Wealth Management
CAIS, a leading alternative investment platform for independent financial advisors, has launched CAIS Advisors, a registered investment advisor aimed at improving portfolio construction tools. Headed by Chief Investment Officer Neil Blundell, CAIS Advisors plans to offer advisory services and customizable alternative investment portfolios.
Blundell highlighted the challenges advisors face when integrating alternative investments into broader portfolios and emphasized how CAIS technology simplifies this process. The new division will also introduce multi-manager registered solutions, spanning private equity, real assets, and hedge funds.
Additionally, CAIS will debut Compass, a tool designed to streamline portfolio construction using alternative investments. These launches were unveiled at the CAIS Alternative Investment Summit.
Finsum: Model portfolios and construction tools can greatly improve advisor effectiveness and efficiency.
Derek Jeter considered the 2000 World Series, where the Yankees faced the Mets, his most stressful experience, feeling relief rather than joy after winning. He believed losing to the Mets would have forced him to leave Manhattan, reflecting the pressure of maintaining control over the city.
As the Yankees prepare for the ALCS against the Guardians and the Mets face the Dodgers in the NLCS, there's a chance of another Subway Series. This would be the third time both New York teams made the LCS in the same year, with 2000 being the last occurrence.
Mets manager Carlos Mendoza, formerly with the Yankees, and players from both teams are familiar faces, heightening anticipation. However, both teams remain focused on their current opponents, determined to advance.
Finsum: This could be an absolute electric sporting event in one of the most prominent sports cities in the U.S.
Recent research from FTSE Russell reveals that direct indexing is on the verge of rapid growth among U.S. investment advisors. Currently, only 21% of advisors are using direct indexing, but nearly half plan to adopt it in the next 1 to 5 years.
This method enables advisors to craft highly personalized portfolios for clients, addressing both tax efficiency and the need for customization. Direct indexing is particularly valuable in managing concentration risk, especially in large-cap equities, where certain companies dominate traditional indexes.
With the rise of fractional share ownership, building tailored portfolios has become more accessible for investors with smaller amounts of capital. As the benefits of direct indexing—such as tax advantages and diversification—become more widely known, its adoption among advisors is expected to accelerate.
Finsum: The expanding technology and investment solutions in this space position direct indexing to become a key tool for advisors seeking innovative ways to serve their clients.
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Oil prices dropped over 2% earlier this week, erasing last week's gains as OPEC revised down its 2024 and 2025 global demand forecasts. China's crude oil imports have now declined for the fifth consecutive month, further weighing on prices.
Despite China's efforts at economic stimulus, investors remain unconvinced, adding to concerns over demand. Brent crude fell by $1.72 to $77.34 per barrel, while U.S. West Texas Intermediate dropped to $73.82.
OPEC attributed much of the demand reduction to China's sluggish economic growth and rising electric vehicle adoption. Geopolitical tensions between Israel and Iran also linger as potential risks to oil markets.
Finsum: Oil price declines and yet inflation still remains slightly elevated, investors should monitor this trend in case inflation takes off again.
With a contentious U.S. election on the horizon, investors are bracing for potential market turbulence, but opportunities within the bond market are emerging. Fixed income, particularly municipal bonds, is poised for strong returns as real interest rates remain historically high, offering attractive yields.
Municipal bond issuances have surged this year, driven by the need for infrastructure funding, creating a favorable entry point for investors. As demand increases and supply decreases later in the year, prices may rise, especially for long-term bonds.
Municipal bonds also present compelling value due to their strong credit profiles and tax advantages, offering stability in uncertain times.
Finsum: Muni bonds provide an excellent option for tax-sensitive investors looking for a solid addition to their portfolios amidst market volatility.
Twin Oak ETF Company has introduced its first fund, the Twin Oak Short Horizon Absolute Return ETF (TOAK), which started trading on the NYSE Arca on August 20, 2024. The ETF will feature active management and securities with less than one year duration.
It caters primarily to family offices and tax-conscious investors, offering a new option in the active ETF space. According to Twin Oak CEO Zach Wainwright, the fund combines high-quality portfolio management with the tax efficiency and accessibility of an ETF.
Co-managed by Wainwright and Greg Stoner, the ETF marks the firm's first step in bringing institutional-level strategies to a wider audience. Twin Oak's goal is to offer innovative investment solutions through a tax-aware approach.
Finsum: These absolute return strategies aren’t without risk but they can be a way to generate less correlated returns in the current environment.