HOW TO TURN YOUR DIGITAL STRATEGY INTO A BUSINESS GAME CHANGER
An interview with Cesar Lugo, Managing Director, Digital, Ext. Marketing
From the growing influence of TikTok to the emergence of AI-powered chatbots, the digital landscape has quickly evolved over the past year. To help us navigate the digital noise, we spoke with Ext. Marketing Digital Managing Director, Cesar Lugo (CL), to identify which trends demand further exploration. He shared with us why establishing a clear digital strategy can help companies easily navigate these changes and generate the best-possible business outcomes.
Q: How can a defined digital strategy help a company respond to emerging trends in technology?
CL: The digital ecosystem is vast and constantly changing. It’s easy to get swept up in the latest trends, without having a complete understanding of the problem you’re facing and the key drivers that will generate the desired outcome. Your digital strategy should include an audit of your current digital touchpoints, assets and tools; short-, medium- and long-term objectives; success measures; and a digital roadmap that can keep you on track.
A digital strategy is more than just a one-off project or a one-size-fits-all approach. It should reflect a long-term commitment to using digital tools to achieve your business objectives. Defining this foundational framework allows you to make strategic decisions about these emerging trends.
Q: What digital marketing and social media activation trends should companies be aware of heading into 2023?
CL: Here are some trends I believe will be game changers we should all be watching:
- Individuals 45 years old and younger are turning to social media platforms rather than traditional search engines to find the information they need. There’s evidence of the same growth in buying and shopping on these social media platforms.
- It is all about TikTok these days. There were nearly 1 billion active users in September 2022, which is impressive growth from 700 million users in July 2021.1 It will be important to stay up to date on U.S. regulations in the coming year, as lawmakers continue to scrutinize this platform.2
- Short-form or ”snackable” videos are still crucial for driving views and generating richer engagement on social media. However, long-form content is making a comeback with the 25-and-under crowd.
- Artificial Intelligence has grown in relevance in the tech industry, with expectations that it will grow by 23% from 2023 to 2028.3 ChatGPT is just the latest revolution worth exploring. This AI-generated natural language processing tool crossed one million users within one week of its November 30, 2022, launch.4 Spoiler alert: all these solutions will need human involvement to ensure quality and accuracy.
- The metaverse, non-fungible tokens (NFTs) and Web3 are on the horizon. Depending on your industry, these technologies might help your company grow in the future. We recommend you monitor the progress and adoption of NFTs and Web3 within your industry.
Q: How can companies capitalize on those opportunities in 2023?
CL: Most of these emerging trends could be very important to the success of your company. If your digital efforts need to catch up, now is the time to roll up your sleeves and develop a strategy. Establishing an effective digital ecosystem will provide you with the foundation to determine how these trends can benefit your business.
Whether you are increasing brand awareness, generating leads or raising capital, it is important you remember that your digital strategy should be diversified across digital platforms and mediums, and include regular A/B testing to determine whether or not you are achieving your business goals.
Q: What advice or takeaway do you want to leave companies with?
CL: It is important to be nimble and agile so you can respond to change. Digital spaces can open avenues and create a broader perspective on available opportunities, changing circumstances and even better ways to operate.
Contact us today at info@ext-marketing.com to start developing your digital strategy and to respond to the key emerging technology trends of 2023!
1 TikTok reveals U.S., global user growth numbers for first time (cnbc.com)
2 TikTok has become a global giant. The US is threatening to rein it in | TikTok | The Guardian
4 ChatGPT Statistics for 2023: Comprehensive Facts and Data (demandsage.com)
Notes: From an Ext. perspective – these are trends we recommend you watch.
Microcontent: what it is and how it can help your marketing
Microcontent hasn’t really found its legs in the financial services industry. We think that’s going to change.
Microcontent is primarily visual content distributed on media such as a blog, Facebook or LinkedIn to bolster your content efforts and draw your audience’s attention toward a more robust piece of content. These may include in-depth whitepapers, infographics or a new video on your website.
What sets microcontent apart from other types of content? It’s short, “snackable” and relatively cheap to produce.
What’s microcontent?
While this isn’t a complete list, the key types of microcontent include:
- Charts
- Diagrams
- Facts and figures
- GIFs
- Graphics
- Illustrations
- Images
- Quotes
- Tips
What’s best for financial services?
Financial services marketers tend to use charts, graphs and tables in their materials. But these tools are used a lot, and your content may lose its impact among the vast amount of charts, graphs and tables that are already out there.
It’s good to look beyond these forms of microcontent when you can. Some types of microcontent that we think are ideal for the financial services industry include:
- Images are a great way to capture your audience’s attention (think about taking elements from larger, more detailed infographics)
- Quotes are always eye-catching. If you use quotes, don’t forget to use compelling and complementary images or graphic designs to draw more attention to them
- Tips that help people excel at their job and life will always be near the top of the sharable content list
From a production standpoint, the best thing about microcontent is that it’s relatively quick to produce, so you can experiment a little more than you would with lengthier or more costly content. This can be a huge benefit for content teams that are stretched to the limit.
If you want to boost your marketing efforts, this is the perfect time to start producing microcontent. Contact us today at 1.844.243.1830 or info@ext-marketing.com to learn how.
Monday afternoon briefing: Services sink
We may not see a v-shaped recovery. Why PE firms may be looking at publicly listed companies. How COVID-19 may change banking. And much more in this week’s briefing.
Economic/industry news
Canada’s economy grew 0.1% in January: Economic growth slowed in January to 0.1%, Statistics Canada says
U.S. unemployment rate rises to 4.4%: US payrolls plunge 701,000 in March amid the start of a job market collapse
We may not see a v-shaped recovery: Economists are losing hope in a ‘v-shaped’ post-virus recovery
The Fed is stepping up to help global debt markets: Fed steps in once again to try to smooth out lending markets
How pension plans are approaching rebalancing amid the market volatility: Investment portfolio rebalancing in the time of coronavirus
Happy birthday to ETFs: Getting better with age: ETFs turn 30
Chart of the week
As COVID-19 continues to spread around the world, the services sector has been particularly hard hit. Travel, accommodation and food services, among others, have all come to a halt. In its most recent results from IHS Markit, services across the U.S. and Europe have had their steepest decline ever. Even if the spread of COVID-19 is flat-lines and people quickly return to work, it will likely take some time for the services industry to fully recover. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Stay defensive in down markets: Billionaire Howard Marks pitches a defensive investing outlook
Why PE firms may be looking at publicly listed companies: Private equity will go after listed companies. And corporations will welcome it.
The impact of the U.S. government’s stimulus package on private markets: What $2T in stimulus does – and doesn’t do – for private markets
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 1 edition
News and notes (Canada)
From skates to medical equipment: How private equity-owned Bauer pivoted from hockey gear to medical masks
Tax planning for business owners in the current environment: Tax tips for business owners navigating the pandemic
Real estate market in Canada could see significant declines: Distancing, economic uncertainty to hurt home sales: RBC
Counsel Portfolio Services makes changes to pricing: Counsel enhances tiered pricing program
On the pulse – New frontiers in fintech
With challenges come opportunities: Coronavirus: New challenges and opportunities for fintech
How COVID-19 may change banking: Reimagining banking during and after COVID-19
Fintechs can benefit from partnerships with private banks: Private banks may prove profitable partners for fintechs
Improving cash management systems: Firms look to better cash management capabilities
Answering questions about a digital transformation: Banks questions about doing digital transformation
Improving the process for online account openings: When opening accounts in branches becomes impossible
Helping advisors with remote client engagement tools, free until July: Wealthtech firm offers tool free of charge
High-net-worth topics
Reviewing your estate plan: How to take advantage of new estate planning opportunities caused by the coronavirus
The wealthy still bullish on the economy over the long term: Wealthy U.S. investors and business owners look hopefully to long term
Polls & surveys – What financials are saying
Canada’s stimulus measures could help ease the impact of COVID-19 (DBRS): Thumbs up for Canada’s large stimulus effort: DBRS
24% of millennials bought stocks despite volatile markets (Bankrate): Quarter of millennials bought stocks amid recent volatility: Bankrate
In this time of rising uncertainty, please know that ext. is closely monitoring COVID-19 and its impact – current and potential – on our firm, our clients’ businesses and the overall financial services industry.
We remain committed to seamless service for our clients and the well-being of our employees during this time.
If you have any questions about business continuity at ext. – or how you can effectively communicate these and other timely issues with your clients, please reach out to your account manager or contact us 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing: Jobless claims go vertical
Providing help to small businesses. Protecting cryptocurrencies from theft. PE firms facing uncertainty between helping portfolio firms and making acquisitions. And much more in this week’s briefing.
Economic/industry news
The BoC makes another emergency rate cut: Bank of Canada cuts key rate to 0.25% as virus, oil fallout deepens
Canadian government’s stimulus plan becomes law: Federal bill with more than $100B in COVID-19 aid is now law
Breaking down the US$2 trillion stimulus package: What’s in Congress’s $2 trillion coronavirus stimulus package
How banks can help small businesses: COVID-19 is crushing small business: Can banks move fast enough?
Understanding the underperformance of value stocks: Moving beyond the naive definition of value investing
How COVID-19 may impact the asset allocation of DB plans: The impact of coronavirus on DB pension funding status, asset mix
Bond ETFs trading at large discounts to NAV: Bond ETFs’ liquidity tested amid market stress
Chart of the week
Initial jobless claims in the U.S. rose to 3.28 million for the week ended March 21. This sharply surpassed market expectations of 1.70 million jobless claims, and is the highest amount ever recorded. COVID-19 is causing a massive disruption to the U.S. economy, which is causing many Americans to find themselves out of work and running out of money. The US$2 trillion spending plan may provide some assistance to those hurt by COVID-19, but will it be enough? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
COVID-19’s impact on commonly held hedge fund stocks: How COVID-19 is impacting popular hedge fund stocks
For some, it’s buying time: Hedge funds legends quietly contacting investors, citing historic buying opportunity
PE firms facing uncertainty between helping portfolio firms and making acquisitions: Flush with cash, PE firms confront their new reality
Providing support to registered funds: SEC provides temporary flexibility to funds hurt by coronavirus crisis
News and notes (Canada)
CSA announces temporary blanket relief: Securities regulators get flexible in face of COVID-19 concerns
Providing help to small businesses: BMO offers relief to small businesses
Mutual funds and ETFs saw strong net sales in February: ETF and mutual fund sales neck and neck in February
JR Shaw passes away at 85: ‘Titan of business and philanthropy’: Telecom giant JR Shaw dead at 85
On the pulse – New frontiers in fintech
Mobile video banking usage increasing: Will the pandemic catapult mobile video banking into the big time?
Some virtual tools for working from home: 5 tools for remote working
Understanding low-code: What’s low-code all about? An interview with Mike Heffner, Appian
Trade processing can benefit from new technology: In pursuit of trade processing perfection
Protecting cryptocurrencies from theft: The most proven ways to protect crypto money from hackers
The self-employed need protection: COVID-19 exposes urgent need to protect the self-employed
High-net-worth topics
How the wealthy are responding to COVID-19: Billionaire tracker: Actions the world’s wealthiest are taking in response to the coronavirus pandemic
Family offices hopeful a recovery will come soon: Family offices see market recovery within 12 months: Survey
Polls & surveys – What financials are saying
Many plan sponsors expect a recession (NEPC): Plan sponsors expect recession, negative S&P 500 returns in 2020
Canada likely headed for a recession (CIBC): Recession is inevitable, but how long will it last?
In this time of rising uncertainty, please know that ext. is closely monitoring COVID-19 and its impact – current and potential – on our firm, our clients’ businesses and the overall financial services industry.
We remain committed to seamless service for our clients and the well-being of our employees during this time. If you have any questions about business continuity at ext. – or how you can effectively communicate these and other timely issues with your clients, please reach out to your account manager or contact us 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing
Private equity could get more aggressive. The wealthy are focused on minimizing losses. SEC looking to confirm adherence to ESG principles. And much more in this week’s briefing.
Economic/industry news
The Fed reduces its central interest rate to 0%–0.25%: Federal Reserve cuts rate to zero and launches massive $700 billion quantitative easing program
The BoC makes emergency rate cut: Bank of Canada cuts key interest rate to 0.75%
The ECB announces stimulus measures: ECB to let banks run lower capital levels to deal with virus
BoE lowers Bank Rate to 0.25%: Bank of England cuts interest rate to 0.25%
The economic growth of G20 nations slowed in the fourth quarter of 2019: G20 growth was sluggish prior to COVID-19
How to help the U.S. economy: Cut payroll taxes? No, Trump should stimulate ventilator companies
SEC looking to confirm adherence to ESG principles: ESG funds might soon have to prove to SEC they’re actually ESG
Managing investors amid volatile markets: How advisors manage market volatility
News and notes (U.S.)
Private equity could get more aggressive: Private equity firms won’t waste another crisis
How COVID-19 will change the environment for M&A: Coronavirus alters the merger playbook for dealmakers
It’s time to buy, according to Howard Marks: Oaktree’s Howard Marks says he’s starting to find bargains to buy
Reforming insurance investment disclosures: SEC reforms insurance investment disclosure
News and notes (Canada)
Harvest launches unhedged units of three ETFs: Harvest announces unhedged units of three ETFs
Total value of Canadian PE deals declined last year: Private equity investment dipped in 2019: report
IIROC may loosen some regulatory requirements: Compliance requirements may be eased amid COVID-19 concerns
Private pension assets grew in the third quarter of 2019: Pension assets up: StatsCan
On the pulse – New frontiers in fintech
Moving to the cloud: Run your bank in the cloud: Crazy or fintech smart?
How COVID-19 could impact the fintech sector: How the coronavirus could positively and negatively affect fintechs
The challenges facing a fintech startup: 4 hurdles every fintech startup must overcome
Could branches go obsolete?: Why customers won’t set foot in banks in the future
AI is contributing positively to the sales process: Making the sale with AI and data
What you need to know about PSD2: The PSD2 deadline: 8 things businesses needs to know
High-net-worth topics
The wealthy are focused on minimizing losses: How wealthy investors are managing their portfolios amid the coronavirus scare
Here are the best cities for the high-net-worth: Top 12 global cities for the ultra-wealthy
Polls & surveys – What financials are saying
Private equity allocations set to rise in 2020 (Torys LLP): Pension funds set to increase private equity allocations: survey
Younger generation struggling to get quality advice (Betterment): Millennials, Gen Z try to build retirement savings but face obstacles: Betterment
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing: How low can yields go?
Who does the data belong to? Start young to generate wealth. How to serve women’s financial needs. And much more in this week’s briefing.
Economic/industry news
The Fed announces an emergency rate reduction: Federal Reserve announces first emergency rate cut since the financial crisis
The BoC cut its rate by 50 basis points: Bank of Canada follows Fed with rate cut as virus fears mount
COVID-19 to impact trade activity: Coronavirus to become bigger trade barrier than U.S.-China spat
Institutional investors prefer private markets for investment: Institutional investors planning to allocate more to private assets: survey
Is a comeback due for value ETFs?: When will value ETFs emerge from their prolonged slump?
Chart of the week
An emergency interest rate reduction by the U.S. Federal Reserve Board of 50 basis points, alongside an investor flight to safety, has pushed the 10-year U.S. Treasury yield to record-low levels. The S&P 500 Index was volatile again last week, as concern about COVID-19’s potential impact on the global economy was heightened. With equity prices falling, the dividend yield of the S&P 500 Index rose, and is now more than two times higher than the 10-year Treasury yield. How low can Treasury yields go? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Finding yield in private markets: Finding safe havens in private markets
Staying invested in the winners: PE firms are holding on to winners longer
Active fund managers’ returns relatively strong in February: Active fund managers outperformed as coronavirus shook stock market
Pershing adds two new fee options: Pershing announces subscription and zero-fee options for RIAs
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: March 3 edition
News and notes (Canada)
National Bank launches five new ETFs: National Bank introduces new ETFs
Invesco launches U.S. equity ESG ETF: Invesco ETF filters S&P 500 companies through ESG criteria
Banks reduce their prime rates: Several banks match Bank of Canada with 50-basis-point cut to prime interest rate
Understanding the RDSP: Common RDSP misconceptions
CWB expands presence in high-net-worth market: CWB buying T.E. Wealth and Leon Frazer from iA Financial
On the pulse – New frontiers in fintech
Who does the data belong to?: Fight over consumer data ownership pits banks against fintechs
Preparing to meet compliance standards: Transformative regulation finds its feet in 2020
The outlook for banking and capital markets, according to Deloitte: 2020 banking and capital markets outlook
Digital currency adoption could impact the U.S. dollar: ING economist: The US has most to lose in war of digital currencies
The challenges of succeeding in emerging markets: The unique challenges to scaling fintechs in emerging markets
Fintech sector being impacted by COVID-19: How coronavirus is disrupting the fintech sector
High-net-worth topics
Start young to generate wealth: It’s easier to become a millionaire if you’re a millennial – not in your 50s or 60s, says money expert
Improving your family office: 4 practical tips to transform your family office into a proactive organization
Polls & surveys – What financials are saying
How to serve women’s financial needs (CIBC): Tips for meeting women’s financial needs
Retirement savers not deviating from their plan (American College of Financial Services): Retirement investors staying the course despite coronavirus worries: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing: Volatility spikes
Is a global recession on the horizon? Encouraging the high-net-worth to buy amid volatility. The PE industry can benefit from AI. And much more in this week’s briefing.
Economic/industry news
Canada’s GDP grew 0.3% (annualized) in Q4: Canada’s output stalls as exports and business investment drop
U.S. economic growth was 2.1% in Q4 19: U.S. economy grew at 2.1% rate in Q4 but virus threat looms
PRI reporting deadline quickly approaching: PRI reporting deadline: A race to the finish line in 2020
The benefits of staying private: Why more businesses are choosing to stay private
M&A can help portfolios in volatile markets: Turning M&A deals into a stable source of returns
Is a global recession on the horizon?: How the coronavirus could help “push the world to the brink” of recession
Chart of the week
The number of cases of COVID-19 around the world is rising, and the VIX Index has spiked to reflect he uncertainty this has caused. Countries such as South Korea, Italy and Iran experienced a jump in confirmed cases, and there are over 83,000 confirmed cases of Covid-19 across the world. Major global indices are now in negative territory for the year. Clinical trials of a potential drug to combat the virus are underway, but those trials may not be completed for another month. How deep will losses extend? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds rose 0.07% in January: Hedge funds off to a weak 2020 start as COVID-19 outbreak weighs on global growth outlook
Looking to allocate more assets into alternative investments: Health-care systems want more alternative assets. But can they get them?
A bitcoin ETF is unlikely in 2020: SEC quashes dreams of bitcoin ETF with another rejection
JPMorgan Chase looking to address climate change: JPMorgan to stop financing arctic drilling, coal mining
Franklin Templeton launches three thematic ETFs: Franklin Templeton joins thematic ETF party with three new funds
Schwab to purchase fixed income SMA firm: Schwab to buy $10.5B RIA focused on fixed income
News and notes (Canada)
Sun Life launches five private pools: Sun Life launches new private pools
Mackenzie introduces new small- and mid-cap fund: Mackenzie launches new mutual fund
Harmonizing rules for crowdfunding: CSA floats enhanced Canadian crowdfunding rules
How the new mortgage stress test could impact banks: Report sounds alarm over softer mortgage stress tests
On the pulse – New frontiers in fintech
How to choose the best fintech partner: A vetting guide for banks mulling fintech partnerships
Ensuring a successful digital transformation: How to avoid digital transformation failures in banking
The PE industry can benefit from AI: How AI can bring new insight to private equity deals
Cybersecurity starts in the C-Suite: The c-suite and cyber security: taking the blame and taking action
New technology can help solve climate change: How to use technology to solve climate change and cloud waste
The BoC looking at a digital currency, just in case: Bank of Canada to create its own digital currency as ‘contingency,’ deputy says
High-net-worth topics
Encouraging the high-net-worth to buy amid volatility: Advisors to rich pitch equities, private markets after plunge
The vacation destinations for the young high-net-worth: How the young and rich are now spending their vacations
Polls & surveys – What financials are saying
Executives in the U.S. anticipate a higher tax liability in 2020 (BDO): Most businesses expect their taxes to go up this year: survey
Most people don’t like talking about money (FP Canada): Let’s not talk about sex – or money
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing: Retail sales are still weak
Fund managers are less optimistic. Being wealthy is more than just having a lot of money. And much more in this week’s briefing.
Economic/industry news
Canada’s inflation rate was 2.4% in January: Inflation rises 2.4% amid higher gas prices; core measures decelerate
Will ESG indices become more popular than traditional indexes?: MSCI says ESG indexes will be bigger than traditional gauges
Which banks have the most female directors?: Top 12 big banks for female board membership
Looking at the performance of low-volatility ETFs: Are low-volatility equity ETFs performing as planned?
The changing nature of financial advice: McKinsey on wealth management – the “Netflixing” of advice
Chart of the week
Canadian retail sales grew 1.6% in 2019, the weakest pace since 2009. This chart demonstrates the clear slowdown in retail sales across the Canadian economy over the past year. This signals weakness in personal spending. Rising debt, higher insolvencies and pressure on household finances in response to higher prices for staples, such as food, are weighing on Canadians’ pocketbooks. Do you believe Canadian retail sales will weaken further? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Analyzing Q4 filings: Q4 2019 filings insights
Hedge funds rose 8.67% last year: Eurekahedge Hedge Fund Index up 8.67 per cent in 2019
Handing out 2019 PE awards: 2019 Pitchbook private equity awards
Morgan Stanley to acquire E*Trade: Morgan Stanley dives deeper into retail with E*Trade deal
Franklin Templeton to purchase Legg Mason: Franklin Templeton buying Legg Mason for US$4.5 billion
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: February 18 edition
Michael Milken has been pardoned: Michael Milken pardoned by President Trump
News and notes (Canada)
Restrictions proposed on DSC back-end fees: DSC ban coming in mid-2022
Dynamic launched new ETFs: Dynamic launches two active ETFs
A new designation for financial advisors: Advocis launches new advisor designation
Fairstone Financial to be acquired by Duo Bank: Duo Bank buying Fairstone Financial
On the pulse – New frontiers in fintech
Fintech firms to watch in 2020: The Forbes Fintech 50: The most innovative fintech companies in 2020
Retail banking trends for the upcoming year: Top 10 retail banking trends and priorities for 2020
Why big tech could enter financial services: The role of big tech in financial services
What may be in store for bank branches: The future of the branch experience
Developing a strategy for data and AI: EU sets out plans for big data and AI
OTPP invests in cybersecurity firm: Ontario Teachers’ buys stake in cybersecurity firm, Caisse portfolio companies make acquisitions
AI financial planning firm receives investment: Financial planning startup scores seed funding
High-net-worth topics
Being wealthy is more than just having a lot of money: Beyond money: 4 ways advisors help clients achieve personal wealth
Insuring Australia’s high-net-worth against cybercrimes: AIG puts cyber into new policy for high net worth families
Polls & surveys – What financials are saying
Fund managers are less optimistic (BofA): Fund managers’ bullishness tapers off in February: BofA survey
Number of RRSP contributors rises in 2018 (Statistics Canada): RRSP contributions are up, but their popularity with taxpayers is down
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Tuesday morning briefing: Germany continues to struggle
Private equity’s success in the NBA. Helping companies eliminate wasteful spending. Family offices favour PE and real estate. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate was up in January: US underlying consumer prices rise in January
Thematic funds could be beneficial in portfolios: Where do thematic funds fit in a portfolio?
Will hedge funds see more outflows this year?: Hedge funds to lose $20 billion from investors this year
Advisors do a better job of constructing portfolios: Using advisors improves portfolio diversification for 90% of investors: Vanguard
Chart of the week
Germany just announced that its economic growth slowed in the fourth quarter of 2019. Ongoing trade tensions and the slowdown in global economic growth have negatively impacted the German economy. Since the beginning of 2018, there has been a clear slowdown in economic growth in Germany. Manufacturing, one of the nation’s most important sectors, dropped markedly. Industrial production has also weighed on growth. Please tell us where you think the German economy is headed.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds fell 0.18% in January: Hedge funds down 0.18 per cent in January
Private equity’s success in the NBA: Private equity is dominating the NBA in 2020
The rise of direct lending: Following a decade-long uptick, direct lending continues to rise
Co-investment funds benefit from lower fees: Why co-investment funds outperform in private equity
BlackRock had US$298 billion in global flows in 2019: BlackRock steals top spot for 2019 global inflows from Vanguard
News and notes (Canada)
BMO introduces new ETFs: BMO launches 5 new ETFs
RBC iShares looking to launch three green ETFs: RBC iShares pushing further into ESG
Canadian DB plans returned 14% last year: Canadian DB funds generate second-highest returns in a decade: RBC
A look at who is driving the housing boom in Canada: Young, well-heeled immigrants drive Canadian housing boom
CFA Level 1 can be used in place of the CSC: CFA meets IIROC licensing standards
On the pulse – New frontiers in fintech
Banks are looking at partnerships with fintech firms: Fintech deals seen as innovation shortcut by financial institutions
A look at what may be next for fintech: Building the next stage of fintech
How to handle the expectations of the modern customer: Customer experience in the 2020s
Helping companies eliminate wasteful spending: Fintech startup Ramp aims to disrupt the corporate credit market
Could AI help boost retirement savings?: Tick, tick, tick…
Enhancing the popularity of Eno: Capital One doubles down on chatbot with new features and marketing
High-net-worth topics
Family offices are favouring private equity and real estate: Family offices disrupting traditional investment models
How advisors can attract the high-net-worth: 3 things the wealthy need from their advisors
Polls & surveys – What financials are saying
Debt can ruin relationships (Credit Canada): It’s not you, it’s your debt: couples call it quits over finances
Canadians are worried about a retirement savings shortfall (Scotiabank): More than half of Canadians fear not having enough for retirement, says poll
Canadians are delaying saving for retirement (Oaken Financial): Half of Canadians put off retirement saving, survey finds
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing: Tesla in overdrive
Why value may not bounce back as high as some think. Not so fast on a cashless society. Don’t assume that all high-net-worth individuals are the same. And much more in this week’s briefing.
Economic/industry news
U.S. economy added jobs in January: January adds a much stronger-than-expected 225,000 jobs, with a boost from warm weather
Canadian unemployment rate moved lower in January: Canada’s labour market picks up steam for second straight month
Why value may not bounce back as high as some think: Why value investors shouldn’t expect a ‘massive’ comeback
Why factor ETFs could become more popular: After trailing market, factor ETFs may shine in a low-return environment
Don’t overlook farmland as an asset class: A high-return, often overlooked, asset class is getting easier to invest in
Chart of the week
What a ride it’s already been in 2020 for Tesla Inc. Shares of the electric car company have risen almost 80% thus far in 2020, hitting an intra-day high of $969 on February 4. Why the huge run up in share price? Many believe the company should ramp up production in the coming years, while others believe it is rising on pure momentum and investors’ fear of missing out. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Two Sigma looking to attract outside investors for its private equity fund: Inside Two Sigma’s billion-dollar private-markets gambit
Not enough consistent data for ESG decisions: Why hedge fund managers say they avoid sustainable investing
Fund giant to enter private equity: Vanguard to enter private equity space
Future popularity of nontransparent ETFs unknown: Nontransparent ETFs: Transformational or just another product?
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: February 4 edition
News and notes (Canada)
TD launches real estate alternative fund: TDAM launches real estate fund
First Trust launches new ETF: First Trust launches buffer ETF
Horizons launches three total return ETFs: Horizons ETFs launches three new total return ETFs
ETFs inflows were $4.1 billion in January: Flows into Canadian ETFs top $4B for third straight month
Are annuities coming to the TFSA?: CLHIA recommends TFSAs be allowed to hold life annuities
Canadian DB plans rose 2.52% in the fourth quarter: Canadian DB plan returns rise in fourth quarter as equity markets rebound
On the pulse – New frontiers in fintech
The difficulty in completing a digital transformation: Digital transformation requires more than technology upgrades
Potential trends in data for 2020: Is data our most valuable commodity? 2020 data trends
Not so fast on a cashless society: Cashless shopping may be here … but a cashless society? Nah!
Considering the development of a cloud-based platform specifically for financial institutions: Goldman mulls industry-specific financial cloud
The state of cybersecurity: The state of the cyber security market, according to BlackBerry’s CTO
Silicon Valley Bank partners with Mastercard on virtual card launch: Silicon Valley Bank launches virtual cards in the UK
High-net-worth topics
Don’t assume that all high-net-worth individuals are the same: Avoid the ‘assumption trap’ with your high-net-worth clients
The importance of cash for the high-net-worth: Founder of investment club for ultra-wealthy sees value in cash despite Dalio calling it ‘trash’
Polls & surveys – What financials are saying
Bank customers receptive to digital advice (J.D. Power): Retail bank customers keen to receive advice digitally: study
More Canadians have RRSP accounts (BMO): RRSP account size rose in 2019, finds BMO study
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Monday morning briefing: China’s GDP
Due diligence key in offering PE to retail investors. Family offices’ top investments are private equity and hedge funds. SEC releases best practices for cybersecurity. And much more in this week’s briefing.
Economic/industry news
U.S. Federal Reserve Board held rates steady at 1.50%-1.75%: Fed holds rates steady, affirms commitment to higher inflation
USMCA signed into law in the U.S.: Trump signs new NAFTA into law, sealing political win
Negative debt still rising: World’s pile of negative debt surges by the most since 2016
Financial advisors should be proud of their role and impact: 17 reasons financial advisors should be proud of their profession
Why ETFs need fees: ETF issuers defend need for fees
Understanding the differences within ESG: Defining ESG investing and understanding its uses
Chart of the week
In recent years, trade tensions with the U.S., weaker manufacturing and high debt levels have weighed on China’s economic growth. Now, the spread of the coronavirus could put further pressure on economic conditions in 2020. Many global companies such as Apple Inc. and Starbucks Corp. have temporarily shut down manufacturing facilities and stores in China. Given that the Chinese economy is such an important linchpin to global economic growth, what will the impact be on the global economy over the first and second quarters of 2020? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Interest in hedge funds still high: Investors pulled nearly $100 billion from hedge funds in 2019, but UBS insists popularity isn’t waning
Understanding private equity returns: Red flags in alluring private equity track records
Due diligence key in offering PE to retail investors: Private equity needs due diligence help to go mainstream
Sovereign wealth funds and pensions may invest more heavily in PE in 2020: Pensions and sovereign wealth funds to become more sophisticated investors in 2020
VC interest in cannabis was strong in 2019: Even as overall deals declined, VC investments in cannabis nearly doubled over 2019
Fractional share trading offered by Fidelity: Fidelity now offers fractional share trading
News and notes (Canada)
CIBC launches the CIBC Flexible Yield ETF: CIBC launches fixed-income ETF
CI launches three liquid alternative ETFs: New liquid alt ETFs launched by CI
Wealthsimple to launch ETFs: Wealthsimple to enter the ETF market
Congratulations to the FundGrade A+ award winners: 2019 Awards
On the pulse – New frontiers in fintech
Why financial institutions need to innovate to thrive: Innovation lessons that respond to fintech challenges
A framework for digital currencies: The global consortium for digital currency governance
SEC releases best practices for cybersecurity: SEC releases cybersecurity, data loss best practices
Why AI standards are needed: Market contemplates AI standards amidst regulatory pressures
New digital onboarding helping Schwab advisors: Schwab says advisors are embracing its new digital onboarding tool
High-net-worth topics
Family offices’ top investments are private equity and hedge funds: Private equity, hedge funds top among family office investments
The high-net-worth expect the bull market to continue: Tax planning a top concern for ultra-high-net-worth investors during election year, according to Tiedemann Advisors survey
Polls & surveys – What financials are saying
Advisors bullish on Canadian equities (Horizons): Advisors and investors optimistic about equities in 2020
Generation Z in the U.S. more willing to use credit cards (TransUnion): Generation Z racking up more card debt than millennials are in U.S.
Many Canadians don’t have a good understanding of the differences between RRSPs and TFSAs (TD): Many Canadians clueless about how TFSAs, RRSPs work
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Monday morning briefing: Where’s oil going?
Activists are focusing on ESG. Is a digital currency on the way from central banks? Retirement plans are lagging the market. And much more in this week’s briefing.
Economic/industry news
The Canadian inflation rate was 2.2% in December: Inflation holds steady at 2.2% in December
The Bank of Canada held rates steady: Bank of Canada opens door to rate cut on persistent slowdown
Advisors need to understand human behaviour: When advisors don’t understand clients’ behaviours
Keep an eye out for these ESG trends in 2020: 5 ESG trends to watch for in 2020: MSCI
Are there potential opportunities in Japanese equities?: What’s driving Japanese equities
Why value investing could get a pick-up in a market downturn: How value investing helps investors weather volatility
Chart of the week
Despite a volatile year, the price of oil rose in 2019. Production cuts and progress towards the phase-one trade deal between the U.S. and China contributed to the increase. However, oil prices dramatically fell in the new year, as global demand once again came into question in response to the outbreak of the coronavirus. Canadian energy companies are feeling the pinch from lower oil prices and additional headwinds, such as the uncertainty around the TransCanada pipeline. Will we see a broad-based improvement for Canada’s energy sector? Is government help on the way? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds returned 8.74% in 2019: Hedge funds up 8.74 per cent in 2019, says Eurekahedge
Activists focusing on ESG: Hedge fund activists pivot to ESG
Asian PE unit helping Morgan Stanley’s earnings: Morgan Stanley’s record results boosted by massive private equity coup in China
Seth Klarman finding opportunities in value stocks: Seth Klarman passionately defends value investing and said its time is coming again soon
Keep an eye on the operations: When it comes to hedge funds, don’t forget the operational side, says this industry veteran
News and notes (Canada)
Fidelity launches new ETFs: Fidelity Investments introduces new ETFs
Vanguard launches fixed income ETF: Vanguard launches new ETF
Purpose Advisor Solutions purchases advisor platform from Wealthsimple: Purpose Advisor Solutions to acquire Wealthsimple for Advisors
Wealthsimple launches cash account: Wealthsimple expands into everyday banking with new cash account
Net sales of ETFs were $4.6 billion in December: ETF sales surpass mutual fund sales in December
On the pulse – New frontiers in fintech
2020 may be a big year for fintech: Why 2020 is the year for fintech
Headwinds to the digital banking transformation: Why most digital banking transformation efforts have stalled
Still room for growth in adopting advanced analytics: Banks yet to fully adopt advanced analytics
Lots of potential for businesses with 5G technology: Open networks and the road to 5G
Is a digital currency on the way from central banks?: One in five people could have access to central bank digital currencies within three years
BMO to acquire Clearpool Group: BMO Financial to acquire fintech firm
High-net-worth topics
How the high-net-worth are invested to protect against a market downturn: Bloomberg radio interviews Tiger 21 founder on putting together an all-weather portfolio
The high-net-worth expect the bull market to continue: Wealthy investors see nothing that will stop this relentless bull market
Polls & surveys – What financials are saying
36% of investors expect global economic growth to improve in 2020 (BofA): Fund managers remain cautiously bullish: BofA survey
Retirement plans are lagging the market (University of Missouri): Even with an advisor, your retirement plan probably isn’t beating the market: survey
Canadians still prefer human advice (CIBC): Canadians prefer human advice for financial matters
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Monday morning briefing: The trillion dollar club
BlackRock will ask companies to disclose climate-related risks. The fintech industry could be squeezed by a market downturn. Private equities fundraising may decline in 2020. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate was 2.3% in December: US consumer prices gain slightly; underlying inflation tame
China’s economy grew 6.0% (annualized) in the fourth quarter: China just reported its weakest annual growth in 29 years
JPMorgan’s outlook for alternative investments in 2020: What J.P. Morgan sees for hedge funds, real estate, other alt investments in 2020
ICE to enter ESG data business: ICE to launch ESG data service
Sustainable funds had flows of US$20.6 billion in 2019, setting a record: Sustainable fund flows smashed records in 2019: Morningstar
Chart of the week – The trillion dollar club
Alphabet (Google) surpassed a market capitalization of US$1 trillion last week, joining an exclusive club. So far, only tech firms have joined the club. Currently, three firms – Apple, Microsoft and Google – have trillion dollar valuations. Amazon hit the $1 trillion mark in 2019, but a subsequent decline in its share price pulled its market cap back to $929 billion. The next largest firms by market cap are Facebook and Berkshire Hathaway, but both have a long way to go in order to join the club.
Let us know who you think may be next?
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
A look at the hedge fund industry in December: State of the industry: December 2019
The keys to success of top-performing hedge fund managers: This is what sets top-performing hedge fund managers apart
PE fundraising may decline in 2020: After record-breaking 2019, US PE fundraising expected to dip in 2020
The evolving environment for traders: Bonus culture on Wall Street is coming to an end
BlackRock will ask companies to disclose climate-related risks: BlackRock makes climate change a top priority
News and notes (Canada)
Picton Mahoney completes acquisition of certain alternative fund assets from Vertex One: Picton Mahoney expands further into alternatives with acquisition
Canadian VC investment reached US$1.17 billion in 2019: Canadian VC investment had a record year in 2019
The TSX is set to release the S&P/TSX Cannabis Index: TSX sparks up new pot index
Mortgage borrowing slowed in November: Household credit growth slows in November
On the pulse – New frontiers in fintech
Learning from the new banking environment in China: The future of banking has arrived
Using technology to enhance the customer experience: Driving emotional transformation
Big firms are benefiting from fintech companies: How the largest firms depend on fintech startups
Reducing loan default risks using machine learning: How machine learning is reducing loan defaults and easing debt recovery
Understanding some of the limitations of personalization: How personalization strategies can backfire on financial marketers
Visa purchases Plaid: Visa buys financial technology company Plaid for $5.3B
The fintech industry could be squeezed by a market downturn: Bye-bye fintech
High-net-worth topics
Helping the high-net-worth access blockchain investments: Guiding HNW clients on blockchain investment options
Is now the time to sell a private, family-owned business?: Family-owned businesses urged to sell before the party ends
Polls & surveys – What financials are saying
Longer lifespan linked to education and income (StatsCan): Gains in lifespan, health not equal: StatsCan study
Less U.S. investors are worried about a recession (Allianz): U.S. investors’ concerns over market volatility eased in Q4: Allianz
Younger Canadians are spending more time worrying about money (Scotiabank): Millennials worry more about money than older Canadians: poll
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Monday morning briefing: Spotlight on global manufacturing
What 2020 may look like for the retirement plan market. What customers consider when changing banks. Why growth in family offices may continue. And much more in this week’s briefing.
Economic/industry news
U.S. unemployment rate was unchanged in December: U.S. creates 145,000 jobs in December as hiring slows and wage growth softens
The Canadian unemployment rate was lower in December: December caps Canada’s second-best year for jobs since 2007
Possible investment themes to watch for in 2020: 10 hot investment themes for 2020
MSCI introduces 15 corporate bond indexes: MSCI introduces its first bond market indexes
The time is now for fiscal policy: Monetary policy no longer the best tool for supporting economic growth
How to position a portfolio for the upcoming year: Portfolio positioning in 2020
Chart of the week – Spotlight on global manufacturing
Global trade uncertainty has impacted many facets of the global economy, especially manufacturing. Manufacturing has seen a sharp slowdown around the world, which has negatively impacted economic growth. Major manufacturing nations, including the U.S., Canada, Japan, China and Germany, have all experienced weakness in this sector. Given the partial U.S.-China agreement announced near the end of 2019 manufacturing could experience a rebound and support stronger economic growth in 2020.
Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Agecroft’s predictions for the hedge fund industry in 2020: Top hedge fund industry trends for 2020
Hedge funds had strong performance in 2019: Hedge funds just saw strongest year since 2009, but lag stock market
Do poorer returns correlate with size?: Don’t blame bigger funds for disappointing private equity returns
Platinum Equity raises US$10 billion: Platinum Equity becomes latest PE heavyweight to raise $10B fund
What 2020 may look like for the retirement plan market: 2020 outlook for Plan Advisors
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: January 7 edition
News and notes (Canada)
Canadian underwriting grew in 2019: Canadian securities issuance rose in 2019
Risks to the Canadian economy: BoC governor says protectionism, housing market are risks
Looking at the delivery of investor disclosure documents: CSA launches consultation on investor disclosure
Canadian ETFs had $28 billion of inflows in 2019: ETFs outsell mutual funds for second straight year
On the pulse – New frontiers in fintech
What may be next for banks, credit unions and fintechs: Why fintech challengers may not conquer banking after all
What’s in store for the fintech industry: Ten years of fintech megatrends for the next decade
Technology forecast for 2020: 2020: A decade in technology
What customers consider when changing banks: The 4 things that matter most to consumers in selecting a new bank
Changes may be coming to the digital economy: Why the digital economy is set for a correction
YieldStreet partners with Citi to offer access to private credit markets: Citi partners with YieldStreet to offer investment opportunities to the masses
Many U.K. Millennials are using challenger banks: 1 in 3 millennials say their primary bank is a challenger
High-net-worth topics
Why growth in family offices may continue: Opportunities abound within the family office space
How the wealthy can protect their portfolios during times of geopolitical tensions: Tiger 21 founder addresses on Fox Business how to protect your portfolio from geopolitical risks
Polls & surveys – What financials are saying
The personality of an ETF investor (IFIC): ETF investors: well-informed and independent
How advisors can differentiate themselves (Morningstar and Mercer): 5 ways advisors can stay ahead of the competition
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Monday morning briefing: A look at the current equity run
What could be in store for the hedge fund industry in 2020? A look at the remarkable return of Bitcoin. A survey of some federal tax changes in 2020. And much more in this week’s briefing.
Economic/industry news
Canadian manufacturing pulls back in December: IHS Markit Canada Manufacturing PMI
China’s central bank reduces the reserve requirement ratio: China cuts banks’ reserve ratios again, frees up $115 billion to spur economy
Underwriting of global debt surged higher in 2019: A record year for global debt issuance
M&A activity across the world slowed last year: M&A activity declined in 2019
Millennials’ interest in ESG investing will impact markets: Millennials’ ESG investing will transform markets, DeVere Group says
Chart of the week – A look at the current equity run
What a decade it’s been for equities. The prolonged bull market has rewarded those investors who stayed the course with steady gains. Will the next decade bring more of the same, or are we due for a pullback? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds’ performance fees fell in 2019: Hedge fund fees plummeted further in 2019
An overview of the mutual fund industry in 2019: Mutual funds scorecard: 2019 in review
What could be in store for the hedge fund industry in 2020?: 20/20 foresight for hedge funds in 2020?
Vanguard to offer free online trading for stocks and options: Vanguard joins the crowd, drops commissions on stocks and options trades
News and notes (Canada)
Will Ontario eliminate the DSC?: Investor advocate group expects Ontario to buckle on DSCs
A look at some federal tax changes in 2020: Lower taxes, new RRSP rules and digital news tax credit among 2020 changes
IIROC looking to support its dealer members: IIROC vows to support industry transformation
On the pulse – New frontiers in fintech
Some fintech predictions for the year ahead: Five fintech predictions for 2020, according to Kleiner Perkins
The path to becoming a digital institution: How to make your financial institution digital-first in 2020
Three trends in open source storage: Open source storage: driving intelligence in the small data sprawl era
A look at the remarkable return of Bitcoin: Bitcoin’s 9,000,000% rise this decade leaves the skeptics aghast
How fintech partnerships can help advisors: Taking a 2020 view of fintech in wealth management
High-net-worth topics
The number of high-net-worth individuals in Canada expected to grow: When it comes to wealth opportunity, Canada’s perfectly average
How the high-net-worth maintain their wealth across generations: 100 families’ secrets to staying wealthy for 100 years
Polls & surveys – What financials are saying
Canadians looking to eliminate debt in 2020 (CIBC): Getting out of debt remains Canadians’ top financial priority in 2020: poll
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Monday morning briefing: Emerging markets equities poised for a comeback?
Why the 40 in 60/40 needs to change for investors. A look back at the decade in VC. The importance of data ethics. And is too much choice bad for advisors? These stories and much more in this week’s briefing.
Economic/industry news
Canadian inflation rate was 2.2% in November: Canadian inflation accelerates to 2.2%, core highest in a decade
The BoE holds Bank Rate steady at 0.75%: Bank of England keeps interest rates on hold
Why the 40 in 60/40 needs to change: Hey 60/40 investors: You need a new ‘40’
Three trends for investors and financial advisors: 3 trends investors and financial advisors should heed in 2020
Why corporate debt could be problematic for the global economy: China corporate debt flagged as ‘biggest threat’ to global economy
Chart of the week – Emerging markets poised for a comeback?
Let’s take a look at emerging markets stocks over the past five years. Emerging markets have underperformed developed markets over the past five years, particularly over the last couple of years as trade tensions intensified. As emerging markets countries are often export-heavy economies, the slowdown in the global economy has hurt performance. However, the partial trade agreement between the U.S. and China on December 13 has sparked a surge in performance among emerging markets equities. If trade tensions ease further and global economic growth ticks higher, will emerging markets equities gain traction and outperform developed markets? It may be time. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
A look at the hedge fund industry in November: State of the industry: November 2019
Risk-on sentiment among fund managers is back: Why fund managers are cranking up the risk
A look back at the decade that was in VC: VC’s decade in data: How the 2010s reshaped a market
Money market funds attracting a substantial amount of inflows: Investors favor money markets over stock and bond funds: Morningstar
Retail investors will gain more exposure to private markets: SEC votes to give retail investors more access to private markets
News and notes (Canada)
29 liquid alternative funds were launched in 2019: Fund managers have jumped into liquid alts, DBRS reports
Sun Life takes majority interest in InfraRed Capital Partners: Sun Life to expand infrastructure expertise with investment in InfraRed
What may be in store for Canadian alternative investments: A 2020 vision for Canadian alternative investments
A look at the changes to the Basic Personal Amount: New basic personal amount for 2020
On the pulse – New frontiers in fintech
Be prepared for a bigger adoption of mobile wallets: Why banks should care about mobile wallets (even if consumers don’t)
A look at some trends in cybersecurity for the year ahead: 10 cyber security trends to look out for in 2020
The importance of data ethics: Data ethics – what is it good for?
Why demand for regtech is expected to grow: Capital markets regtech in review
PayPal enters the Chinese payments market: PayPal completes GoPay acquisition, allowing payments platform to enter China
Why too much choice may be bad for advisors: Advisers are drowning in fintech choices
High-net-worth topics
UBS makes changes to its ultra-high-net-worth unit: UBS Group to revamp unit for ultra-high net worth clients
High-net-worth individuals are increasing their exposure to real estate, cash: Here’s where the wealthiest investors are finding opportunities
Polls & surveys – What financials are saying
Contributions to TFSA accounts grew in 2019 (BMO): Annual TFSA contributions up 10% on average: survey
74% of investors want financial advice from a human (IIROC): Investors prefer human advice: survey
The percentage of women directors on boards rose in 2019 (MSCI): Slow gains for female board membership: report
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Monday afternoon briefing: Small caps vs. large caps
A look at the top performing hedge fund strategies. The holdings of different generations. Europe is seeing a large increase in wearable payments. And much more in this week’s briefing.
Economic/industry news
The Bank of Canada held interest rates steady at 1.75%: Bank of Canada holds rates steady, citing ‘intact’ global recovery
Canada’s unemployment rate rose: Canada posts largest job loss since 2009 on full-time drop
U.S. labour markets were strong in November: Jobs growth surges in November, beating Wall Street expectations
Institutional investors’ looking to protect their portfolios: Global institutional investors sober as markets rally: survey
The challenges 2020 may bring: What headwinds do stocks face going into 2020?
Understanding the screening process of responsible investments: Lifting the veil on RI screening
Chart of the week
Since the end of 2016, small-caps have underperformed large-caps, as measured by the Russell 2000 Index and Russell 1000 Index, respectively. It’s not surprising given global trade tensions and their influence on equity market volatility. Investors have largely turned to larger-cap securities given their relative safety. If the U.S. and China reach a phase-one trade pact, will small-caps stocks take the lead? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Helping first-time managers raise money: These firms are helping managers beat their private capital fundraising goals
A look at the top performing hedge fund strategies: Equity long bias strategy tops hedge fund performance in 2019
Co-CEO of Bridgewater to leave firm: Murray to leave Bridgewater Associates
J.P. Morgan launches new ETF: J.P. Morgan Asset Management expands BetaBuilders suite
News and notes (Canada)
Horizons completes its corporate class reorganization: Horizons reorganizes 44 ETFs as corporate-class funds
Novacap launches Novacap Financial Services I: Private equity firm Novacap launches financial services fund
PE activity in Canada has slowed in 2019: Canadian PE industry on pace for investment slump
Onto the next step for a bitcoin fund: 3iQ files preliminary prospectus for Bitcoin fund
On the pulse – New frontiers in fintech
How changing technology will impact banking in 2020: The biggest technology trends that will disrupt banking in 2020
How tech and analytics are helping PE companies: Progressive VCs and private equity are using tech and analytics to revolutionize investing
Why regulators need to accept fintech in the banking industry: BankThink Charter or not, fintechs are already ‘banking’
Broadridge launches new AI tool: Broadridge launches new AI and machine learning platform for reconciliation, matching and exception management operations
A spotlight on emerging cities and fintech: Global fintech ranking shows importance of emerging cities
Europe is seeing a large increase in wearable payments: Wearable payments show sharp rise in uptake
High-net-worth topics
European private equity firms eyeing technology investments: Why Europe’s wealthy are betting on tech like never before
Younger U.S. high-net-worth investors showing interest in ESG: Wealthy, young investors driving shift to ESG, Cerulli reports
How the 2020 tax changes may impact the wealthy in the U.S.: What wealthy clients need to know about 2020 tax changes
Polls & surveys – What financials are saying
A look at the holdings of different generations (Charles Schwab): Self-directed millennials invested more in cash, ETFs than older investors
Business leaders uncertain about the outlook for the Canadian economy (CPA): Survey uncovers growing pessimism about Canada’s economy
A look at the struggles facing those who entered the labour market during the financial crisis (RBC): The struggle really is real for young investors
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Monday morning briefing – November 25, 2019
Could charities suffer from higher taxes for the wealthy? OSC introduces new recommendations to reduce regulatory burden. Some important points to know from Congress’ PE hearings. And much more in this week’s briefing.
Economic/industry news
The Canadian inflation rate was 1.9% in October: Canadian inflation holds steady at 1.9% in October, remains on target
Capturing your clients’ attention with a story: How storytelling bolsters financial plans & client relationships
Why alternative investments could benefit a portfolio in current market conditions: Fitting alternatives into a 60-40 portfolio
Global ETF assets continue to soar: Global ETF assets surpass $6T
A look at Morningstar’s sustainability ratings: Understanding Morningstar’s new sustainability ratings
Why private investments can help DC plans: DC plans need private investments, Neuberger Berman says
News and notes (U.S.)
Hedge funds experienced outflows in September: Hedge fund redemption trend extends to four months in September
Helping hedge funds with their cold-calling efforts: Match.com for hedge funds or low-rent telemarketing service? Cold-calling firm Murano Connect has many fans, but just as many detractors.
Hedge funds preparing for a trade deal: Hedge funds are buying stocks exposed to US-China trade on hopes for a deal
Louis Bacon to close hedge funds: Billionaire Louis Bacon is closing legendary hedge fund to clients
Some important points to know from Congress’ PE hearings: 4 key takeaways from Congress’ private equity hearing
Two Sigma raises US$1.2 billion for first PE fund: Two sigma is getting into private equity
A brokerage powerhouse could be in the works: Charles Schwab in talks to buy TD Ameritrade, create brokerage giant: report
Still some concern from SEC on non-transparent ETFs: Fresh concerns raised on novel ETF structure
News and notes (Canada)
Evolve launches new ETF: Evolve launches high interest savings account ETF
iA Clarington launches new segregated funds: iA Financial expands seg fund lineup
The Financial Planning Association of Canada was launched: New association aims to elevate financial planning
OSC introduces new recommendations to reduce regulatory burden: OSC says firms will save millions in compliance costs
Capital growth being driven by real estate: Outside housing, Canadian capital growth is near a 60-year low
On the pulse – New frontiers in fintech
Fintech trends to watch for in 2020: Top fintech trends entrepreneurs must watch in 2020
Fintech needs principles-based regulation: Fintech regulation needs more principles, not more rules
The five trends you need to know for digital banking transformation: Top 5 digital banking transformation trends shaping 2020
A look at regtech’s impact on compliance: How regtech is transforming compliance
Making the most of customer analytics: How to maximise insight from your customer analytics
Teaching the ethics of AI: Scotiabank to train execs on AI ethics
PayPal purchases Honey Science Corporation: PayPal to acquire shopping and rewards platform Honey for $4B
Essential Portfolios lowers its minimum investment: TD Ameritrade lowers minimum for robo-advisor accounts
What’s in store for digital currencies: The high stakes of the coming digital currency war
Fidelity gets licence for its virtual currency business: Fidelity granted licence to operate virtual currency business in New York state
High-net-worth topics
A look at key-person insurance: How to protect your business from upheaval if the owner suddenly dies
Could charities suffer from higher taxes for the wealthy?: Tax the wealthy and their charities will suffer
The wealthy are looking for a secure location to store their precious metals: World’s rich are rattled and looking for old-fashioned security
Polls & surveys – What financials are saying
Millennials have a better understanding of fixed income’s role in a portfolio (BNY Mellon): Millennials understand fixed income better than do older investors: survey
Canadians’ concerned about the stock market, economy (IG Wealth Management): Canadians’ financial confidence dims: IG survey
Many Canadians are worried about outliving their retirement savings (Sun Life): 72% say retirement isn’t what they expected
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Monday morning briefing – November 11, 2019
U.S. PE funds’ capital raising reaches record high. Businesses looking to Canada for expansion. U.S. institutional investors are turning to liquid alternative ETFs. And much more in this week’s briefing.
Economic/industry news
Canada’s unemployment rate was 5.5% in October: Canadian economy lost 1,800 jobs in October, unemployment rate steady
The BoE held rates steady at 0.75%: Sterling falls after Bank of England split on interest rate cut
Expecting weaker growth in Europe: Eurozone forecast for long period of weak economic growth
How to access private markets: Smart ways to access private capital markets
U.S. institutional investors are turning to liquid alternative ETFs: Use of liquid alternative ETFs on the rise among institutional investors: study
Why defined contribution plans can benefit from alternative investments: Fundamental reasons for adding alternatives to DC pension portfolios
A look at Morningstar’s new rating system: Morningstar rolls out new ratings system
News and notes (U.S.)
Hedge funds returned 0.4% in October, according to HFR: Hedge funds in positive territory in October, says HFR
How technology can help hedge funds manage their operating expenses: Technology can act as a growth enabler to help hedge funds cope with increased margin pressures
U.S. PE funds’ capital raising reaches record high: Private equity fundraising in the US hits all-time high
Private equity investment model shifting: The shifting nature of private equity
Fidelity launches new funds: Fidelity rolls out four thematic funds
The SEC is looking to make changes to its advertising rule: SEC issues plan to modernize RIA ad rules
News and notes (Canada)
iA announces fund and ETF launches: iA Clarington launches new fund, adds ETF versions of existing funds
CI acquires asset management firm: CI Financial acquires WisdomTree’s Canadian business
Tracking cannabis stocks: Pot indexes to launch this month
ETFs in Canada saw inflows of $3.5 billion in October: Canadian equities ETFs had a ‘stellar’ October
On the pulse – New frontiers in fintech
Improving data security measures: 3 steps banks & credit unions should take as data privacy gets hotter
How active managers can benefit from machine learning: Can machine learning help active managers outperform passive peers?
How fintech will help the “underbanked”: The ‘underbanked’ is the next trillion-dollar opportunity in fintech
Looking at what’s in store for the fintech industry: The future of fintech
Employees must also accept digital transformation: Digital transformation will flop if you don’t also transform staff
Charles Schwab is looking to eliminate forms: Schwab’s plan to kill forms and expand integrations
Selling through messaging platforms: The convergence of messaging apps and payments
Canadian banks take interest in Mylo: Canadian banks invest in spare change app Mylo
What a single digital currency could mean for the finance industry: How worldwide digital currency adoption could change the finance sector
A look at Canadians’ awareness of bitcoin: Bitcoin awareness no guarantee of ownership, finds BOC
High-net-worth topics
The high-net-worth need to protect against debt too: Why ultra-high-net-worth clients need a financial cushion
The total wealth of billionaires fell in 2018: Billionaire wealth declines in 2018
Polls & surveys – What financials are saying
Expect weaker investment returns in the future (JP Morgan): Weak global growth ahead, J.P. Morgan says
Businesses looking to Canada for expansion (HSBC): Foreign businesses eyeing Canada for expansion: report
U.S. advisors are bullish on the industry (Schwab): Advisors are (mostly) upbeat about the future: Schwab
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Monday morning briefing – November 4, 2019
VCs may benefit from investing in more women- and multicultural-led companies. Top 10 trends that will impact family offices. A look at how the digital economy is changing real estate. And much more in this week’s briefing.
Economic/industry news
The Bank of Canada held its central interest rate at 1.75%: Bank of Canada holds rates, warns economy will be ‘tested’
The Fed lowered its central interest rate: Fed cuts rates by quarter point while hinting at a policy pause
The U.S. economy grew 1.9% in the third quarter: US GDP rose a better-than-expected 1.9% in the third quarter as consumers continued to spend
Is there an opportunity in alternative fixed income?: Alternative fixed income seen as market opportunity
Competition in the ETF space is fierce: Cutthroat competition has come in the ETF industry
A look at how the digital economy is changing real estate: How the digital economy is reshaping real estate
Global ETF assets rose 2.52% over the third quarter: Global ETF assets extend lead over hedge fund industry to USD2.54 trillion at the end of Q3 2019, says ETFGI
News and notes (U.S.)
It was a tough month for hedge funds, according to Eurekahedge: Hedge funds lag, lose clients in September despite lower fees
Newer hedge funds outperforming their more established counterparts: These hedge funds do better
CFOs’ pay at private companies growing: A look at CEO vs. CFO compensation at late-stage private companies
VCs may benefit from investing in more women- and multicultural-led companies: Morgan Stanley: VCs neglect women and minorities, and it’s hurting returns
Looking to simplify limited partnership agreements: Private equity contracts are expensive and complex. This group wants to change that.
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: October 29 edition
Why investing in a 401(k) is so important: This is the biggest retirement mistake Americans are afraid of
News and notes (Canada)
3iQ gets approval for Bitcoin investment fund: OSC approves Bitcoin investment fund
CIBC launches three fixed income pools: CIBC launches fixed income pools
TD introduces MyTD: TD announces AI-driven advice service
AIMA looks at alternative investment market in Canada: AIMA publishes handbook on Canada’s alternative investment landscape
ICE launches platform to improve standardization and efficiency in an ETF primary market: New platform aims to boost ETF growth
Canadian DB plans advanced 1.6% in the third quarter: Canadian DB plans post 1.6 per cent median return in third quarter: survey
On the pulse – New frontiers in fintech
Combining humans with digital to help customers: Best customer experience in banking blends digital with human touch
How financial services companies can benefit from AI: Unleashing AI’s potential in financial services
Improving conversational AI: Overcoming the barriers to conversational AI
How deep learning can reach its potential: Deep learning is overtaking classic machine learning methods, study finds
FSRA joins the Global Financial Innovations Network: FSRA steps into global sandbox
Looking for a European digital currency: German banks calls for digital euro
Developing policy for crypto assets: IIROC launches crypto advisory group
The International Investment Funds Association (IIFA) releases Cybersecurity Program Basics: IFIC unveils updated cybersecurity guide
CI partners with d1g1t Inc.: CI Financial partners with fintech firm
High-net-worth topics
Top 10 trends that will impact family offices: Family office insights: 10 trends that will affect family offices in 2020
The wealthy are looking for safety in cash: Wealthiest investors are holding more cash says UBS
Polls & surveys – What financials are saying
North American investor confidence fell in October (State Street): Geopolitical turmoil dents investor confidence, State Street says
Interest in responsible investing rising (RIA): Canadians want more support on responsible investing
Even high income earners are struggling financially (TD): Earning power doesn’t necessarily equate to better financial health, survey finds