Wednesday morning briefing – June 19, 2019
A look at the hedge fund industry in May. How investors can survive the trade wars. Use of fintech services on the rise. High-net-worth investors are looking to forests. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate fell to 1.8% in May: US consumer prices barely rise; underlying inflation muted
How alternative investments can help retirement portfolios: The case for alternatives in retirement portfolios
Preparing for modern monetary theory: Don’t dismiss modern monetary theory, research affiliates warns
The outlook for the euro and pound given Brexit uncertainty: How is Brexit affecting currencies?
The importance of international diversification: Diversification means investing overseas too
News and notes (U.S.)
A look at the hedge fund industry in May: State of the industry – May, 2019
The Barclay Hedge Fund Index fell 1.47% in May: Hedge funds’ four-month run in the black ends in May with 1.47 per cent fall
A look at the growth of GP stakes fundraising: GP stakes fundraising is starting to boom
Blackstone raises US$4.5 billion for its second energy fund: Blackstone raises $4.5 billion for energy fund
How investors can survive the trade wars: Trade wars and tariff-mania: An investor survival guide
BlackRock focuses on launching thematic ETFs: BlackRock looks to 5 ‘megatrends’ to expand its ETF business
Legg Mason to make its strategies available to retail investors in Mexico: Legg Mason to offer funds to Mexican retail investors
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: June 11 edition
News and notes (Canada)
BMO launches a health care banking program: BMO launches program aimed at healthcare professionals
Evolve launches the Evolve Global Materials & Mining Enhanced Yield Index ETF: New global materials and mining ETF launched
Canada had a net outflow of foreign investment in April: Foreign investment in Canadian securities declined in April: StatsCan
Market value of trusteed pension assets fell 1.3% in the fourth quarter of 2018: Market value of trusteed pension assets declined in Q4 2018: StatsCan
On the pulse – New frontiers in fintech
Use of fintech services on the rise: Consumer use of fintechs for banking services skyrockets
Uber entering the fintech space: Uber is making a fintech push with a New York hiring spree
Why traditional banks need to prioritize a digital transformation: The logic of digital change
Use of digital wallets expected to grow by 2024: Half of world’s population to use digital wallets by 2024
How to combat financial crime: Joining the fight against financial crime
What you need to know about Gen Z: 15 things banks & credit unions must know before targeting Gen Z
Visa enters the cross-border, business-to-business transaction market: Visa enters the $125 trillion global money transfer market with new blockchain product
HSBC partners with Canadian firm to enhance AI use: HSBC ramps up artificial intelligence efforts with Element AI partnership
Shoppers Drug Mart to use blockchain technology to monitor quality of medical cannabis: Shoppers to use blockchain technology to track medical cannabis quality
High-net-worth topics
The high-net-worth are investing in forests: Wealthy families are adding forests to their portfolios
Luxury watch prices are increasing: Time is money: How luxury watch collectors show off their precious investments
Polls & surveys – What financials are saying
58% of institutional investors are utilizing smart beta strategies (FTSE Russel): More than half of institutional investors using smart beta strategies: survey
The ability to express empathy is important for financial advisors (STEP Canada): Do you really know how to express empathy to clients?
There is a retirement savings gap around world (WEF): Retirees risk running out of money a decade before death
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Monday morning briefing – June 10, 2019
Banks can make privacy a competitive advantage. High-net-worth investors are looking for private equity. The difficulties facing fintech firms as they cross borders. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate was steady at 3.6% in May: Jobs report: U.S. economy adds disappointing 75,000 jobs in May, unemployment rate holds at 3.6%
Canadian unemployment rate fell to its lowest level since 1976: Canada added 27,700 jobs in May; unemployment rate hit record low
ECB holds rate steady, pushes out possible rate increase: Euro rises as ECB pushes back rate hike deadline; raises inflation forecast
Would the Fed be willing to cut rates?: Powell hints Fed will cut rates if needed over trade wars
What the next recession could look like: Gauging the next recession’s severity
The benefits of farmland in a pension portfolio: A look at the role of farmland in pension portfolios
Sustainalytics launches ESG screening product: Sustainalytics launches new ESG screening tool and engagement service
News and notes (U.S.)
Who can replace a legend?: The race to replace Larry Fink
What to look for in an outsourced trading partner: Key considerations when choosing an outsourced trading partner
Regrets about going public: Apollo founder ‘absolutely’ regrets taking the firm public
A look at the next CIOs: II’s most wanted allocators: First team
The largest PE firms have been able to diversify across asset types: A new era of scale in the private capital markets
Fidelity reduces fees on target-date funds: Fidelity cuts target-date mutual fund fees as price war spreads
The SEC passed the Regulation Best Interest proposal: SEC passes regulation best interest by 3-1 vote
Household wealth in the U.S. up, growth rate of debt slowed: U.S. first-quarter household wealth hits record as stocks surge
News and notes (Canada)
Fidelity launches ESG funds: Fidelity launches 3 funds aimed at positive change
May was the best month in 2019 for ETF inflows: Canadian ETF inflows in May are the year’s strongest so far
The Canadian ETF industry still has a lot of room to grow: Why Canada’s ETF industry hasn’t peaked yet
An in-depth look at the Canadian mutual fund industry: Mutual Fund Guide 2019
Looking at the compliance challenges facing investments: OSC to launch new advisory committee
Protection of vulnerable investors a top priority of IIROC: IIROC sets strategy through 2022
On the pulse – New frontiers in fintech
Regulators and fintech firms need to coordinate efforts to create a better environment for innovation: BankThink Fintechs, regulators need more common ground
Making money in mobile banking using big data: Data can move mobile banking from ‘convenient’ to ‘monetized’
The difficulties facing fintech firms as they cross borders: 3 challenges of scaling a fintech company across borders
Creighton University introduces a degree in fintech: Creighton University among the first to create a fintech degree
The opportunity and risks of deploying AI: The potentials and pitfalls of applying AI in the financial industry
The U.K. has seen a rise in mobile banking, less use of cash: Rise in mobile banking and contactless as consumers take pick ‘n’ mix approach to payments
Banks can make privacy a competitive advantage: Why now is the ideal time for banking brands to assert their privacy role
Banks’ adoption of open banking will take time and trust: Mastercard’s Wadsworth: Banks need time to fit into open banking future
Why tech talent should consider banking: The war for (banking tech) talent
High-net-worth topics
How to advise people who come into sudden wealth: Advising ‘Jeopardy!’ champ Holzhauer on his $2.5 million payday
The high-net-worth rank trust as the number one requirement in an advisor: Satisfaction and loyalty just the start for high-net-worth clients
The high-net-worth are looking for private equity: Russ Prince: Wealthy investors want more private equity
Polls & surveys – What financials are saying
Asset managers are looking at creating ESG products (Cerulli): More than half of asset managers considering ESG products, Cerulli says
Some doctors are worried about unexpected expenses (MD Management): Is your doctor client worried about finances?
Combining human advice with robo may become the best approach (IFIC): Hybrid distribution channels set to rise: IFIC
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – June 3, 2019
A look at fintech’s progress in the small business market, the private equity market during the first quarter and why almost 50% of current students aren’t prepared to manage money. And much more in this week’s briefing.
Economic/industry news
The BoC holds its benchmark overnight interest rate steady: BoC holds rate, says numbers suggest slowdown was temporary
Global trade tensions are a major concern for the BoC: Trade war escalation ‘major preoccupation’ for Bank of Canada: top official
U.S. GDP revised to 3.1% in the first quarter: U.S. economic growth in the first quarter revised down slightly to 3.1 percent
The Canadian economy grew 0.4% (annualized) in the first quarter: First-quarter stall masks underlying strength in Canada’s economy
Low-volatility ETFs gain traction as markets become more volatile: Billions flow into low-vol and “buffer” ETFs as markets swing
A look at the difference between risk and volatility: The difference between investment risk and volatility
Mohamed El-Erian to become president of Queens’ College: Allianz’s El-Erian to head college at Cambridge University
News and notes (U.S.)
Hedge fund managers recorded a positive month in April: Hedge funds recorded fourth positive month of the year in April
Hedge funds and corporate social responsibility in action: How hedge funds use corporate social responsibility considerations
New Jersey pension to cut its exposure to hedge funds: N.J. Pension to cut hedge fund exposure 50% amid high fees
Bridgewater and Lyxor to partner on a UCITS fund: Ray Dalio’s Bridgewater is working with Lyxor on an alternative fund
A look at the PE market during the first quarter: 12 charts on US PE trends in 1Q
Dynasty Financial Partners launches M&A platform: Dynasty launches new M&A platform Dynasty Connect
Morningstar to purchase DBRS: Morningstar to buy Canadian debt-rating agency
Brookfield to invest in residential projects in Brooklyn and the Bronx: Brookfield seeks $1 billion for fund aimed at poor areas
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: May 28 edition
News and notes (Canada)
Purpose Financial purchases CreditGenie: Purpose acquires Toronto tech firm
Sharing data to reduce regulatory burdens for IIROC firms: IIROC and FINTRAC boost information sharing
Looking to bring a digital assets market to retail investors: Firms seek OSC approval on regulated market for crypto trading
Canadians aren’t financially prepared to retire: Canadians aren’t ready to retire?
VC investment had a 48% increase in the first quarter over the same period last year: Canadian VC investment boomed in Q1, while PE fizzled: report
On the pulse – New frontiers in fintech
Fintech has gone global: Fintech used to be a local game. Today it can be global
The impact of fintech on consumer loans: Fintech continues to disrupt consumer lending
Incorporating artificial intelligence into fintech: Everyday fintech use cases for A.I.
How to maximize the banking innovation lab: Time to ‘disrupt’ wrong thinking about banking innovation labs?
A look at fintech’s progress in the small business market: Fintech’s biggest new market is small business financing … but is it worth it?
Global regulator looking at key issues surrounding cryptoassets: IOSCO launches consultation on cryptoassets regulation
Robo-advice assets could grow to over US$1 trillion in five years: Robo AUM could reach US$1.26 trillion by 2023: report
High-net-worth topics
The wealthy may not want to pay more in taxes: Do wealthy clients want to pay more taxes?
The wealthy are moving to Florida: Florida wins big as wealthy leave northern states
Polls & surveys – What financials are saying
Canadian institutional investors may increase their allocation to alternative strategies (CIBC): Institutional investors adding alternatives, report says
Canadian CEOs are less optimistic than global CEOs about the Canadian economy (KPMG): Canadian CEOs’ confidence in the economy drops: report
Not enough Canadians have disability insurance (RBC): Half of Canadians have no disability insurance: survey
Almost 50% of current students aren’t prepared to manage money (AIG): Gen Z establishing bad financial habits, new research shows
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Tuesday morning briefing – May 21, 2019
There is no stopping socially responsible investing. The benefits of making personalization a reality. How ETFs rose to prominence. And much more in this week’s briefing.
Economic/industry news
Canada’s inflation rate rises to 2.0% in April: Inflation rises in April as carbon taxes drive up gas prices
Why a Fed rate cut could be problematic for the economy: Fed’s George warns rate cut could lead to bubbles and recession
How ETFs rose to prominence: Why ETFs succeeded for retail investors
Looking beyond fees: Fees aren’t the only cost of investing
MSCI to add more shares to its emerging markets index: MSCI boosts China, adds Saudi to emerging-market indexes
There is no stopping socially responsible investing: Socially responsible investing movement is hot and there are no signs of it cooling off
How DC plans can follow in the footsteps of DB plans: 2019 Top 40 Money Managers Report: Investment lessons for DC plans from their DB parents
News and notes (U.S.)
A look at the hedge fund industry in April: State of the industry – April, 2019
Alternative asset firms looking to enter the retail market: Hiring activity suggests alts firms are eying wealth management
Balancing foreign investment with national security: An increase in foreign investment in the US comes with trade-offs
A look at one of the largest lenders in the world, GSO Capital Partners: The radical, lucrative, and controversial company hiding in Stephen Schwarzman’s pocket
Looking at retirement in the U.S.: Is there really a retirement crisis brewing?
Another delay on the decision of a bitcoin ETF: SEC delays decision on Bitwise Bitcoin ETF again
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: May 14 edition
News and notes (Canada)
Private equity firm, Onex, to purchase WestJet: Onex signs agreement to buy WestJet in $5B deal
BMO announces changes to its investment lineup: BMO Investments announces new fund and series launches
Nest Wealth purchases Razor Logic Systems: Nest Wealth acquires Canadian software firm
Accelerate Financial Technologies launches three ETFs with 0% management fees:Alternative offerings mark firm’s ETF debut
Certain budget measures affecting the financial services industry may not pass before the fall election: Stock option changes, other budget measures unlikely to proceed before election
On the pulse – New frontiers in fintech
Making personalization a reality: Big payoffs for banks & credit unions from personalization
How technological advancements can turn complaints into opportunities: Five year increase in customer complaints an opportunity for banks, Financial Ombudsman reports
House Committee on Financial Services sets up fintech task force: US Congress launches fintech and AI task forces
Responding to cyber risks: Cyber exposure for mutual funds
FINRA to streamline interactions with member firms: FINRA plans digital transformation
Fintech deals grew to $111.8 billion in 2018: Global fintech investment doubled in 2018
Cybersecurity teams should be involved in managing the risks of business and digital transformation: PwC’s Digital Trust Insights survey: aligning business and cyber security drives success
A look at the Chief Data Officer: The evolution of the Chief Data Officer
Amazon moving into the blockchain space: Will Amazon find the same success with blockchain as they did with cloud?
High-net-worth topics
How much money do people need to consider themselves wealthy: You need $2.3 million to be considered truly wealthy in America
Brokerage firms must improve the products and services they offer the high-net-worth:Not good enough
Polls & surveys – What financials are saying
Help from a financial advisor is one of the best tools for retirement planning (Benefits Canada): Advisors top list of retirement planning tools: survey
ETF investors expected to increase their allocation to ETFs to protect against market volatility (Charles Schwab): Two thirds of ETF investors expect to raise allocations this year
Education costs impacting parents’ finances (FP Canada): University costs delay parents’ retirement: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 13, 2019
Banks must meet customers’ expectations of personalization. Advisor conversations about ESG investing are on the rise. How to effectively reach millennials through social media. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate was 2.0% in April: U.S. consumer prices rise; underlying inflation tame
The Canadian unemployment rate fell to 5.7% in April: Canada surprises with biggest one-month jobs gain since 1976
The Fed is concerned with credit markets: Reshaped credit markets are spooking the Fed
Institutional investors looking to emerging markets for higher returns: Institutional investors are all in on emerging markets
A look back at the 2010 Flash Crash: Nine years on: The true story of the 2010 Flash Crash
Global regulatory review: FactSet regulatory update: May 2019
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 1.13% in April: Hedge funds positive again in April after robust first quarter
A potential market downturn could mean more assets allocated to hedge funds: 4 out of 5 investors to bet bigger on hedge funds
Apollo planning to convert to a C-Corp: Apollo becomes latest PE bigwig to plan corporate conversion
The transformation of KKR: Gentlemen at the gate: With trillions pouring in, KKR and its peers must build up rather than break up
PIMCO adds Richard Thaler as a senior advisor: Pimco brings on Nobel-winning economist Thaler for advisory role
How Vanguard is deferring capital gains taxes on its mutual funds: Vanguard investors get control of paying taxes
Actively managed ETFs have been gaining traction in the market: Active ETFs gaining ground
News and notes (Canada)
TD launches more ETFs: TD launches three new equity ETFs
Canadian pension plans investing in AI venture capital fund: CPPIB, PSP part of group investing in new AI fund
AdvisorSavvy launches advisor rating platform: Advisor rating site to offer marketing platform
Scotiabank to launch Global Wealth Management division: Scotiabank launching global wealth management business in November
Fixed income ETFs accounted for a greater share of total ETF sales in the first quarter:Canada’s fixed income ETFs fared well in first quarter
On the pulse – New frontiers in fintech
How banks and fintech firms can work together to create better solutions for customers:Banks and fintech: the next step
Digital transformation must come from the top of the organization: Digital is a leadership challenge and not a project
Banks must meet customers’ expectations of personalization: Trendwatch: Independent banking brands? Or integrated service bundles?
The KYC process needs to be improved: SWIFT’s Claeys: Decades-old KYC processes need change
The impact of insurtech on the insurance industry: The fintech revolution in insurance
Helping people spend, save and invest: New digital financial advice service – OpenMoney
New financial tool to help retail investors compare and analyze stocks: QARA launches “What Is Fund” (WIF) as beta-service
Algorithmic trading market expected to grow by 11.1% annualized over the next five years:Algo trading market to surpass $18.8 billion in five years
How to effectively reach millennials through social media: Shifts in millennial social media habits financial marketers can tap
Fintech firm, SoFi, launches ETFs: SoFi launches gig-focused ETF
Fidelity to offer bitcoin trading to its institutional clients: Fidelity said to offer bitcoin trading within weeks
High-net-worth topics
High-net-worth investors are optimistic about the global economy: Wealthy investors bullish on global economy, stocks, UBS finds
Examining your portfolio can have a meaningful impact on your life: Living purposefully: The surprising benefits of examining your portfolio
High-net-worth individuals will invest in cryptocurrencies: New global poll reveals high-net-worth individuals are flocking to crypto
Polls & surveys – What financials are saying
CPAs less optimistic about the Canadian economy (CPA Canada): Economic optimism declines among Canadian accountants: survey
Advisor conversations about ESG investing are on the rise (Nuveen): More advisors bringing up ESG investing with clients
Financial wellness programs helping employees’ financial planning (Financial Finesse):Long-term use of financial wellness programs drives retirement success: study
21% of young baby boomers in Canada don’t have any retirement savings (Franklin Templeton): Many young baby boomers have no retirement savings
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Monday morning briefing – May 6, 2019
Movement across borders by millionaires up 14% in 2018. Here are the fintech firms that you need to know for 2019. There is strong optimism and demand for alternative investments. And much more in this week’s briefing.
Economic/industry news
The Fed held its target range steady at 2.25%-2.50%: Fed holds rates steady, citing lack of inflation pressure
The BoE maintained its Bank Rate at 0.75%: Bank of England ups growth view, Brexit keeps rate rise on ice
The Fed’s comments have a big impact on financial markets: Fed needs to develop a better feel for markets
Real assets should benefit from a pause in interest rate increases: How the Fed pause affects real assets
Financial advisor revenue climbed in 2018: Financial advisor revenue reaches record high despite drop in assets
A look at the risks and opportunities in the wealth management industry: Sizing up the competition in wealth management
Understanding how liquidity affects the total cost of an ETF: The importance of ETF liquidity: State Street
How ETFs and index funds can benefit the older generation: Why index funds and ETFs are good for retirees
News and notes (U.S.)
There is strong optimism and demand for alternative investments: Investors remain optimistic about alternatives despite ongoing market volatility
Investors are moving money into hedge funds they are familiar with: Investors weed out their hedge fund managers
78% of hedge fund managers experienced positive performance in the first quarter: Over three-quarters of hedge funds saw positive returns in Q1
Why U.S. VC is poised for another big year in 2019: 15 charts that show US VC could break multiple records in 2019
A look at some of the bigger risks in the fixed income market: This time is different, credit shop argues
Many manufacturers await the SEC’s decision on the ActiveShares proposal from Precidian Investments: A flood of nontransparent active ETFs could be coming – soon
Mutual fund and ETF fees fell in 2018: U.S. fund fees at record lows
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 30 edition
News and notes (Canada)
75% of active Canadian equity managers underperformed the benchmark in 2018: Most Canadian equity fund managers underperformed the S&P/TSX Composite Index in 2018
Canadian VC financing benefited from U.S. investors: U.S. investors powered Canadian VC financing in Q1
A look at cash holdings by sector: Currency & Sector Liquidity Analysis Report: Q1 2019
Macquarie to close equity sales, trading and research businesses: Macquarie shuts down three business lines in Canada
Defined-benefit pension plans in Canada returned 7.2% in the first quarter: Canadian DB pension returns boosted by rallying equities in Q1 2019
On the pulse – New frontiers in fintech
How banks and fintech firms can create a great partnership: 4 myths preventing more fintech+banking partnerships
Traditional banks are looking to fintech for growth: Established companies leveraging fintech capabilities for growth
Here are the fintech firms that you need to know for 2019: These are the top 10 hottest fintech startups and companies in the world
Adopting the cloud can help banks go digital: Banking in the cloud
Thomson Reuters and IBM partner on new regtech initiative: IBM and Thomson Reuters team on AI and data-driven compliance offering
Creating explainable AI is needed to build enterprise and consumer trust: Explainable AI: the future of AI
Global Financial Innovation Network selects firms that will take part in its service: Global sandbox accepts first eight firms
Open data can have a positive impact on society: The beginnings of open data
BMO launches group to fund tech companies: BMO launches Technology & Innovation Group
High-net-worth topics
How the wealthy can teach their kids about money at every stage of life: Here’s how the super rich teach their kids about money
Movement across borders by millionaires up 14% in 2018: Millionaires flee homelands to Canada, Australia, U.S. as tensions rise, taxes bite
MML Investors Services to offer more investment options for high-net-worth clients: MML Investors Services adds new investment options for HNW clients
Polls & surveys – What financials are saying
Americans are behind in their retirement savings (Franklin Templeton): Franklin Templeton: Most Americans lag in saving for retirement
Clients want more service flexibility and pricing options (EY): Wealth management clients want flexibility and transparency, finds EY
Institutional investors interested in holding cryptocurrencies in their portfolios (Fidelity): Fidelity survey finds institutional investors are eyeing crypto
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 29, 2019
Fintech and the fourth industrial revolution. Could European equities benefit from a slowdown in U.S. share buybacks? How fintech can help the underserved. Actual fee disclosure missing in the Regulation Best Interest proposal. And much more in this week’s briefing.
Economic/industry news
The U.S. economy grew 3.2%, annualized, in the first quarter: U.S. economy grows 3.2% in the first quarter, well above estimates
The BoC held its benchmark overnight rate steady at 1.75%: Bank of Canada abandons rate-hike bias amid economic slowdown
Mark Carney to leave the BoE in 2020: Carney left his mark at the Bank of England, now it’s time to find his successor
Lack of inflows into equity markets partially the result of investors’ already high allocation to equities: Why stock-market investors aren’t suffering ‘FOMO’ despite return to all-time highs
Could European equities benefit from a slowdown in U.S. share buybacks?: End to $1 trillion buyback binge may help ‘uniquely hated’ asset
A look at some risks that could lead to a market correction: Roubini: 8 risks that could trigger the next correction
ESG investing does not mean lower returns: Does your client think socially responsible investing means poorer returns?
The number of ESG mandates continues to grow: Asset managers answer the growing call for ESG investments
News and notes (U.S.)
$13.69 billion was redeemed from hedge funds in March: Investors continue to pull money from hedge funds despite performance rebound, says eVestment
Asset and wealth management M&A activity had a strong start to 2019: M&A stays high as asset managers take ‘aggressive measures’ to survive
Average size of PE funds has grown this year: The average PE fund size is skyrocketing in 2019
Mary Meeker raises over $1 billion for her fund, Bond Capital: Mary Meeker raises $1.25B for Bond, her debut growth fund
Vanguard experienced net inflows of $62 billion in the first quarter: Vanguard tops Q1 flows: Morningstar
Potential new changes to Volcker Rule could benefit large banks: Wall Street nears a big win in the latest revamp of Volcker Rule
Actual fee disclosure missing in the Regulation Best Interest proposal: Should the SEC require advisors to make actual fee disclosures, as the EU does?
News and notes (Canada)
TD launches alternative funds for its private wealth management clients: TD Asset Management launches alternative investment funds for HNW clients
First Asset rebrands ETFs into CI First Asset: First Asset rebrands ETFs and announces risk rating changes
Canadians interested in responsible investing: RI continues to grow in Canada: Desjardins
The Ontario Teachers’ Pension Plan launches investment platform to help late-stage tech companies: Ontario Teachers’ launches venture capital investment platform
Responding to international events: What should Canadian investors do about the news?
On the pulse – New frontiers in fintech
How fintech can help the underserved: Fintech touching millions of lives by redefining financial services
Digital transformation must keep the needs of customers in mind: Digital banking transformation requires cultural reboot
Ignore the excuses and begin your digital transformation: There’s no excuse why your financial institution can’t embrace digital transformation
Fintech and the fourth industrial revolution: Why fintech should embrace the fourth industrial revolution
Horizontal security layers can minimize the risk of a cyberattack: How horizontal security layers offer your organisation the best protection
People are concerned about their privacy when working with voice assistants: 41% of voice assistant users have concerns about trust and privacy, report finds
The benefits of a robo-advisor: Key benefits of robo-advisors in fintech
The impact of digital assets on financial markets:
The Blockchain comeback: How institutions effectively use digital assets
TD to adopt Microsoft Azure for its data and AI initiatives: TD Bank opts for Microsoft Azure
Fidelity makes additions to its Wealthscape Integration Xchange: Fidelity expands its digital store for advisors
High-net-worth topics
Forbes Family Trust purchases Optima Fund Management: Forbes Family Trust, LGL buy $2 billion fund manager Optima
Polls & surveys – What financials are saying
Investors expressed positive sentiment towards the majority of asset classes (Horizons): Advisors and investors are bullish on 10 of 14 asset classes: survey
Americans don’t feel financially prepared for retirement (Fidelity): Americans are confident about their finances. Retirement? Not so much.
Social and governance issues just as important as environmental concerns (Allianz): Social issues prominent among U.S. ESG investors, survey says
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Tuesday morning briefing – April 23, 2019
Hedge funds can’t ignore the widespread adoption of ESG principles. Family offices becoming the preferred model for high-net-worth advisors. How organizations can optimize their use of data. And much more in this week’s briefing.
Economic/industry news
The inflation rate in Canada rose to 1.9% in March: Inflation rises 1.9% on higher fresh vegetable prices, mortgage costs
China’s economy expanded 6.4%, annualized, in the first quarter: China’s economy had a steady start to 2019
Business sentiment is falling: BoC survey finds negative level of Canadian business sentiment
Institutional investors believe that equities are reaching their peak: More than half of institutional investors think equities peaking
Plan Sponsors are using less-conservative default investment options: How default investment funds are becoming smarter
The shift from the AUM pricing model: 5 truths about the pricing revolution in wealth management
What you need to know about a fund’s performance history: How important is a fund’s performance history?
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 1.06% in March: Eurekahedge Hedge Fund Index up 1.06 per cent in March
Hedge funds off to a strong start in 2019: Hedge funds had their best first quarter in 13 years to start 2019
Hedge funds can’t ignore the widespread adoption of ESG principles: Hedge funds ponder the ethics of shorting unethical companies
Secondary buyout deals growing: The median size of US secondary buyouts has nearly doubled since 2015
VCs showing interest in the “mystical services market”: Why are venture capitalists pouring billions into astrology?
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 16 edition
Will New Jersey institute a fiduciary rule for financial advisors?: New Jersey moves to impose fiduciary rule on brokers
Ensuring ETF names stay true to their objective and strategy: SEC cracks down on ETF names that could be misleading investors
News and notes (Canada)
BMO looking to expand its alternatives business globally: BMO’s Asset Management arm eyes alts expansion
Ninepoint purchases LOGiQ Global Partners: Ninepoint Partners acquires institutional advisory business
Agora Dealer Services launches wealth management platform for independent advisors: New digital platform for independent advisors
Advisors taking interest in the RI designation: RI designation gaining momentum among advisors
On the pulse – New frontiers in fintech
Canadians are concerned about privacy issues in open banking: Accenture survey reveals consumer hesitancy toward open banking
There’s plenty of opportunity for traditional banks to take advantage of the weaknesses in direct banks: Direct banks may be good, but they’re not unbeatable
A look at the benefits of contactless payments: The benefits of a cashless society
The European Commission provides ethical guidelines on testing new AI systems: European AI guidelines give hesitant developers green light
A look at a few developments in the AI space: 5 artificial intelligence developments to watch
How insurtech is catering to the younger generation: How insurtechs are shaking up a trillion dollar industry
Challenger banks must be able to respond to customer problems: Leaving customers digitally high and dry … big mistake
How organizations can optimize their use of data: The three considerations of data: standardize data, data strategy and data culture
Mastercard purchases POS financing company: Mastercard moves into POS financing with Vyze acquisition
Fintech firm merges with Difference Capital: Digital disruptor Mogo announces merger for accelerated growth
High-net-worth topics
Family offices becoming the preferred model for high-net-worth advisors: For high-net-worth clients, it’s not about the brand name, it’s about the experience
The impact of holding digital assets in trust: Digital assets in Bermuda
Advisors must get to know, and understand, the children of high-net-worth clients: What you need to know about the children of your wealthy clients
Polls & surveys – What financials are saying
Customer satisfaction with investment firms declined in 2018 (J.D. Power): Canadians’ satisfaction with investment firms drops
58% of millennials in the U.S. are saving for retirement (LendEDU): Most millennials are saving for retirement, prefer human advice: study
Many Americans don’t know about social investing (Newton): New survey finds most Americans unaware of ESG investing
Only 10% of Canadians are very comfortable with self-directed investing (TD): TD survey finds Canadians aren’t comfortable with self-directed investing
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
U.S. regulatory trends – 2019 and beyond
Are financial services regulatory issues exciting? Not always. Are they important? Absolutely.
We’re living in an era of heightened legal scrutiny – as well as heightened scrutiny in the court of public opinion. As a result, financial services firms and marketers must track regulatory changes and prepare for the consequences of these changes.
It is turning into a busy year for U.S. financial services regulators. Here are a few themes that we’re tracking:
Cybersecurity a serious threat to human civilization
Cyber threats are a serious issue to all businesses, especially those in the financial services industry. Staying ahead of these threats is an important issue in 2019 and will continue to be for many years to come.
As firms try their best to stay ahead of the criminals, regulatory bodies must provide supportive, thoughtful and measured leadership to firms in the financial services industry.
Currently, various legislative bodies are looking to introduce new cybersecurity and privacy laws. Meanwhile, regulators are exploring ways to help their firms protect against cyber threats and maintain proper disclosure requirements should an attack occur.
Fiduciary rule is dead, long live the best interest rule
In the U.S., the Department of Labor’s Fiduciary Rule appears to have come to an end. After numerous delays, the Fiduciary Rule proposal was finally abolished in 2018.
Eliminating conflict of interest issues remains a priority. As a result, some state regulators, as well as the U.S. Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”), have created their own proposals that are similar, in theory, to the Fiduciary Duty, in an effort to eliminate or reduce conflicts of interest. The SEC has also come forward with a proposed best interest rule. This will continue to be an important topic for regulators until an acceptable resolution is found.
Tales from the cryptocurrency
Will we see cryptocurrency and, more specifically, bitcoin go mainstream?
The SEC declined bitcoin exchange-traded funds in 2018, given the risk of market manipulation and liquidity issues that accompany these investment options. Will the SEC’s stance change in 2019? Various regulators within the U.S. are looking to standardize cryptocurrencies, which could help them become more mainstream.
There are many unknowns that remain regarding cryptocurrencies, and regulators will try to stay on top of these potential pitfalls by developing regulations for cryptocurrencies as they transition into a new asset class. Regardless, regulators’ focus will continue to be protecting investors and financial markets.
Overall, 2019 is turning into a busy year for U.S. regulators as the financial services industry continues to evolve.
Regulatory changes have a direct impact on your marketing efforts in both the short and long terms. We can help you stay on top of all these changes. Contact us today at 1.844.243.1830 or info@ext-marketing.com to learn more.
Monday morning briefing – April 15, 2019
Fintech is here and changing the way financial services firms do business. Customers want to purchase banking products and services digitally. Financial success may be harder for the next generation. The number of VC deals was down in the first quarter of 2019. And much more in this week’s briefing.
Economic/industry news
U.S. inflation rate rose to 1.9% in March: U.S. inflation vaults at highest rate in 14 mos.
The ECB held its benchmark refinancing rate steady at 0.00%: European Central Bank holds interest rates amid gloomy economic outlook
The IMF downgrades its projection of global economic growth for 2019: The global economy: A delicate moment
Why global warming should be important to investors: Curbing global warming essential to investors and planet: report
How active managers can capitalize on market inefficiencies: Does your active manager have an edge?
Oil prices have moved higher in 2019: Oil rises above US$70 on Libya turmoil
Global ETP industry reached assets of US$5.4 trillion in March: Exchange-traded products industry hits new global record of US$5.4 trillion
News and notes (U.S.)
A look at the hedge fund industry in March: State of the industry – March, 2019
Hedge funds returned 5.40% in the first quarter of 2019: Hedge fund returns YTD best since 2012, says eVestment
Institutional investors are looking to hedge funds to diversify risks: Investors keep patience with hedge funds, but seek better deals on fees
Focus on alternative investments could be beneficial for cryptocurrencies: Bitcoin, BlackRock and the rise of alternatives
Setting guidelines for general partner-led secondary fund restructurings: Your private equity fund wants to restructure. Here’s how to deal.
Number of VC deals down in the first quarter of 2019: Massive drop in VC deal count in Q1 2019
Transit and freight drew a lot of interest from VCs in the first quarter: 1Q in review: VCs are fixated on the future of moving people and things
Principal acquires Wells Fargo’s retirement unit: Wells Fargo agrees to sell retirement unit for $1.2 billion
News and notes (Canada)
Scotiabank launches the Scotiabank Alternative Mutual Fund Index: Liquid alts index launched by Scotiabank
Ninepoint launches private debt fund: Ninepoint casts its eye on US private-debt markets
A look at the best performing mutual funds over the first quarter: Top performing mutual funds of Q1
Foresters to focus on insurance: Foresters sells money manager, keeps life business
Equity issuance fell in the first quarter of 2019: Canadian equity underwriting dropped in Q1, debt ticked up
Ontario looks to make changes to financial advisor titles: Ontario to restrict use of planner and advisor titles
On the pulse – New frontiers in fintech
Fintech is here and changing the way financial services firms do business: How fintech is revolutionizing financial services
Customers want to purchase banking products and services digitally: Banks not meeting digital sales expectations
The battle between globalization and localization in fintech: Time for a global fintech platform?
Adoption of machine learning high among financial services firms, but challenges remain: Use of machine learning now pervasive across financial services industry
A look at real-time payments in the U.S. and projections for its growth: US real-time payments are headed to ubiquity. Are banks ready?
How data sharing can help your organization: How to capitalise on the power of modern data sharing
ETFs have revolutionized investing, but certain challenges and risks remain: How ETFs are the technology that is revolutionizing investing
Banks are showing an interest in Central Bank Digital Currencies: At a glance – Central Bank Digital Currency
Coinbase offers debit card using cryptocurrencies: Coinbase launches debit card in the UK
High-net-worth topics
New partnership looks to increase private equity liquidity for the high-net-worth: iCapital partners with Nasdaq to create marketplace for private funds
Shaping the next generation of high-net-worth advisors: Who will be the HNW advisors of the future?
The high-net-worth market in the U.S. is growing rapidly: US high net worth market expanding at record pace: Cerulli
Polls & surveys – What financials are saying
Financial success may be harder for the next generation (Ameriprise): Most parents expect to chip in for kids’ college, weddings: Ameriprise
Private company owners do not have a plan in place to transfer their business (PwC): Almost half of business owners fail to plan for succession: survey
Social media is helping advisors grow their business (Putnam): Almost all advisors are using social media: Survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 8, 2019
A look at why fintech firms’ valuations are surging in Latin America. New hedge funds are raising minimum investment amounts. A look at how liquid alts can add value to an investor’s portfolio. How to establish digital trust. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate was 3.8% in March: Job market bounces back in March with 196,000 gain in payrolls
The Canadian unemployment rate was steady at 5.8% in March: Canada’s job run stalls in March with first drop in seven months
Financial institutions need to be prepared for a possible no-deal Brexit: Financial firms should prep for “no deal” Brexit: report
Europe holds the largest amount of sustainable investing assets: Global sustainable investment assets grew by a third in 2 years: report
Preparing investors’ portfolios for a slowing global economy, possible recession: Why investors shouldn’t panic over the yield curve inversion
Regulation is required to protect retail investors: Behavioural economics are useful, but regulation is essential: report
News and notes (U.S.)
New hedge funds are raising minimum investment amounts: New hedge fund study shows funds placing premium on strong start
Institutional investors may increase allocation to private capital: Stock market fears push investors toward alternative assets
Blackstone closing in on largest PE fund ever: Blackstone surpasses $22B mark for what could be biggest PE fund ever
BlackRock undergoes massive organizational changes: BlackRock starts big reorg of leadership, units
A review of M&A activity in 2018: 10 charts detailing the state of M&A in 2018
Year-to-date, 73 funds added ESG criteria to their investment strategy: More funds are formally considering ESG in their investment process
Fixed income ETFs continue to attract investor money: Fixed income ETFs received over $34B in flows during Q1
Mutual fund sales and performance figures over the past two weeks: Mutual funds scorecard: April 2 edition
SEC extends deadline for two bitcoin ETF applications: SEC delays decision on 2 bitcoin ETF filings
News and notes (Canada)
A look at how liquid alts can add value to an investor’s portfolio: Investing in liquid alts
Dynamic launches another liquid alt: Dynamic Funds expands its liquid alt offerings
Russell Investments launches liquid alternative fund: Russell Investments launches new Yield Opportunities Pool
Robust equity markets this year have helped defined benefit plans: Canadian pension plans in strong solvency position in Q1 off surging equity markets
Fiera Capital purchases majority stake in Palmer Capital: Fiera acquires 80% stake in Palmer Capital
Canadian ETFs had net inflows in March, led by fixed income: Net inflows for Canadian ETFs hit $1.9 billion in March
On the pulse – New frontiers in fintech
Banks must remain flexible to adapt to the changing technological landscape: Bank strategy in the world of fintech
The time is now for digitalization: Banks’ digital experiments need to produce results
A look at how banks and fintech firms can work together: Banks and fintech: Why the future looks brighter together
Why machine learning can help in the stock selection process: Machine learning can help with stock selection: study
A look at why fintech firms’ valuations are surging in Latin America: Why fintech startups are rapidly becoming unicorns in Latin America
How to establish “digital trust”: How to empower secure collaboration, communication and sharing in financial services
Interest in cryptocurrencies on the rise in private banks: How private banks are demonstrating interest in digital currencies
Bitcoin’s price spikes: Bitcoin surges as cryptocurrency market suddenly springs to life
High-net-worth topics
Careful estate planning an absolute must for high-net-worth families: U.S. billionaires are living longer, making heirs wait
High-net-worth investors show preference for independent advisors: HNW clients favour independents
Polls & surveys – What financials are saying
Most retirement plan participants aren’t saving enough for retirement (Natixis): What retirement plan participants want, need
Canadians need to focus on better tax planning throughout the year (CIBC): CIBC poll finds 63% of Canadians view tax refunds as an unexpected ‘windfall’
Advisors should strive to create a great client experience (Cerulli): How focusing on client experience helps advisors get ahead
Teens not confident about their financial futures (Junior Achievement USA and Citizens Bank): When it comes to finance, the kids are not all right: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 1, 2019
Blockchain is a foundational technology that will take decades to foster. The wealth management industry must take note of how women entrepreneurs are managing their portfolios. Banks must partner with tech firms to avoid losing business to challenger banks. Are there enough private investment opportunities to meet demand? And much more in this week’s briefing.
Economic/industry news
U.S. economic growth was revised down to 2.2%, annualized, in the fourth quarter: U.S. economy revises down Q4 growth rate to 2.2%
What does the inverted U.S. yield curve mean for the economy?: The yield curve just inverted, putting the chance of a recession at 30%
The BoC could be forced to hold interest rates steady as Canada’s yield curve inverted: Canada’s inverted yield curve signals holding pattern for Poloz
FTSE Russell to launch an indicative digital assets index: FTSE Russell to establish indicative digital assets index
Passive to overtake active in the next couple of years, according to Moody’s: Moody’s declares passive investments will surpass active in 2021
Dispelling some ESG investing myths: Ignore the myths: Factor and ESG investing work together
News and notes (U.S.)
Three quarters of hedge fund managers had a positive month in February: Hedge funds continue recovery in February
BlackRock purchases eFront: BlackRock’s Aladdin adds alts power
Are there enough private investment opportunities to meet demand?: Not enough private equity to go around
Charles Schwab introduces flat-fee subscription pricing plan for its premium digital advisory services: Why Schwab’s new pricing plan is a big deal
Regulation Best Interest still a top priority for the SEC: Clayton declines to share timetable for best interest rule
A look at retirement from J.P. Morgan: The 4% retirement rule is back: J.P. Morgan
Public employees likely to stay in retirement plans if they were automatically enrolled: Public fund employees are big fans of auto enrollment – survey
Customized target-date funds’ assets on the rise: Custom target-date funds growing in U.S.: survey
Mutual fund assets were $14.8 trillion at the end of February: Mutual fund assets start year with a growth spurt: Cerulli
News and notes (Canada)
Scotiabank launches the Scotiabank Healthcare+ Physician Banking Program: Scotiabank caters to physicians with new suite of banking services
How the federal budget could impact investors: Federal budget impacts investors, employees, retirees
A look at the OSC’s policy priorities for the next year: OSC will continue to focus on DSCs, client-focused reforms
Onex announces purchase of Gluskin Sheff + Associates: Gluskin Sheff surges on Onex takeover deal
Now that all of the major banks offer ETFs, will it change the investment fund industry?: ETFs: all the banks are in
On the pulse – New frontiers in fintech
Banks must partner with tech firms to avoid losing business to challenger banks: Citi urges incumbents to grow their own challenger brands as new entrants shrink the market
Big data can help all facets of the asset management business: Big data helps asset management industry across value chain
Blockchain is a foundational technology that will take decades to foster: Blockchain is dead
Eliminating paper cheques for businesses: Mineral Tree offers businesses an alternative to paper checks
U.K. financial services firms not prepared for the AI revolution: The financial services industry is not ready for the AI revolution, new study finds
The Federal Reserve Bank of New York establishes advisory group to review and provide guidance on fintech: New York Fed launches fintech advisory group
The Information Commissioner’s Office in the U.K. looking to provide environment to support innovation: ICO opens sandbox beta phase to enhance data protection and support innovation
A look at the new Apple Card: How Apple Card works
Innisfil, Ontario to begin accepting bitcoin as payment for property taxes: Ontario town to accept bitcoin for tax payments, in one-year pilot project
High-net-worth topics
The wealth management industry must take note of how women entrepreneurs are managing their portfolios: How women entrepreneurs are redefining wealth management:
High-net-worth clients are demanding private investments, here is how to help them: Russ Prince: Here’s how to help your wealthy clients invest in PE
Polls & surveys – What financials are saying
More than half of gig workers are saving for retirement (T. Rowe Price): Gig workers report being more involved in their finances
Signals point to a weak Canadian economy in the first half of 2019 (Russell Investments): Modest weakness for Canada in Q2: Russell Investments
Canadians approaching retirement saw their wealth increase, largely due to real estate (C.D. Howe): Housing market boosted wealth of Canadians approaching retirement
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Learning from the U.S. experience in liquid alts
While liquid alternatives (“liquid alts”) are new to Canada, they’re already a mature market in the U.S. And Canada can learn a lot from the introduction of liquid alts in the U.S. marketplace.
Launches, launches and more launches
Going into 2019, dozens of liquid alts had already been launched in Canada. We believe liquid alt launches will continue to snowball in 2019 and 2020. Some firms will be more methodical and launch one liquid alt solution at a time. Other companies will launch entire suites of liquid alts and see what resonates with advisors and investors.
One of the many interesting things to watch for will be the strategies that are most favoured by investors. Long-short equity, market neutral and non-traditional bond funds have been successful in the U.S. It’s likely that one of these will stand out from a sales perspective in Canada as well.
Another unknown is whether mutual fund or exchange-traded fund (“ETF”) versions of liquid alts will be more popular. The answer might simply come down to accessibility for advisors.
Education
Although this is a newer investment type and there is still a lot of uncertainty about liquid alts, many companies are going to launch liquid alt mutual funds and ETFs before they have educational content ready – and this could cause some problems.
Why? Because advisors and investors may not fully understand these new solutions, and getting people to review content after they’ve already started selling/buying liquid alts might be difficult. But educational content is – and has always been – key in successfully understanding the features, benefits, risks, etc. inherent in any investment solution.
We believe the best advice for any firm planning to launch liquid alt strategies is to get your content – specifically content geared toward educating investors and providing value to advisors – ready before your launch. This might be a challenge, but ext. can help.
Is your firm launching liquid alts in 2019? Contact us today at 1.844.243.1830 or info@ext-marketing.com to improve your clients’ knowledge about this important asset class.
Monday morning briefing – January 28, 2019
The new technologies that European banks are prioritizing. The possible impact of an Amazon chequing account. The shift from passive to strategic beta and active. The practices FINRA will focus on in 2019. 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
The Chinese economy grew 6.4% in the fourth quarter: China sees slowest economic growth since 1990
ECB maintains benchmark refinancing rate at 0%: ECB holds rates steady, guidance unchanged
BoJ holds interest rates steady: Bank of Japan keeps interest rates steady and cuts inflation forecast
Central banks may hold steady in early 2019: What to expect from central banks in 2019
U.S. recession in 2020 possible, according to Ray Dalio: Ray Dalio, founder of the world’s biggest hedge fund, sees a ‘significant risk’ of a possible US recession in 2020
The intertwining of impact investing and philanthropy: How impact investing can amplify philanthropic efforts
Some ESG trends you need to know: Five ESG trends to focus on for 2019
SG funds continue to attract large amounts of capital: Bucking the trend, flows into ESG funds set another record in 2018
Desjardins has launched the Desjardins Alt Long/Short Equity Market Neutral ETF: Desjardins introduces alternative ETF
CIBC launches CIBC Smart Investment Solutions: CIBC combines active and passive strategies in new portfolios
CI Investments launches ETF portfolios: CI introduces actively managed ETF portfolios
Fidelity introduces new ETFs to its lineup: Fidelity launches new factor ETFs, mutual funds
Happy Birthday, TFSA: The TFSA turns 10
On the pulse – New frontiers in fintech
How businesses can seize the opportunity in a fast-changing world: Navigating a world of disruption
How banking experts would launch their brand new bank: How banking providers can get their digital strategy right in 2019
Here are a few technologies that could impact financial services firms this year: Five emerging tech trends to watch in 2019
The asset management industry could benefit from regtech: How regtech will digitally transform asset management in 2019
The potential impact of an Amazon chequing account: An Amazon checking account could displace $100 billion in bank deposits (but it won’t)
Financial services firms should be prepared to enter the “greenfield”: Banks should take a page from fintechs on innovation
A look at some digital transformation myths: Busting five myths of digital transformation
Governments should provide a supportive environment for AI: Artificial intelligence initiatives need government support
How SMEs will benefit from fintech: Emerging fintech innovations set to influence SME lending in 2019
The government shutdown putting the country at risk of cyberattacks: With cybersecurity threats looming, the government shutdown is putting America at risk
Which new technologies European banks are prioritizing: Improving product agility is now a priority for 51% of European Banks, according to Temenos
A view from the inside on new technologies: The promises and pitfalls of new technologies
AI versus humans in the credit decision-making process: AI to outperform human credit decisions by 2024 – survey
IBM a number of health care insurance companies are looking to create a blockchain network for the health care industry: IBM teams up with healthcare firms for blockchain initiative
Understanding of blockchain lacking: New research points to poor understanding of blockchain amongst senior business execs
News and notes (U.S.)
The hedge fund industry experienced $35 billion in redemptions in 2018: 2018 was a challenging year for hedge funds, says eVestment
Center Lake Capital posted a 76% return in 2018: This hedge fund blew the doors off in 2018
Get to know Seth Klarman: Hedge fund billionaire Seth Klarman: The ‘most influential investor you’ve probably never heard of’
JP Morgan’s outlook on the alternative investment industry: JP Morgan’s 2019 Alternatives Outlook highlights opportunities across hedge funds, private equity, private credit, real estate and real assets
The potential drawbacks of the significant capital raises by private equity: The consequences of PE’s fundraising arms race
Natural resources attracting private capital: Private investment in natural resources hits record high
A look at some trends in the U.S. PE industry: More deals, fewer funds and other US PE trends in 9 charts
Shifting from passive to strategic beta and active: ETF providers pivot to strategic beta, active management
Outflows from long-term U.S. funds at its highest level since 2008: Investors showed major risk aversion in 2018
Government shutdown forces Cboe’s withdrawal of its bitcoin ETF application: Cboe’s bitcoin ETF application pulled after repeated SEC delays
Portfolios need to be more diversified, according to BlackRock: BlackRock: Advisors are overweight equities and ill prepared for 2019
Here is what practices FINRA will focus on in 2019: Finra to target online sales practices of broker-dealers
A deep dive into the pros and cons of a wealth tax: Opinion: How a wealth tax would work in the United States
High-net-worth topics
It is getting harder to attract capital from the high-net-worth: Fleeing clients are grim reality in banks’ push to manage wealth
The number of high-net-worth individuals globally expected to grow over the next five years: Global wealthy projected to grow 6.1% annually in next 5 years
The average age of the rich is dropping: Survey of U.S. investors finds the rich are getting younger
How the high-net-worth should handle a divorce: What Jeff and MacKenzie Bezos (and all high-net-worth couples) need to do to avoid a messy divorce
Polls & surveys – What financials are saying
IMF expects global economic growth of 3.5% in 2019 (IMF): IMF cuts world growth forecast to 3.5%
42% believe that the Canadian economy will worsen in 2019 (FPSC): 4 in 10 Canadians think the economy will be worse this year
Almost 75% of portfolio managers expect a recession (BCG): Portfolio managers believe recession is near
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – January 7, 2019
Hedge funds looking to expand their offering to attract investors. Is private equity about to be revolutionized? The top digital trends of 2019. How to help high-net-worth families invest with a conscience. 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
The U.S. unemployment rate rises to 3.9% in December: Job growth surges by 312,000 in December
Canada’s unemployment rate steady at 5.6% in December: ‘Less than meets the eye’: Canada adds 9,300 jobs amid weak wages
The U.S. Federal Reserve Board will listen to the markets and act accordingly: The Fed has an important history lesson for panicked markets
A look at alternative investments: What exactly are alternative investments?
ESG ETF assets growing: Assets in ESG ETFs up 34% in ‘18
Market volatility could help active managers: Active fund managers say their time has come
Wealthsimple launches Wealthsimple Advisor Services Inc.: Wealthsimple introduces mutual fund dealer
ETFs attracted $20.1 billion in new assets in 2018: ETFs outsell mutual funds in 2018
Could ETFs be its own asset class?: ‘ETFs as asset class’ is among the top 2019 trends in markets
On the pulse – New frontiers in fintech
Here are the top technology trends for wealth management, according to Capgemini: Tech trends in wealth management to watch in 2019
It should be another strong year for fintech startups: 2019 looks to continue another lights-out year for fintech startups
UBS to make Evidence Lab available to clients: UBS’s big data lab is no longer just for its analysts
Why automation is key for fintech: Automation will be the end of banks as we know them
Some resolutions banks should be considering: 5 resolutions for digital banking success in 2019
The insurance industry is ready to be changed by digital technologies: Digital insurance in 2018: Driving real impact with digital and analytics
It is shaping up to be a big year for insurtech: Busy year ahead expected for insurtech
Here are the top digital trends for 2019: Digital transformation trends to watch in 2019 and beyond
A look back at the first year of MiFID II: MiFID II – One year on
New York State forms task force to understand, use and regulate cryptocurrencies and blockchain: New York to form cryptocurrency task force
News and notes (U.S.)
North American hedge funds down in November: North American hedge funds suffered further losses in November, says Eurekahedge
Get to know Bridgewater’s Head of Investment Research, Karen Karniol-Tambour: Bridgewater’s new brain: A millennial woman is blazing to the top of the world’s largest hedge fund
Hedge funds looking to expand offerings to attract investors: Hedge funds turn to private capital playbook in search of assets
PE and VC should keep an eye on oiltech and commoditech: Next big thing: Oiltech
Out to change private equity: This San Francisco investor wants to revolutionize private equity. Is he crazy?
Investing in managed futures through an ETF: Eyeing alternatives with a managed futures ETF
U.S. mutual funds experience largest weekly redemptions since February: US fund investors pull most cash from stocks since February, says report
U.S. defined benefit pension plans had a slightly lower deficit at the end of 2018: Funded status of US corporate pensions slipped in 2018: survey
High-net-worth topics
Helping high-net-worth families invest with a conscience: Advisor works with families to make an impact
Navigating clients through 2019: What wealth advisors are telling their clients in preparation for 2019
Polls & surveys – What financials are saying
Investors should buy into this market decline (Citigroup): Citi says ‘buy this dip’ and sees equities returning 14% in 2019
Predictions for 2019 (Nuveen): Bob Doll’s 10 predictions for 2019
Energy prices could be volatile in 2019 (Moody’s): Energy outlook for 2019
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Liquid alternatives: challenges and opportunities for the financial services industry
Liquid alternatives – hedge fund strategies delivered to retail investors in a mutual fund or ETF – are coming to Canada. And they’re going to be disruptive.
By opening up a whole new asset class to retail investors, mutual fund managers and alternative investment managers are going to face plenty of challenges and opportunities. Liquid alternatives will be good for the industry and investors, but investment managers must do things right.
The big challenge: understanding
Helping investors and advisors to truly understand liquid alternatives (from the different strategies to the benefits) is a two-step challenge for the industry: there will be confusion about the strategies and they may not be adopted if the benefits aren’t deeply understood.
Liquid alternatives are not simply a new investment solution, they’re not even a new strategy. Rather, they’re a new asset class consisting of a new set of strategies.
It seems likely that liquid alternatives will be labelled “higher risk” and “ideal for more experienced investors.” Neither is 100% accurate.
Liquid alternatives have a wide range of strategies, some of which are less risky than a typical equity mutual fund. Other strategies could benefit less experienced investors if they allocate a smaller percentage of their broadly diversified portfolio to liquid alternatives.
The big opportunity: a new and/or bigger market
Investment managers can provide access to this asset class to every investor, helping them diversify their investments and better manage the risk-return profile of their portfolios.
We expect most of the major mutual fund and alternative investment managers to launch retail-friendly liquid alternative funds and ETFs in the coming years.
Mutual fund managers can expand into the alternative investment space using their brand recognition to help grow the liquid alternatives asset class. At the same time, alternative investment managers can enter the retail investment space using their experience and expertise as a key value proposition.
But offering liquid alternatives is not just about increasing assets under management. Investment managers can better engage their clients and prospects by taking an educational approach. This approach will help investment managers strengthen their brand because they will be providing value … not just products.
Given liquid alternatives is a relatively new asset class to many investors in the retail space, educating the retail audience about the language/terms, investment strategies, differentiators, etc. of this asset class will likely be key to widespread understanding and acceptance of liquid alternatives. It will also help position manufacturers that provide this information as leaders in the space.
Ext. is on the front lines of financial services marketing. We can help your firm market new strategies, such as liquid alternatives, to the broad retail and advisor markets in an engaging, educational manner that positions you and your clients for success. Contact us at 1.844.243.1830 or info@ext-marketing.com.
Liquid alternatives are coming. Are you ready?
The financial services industry is no stranger to disruption. Those on the outside may think the industry is slow to respond and driven by the status quo. But those on the inside know that every week brings a dramatic change, and that we’re always adapting to what’s coming next.
Case in point: there are new investment approaches on the horizon for retail investors. They’re called liquid alternatives. They’re different from more traditional mutual funds and exchange-traded funds (ETFs). And we believe they’re going to become very popular, very quickly.
So, what are liquid alternatives? Simply, they’re hedge fund strategies delivered to retail investors in a mutual fund or ETF.
Timelines are vague … but companies are acting
In the past, alternative investments were only available to high-net-worth investors. However, with the Canadian Securities Administrators’, Modernization of Investment Fund Product Regulation – Alternative Funds notice, all retail investors will soon have access to liquid alternatives in their portfolios.
Why such a bold proposal? To give investors more diversification opportunities with an asset class that has historically had little correlation to stocks and bonds.
While there’s no hard date regarding finalization, companies are launching liquid alternative funds and ETFs as we speak. Get ready for a flood of launches.
Liquid alternative strategies
In the U.S., where liquid alternatives have been available to retail investors for a number of years, the big liquid alternatives categories include:
- Equity hedge – buy securities that are expected to increase in value and short sell those expected to decline (a.k.a. long-short strategies)
- Event-driven – seek to capitalize on price inefficiencies that may exist before a corporate event (e.g., M&A activity, bankruptcy or an unexpected announcement during an earnings call)
- Global macro – choose investments based on the overall economic and political situations in various geographic regions
- Relative value – capitalize on the price or rate (if bonds) differences between similar securities, typically taking a long position on the undervalued security and a short position on the overvalued security
- Multi-strategy – allocates assets to different investment strategies for diversification purposes and to lower overall risk
We expect Canada will adopt similar liquid alternative categories as those in the U.S., so be prepared to hear a lot more about this in the near future.
Ext. is on the front lines of financial services marketing. We can help your firm market new strategies, such as liquid alternatives, to the broad retail market in an engaging, educational manner that positions you and your clients for success. Contact us at 1.844.243.1830 or info@ext-marketing.com to learn more.
Welcome to the era of video
We’ve entered a new era in financial services marketing and communications – the era of video.
Across all industries, including financial services, audiences are turning to video for education and research. In fact, the numbers are staggering and don’t show signs that they will slow any time soon. HubSpot recently revealed 72% of people would rather use video versus text to learn about a product or service, while 85% of people say they’d like to see more video from brands in 2018 (Source).
“This is good news for financial services firms,” says Catherine Reale, Head of Canada at Asset TV, “as video is a highly efficient way to communicate – it’s scalable, cost-effective and helps you manage regulatory issues regarding total spend per advisor. But more than all of that: it catches your audience’s attention.”
Let’s explore some of the key reasons why video is presenting financial services firms with great opportunities in 2018 and beyond.
“72% of people would rather use video versus text to learn about a product or service and 85% of people say they’d like to see more video from brands in 2018.” (Source)
Extend your reach
Changing media patterns – especially the “cutting the cord” phenomenon – are undeniable. People are shifting away from traditional media, such as television and radio, to more digital channels, such as watching video on their computers and phones. These are massive secular trends that are unfolding quickly across the globe.
A similar shift is seen in the rapid adoption of mobile. People are becoming more and more comfortable with banking, shopping and playing games on their phones. As such, video is booming on mobile as well – social video generates 1,200% more shares than text and images combined (Source). By switching some of your resources to video that can be shared on social media and increase your financial services social media marketing presence, you’re capitalizing on a major trend that will increasingly work in your favour.
“Social video generates 1,200% more shares than text and images combined.” (Source)
Engage your audience
Video is an engagement tool like none other. Why? Because it helps people remember your message. The data around this is quite dramatic. People retain 95% of a message when they view it on a video compared to 10% when they read it in text (Source).
If you want to leave your audience with a specific message, a video is clearly the best way to do it.
According to a financial publication out of the U.K., companies using video say that the top benefits to video include: positions company as innovative, increased levels of satisfaction, faster service, better customer intimacy and reduced work. (Source)
“Video has demonstrably helped us communicate with – and grow – our audience,” says Tammy Cash, Executive Vice President, Head of Marketing, Horizons ETFs. “It’s engaging, dynamic, it’s what our audience is responding to, and it helps us speak to them more often.”
Video isn’t “too good to be true” – it does take work to get a video right. Video, however, is what your audience wants. So, give them what they want.
“Video has demonstrably helped us communicate with – and grow – our audience. It’s engaging, dynamic, it’s what our audience is responding to, and it helps us speak to them more often.” Tammy Cash, Executive Vice President, Head of Marketing, Horizons ETFs Inc.
Manage regulatory issues
Financial firms are limited in how much they can spend on their relationships with advisors. These rules exist for good reason. But keeping advisors and institutional investors well informed about your firm’s solutions helps ensure they are making the right recommendations to their clients. Simply put, video helps them do their job more effectively.
“Video helps firms get their message in front of advisors and institutional investors,” says Reale. “Your portfolio managers can use the same video to talk to all advisors, no matter where they’re located – saving their time and your company’s money.” You can even add graphics and statistics to make your video a more educational experience. You can also choose to make your video a Q&A and address the audience directly. The choices are endless.
Some things to look for during your search for a video partner
Not all videos are created equally – nor are all video partners. There’s a steep learning curve, which is why you might want to consider working with a partner that specializes in financial services video. A partner like Asset TV will help you create videos that stand out with cutting edge and compelling content. Here’s how they help:
- Strictly video. A partner that is focused purely on video will help ensure you’re benefiting from industry best practices.
- Vetted audience. Ideally, your video partner will have access to a controlled, opt-in audience of retail advisors and institutional investors. This ensures your message is getting in front of the right people – meaning your clients and prospects.
- National distribution. Flying around the country to meet with advisors and institutional investors is a massive drain on resources and, more importantly, results in some important markets being underserved. A video partner with national distribution helps solve this problem, as your message can be heard from any place with an internet connection. Today, that’s everywhere.
The financial services industry is evolving quickly – and your company’s marketing and branding efforts as well as your content strategy needs to keep pace. “In an environment of increased regulation, fee compression and product proliferation,” says Reale, “getting your message in front of the right people and then keeping their attention takes engaging content that you create frequently. Asset TV can help.”
Some things to look for in a video partner
Financial services providers looking to leverage the best video has to offer should expect the following from their video production and distribution partners – and Asset TV delivers:
- An understanding of how to get (and keep) viewers’ attention
- The ability to create cutting-edge, compelling content that meets Continuing Professional Development and Continuing Education standards
- Access to an expansive audience from the investment community
- Metrics to show that this audience is actually spending time on their platform viewing your video content
Video’s appeal is already massive and continues to grow. Whether you’re new to video or an experienced pro, working with a video partner can help you improve the quality of your content, manage your marketing costs and capture your audience’s attention.
Think video is right for you? Want to find out more? Contact Catherine by email at catherine.reale@asset.tv or call 416.523.7694.
Email signature best practices
Email signatures are often overlooked … until someone needs to get in contact with you. So, if you haven’t thought about your email signature in a while, here are a few ideas to freshen it up.
Make sure you have one!
If you’re in the camp that believes an email signature is unnecessary, think again. Having an email signature is crucial and can provide the recipient with key information about you and your firm. This is especially the case when emailing someone located outside of your office.
Include your phone number
Sometimes emails just don’t cut it. Any issue that’s complicated or involves some subtleties is best discussed over the phone (or in person). Make sure that your email signature includes your phone number. It saves the recipient time and frustration when trying to reach you about serious matters.
Make your initial email and your reply signatures different
It is unnecessary to include all your information in a reply signature – all that detail just takes up space in the email chain. And most people don’t like all the extra scrolling. What you include depends on your responsibilities, but a phone number is usually a must.
It is unnecessary to include all your information in a reply signature.
Keep it short and sweet
We firmly believe that less is more! It’s a good idea to avoid the minutia of your job and life (your birthday and astrological sign are not entirely necessary, are they?). Key information that should be included are your: phone number, company’s name and physical address, link to your LinkedIn profile, etc.
Use a web-friendly font
Fancy, cursive fonts do more harm than good in the world of digital communications. Use a web-friendly font to make your contact information easier to read. And ensure the colours you use are appropriate – a light grey phone number may be difficult to read.
Use a web-friendly font to make your contact information easier to read.
Separate the numbers of your phone number with dashes or periods
Working in financial services, you see a lot – a lot – of numbers. Separate your numbers with care because it’s easy to miss a number when in a rush.
Don’t be caught ending your email on a bad note! Take a look at your signature and see if it needs fixing.
If you’re looking for more communications tips, contact us at 416.925.1700, 844.243.830 or info@ext-marketing.com.
Read more:
https://ext-marketing.com/commentaries-articles/rounding-for-non-math-types/
Five easy ways to create better newsletters
Newsletters are a great way to keep your clients and prospects engaged because they allow you to share stories that educate and inform.
The number one rule for producing great newsletters is to write articles that engage your target audience. Let’s move on to some other ideas that will help you write better newsletters.
1. Focus on a theme
When you’re flushing out your editorial calendar, find some overarching themes that: (1) your clients and prospects will want to know more about and (2) will show that you are a subject matter expert. Focus each and every edition of your newsletter on just one theme.
For example, if your topic is retirement, you can write articles about staying healthy in old age, long-term financial planning, estate issues and financial education for young people.
2. Write killer headlines
This advice is just as true for newsletters as it is for any other marketing or advertising material. Given that everyone’s attention is being pulled in many different directions these days, a strong headline is often the best way to grab the readers’ attention – and convey your one key message.
Everyone’s attention is being pulled in many different directions these days. A strong headline is often the best way to grab the readers’ attention.
3. Add images that will maintain focus
A killer headline paired with an appealing image will help keep your readers’ attention. There’s no set rule for what images work best. Traditionally, images with smiling faces and/or images that take a moment for the reader to “get” tend to work well.
4. Keep it current
There’s an old saying that goes “put the news in the newsletter.” Our clients’ most popular newsletters – the ones that result in great responses and requests for more information – are often tied back to the news of the day.
Current content often means tighter deadlines, but it’s worth it. So make sure you have enough resources available to create this content as needed.
Current content often means tighter deadlines, but it’s worth it.
5. Do the research
Writers should be able to back up what they say in their articles. And, to add value, newsletter publishers should have more data and resources on hand as well. That way, when clients ask for more information, you can keep the conversation going and continue to add value.
To learn more about creating stronger newsletters, contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
Read more:
https://ext-marketing.com/marketing-articles/five-techniques-for-more-effective-self-editing/