Wealth Management
Indexed annuities are becoming increasingly popular as retirement tools because they blend growth potential with protections not found in traditional fixed annuities. These products allow investors to defer taxes on gains until distributions begin, making them attractive for long-term retirement income strategies.
Equity-indexed annuities (EIAs) and registered index-linked annuities (RILAs) tie returns to market indexes, with EIAs offering a guaranteed minimum return and RILAs providing downside buffers or floors to manage risk. However, features like caps, participation rates, and fees can limit upside potential, so retirees must carefully review contracts to understand how returns will be credited.
Indexed annuities are designed for long-term holding, and early withdrawals can lead to surrender charges and tax penalties that erode principal.
Finsum: For retirement savers, these products can serve as a middle ground between fixed and variable annuities, offering balance, income potential, and risk management over the long haul.
Private equity leaders are cautioning that while industry assets are likely to keep expanding, the number of firms competing for those dollars could shrink dramatically. KKR’s CFO Robert Lewin and Apollo’s president Jim Zelter both suggested that smaller managers, burdened by high fixed costs and limited fundraising capacity, may not survive the next cycle.
Lewin forecasted a wave of organic consolidation over the next five years, while Zelter warned that many firms may already have raised their last fund without realizing it. Larger players, by contrast, are positioned to thrive, offering a wider array of products and attracting investors eager to simplify their GP relationships.
Consolidation could also accelerate through acquisitions, with bigger firms absorbing weaker rivals.
Finsum: The same pressures are expected to spread into venture capital, where scale and distribution strength are becoming just as critical.
The target date market surged in the first half of 2025, with combined assets across mutual funds, CITs, and custom solutions rising 10% to more than $4.7 trillion. Vanguard extended its dominance, adding $121 billion to reach $1.6 trillion, far ahead of Fidelity’s $623 billion.
A major development is the rapid rise of income-enabled target date funds, whose assets climbed to $103 billion, led by TIAA’s RetirePlus model and BlackRock’s LifePath Paycheck series.
These products reflect growing demand for pension-like security within modern 401(k) structures, blending glide paths with annuity-based income features. Co-manufacturing partnerships between recordkeepers, insurers, and asset managers are fueling much of this innovation, while CIT-based target date funds have overtaken mutual funds, now holding 53% of assets.
Finsum: Target date funds are a great way to start a portfolio for clients and then to build customization around the edges.
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Rocky markets with lots of macro uncertainty have investors looking harder for diversification. While private assets are drawing attention, a quieter corner of the alternatives world — managed futures ETFs — has quietly surged in popularity.
Funds like the Simplify Managed Futures Strategy ETF (CTA) and the Invesco Managed Futures Strategy ETF (IMF) have each attracted hundreds of millions of dollars in new inflows this year.
These strategies follow market trends across asset classes, taking long and short positions in commodities, rates, currencies, and sometimes equities. Their key appeal lies in their historically low correlation to both stocks and bonds, making them useful portfolio diversifiers.
Finsum: With investors searching for tools to steady returns in volatile markets, managed futures ETFs are stepping into the spotlight as timely complements to traditional allocations.
Treasury Secretary Scott Bessent said Tuesday he is optimistic that the U.S. and China are closing in on a trade agreement. In an interview with CNBC, he noted that upcoming talks ahead of November’s scheduled reciprocal tariffs have become increasingly productive.
Bessent suggested Beijing now recognizes that a deal is within reach, even after months of back-and-forth since tariffs were first announced in April.
While China initially faced duties as high as 145%, those measures have been suspended through Nov. 10 to allow negotiations to continue. He also highlighted that U.S. allies are frustrated by the surge of Chinese goods into their markets, a dynamic adding urgency to the talks.
Finum: With the U.S. trade deficit with China already narrowing sharply in 2025, there could be a strong incentive to reach a trade deal as soon as possible.
Recent changes allow 401(k) plans to hold private market and alternative investments, opening the door for managed accounts to expand their offerings. Managed accounts, which provide professionally managed, customizable portfolios, are seeing rapid growth, with assets reaching $13.7 trillion in 2024 and net flows topping $811 billion.
Incorporating private equity, venture capital, private credit, and real estate into these accounts requires robust technology for reporting, valuations, and liquidity management.
Firms like InvestCloud are creating platforms that enable scalable, model-based access to private market investments, allowing advisors to integrate these assets alongside traditional ETFs and mutual funds. Such technology also supports liquidity solutions, like lending against securities, so investors can access cash without disrupting long-term strategies.
Finsum: With regulatory adjustments, including tweaks to the Accredited Investor rules and the 401(k) shift, managed accounts are positioned to broaden access to previously hard-to-reach alternative investments.