Wealth Management

Blackrock’s Q2 earnings report gave some insights on the performance of its various funds in addition to commentary from its management team. Overall, the asset manager exceeded analysts’ consensus expectations with $9.28 in earnings per share vs $8.45. Compared to last year’s Q2, net income was up 25% while revenue was down 1%. Total assets under management climbed to $9.4 trillion.

However, the company did miss analysts’ estimates when it came to inflows into its equity and fixed income funds at $57 billion vs expectations of $81 billion. Active funds were particularly weak with $9.7 billion of outflows from active equity and $3.7 billion from active fixed income.

These disappointments have weighed on Blackrock’s stock price which has underperformed the S&P 500 YTD. Yet, the company remains confident that future growth will come from active fixed income. According to Blackrock President Rob Kaptio, “There is finally income to be earned in the fixed-income market.” He sees higher yields as a “once-in-a-generation opportunity” and that are supportive of inflows into its lineup of active fixed income products. 


Finsum: In Q2, Blackrock saw negative inflows into active fixed income and equity funds. Yet, the company continues to see these products as key to its long-term growth.

 

In an article for TheStreet, David Dierking discusses two ETFs offering investors weekly dividends. It’s an innovative offering by SoFi as most equities pay out dividends on a quarterly basis, while fixed income ETFs offer monthly payouts. 

In contrast, the SoFi Weekly Dividend ETF (WKLY) and the SoFi Weekly Income ETF (TGIF) are structured to give investors a weekly payout. WKLY is made up of a blend of equities and fixed income. It invests primarily in dividend-paying companies with a market cap of over $1 billion. Some of its largest holdings include Exxon Mobil, Johnson & Johnson, and JPMorgan Chase. It pays out $0.02 per share on a weekly basis which is a 2.2% annual yield. 

TGIF invests primarily in high-yield fixed income and is considered a bond ETF. It mostly invests in short and intermediate-term duration and also has an active management structure which gives it wider latitude to take advantage of opportunities in the credit space. It pays out $0.07 per share on a weekly basis and has an annualized yield of 3.8%. Since inception, it had one dividend hike from $0.05 per share to $0.07.


FinSum: SOFI has introduced an equity fund and fixed income fund which offers weekly dividends. Here are some important considerations.

 

In an article for InvestmentNews, Steve Randall shares some insights from a recent study conducted by Dynasty Financial Partners of investors who work with an advisor and have at least $500,000 in investable assets. 

It finds that many wealthy investors seek out an advisor following a major life event such as a change in employment or inheritance. Interestingly, 57% end up working with the first advisor they meet. This is an indication that advisors should invest in efforts that increase their visibility especially among this set. 

One caveat is that while high net-worth clients are quick to choose an advisor, they are also prone to switching especially if they feel a lack of trust or generating value. For high net-worth clients under 45, 61% had changed advisors. 

Another finding from the research is that referrals remain an important source of new clients. About a little more than half of new clients come from family and friends with another quarter coming from a professional colleague. About a quarter of new business came from social media, blogs, or other online platforms. 


Finsum: A recent survey of high net-worth investors by Dynasty Financial Partners has some interesting insights for financial advisors.

Page 65 of 252

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…