting in on the activism
ESGs? So called Active driven agendas? Two peas in a pod? Um, yep; that is, if you ask Indiana Attorney General Todd Rokita, according to foxnews.com.
Rokita contended that state law places a roadblock in the ability of ESG to impact investments by state government employee pension funds. He furthermore states that BlackRock, one of the world’s largest investment funds, potentially has “run afoul: of state and federal antitrust laws. How? By leveraging ESG in its investments decisions. The company also promotes its "firm-wide commitment to integrate ESG."
He argued that the Indiana Public Retirement System is required to invest the pensions of citizens "with care, skill, prudence and diligence," in an advisory opinion late last month. He also went on to allege that since ESG investments stem from political instead of financial interests, it’s a legal no no for the INPRS to make investments with ESG guidelines in mind.
Looking ahead to future ESSH campaigns, boards would be savvy to expect a settlement – or for activists to prevail – and not withdraw or a failed activist initiative, based on research from diligent.com.
While there was a drop off in the volume of activism activity between 2020 and last year, 13% of the campaigns last year struck gold. In 2020, it stood at 11%. It was indicative of a shift in corporate commitments to ESG, the site continued.
Inflation Beating Closed-End Funds
Inflation is now everyone’s primary concern, including the Fed. A strategy to outpace inflation is to find an income strategy that can keep up. Closed-end funds with high returns are a great way to do this. Virtus AlllianzGI Diversified Income & Convertible Fund is a great option as it has an 8.96% yield and has averaged over 8% in the last 5 years. Calamos Convertible & High Income is also a great option along with Advent Convertible and Income. Investors looking to rely on Treasury inflation-protected securities have gotten hammered because the rising yield has destroyed their value, and TIPS funds have equally suffered.
Finsum: High yield corporate debt is a great pace to look for yield right now, and is less sensitive to Fed risk than many other bonds.
Breaking barriers in a new marketplace for finance
Do you even remember what life was like before Uber? Flagging down a taxi in rush hour traffic on a rainy day. Watching the fare meter increase, despite not moving more than 0.2 miles in 10 minutes. Uber truly disrupted the taxi industry by following a simplified business model that provided transparency and time/cost savings to its customers.
At Magnifi, we are breaking through those “roadblocks” the same way Uber has. We understand it can be challenging in today’s crowded markets, our revolutionized platform, which produces over 300k search results each day, provides you with a unique opportunity to stand out with both financial advisors and individuals to drive sales and strengthen advisor relationships.
عنوان البريد الإلكتروني هذا محمي من روبوتات السبام. يجب عليك تفعيل الجافاسكربت لرؤيته. today to further discuss how Magnifi can generate 50,000 search results for your fund each month!