Monday morning briefing – September 23, 2019
A bitcoin yield fund for the high-net-worth. Private equity and venture capital outperforming public equities. Why international co-operation is needed to combat cybercrime. And much more in this week’s briefing.
Economic/industry news
The Fed reduced its central interest rate: Fed lowers interest rate by a quarter-point, and is open to the idea of more easing
Canadian inflation rate was 1.9% in August: Canadian inflation slows to 1.9% on lower gas, vegetable prices
The BoE held its Bank Rate steady at 0.75%: Bank of England holds rates, warns another Brexit delay could hurt economic growth
The BoJ kept its key interest rate at -0.10%: BOJ keeps policy steady, signals chance of easing in October
A look at how liquidity affects an ETF’s trading costs: Why liquidity matters in ETF cost minimization
Does the value of benchmark data justify the cost?: Fund managers seek more insight from benchmark data
News and notes (U.S.)
Hedge fund net exposure at highest level since 2018: Goldman: Hedge fund exposure to stock market at 15-month high
A conversation with Josh Harris on private markets: Apollo’s Josh Harris talks private markets at delivering alpha
PE and VC outperforming public equities: Private equity outperforms and captures institutional flows
Private equity net cash flow was over US$150 billion in 2018: Eight years in the black for private equity cash flows
Vanguard to launch Digital Advisor: Vanguard preparing to offer digital-only robo-advisor
Rockefeller Capital eyes Silicon Valley: Rockefeller Capital buys wealth firm for Silicon Valley rich
The Fed took action in money markets for first time in a decade: Fed intervenes in money markets for first time in 10 years
Looking for more customized target-date funds: Interest rising in active/passive hybrid strategies for TDFs
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 17 edition
News and notes (Canada)
Horizons launches the Horizons Growth TRI ETF Portfolio: Horizons ETFs expands lineup of portfolio ETFs
CI Investments launches ESG funds: CI introduces debut ESG funds
Combining mutual funds and ETFs could be beneficial: Mutual funds and ETFs in harmony
Canada ranks “below average” in fund costs, according to Morningstar: Canada rates poorly in Morningstar survey of mutual fund costs
Foreign investors moving out of Canadian securities: Foreign investors continue to divest Canadian securities
On the pulse – New frontiers in fintech
Five fintech trends to watch in 2020: Five trends shaping fintech into 2020
How to navigate through customers’ fear of open banking: Open banking scares customers, but they want what APIs can deliver
A look at Canadians’ comfort with AI: How Canadians feel about AI in financial services
We’re in the early innings of AI’s impact on the financial services industry: The beginning of the road for AI in finance, the best is yet to come
Building a branch as an advice centre: Transforming branches into advice centers: The long road ahead
How technology is impacting capital markets: Buyers’ brief: Fintech drives capital markets
Why international co-operation is needed to combat cybercrime: Cyber-crime best tackled by international co-operation
Arab Bank launches custody and brokerage services for digital assets: Leading Swiss private bank launches full suite of digital asset services
High-net-worth topics
Family offices incorporating ESG principles: Wealthy families pour fortunes into $31 trillion ESG opportunity
A bitcoin yield fund for the high-net-worth: Wealth manager launches world-first bitcoin yield fund
Polls & surveys – What financials are saying
38% of fund managers expect a recession over the next year (Bank of America Merrill Lynch): Recession fears among fund managers rise to highest level in a decade
Immigration wage gap impacting Canada’s economy (RBC): Immigrant wage gap costing Canada $50 billion a year in GDP: RBC study
Millennials are starting to save early (E*Trade): Young investors are doin’ it for the ‘Gram
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 27, 2019
Socially responsible investing by hedge funds on the rise. Using branches to help with a bank’s digital strategy. Institutional investors prepared for a market downturn. And much more in this week’s briefing.
Economic/industry news
The Japanese economy expanded 0.5% in the first quarter of 2019: Japan’s Q1 GDP: The details are worrisome
Will we see an interest rate cut by the Fed?: David Rosenberg says U.S. will cut rates by end of summer
Assets in passive and active U.S. equity funds at US$4.3 trillion each: Passive fund assets draw even with active incumbents in U.S.
U.S. ETF that pays investors will put pressure on fund fees: Fund fees face added pressure with first U.S. fund that pays investors
There were US$45.94 billion of net inflows into global ETFs in April: Global ETF assets reached US$5.57 trillion last month
News and notes (U.S.)
Asian, emerging markets and event driven hedge funds attracting assets: Event driven, Asia, emerging markets hedge funds are big asset winners in April and YTD
Socially responsible investing by hedge funds on the rise: Hedge funds start to figure out socially responsible investing
Appaloosa LP to convert to a family office: David Tepper’s hedge fund days are coming to a close (one day)
PE exits declined in the first quarter of 2019: Exit activity nosedives for PE firms in 1Q
Investors concerned about the return potential from private markets: Private equity loses luster
Possible changes expected to the tax treatment of carried interest profits: Mnuchin says no plan to change carried interest tax treatment
Vanguard launches first actively managed ESG fund: Vanguard’s first actively managed ESG fund now open for investment
News and notes (Canada)
Allianz Group invests $100 million in Wealthsimple: Allianz makes ‘landmark’ investment in Wealthsimple
Purpose launches options ETF: Purpose launches new options ETF
Canadian mutual funds experienced $1.0 billion of outflows in April: ETF sales trump mutual funds in April
Canadian debt levels continue to rise: CMHC says Canadian debt levels hit record highs at end of last year
Canadian executives expect strong revenue growth this year: Economic optimism underpins strong M&A market
On the pulse – New frontiers in fintech
Using branches to help with a bank’s digital strategy: Don’t abandon branches to favor digital banking channels
Outages causing problems for open banking: Open banking revolution on hold as banks fail to prioritise fixing outages
Banks spending heavily in digital transformation to ward off the threat from fintech firms:Banks waking up to fintech threat throw billions into digital
How artificial intelligence can help banks: How AI will supercharge bank and credit union innovation
The top 20 countries in AI readiness: UK near top of AI index
Attracting the Gen Z client: Are you focused on the right customer?
Trade AI Engine will provide a better experience for trade processing: Standard Chartered rolls out Trade AI Engine
Revolut launches group feature for its vault account: Revolut launches Group Vaults as an alternative to joint accounts
HSBC opens artificial intelligence lab: HSBC opens global data lab in Toronto
High-net-worth topics
What wealthy clients want from an advisor: How advisors can stand out to wealthy clients
A look at philanthropy from the CEO of the Center for Effective Philanthropy: What Wall Street gets wrong about giving
Cash holdings on the rise for the ultra-wealthy: A group of superrich investors, spooked by China and potential ‘black swans,’ raises cash to levels not seen in years
Polls & surveys – What financials are saying
Institutional investors prepared for a market downturn (Wilshire): Institutional investors think they’re ready for the next downturn
Approximately 50% of investment managers are using alternative data (IHS Markit): Half of investment managers use alternative data: report
Investment professionals bullish on U.S. equity markets (SPDR): Investors still confident in mid-2019, but risk tolerance dips
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Are passive ETFs passé?
While passive exchange-traded funds (“ETFs”) represent a significant majority of the capital flowing into the US$3.4 trillion global ETF industry, actively managed and strategic beta (rules-based) ETFs could be poised to quickly gain ground on their passive peers.
Actively managed and strategic beta ETFs are among the most popular types of strategies being launched by ETF providers. However, this news isn’t all bad for passive ETFs.
A rising tide is lifting all boats
The 2018 calendar year was rough on many investors, and the volatility that defined the period negatively impacted the ETF market. In fact, global inflows decreased by approximately 20% year-over-year from 2017.
Still, 2018’s US$516.1 billion in investor inflows was a significant amount, and this was the second-best year on record for inflows into the industry.1 So, even if passive ETFs’ market share actually declined, in absolute terms, interest in passive ETFs appeared to still be healthy.
The relationship between the different ETF strategies is … complicated
The shift into active and strategic beta ETFs is hardly the first time the relatively young ETF industry has undergone significant change.
Current trading volumes reflect an ETF market dominated by large professional investors, quantitative strategies and institutional investors. This is a far cry from the industry’s early days, when it was dominated by smaller, individual investors.2
In concert with the continued growth of the industry, and of active and strategic beta ETFs in particular, this shift could suggest increased investor sophistication and a greater investor comfort in using ETFs as part of more nuanced portfolio strategies.
Such strategies often involve combining active and passive investments to work in concert – for example, the “core-and-explore” investment strategy often begins with passive investments as the “core” by default.
This could help establish passive ETFs as important strategic components of a given portfolio, in addition to the benefits of their relatively low costs.
Changes in the ETF market occur quickly and often, which makes finding the correct positioning for your investment solutions essential. Contact us today at 1.844.243.1830 or info@ext-marketing.com to learn how we can help you better market your solutions in this ever-changing investment landscape.
Sources:
1 Chris Flood, “ETF growth sputters after markets’ ‘rocky ride’ in 2018,” Financial Times, January 11, 2019.
2 Ted Seides, “The Death of Passive Management?” Institutional Investor, September 9, 2018.
Monday morning briefing – November 26. 2018
The names you need to know in fintech. Activist investors in Europe keying in on the U.K. industrials sector. Why states around the world should consider issuing cryptocurrencies supported by their central bank. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
Canada’s inflation rate rises again:Canada inflation ticks up, central bank seen keeping rates steady
Japan’s economy contracts in the third quarter: Japan GDP: Natural disasters hit economic growth
Could there be changes to the BoC’s mandate to keep prices stable?: Bank of Canada plans thorough review of inflation targeting
Protecting your portfolio against the next recession: The next recession is coming: Here’s how to protect your portfolio
A look at the currency market: How currency differs from other asset classes
Canadian ETF assets fell in October: Canadian ETF assets lower in October
The number of distinct indexes rose by 12% in 2018: Number of indexes on the rise, led by fixed income: report
Sir Ronald Cohen on the importance and outlook for impact investing: Impact investing: A multitrillion-dollar market in the making
Businesses should focus on the new, “circular economy”: ING Portfolio focuses on financing for sustainable economy
On the pulse – New frontiers in fintech
Fully transitioning to digital is much more than just a mobile app: Are you really ‘doing digital’?
Customer centricity vital for the banks of the future: It pays to be personalised
How to manage your cloud infrastructure: Managing cloud infrastructure post-migration – a CTO guide
The names you need to know in fintech: Fintech finance’s power players
Technology could help private bankers become more productive: Making private bankers more productive
Open banking not well known or understood by end consumers: Open banking slow burn means just 22% of consumers have heard of the concept
Starling Bank launches Client Money Accounts, helping professional practices that hold money on behalf of their clients: Starling Bank launches CASS-compliant accounts helping firms manage third-party funds
Regtech will be an important component for the future success of financial institutions: Saxo Bank on why regtech is key to scalability in financial services
How to be innovative in the insurance industry: How to become an innovator in insurtech
Capital One purchases WikiBuy: Capital One buys online shopping comparison startup
Many firms don’t believe that they are resilient enough to combat cyberattacks: Cyber security implementation: firms want it, but less do it, finds survey
BitSpread launches BitSpread Financial Solutions, designed for investing in blockchain assets: BitSpread launches new financial solutions division
Why states around the world should consider issuing cryptocurrencies supported by their central bank: IMF: Nations need to consider a central bank backed cryptocurrency
Cryptocurrencies may not be banned in India: A ray of hope for cryptocurrencies as India readies draft regulations
News and notes (U.S.)
The Barclay CTA Index fell in October: Barclay CTA Index loses 1.29 per cent in October
Hedge fund assets fell to $3.06 trillion in September: Hedge funds redemptions surge to $39.1 billion in September, highest in more than 5 years
Management expenses no longer a tax break for hedge fund investors: Hedge fund investors lose key tax break for management expenses
Activist investors in Europe keying in on the U.K. industrials sector: Industrials are No1 target sector for activist investors in Europe
Secondaries still generating a lot of interest: Why secondaries fundraising is surging
Morgan Stanley launches new advisory platform, WealthDesk: Morgan Stanley unveils new advisory platform
AllianceBernstein to purchase Autonomous Research: AllianceBernstein announces offer to acquire Autonomous Research
Further trade tensions between the U.S. and China could hurt the stock market: Expect more stock market losses if US-China trade war worsens
Long-term funds experienced $29.1 billion of outflows in October: Morningstar: Passive equity funds gain, actives lose big
An interview with Abigail Johnson and Kathleen Murphy of Fidelity: The most powerful woman in fund management gives a rare interview
High-net-worth topics
High-net-worth investors expect further equity market declines: The equity party’s ending, say wealthy investors
How Tiger 21 helps the ultra-rich: Tiger 21 philosophy: Learn from your (very wealthy) peers
Life insurance can help reduce estate taxes, but not eliminate taxes entirely: Can HNW clients still use life insurance as a tax and financial tool?
Polls & surveys – What financials are saying
Canadian investors have trouble understanding the concept of risk and return (Natixis): Investors may have an unrealistic understanding of risk and return: survey
Over the next 25 years, $68 trillion of wealth will be passed on to younger generations (Cerulli): Generational wealth transfer to hit $68 trillion over 25 years: Cerulli
Correlating share value with ESG ratings (MSCI): Are ESG ratings the new credit rating for stock prices?
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
But can you make a PowerPoint?
But can you make a PowerPoint? We’re asked this question all the time.
It’s no surprise. “Financial services marketing and investment commentaries” covers a broad range of possibilities. To find out more about investment commentaries, click here. To find out more about financial services marketing, read on.
Services at Ext. Marketing Inc.
Yes, we make PowerPoint presentations – and we can do much, much more for you. Here are just some of the ways that we can help you and your firm achieve your marketing goals while alleviating many of your concerns and challenges around resourcing:
- Copy and design for PowerPoint presentations
- Copy and design for newsletters
- Digital newsletters and eBlasts
- Copy and design for brochures, infographics, sales tools and fund sheets
- Copy and design for websites and microsites
- Strategize and execute custom content campaigns
- Write blog posts for content marketing and other usages
- Help you brand and get the word out about a new product or services
- Conduct marketing materials audits
- Copy for executive speeches
- Copy for press releases
- Lead brainstorming sessions
- Enhance your social media activity and presence
- Script, storyboard, shoot and edit videos
- We even offer print production and translation services!
You get the picture – we’re a full-service marketing and communications partner for financial services firms.
If you have a marketing challenge, we can help you work through it. Contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
[Insert catchy headline]
Headlines are the first words your audience sees. And, if your headlines don’t catch your audience’s attention, they may be the last words your audience sees.
That’s why it’s so important to create headlines that grab your reader’s attention and act as incentive to read the rest of the piece you have taken the time to write.
The following are a few key tips for writing better headlines.
Keep it aligned with the content
Okay, we’re starting with the practical here. If your article is about your economic growth outlook for emerging markets, it’s probably a good idea to have the words “economic” and “emerging markets” in the title, or at least allude to these concepts in some way.
If your title for this article is “Strawberries and cream make for a proper outlook,” people may read on, but you will quickly lose them and their trust, possibly for good.
Keep it tight
Our motto is “the fewer words, the better.” Instead of writing, “The five best ways to improve your portfolio management process,” try “Improve your portfolio management process today.” The second option has almost half the word count and is way more active.
Our motto is “the fewer words, the better.”
And speaking of active words…
It’s always better to use strong, active words over a more passive tone. Verbs tend to draw in readers a lot more than adjectives and nouns.
Start your “search” engines
We’re not sure we’re saying it right, but these days it’s important to consider using words in your headlines that people are likely to “Google.”
If you’re writing about small-cap investing, include “small-cap investing” in the headline to improve the chance that your piece will be picked up by search engines and, when people punch in “small-cap investing,” hopefully your article will be close to the top of the list!
Avoid industry jargon
Financial professionals tend to use a lot of industry words that aren’t necessarily used or understood by the masses. It’s a good idea to save that jargon for the body copy in your piece, where you will have more room to explain what those jargony words actually mean.
You should also avoid largely unknown acronyms in your headlines.
These are just some of the tips we believe will help you write better headlines to better engage readers. Please weigh in if you have other tips on this topic!
Looking for writing help? Contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
Read more:
How to communicate with investors about underperformance
Financial services marketers face challenges every day, from writing investor education articles to managing complex rebranding initiatives. There’s one marketing challenge that we all wish would never happen, even though it’s inevitable: communicating with investors about an underperforming investment solution.
So, tip #1: don’t hide from underperformance. Quite the opposite. Get in front of it, be transparent and talk about what matters most to investors. Trust and understanding will go a long way to building a strong, enduring relationship.
Identify investor concerns
Any project that tackles underperformance must start by identifying investor concerns. And when it comes to performance, investors typically have two highly important concerns:
- Am I overpaying for my investments?
- Will I achieve my financial goals?
Once you know investor concerns, use them to identify your key messages. Fees and the value of advice are hot-button topics in the financial services industry but for the purposes of this article, let’s move forward with the idea of reassuring your investors that they will meet their goals.
A note on the causes of underperformance
The reasons why a fixed income solution may underperform are different from those for an equity solution, and within equities, a Canadian solution may underperform for different reasons than a global solution. For example:
- A bond fund could underperform because of unexpected interest rate moves
- A Canadian fund may underperform because of its weighting to energy companies
- A global fund could underperform as a result of its geographic allocation
The point here is that no one-size-fits-all strategy exists for communicating about short-term underperformance. To do it right, you need robust product and industry knowledge, and the ability to make complex issues investor friendly.
Execution
You’ve identified the primary investor concern: they’re uncertain whether they will achieve their financial goals. Could there be a more valid concern? We don’t think so. So, now it’s time to execute.
1. Create a special brochure
By crafting a special print- and web-friendly brochure, you create an opportunity to talk about the benefits of the underperforming solution. For example, you can highlight:
- The manager’s philosophy and process – this is especially important if your firm has a strong history or if the manager has a truly unique approach
- The solution’s role in a diversified portfolio – investors may question why a certain solution made it into their portfolio, offering you the opportunity to talk about asset allocation
- The importance of focusing on long-term goals rather than short-term volatility – remind investors that they are on the right path
2. Build a microsite
If you want to reinforce the importance of diversification and asset allocation, you can create an interactive microsite that uses the underperforming solution to diversify investor portfolios. Microsites are a great choice since they can have a long life. Why? Because, in this example, the asset allocation story is important at all times.
For microsite tips, read Why microsites are a big deal.
3. Produce a whitepaper
We think that an investor-friendly whitepaper is equally valuable as a brochure in this situation because they naturally have a more sophisticated feel that relies on data. Talking about underperforming investment solutions isn’t about whitewashing poor returns, it’s about explaining the situation effectively and data can help you do this with clear examples.
For more on whitepapers, read Whitepaper tactics that work and Five best practices for creating better whitepapers.
4. Write an advertorial
Support your investors by supporting advisors. We recommend writing a piece specifically for a trade publication that not only references, but also builds, on the whitepaper mentioned above. Advertorials are a great way to reach a broad audience, and you can tie them into other marketing and ad campaigns.
5. Host a PM roadshow
Although portfolio manager roadshows might be falling out of favour as a result of their high costs, and while they aren’t our first recommendation, they’re still effective and beneficial if the portfolio manager believes a roadshow could help with retention efforts.
Since mutual fund underperformance is unavoidable, we think you should turn the challenge into an opportunity for you and your firm. Your honesty and transparency will help you build stronger relationships with investors. And don’t forget to equip advisors with relevant materials first, since they are the ones who communicate directly with clients and field many of the performance questions from them.