Monday morning briefing – September 16, 2019

Is there a major flaw with internal rate of return? The increasing use of alternative data. The top traits exhibited by leading advisors. And much more in this week’s briefing.

Economic/industry news

The U.S. inflation rate fell to 1.7% in August: Cheaper gas puts a cap on consumer prices in August, but inflation appears to be rising, CPI shows

The ECB lowered its central interest rate to -0.50%: ECB cuts key rate for first time since 2016 as recession fears grow

OPEC should be closely monitoring demand, along with supply: Where does OPEC+ go from here?

Could there be changes to the U.S. capital gains tax?: Trump to revisit capital gains tax cut in White House Meeting

Will value investing bounce back?: Value investing’s heady days aren’t coming back, study says

Fixed income continues to attract significant ETF flows: Global ETF flows continue to favour fixed income in August: ETFGI

News and notes (U.S.)

A look at the hedge fund industry in AugustState of the industry – August, 2019

The Eurekahedge Hedge Fund Index rose 0.31% in August: Hedge fund managers up 0.31 per cent in August

The increasing use of alternative data: Hedge funds plan to pour more money into alternative data

PE drawdown rates are still slow: Despite an active PE industry, drawdown rates have remained slow since 2012

Dry powder continues to rise: Alternative investment managers still building up dry powder

Is there a major flaw with internal rate of return?: The faulty metric at the center of private equity’s value proposition

Bitcoin ETFs could still be a bit away: SEC’s Clayton still troubled by potential manipulation of bitcoin prices

Directors and senior officers are selling shares: Insiders at US firms are selling shares at fastest pace since 2007

News and notes (Canada)

RBC launches five U.S. single-factor ETFs: RBC iShares expands lineup of factor ETFs

Stone Asset Management launches PTF: Stone Asset Management announces platform-traded fund

Why family businesses are important for the Canadian economy: Canada’s economy dependent on family businesses: report

Canadian pension assets grew 5% in the first quarter: Pension assets surged in Q1, StatsCan says

The Canada Pension Plan is opening an office in San Francisco: CPPIB opening San Francisco office, hiring head of VC funds

Canada’s first Pay Equity Commissioner announced: Canada now has a federal pay equity commissioner

On the pulse – New frontiers in fintech

Why banks should embrace and partner with fintech: Fintech and banks: collaboration or competition?

Using AI to fuel deposit growth: How banks and credit unions can grow deposits with AI

AI should complement the human process: Where the AI rubber hits the banking road 

The need to enable open banking in Canada: Feds must act on open banking, senators say

How banks can attract Millennials: What millennials want from banks & credit unions

Small investment firms have cybersecurity deficiencies: Small firms less prepared for cyber risks: report

Morningstar launches Goal Bridge: Morningstar launches new goal-based advisor software

JPMorgan Chase helping small businesses with cash flow: JPMorgan Chase introduces same-day deposits for merchants

Issuing bonds through blockchain: Santander launches the first end-to-end blockchain bond

High-net-worth topics

The high-net-worth should stay invested in U.S. equities, according to Goldman: Goldman manager tells rich clients to put American stocks first

Canadian high-net-worth are focused on preserving their wealth: Canada’s wealthiest shifting focus toward future-proofing

TD launches new alternative fund for high-net-worth clients: TD Asset Management adds alternative fund

Polls & surveys – What financials are saying

60% of investors believe board diversity is important (ISS): Most investors support climate disclosure, board diversity, ISS finds

Expect slower growth for Canadians’ wealth (Investor Economics): Canadians’ wealth declines for first time since 2008

The top traits exhibited by leading advisors (Nationwide): 4 things successful advisors do differently: Nationwide

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