Wealth Management

Invesco announced the monthly dividend payments for two of its closed-end funds: Invesco High Income Trust II and Invesco Senior Income Trust. Both funds are maintaining their current monthly dividend rates, with no change from previous distributions. 

 

The dividend for Invesco High Income Trust II is set at $0.09641 per share, while Invesco Senior Income Trust will pay $0.04301 per share. Under their Managed Distribution Plans, these funds may distribute more than their income, including returning capital to shareholders, which could affect their long-term performance. 

 

Investors should keep in mind that these returns may not be directly linked to the funds' investment success and may be impacted by market fluctuations and tax regulations. 


Finsum: This might be a great option for investors looking to add income to their portfolio and may compensate for the lack of liquidity. 

Separately managed accounts (SMAs) are quietly transforming asset management, offering a personalized alternative to mutual funds and ETFs. With 30% growth over the past two years, SMAs are projected to reach $3.6 trillion by 2027, driven by tax advantages and lower investment minimums. 

 

Unlike mutual funds, SMA investors hold individual securities, allowing for tailored portfolios based on specific preferences. Customizations, such as tax optimization and covered call strategies, can enhance returns for certain investors.

 

While fees may be higher, SMAs offer flexibility and control, especially for high-net-worth individuals. As technology evolves, the accessibility and customization options of SMAs are expanding rapidly.


Finsum: We have seen how the technology has really lowered the fees of these more customizable asset classes and we expect this trend to continue. 

Value investing has fallen out of favor in a market dominated by FAANG stocks, but there are strong indicators suggesting a revival is possible. Currently, value stocks are priced significantly lower than their growth counterparts, trading at only a fraction of the cost. 

 

Even though they’ve lagged behind, the core business metrics, such as earnings, have remained competitive with growth stocks, implying the downturn isn't tied to company performance. 

 

Moreover, in times of rising inflation, value stocks historically outperform, and with inflation likely to stay above central bank targets, this could boost their appeal. Growth stocks shine in long bull markets but tend to struggle in bear markets or early recoveries, making value stocks a safer option during uncertain times.


Finsum:  For those looking to diversify, gradually increasing exposure to value-focused investments could offer solid returns as value stocks regain prominence.

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