Wealth Management
Although the Trump administration is rolling back some environmental regulations and cutting incentives for renewable energy development, many sustainability-focused investments remain commercially viable.
Deregulatory moves and proposed tariff increases may challenge clean energy supply chains and weaken enforcement of environmental protections. However, the economics of renewables like wind and solar continue to improve, with costs often rivaling those of fossil fuels in parts of the U.S. Demand for energy is also rising due to technologies like AI, reinforcing the need for diverse and resilient power sources.
UBS maintains that a diversified, global approach to ESG investing can continue delivering competitive returns even in a less supportive political environment.
Despite shifting U.S. policy, sectors such as infrastructure, energy efficiency, and materials still present strong opportunities for sustainable investors.
Structured notes, once reserved for hedge funds and ultra-wealthy investors, have surged in popularity among retail clients thanks to bite-sized offerings, generous yields, and downside protection amid volatile markets.
These bank-manufactured products, linked to indexes or stocks, use derivatives to offer tailored exposure—whether for income, growth, or buffered loss protection—with some notes capping upside while guarding against market drops. Products like Bank of Montreal’s Nasdaq 100-linked notes offer a fixed return if markets rise, and principal protection if they fall, while others—like buffered or contingent income notes—offer periodic income with defined loss limits.
As volatility climbs, advisors increasingly recommend these notes to generate income without taking full equity risk, with firms like iCapital reporting major spikes in interest following market shocks.
Finsum: It’s interesting that high level investors are using structured notes like buffer products in this high volatility environment.
The US defined contribution (DC) retirement industry, once buoyed by steady asset growth and strong equity markets, now faces a profitability squeeze due to fee compression, demographic shifts, and intensifying competition. As baby boomers retire and withdrawals surpass new contributions, the system is experiencing net outflows, pushing providers to rethink their business models.
Recordkeepers are seeing administrative fees decline significantly and are increasingly relying on ancillary revenue streams—like brokerage accounts and financial advice—to offset shrinking margins.
While total DC system revenues rose modestly between 2013 and 2023, the real surge came from retail wealth management, which generated $45 billion in new revenues, reflecting a shift toward participant-centric strategies. Providers are also contending with rising technology and support costs, prompting restructuring, digitization, and outsourcing, even as consolidation gives larger firms scale advantages.
Finsum: Retirement solutions providers are being forced to adapt quickly, with success increasingly tied to their ability to expand beyond recordkeeping.
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Summer 2025 travel trends show strong demand for beach and urban destinations, with top searches on Hilton.com including Los Cabos, San Juan, New York, and Paris. Tripadvisor reports Cancun and Las Vegas as leading international and domestic picks, while experiences like cultural tours and outdoor activities remain a high priority, especially for younger travelers.
Allianz Partners notes that 71% of Americans are staying stateside, with Seattle, Orlando, and Honolulu topping U.S. itineraries, though international beach locales like Cancun and the Caribbean remain popular. European travel is also rising, with Allianz projecting a 10% increase in U.S. trips to the region, continuing a multi-year surge.
Meanwhile, Kindred highlights rising travel costs as a growing concern, prompting 90% of U.S. travelers to seek ways to cut expenses. Travelers are shifting toward more affordable lodging options, with many citing frustration over hotel surcharges, rental fees, and limited amenities.
Finsum: Take advantage of the travel this summer with some of these great destinations.
Empower, the $1.8 trillion 401(k) plan provider, will begin offering private credit, equity, and real estate investments in some retirement accounts later this year through partnerships with firms like Apollo and Partners Group.
This move marks the largest entry yet of private assets into 401(k)-type plans, a $12.4 trillion market that Wall Street firms have long sought access to. While proponents argue private assets can enhance returns and reduce volatility, challenges remain—such as illiquidity, valuation complexity, and higher fees, which range from 1% to 1.6% versus the 0.28% average for typical target-date funds.
Only select managed account services will offer these investments, with five employers already signed up to participate in the initial rollout. Allocations could range from 5% to 20% of a portfolio, depending on factors like age and risk tolerance.
Finsum: Private markets have definitely gone wide in the last decade but this sort of expansion could really help retirees.
After Moody’s downgraded the U.S. credit rating from Aaa to Aa1, investors sold off government bonds, driving long-term Treasury yields sharply higher. This spike in yields raises borrowing costs for consumers and businesses alike, potentially slowing economic growth.
Analysts warned that higher rates could ripple across mortgages, auto loans, and business financing, putting pressure on spending and investment. While credit downgrades by S&P and Fitch in past years had limited long-term economic impact, the timing of Moody’s move—amid heightened bond market volatility and mounting national debt—has amplified market anxiety.
Some experts view the downgrade as a long-anticipated but symbolically important warning about unsustainable fiscal trends. Still, markets showed resilience, with equities rebounding by midday and Treasury yields pulling back slightly from their highs.
Finsum: Are equities investors neglecting the proper risk to US debt right now? Investors should keep close tabs on how this evolves