Monday morning briefing: 25 years of value vs. growth
Value versus growth over the past 25 years. Private debt fundraising down in 2019. Working on an approach to DSC. And much more in this week’s briefing.
Economic/industry news
Canadian GDP grew 1.3% in third quarter: Canada’s economy slows in third quarter even as demand jumps
Europe continues to favour active management: McKinsey: Where active management survives
There’s still a place for value investing: Has value investing stopped working?
Why small-cap stocks may be set to soar: Small may turn mighty as strategists see Russell strength ahead
M&A deals in financial services was US$57 billion in the third quarter: Financial sector M&A jumps in Q3, GlobalData
Why private equity can help a portfolio during a market downturn: Worried about a downturn? Consider private equity
Investors concerned about interest rates: Global investors cite interest rates as key portfolio risk: survey
Current market conditions may require a unique approach to active management: Revisiting active management and asset allocation
Chart of the week
Let’s look at value versus growth stocks on the S&P 500 Index since 1995. Toward the end of the 1990s and early 2000s, growth stocks surged higher in response to the dot-com bubble. After moving in lockstep until the 2008 financial crisis, growth stocks began outpacing value stocks. Is value investing in trouble or is it primed for a comeback? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
The Volcker Rule’s impact on hedge funds: The great hedge fund retreat
Private debt fundraising down in 2019: Against expectations, private debt fundraising saw a decline in 2019
The risks of unitranches: A booming corner of private credit has some investors on edge
Why it’s important to invest across vintages: In private equity, vintage diversification matters
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: November 26 edition
New rules proposed to make it easier for leveraged funds to come to market: SEC proposes new rule to ease the market entry of leveraged funds
Charles Schwab to purchase TD Ameritrade: Schwab to acquire TD Ameritrade in US$26-billion deal
Looking to allow private companies to raise money through a direct listing: NYSE proposes big change to direct listings
News and notes (Canada)
TD launches 10 new ETFs: TD Asset Management introduces new ETFs
CI takes stake in U.S. RIA firm: CI Financial buys US advisory firm
Canadian ETF assets rose to $192.3 billion in October: ETF sales rebound, mutual fund sales hold steady in October
Working on an approach to DSC: OSC decision on DSCs to come – eventually
Here are the winners from the Women in Wealth Management awards: Women in Wealth Management award winners revealed
IIROC provides updated guidance on AML requirements: IIROC steps up AML guidance
On the pulse – New frontiers in fintech
The importance of customer engagement: Reinventing retail banking customer experience in a digital world
How the entry of Big Techs into banking may impact fintech companies: Should ‘fintech’ fear big tech’s push into banking?
Customers are demanding a better digital experience: Banks losing customers who want seamless digital experiences
Why data science skills will be crucial for businesses to thrive: Analytics skills essential for business survival in ‘data decade’
The importance of IT infrastructure in developing AI capabilities: Big data LDN: Why you need to modernize your IT infrastructure for AI
Data analysis will be the focus in 2020: Why data will change the game again in 2020
Ant Financial looking to invest in the payments space: Ant Financial preps $1bn investment fund
New platform for independent advisors: Pascal Financial launches wealth management platform for advisors
High-net-worth topics
The wealthy want quality information from their advisor: What ultra high net worth clients want from wealth managers
The money habits of the rich: 5 things rich people do with their money
Polls & surveys – What financials are saying
During a recession, people want help from advisors (MDRT): Clients want you to help them through a recession: MDRT survey
Where are the female portfolio managers? (Goldman Sachs): Investment management is still a boys’ club: Goldman
Canadians are looking to eliminate debt (Manulife): Canadians agree they have too much debt
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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 18, 2019
Private equity looking at the financial advisory industry. Government and companies must work together to combat cyber risks. Asset allocation among alternative investments is changing. And much more in this week’s briefing.
Economic/industry news
U.S. inflation rate rose in October: U.S. consumer prices rise most in 7 months on higher gas prices
Economic growth in Japan stalled: Japan’s economic growth slumps to 1-year low in third quarter as trade war bites
The U.K. unemployment rate declined in September: U.K. unemployment falls while wages slow in September
VC funding had another strong quarter: Global VC funding remains strong in Q3
A look at the top research firms: The top research firm in the world is…
How to navigate through a market of lower expected returns: Navigating a slow growth market environment
Understanding the new economy: Understanding the 21st century economy
News and notes (U.S.)
A look at the hedge fund industry in October: State of the industry: October 2019
According to SS&C, hedge funds returned 1.15% in October: SS&C GlobeOp Hedge Fund Performance Index up 1.15 per cent in October
Private equity looking at the financial advisory industry: Private equity investors are zeroing in on financial advice business
JPMorgan invests in Limeglass: JPMorgan invests in financial research startup Limeglass
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: November 12 edition
News and notes (Canada)
iA Clarington goes fossil-fuel free in Inhance SRI funds: iA Clarington ensures certain funds are fossil-fuel free
A look at liquidity levels across Canadian funds: Currency & sector liquidity analysis report: Q3 2019
Lower mortgage rates helping housing affordability: Housing affordability improves thanks to lower rates, higher incomes
Looking for safety: The safest bet in Canada is also one of the hottest ETF trades
Taking a flexible approach to title reform: What’s next for title reform in Ontario
On the pulse – New frontiers in fintech
Security a concern for digital-only banking: More consumers will leave banks if digital offerings don’t improve
Why banks and big tech partnerships may work: Big banks and big tech (not versus)
A chequing account from Google: Google to offer checking accounts in partnership with banks starting next year
Customer experience should be at the forefront to combat disruptors: How to thrive in financial services in the age of digital disruption
How to better help small businesses: Big changes ahead for small business banking
A look at possible trends in the financial services industry over the next 10 years: Financial services in the 2020s: From open banking to open finance
Government and companies must work together to combat cyber risks: Bank of Canada urges public-private co-operation on cybersecurity
The data curation challenge: The challenge of data curation
Bringing cryptocurrency payment services to Swiss businesses: Bitcoin Suisse and Worldline to offer crypto payments acceptance in Switzerland
The CME will offer bitcoin options in the new year: Bitcoin options coming to the CME
High-net-worth topics
The wealthy are moving to cash: Geopolitics clouding the outlook for wealthy investors, UBS finds
Wealthy investors making direct investments in private firms: Wealthy families using 600-year-old plan to disrupt PE
How advisors can build trust with the high-net-worth: How to get wealthy people to trust you
Polls & surveys – What financials are saying
Institutional investors have an eye on China (Invesco): 80% of institutional investors planning to raise allocations to China: survey
Asset allocation among alternative investments is changing (EY): Investors are taking money out of hedge funds and putting in private equity
Canadians need help managing investments in retirement (Mackenzie): Value of advice more important as Canadians near retirement: study
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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
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Monday morning briefing – October 28, 2019
Will active managers become more activist? A look at volatility in the private markets. Interest in impact investing continues to rise. And much more in this week’s briefing.
Economic/industry news
The ECB held its central interest rate steady: ECB holds rates at historic lows as Mario Draghi waves farewell to Frankfurt
Canadian retail sales dropped in August: Retail sales fell slightly in August, Statistics Canada reports
Why growth has outperformed value: The real reason value has been lagging growth
A look at what will impact markets over the next few decades: Aging population top global investment trend, institutional investors say
Interest in factor investing on the rise: Factor investing strategies becoming more popular for fixed income: survey
Will active managers become more activist?: A Wall Street revolution: Why active fund managers have ‘stopped yawning and started flexing their muscles’
Gold’s comeback: The story behind gold’s resurgence
News and notes (U.S.)
A look at the hedge fund industry in September: State of the industry: September 2019
Hedge funds have experienced net redemptions in 2019: Hedge fund industry sees 6th consecutive quarter of outflows
Charles Schwab launches the Schwab Alternative Investment Marketplace: Schwab launches alts marketplace for advisors
Jeffrey Vinik closes hedge fund: Billionaire investor Jeffrey Vinik closes hedge fund less than a year after its relaunch
A look at volatility in the private markets: KKR: Private markets are much more volatile than they appear
U.S. executives believe M&A activity will be better next year: US M&A remains resilient despite market fears
A look at ETF flows in 2019: Where the ETF money flowed in 2019
News and notes (Canada)
Picton Mahoney to acquire funds from Vertex One: Picton Mahoney gains five funds from Vertex One
New ETF from Mackenzie: Mackenzie launches emerging markets bond ETF
Mutual funds were in favour in September: Mutual fund sales soared in September
A look at the possible financial impact from a Liberal minority government: How a Liberal minority government could help, or hit, Canadians’ wallets
Learn about the head of the Canada Infrastructure Bank: A profile of Janice Fukakusa, chair of the Canada Infrastructure Bank
On the pulse – New frontiers in fintech
How finance can benefit from AI: What can AI and big data do for finance?
Four principles to launch unique products: 4 crucial steps to transform banking products for a fintech world
Partnership formed to launch fintech research unit: Fintech research unit founded by AMF, Finance Montreal
Why improving the onboarding process is crucial: Research shows banks could lose $22.75bn to slow onboarding
Alberta Investment Management Corp. using AI to predict stock price movements: Institutional investors turning to AI, data science to improve processes, yield alpha
Using API to better your business: How can organizations take advantage of the API economy?
Cyberattack discovered, focused on institutional investors: Cyber attack hits prominent hedge fund, endowment, and foundation
Wealthscope launched to help investors look at total portfolio diversification: New tool to help those accumulating and decumulating retirement assets
WealthBar acquires Snap Projections: WealthBar deepens financial-planning commitment with acquisition
Is there a place for blockchain in fintech?: Blockchain: Is it the future of fintech?
High-net-worth topics
The high-net-worth in the U.K. are concerned about the political landscape: Politics is more worrying than Brexit for Britain’s wealthy
Wealthy executives have specific needs from a financial advisor: What high-earning executives need, and aren’t getting, from advisors
A look at the world’s ultrawealthy: Who are the ultrawealthy? These charts will give you an idea
Polls & surveys – What financials are saying
Interest in impact investing continues to rise (American Century): US, UK millennials embrace impact, ESG investing: Survey
Lacking knowledge of fixed income securities (BNY Mellon): Survey reveals severe lack of awareness on fixed income
Canada falling behind in dealing with climate risk (FTSE Russell): Canada’s climate readiness gets a thumb-down
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Monday morning briefing – October 21, 2019
Digital-only banks succeeding through a robust customer experience. ESG adoption by institutional investors may be slowing. Venture capital mega-deals continue to grow. And much more in this week’s briefing.
Economic/industry news
Canada’s inflation rate was 1.9% in September: Canadian inflation holds steady at 1.9%, core measures inch up
China’s economic growth slowed in the third quarter: China says its economy grew 6% in the third quarter, slower than expected
Retail sales in the U.S. declined: U.S. retail sales dip 0.3% in September
The end of the 60/40 portfolio?: Bank of America says 60-40 portfolios are dead. They’re right
Show a bit of pessimism towards a trade deal: Morgan Stanley tells stock bulls not to kid themselves on trade
The IMF predicts weaker economic growth in 2019: Global conflicts could lead to weakest growth since 2008: IMF
News and notes (U.S.)
The Eurekahedge Hedge Fund Index declined 0.30% in September: Hedge funds down 0.30 per cent in September
A look at hedge funds’ favourite research firms: The research hedge funds want to pay for
Why private markets will continue to flourish: The company of the future is private
How debt financing companies are attracting businesses: How debt financing is adapting to compete with equity financing
VC mega-deals continue to grow: 2019 on pace for another $100B invested as VC exit value tops $200B for the first time [datagraphic]
A look at how much the U.S. green economy is worth: America’s ‘green economy’ is now worth $1.3 trillion
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: October 15 edition
News and notes (Canada)
Waypoint launches liquid alternatives fund: Liquid alternatives: The Waypoint All Weather Liquid Alternative Mutual Fund
Desjardins launches ETF portfolios: Desjardins adds ETF portfolios to its roster
National Bank launches the NBI Unconstrained Fixed Income ETF: National Bank launches fixed-income ETF
Canaccord Genuity expands into Australia: Canaccord Genuity to acquire Australian firm for $23.3 million
Canadian M&A activity down in the third quarter: Mergers and acquisitions slow in third quarter: report
Michael Lee-Chin discusses the challenges impacting advisors: Adapt or become irrelevant, Lee-Chin warns advisors
On the pulse – New frontiers in fintech
Using technology to focus on consumer engagement: Digitizing banking is all about engagement and CX, not ‘tech’
Digital-only banks succeeding through a robust customer experience: Look to your customers for the key to banking success
Searching for innovative new technology: Where do incumbents look for game-changing innovation?
Canadians’ use of fintech on the rise: More Canadians using fintech, in spite of privacy concerns
The majority of U.K. financial institutions are using machine learning technology: Machine learning advancing in financial sector – Bank of England
Emerging challenger banks can be found all around the globe: Some challengers really are challenging … but not where you’re looking
Appealing to wealthier millennials: How upscale millennials’ money views impact their banking habits
How to keep up with regulatory change: How to approach modern regulatory change management in financial services
NatWest piloting a fingerprint credit card: Technology-based banking products launched
A look at what technologies are impacting advisors most: 10 female leaders share top tech trends that’ll change your practice
High-net-worth topics
Millennials’ wealth is expected to grow: There are more than 600,000 millennial millionaires in the US, according to report
What a wealth tax could mean for the high-net-worth: Explaining a wealth tax to clients
Polls & surveys – What financials are saying
Preparing portfolios for an economic slowdown (Aviva): Proceed with caution on asset allocation: report
ESG adoption by institutional investors may be slowing (RBC): Survey finds ESG adoption tapering off among institutional investors
There may not be a global recession until 2021 (HSBC): Global recession unlikely until 2021: HSBC
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Tuesday afternoon briefing – October 15, 2019
Hedge funds are moving away from oil. More companies raising private money. U.S. venture capital slowed in the third quarter. And much more in this week’s briefing.
Economic/industry news
U.S. inflation rate steady in September: US consumer prices were unchanged in September, the weakest reading since January
The Canadian unemployment rate fell in September: Canada’s job market produces another surprise gain in September
Progress was made on a U.S.-China trade deal: U.S., China reach partial trade deal, boosting market back near-record highs
The Fed will buy short-term T-bills: Fed to buy Treasury bills in effort to control lending rates
Interest in money markets rising: Investors are flocking to money markets at the highest rate since the financial crisis
A look at EBITDA for private companies: Why EBITDA is just BS
More companies raising private money: The changing landscape of public and private equity investing
New indexes to track megatrends: MSCI launches megatrends indexes
News and notes (U.S.)
Hedge fund industry returns declined 0.11% in September: Hedge funds see two consecutive months of negative returns, says eVestment
Hedge funds moving away from oil: Column: Hedge funds turn bearish on oil as economy slows
Add-ons a growing portion of U.S. PE buyouts: This year could set another record for US PE add-on activity
Retirement portfolios can benefit from private equity: Private equity a must for retirement portfolios, Panel Argues
A new asset class?: The hot new alternative investment: Lego?
Stephen Schwarzman comments on job loss study: Stephen Schwarzman on the key ‘flaw’ in the private equity job loss study
U.S. venture capital slowed in the third quarter: Venture Capital – Unicorn blood on the street
Fidelity offers free trading: Fidelity joins price war with zero commissions
News and notes (Canada)
The impact of fund-of-funds on the ETF industry: How fund-of-funds could be puffing up Canada’s ETF industry
VC investment in Canada continues to rise: Canadian VC investment hits record in Q3
Advisors satisfied with their brokerages: Where the industry is succeeding, and falling short
A look back at Canada’s first year of legalized marijuana: The good, the bad and the ugly from Canada’s first year of legal pot
On the pulse – New frontiers in fintech
A look at what’s ahead for fintech: What’s next for fintech growth?
Customers are concerned about using voice-assisted technology for bank transactions: Insurers and banks face battle to overcome security fears over voice-assisted tech
Consolidation in fintech expected to continue: More fintech consolidation expected after Broadridge’s Fi360 purchase
How to improve onboarding: Two ways to quickly elevate your financial institution’s onboarding
Companies start abandoning the Libra project: Facebook’s Libra loses Mastercard, Visa in cascade of exits
An in-depth look at the term “challenger”: What does the term ‘challenger’ really mean?
Digital asset firms must comply with AML rules: Digital assets face anti-money laundering rules too
Another bitcoin ETF rejection: SEC rejects Bitwise Bitcoin ETF
RBC looking to help address climate change: RBC backs AI-based climate change research
High-net-worth topics
The high-net-worth are looking to protect their wealth: Long-term planning can help allay Canadian investors’ concerns for the future
A look at how the high-net-worth are investing: Tiger 21 Founder addresses macroeconomic concerns for high-net-worth investors on CNBC Europe
Polls & surveys – What financials are saying
Many investors see a recession ahead for the U.S. economy (E-Trade): Bearish investors say US economy has peaked: E-Trade survey
Canadians are looking for retirement help (HOOPP): 80% of Canadians would take pension over salary hike: Poll
Those working with an advisor feel more prepared for a recession (CFP): Advisors instill confidence in face of recession
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Monday morning briefing – October 7, 2019
A look at hedge funds’ approaches to Brexit. The benefits and challenges of moving to the cloud. How AI will change the job market. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate hit a 50-year low: September unemployment rate falls to 3.5%, a 50-year low, as payrolls rise by 136,000
The Canadian economy was flat in July: StatsCan says economy flat in July as oil and gas sector down
More tariffs placed on Europe: U.S. to slap tariffs on European planes, whiskey after WTO ruling
How markets could be affected by an impeachment: What impeachment could mean for U.S. markets
Why now could be the time for alternatives: Is the tide turning for alternatives?
The benefits of investing in farmland: A look at the diversification benefits of farmland investing for pension funds
News and notes (U.S.)
Hedge fund launches rose in the second quarter: Number of new hedge fund launches up for second consecutive quarter
A look at hedge funds’ approaches to Brexit: How the hedge funds are really playing Brexit
Interest in private assets is high and will continue to grow: The unstoppable allure of private assets
A look at the PE middle market during the second quarter: 7 charts illustrating the US PE middle market in 2Q
Vanguard looking to enter the currency trading market: Vanguard to challenge banks’ grip on $6 trillion currency market
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: October 1 edition
The SEC is looking to modernize ETF regulations: The SEC says it’s making ETFs more accessible – here’s what that could mean for investors
More firms move to commission-free trading: TD Ameritrade announces zero commissions in tit-for-tat move
News and notes (Canada)
Purpose to incorporate ESG across all strategies: Purpose announces full ESG integration
National Bank launches green bond: National Bank issues sustainability bond
Canadian pension solvency fell to 98.6% in the third quarter: Canadian DB pension solvency declined in third quarter: surveys
CSA looking to improve its client-focused reforms: CSA introduces revised version of client-focused reforms
Responsible investing important to Canadian institutional investors: Canadian institutional investment pros say RI is important
On the pulse – New frontiers in fintech
A look at some fintech trends you may not already know about: Three overlooked trends in fintech
How to build a personalized experience: Secrets to building one-to-one digital experiences
How AI will change the job market: Artificial intelligence driving the next generation of jobs in the UK
Helping companies trade globally: Banks join forces on digital platform to help firms trade globally
Improving the branch experience: Interactive tech drives bank’s new experiential branch
The benefits and challenges of moving to the cloud: Interview with Bloomberg’s CIO: What’s driving financial services to the cloud?
A look at some examples of industry convergence: Industry convergence: Going beyond business boundaries
Robinhood adding well-known content to its app: Stock trading app Robinhood revamps its newsfeed with the Wall Street Journal and ad-free videos
The cost of fighting climate change: Americans fear climate change and the cost of fighting it
High-net-worth topics
Initiating the wealth transfer discussion between the high-net-worth and their children: How a UBS exec gets families to open up about wealth transfer
Goldman looking to attract the high-net-worth in Europe: Goldman is taking another stab at serving Europe’s rich
High-net-worth millennials believe they may need to work past retirement age: Survey: Many affluent millennials don’t think they can retire by 65
Polls & surveys – What financials are saying
Only 4% of CEO positions are held by women (CSA): Women gain share of board seats but not executive roles
Many Americans are concerned about their finances (NAPFA): Americans in need of some good financial advice: survey
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Monday morning briefing – September 30, 2019
People want more ESG transparency by companies. Fintech firms facing challenges finding good talent. The high-net-worth are raising cash levels. Can a passive player enter the PE space? And much more in this week’s briefing.
Economic/industry news
U.S. GDP growth confirmed at 2.0%: Second-quarter U.S. GDP left at 2%, slower economic growth seen persisting
Signs may point to an economic slowdown: Is the end of economic expansion near?
People want more ESG transparency by companies: Pressure piling on for companies to provide ESG disclosure
The trade war is the biggest threat to global economic growth: Lagarde says trade main global growth risk, recession unlikely
Why asset managers need to consider alternative investments: Asset managers must adapt to democratization of alternatives
A look at how much should be allocated to alternative investments: Here’s how much financial advisors should invest in alternatives to make a difference
Is there a future for non-transparent ETFs?: Non-transparent ETFs … a glimpse into the future?
News and notes (U.S.)
Global hedge funds experienced redemptions in August: Investors have pulled $63 billion from hedge funds this year – but these strategies are raking in cash
Many hedge funds are negotiating their management fees: Almost 39 per cent of hedge fund managers willing to negotiate management fees, says report
Can a passive player enter the PE space?: Why private equity is ripe for Vanguard-style disruption
The PE space will continue to expand: Research suggests there’s no stopping the private-equity train
Transitioning from Washington to PE: Politicians continue push into PE
Participation rate in retirement plans on the rise: Retirement Plan Sponsors report record 83% participation rate
Morningstar concerned about public availability of private investments in retirement plans: Don’t relax private investment regs for retirement funds: Morningstar
News and notes (Canada)
Fidelity launches five fixed income ETFs: Fidelity rolls out five fixed income ETFs on TSX
Evolve launches the Evolve Dividend Preferred Share Index ETF: Evolve launches preferred share ETF
Wealthsimple acquires SimpleTax: Wealthsimple expands into tax software with SimpleTax acquisition
What title regulation will mean for Ontario financial advisors: What to expect as title regulation extends to Ontario
Mutual fund and ETF assets rose in August: ETF sales eclipse mutual funds in August, IFIC reports
Canadian asset managers must innovate in a challenging environment: Asset managers must innovate: KPMG
On the pulse – New frontiers in fintech
Visa launches Visa Partner, looking to help fintech firms: Visa opens resource portal for fintechs
Banks must blend the old with the new to thrive: Where banking-fintech partnerships fall short
Developing products your consumers want most: How to build banking products consumers will love
Regtech spending to increase substantially in next five years: Regtech spending to reach $127 billion by 2024, as AI drives cost savings
HSBC introduces system to detect financial crimes: HSBC introduces industry leading financial crime detection systems
Combatting deepfakes: Can AI and blockchain be used in fight against deepfake?
Fintech firms facing challenges finding good talent: UK fintech sector faces talent shortfall
Increasing the use of blockchain: Can blockchain become more accessible?
High-net-worth topics
The top 1% in Canada saw their effective tax rates decline: Tax rates down, incomes up for the 1%
The high-net-worth are raising cash levels: Wealthy families are preparing for a downturn
The high-net-worth should have a plan to handle requests for money: How wealthy people handle requests to give away their money
Polls & surveys – What financials are saying
Investors in mutual funds and ETFs are confident in these products (IFIC): IFIC survey shows strong satisfaction with advisors, fund products
Supersavers are willing to make sacrifices to save more (Principal): These 5 money habits put young workers on track for retirement
Investors interested in sustainable investing, but don’t do it (Schroder): Investors talk the talk, don’t walk the walk, on sustainability
Why people engage with a financial advisor (Merrill Lynch): Top 5 reasons clients turn to a financial advisor: Merrill
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Monday morning briefing – September 23, 2019
A bitcoin yield fund for the high-net-worth. Private equity and venture capital outperforming public equities. Why international co-operation is needed to combat cybercrime. And much more in this week’s briefing.
Economic/industry news
The Fed reduced its central interest rate: Fed lowers interest rate by a quarter-point, and is open to the idea of more easing
Canadian inflation rate was 1.9% in August: Canadian inflation slows to 1.9% on lower gas, vegetable prices
The BoE held its Bank Rate steady at 0.75%: Bank of England holds rates, warns another Brexit delay could hurt economic growth
The BoJ kept its key interest rate at -0.10%: BOJ keeps policy steady, signals chance of easing in October
A look at how liquidity affects an ETF’s trading costs: Why liquidity matters in ETF cost minimization
Does the value of benchmark data justify the cost?: Fund managers seek more insight from benchmark data
News and notes (U.S.)
Hedge fund net exposure at highest level since 2018: Goldman: Hedge fund exposure to stock market at 15-month high
A conversation with Josh Harris on private markets: Apollo’s Josh Harris talks private markets at delivering alpha
PE and VC outperforming public equities: Private equity outperforms and captures institutional flows
Private equity net cash flow was over US$150 billion in 2018: Eight years in the black for private equity cash flows
Vanguard to launch Digital Advisor: Vanguard preparing to offer digital-only robo-advisor
Rockefeller Capital eyes Silicon Valley: Rockefeller Capital buys wealth firm for Silicon Valley rich
The Fed took action in money markets for first time in a decade: Fed intervenes in money markets for first time in 10 years
Looking for more customized target-date funds: Interest rising in active/passive hybrid strategies for TDFs
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 17 edition
News and notes (Canada)
Horizons launches the Horizons Growth TRI ETF Portfolio: Horizons ETFs expands lineup of portfolio ETFs
CI Investments launches ESG funds: CI introduces debut ESG funds
Combining mutual funds and ETFs could be beneficial: Mutual funds and ETFs in harmony
Canada ranks “below average” in fund costs, according to Morningstar: Canada rates poorly in Morningstar survey of mutual fund costs
Foreign investors moving out of Canadian securities: Foreign investors continue to divest Canadian securities
On the pulse – New frontiers in fintech
Five fintech trends to watch in 2020: Five trends shaping fintech into 2020
How to navigate through customers’ fear of open banking: Open banking scares customers, but they want what APIs can deliver
A look at Canadians’ comfort with AI: How Canadians feel about AI in financial services
We’re in the early innings of AI’s impact on the financial services industry: The beginning of the road for AI in finance, the best is yet to come
Building a branch as an advice centre: Transforming branches into advice centers: The long road ahead
How technology is impacting capital markets: Buyers’ brief: Fintech drives capital markets
Why international co-operation is needed to combat cybercrime: Cyber-crime best tackled by international co-operation
Arab Bank launches custody and brokerage services for digital assets: Leading Swiss private bank launches full suite of digital asset services
High-net-worth topics
Family offices incorporating ESG principles: Wealthy families pour fortunes into $31 trillion ESG opportunity
A bitcoin yield fund for the high-net-worth: Wealth manager launches world-first bitcoin yield fund
Polls & surveys – What financials are saying
38% of fund managers expect a recession over the next year (Bank of America Merrill Lynch): Recession fears among fund managers rise to highest level in a decade
Immigration wage gap impacting Canada’s economy (RBC): Immigrant wage gap costing Canada $50 billion a year in GDP: RBC study
Millennials are starting to save early (E*Trade): Young investors are doin’ it for the ‘Gram
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Monday morning briefing – September 16, 2019
Is there a major flaw with internal rate of return? The increasing use of alternative data. The top traits exhibited by leading advisors. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate fell to 1.7% in August: Cheaper gas puts a cap on consumer prices in August, but inflation appears to be rising, CPI shows
The ECB lowered its central interest rate to -0.50%: ECB cuts key rate for first time since 2016 as recession fears grow
OPEC should be closely monitoring demand, along with supply: Where does OPEC+ go from here?
Could there be changes to the U.S. capital gains tax?: Trump to revisit capital gains tax cut in White House Meeting
Will value investing bounce back?: Value investing’s heady days aren’t coming back, study says
Fixed income continues to attract significant ETF flows: Global ETF flows continue to favour fixed income in August: ETFGI
News and notes (U.S.)
A look at the hedge fund industry in August: State of the industry – August, 2019
The Eurekahedge Hedge Fund Index rose 0.31% in August: Hedge fund managers up 0.31 per cent in August
The increasing use of alternative data: Hedge funds plan to pour more money into alternative data
PE drawdown rates are still slow: Despite an active PE industry, drawdown rates have remained slow since 2012
Dry powder continues to rise: Alternative investment managers still building up dry powder
Is there a major flaw with internal rate of return?: The faulty metric at the center of private equity’s value proposition
Bitcoin ETFs could still be a bit away: SEC’s Clayton still troubled by potential manipulation of bitcoin prices
Directors and senior officers are selling shares: Insiders at US firms are selling shares at fastest pace since 2007
News and notes (Canada)
RBC launches five U.S. single-factor ETFs: RBC iShares expands lineup of factor ETFs
Stone Asset Management launches PTF: Stone Asset Management announces platform-traded fund
Why family businesses are important for the Canadian economy: Canada’s economy dependent on family businesses: report
Canadian pension assets grew 5% in the first quarter: Pension assets surged in Q1, StatsCan says
The Canada Pension Plan is opening an office in San Francisco: CPPIB opening San Francisco office, hiring head of VC funds
Canada’s first Pay Equity Commissioner announced: Canada now has a federal pay equity commissioner
On the pulse – New frontiers in fintech
Why banks should embrace and partner with fintech: Fintech and banks: collaboration or competition?
Using AI to fuel deposit growth: How banks and credit unions can grow deposits with AI
AI should complement the human process: Where the AI rubber hits the banking road
The need to enable open banking in Canada: Feds must act on open banking, senators say
How banks can attract Millennials: What millennials want from banks & credit unions
Small investment firms have cybersecurity deficiencies: Small firms less prepared for cyber risks: report
Morningstar launches Goal Bridge: Morningstar launches new goal-based advisor software
JPMorgan Chase helping small businesses with cash flow: JPMorgan Chase introduces same-day deposits for merchants
Issuing bonds through blockchain: Santander launches the first end-to-end blockchain bond
High-net-worth topics
The high-net-worth should stay invested in U.S. equities, according to Goldman: Goldman manager tells rich clients to put American stocks first
Canadian high-net-worth are focused on preserving their wealth: Canada’s wealthiest shifting focus toward future-proofing
TD launches new alternative fund for high-net-worth clients: TD Asset Management adds alternative fund
Polls & surveys – What financials are saying
60% of investors believe board diversity is important (ISS): Most investors support climate disclosure, board diversity, ISS finds
Expect slower growth for Canadians’ wealth (Investor Economics): Canadians’ wealth declines for first time since 2008
The top traits exhibited by leading advisors (Nationwide): 4 things successful advisors do differently: Nationwide
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Monday morning briefing – September 9, 2019
Helping smaller clients with their financial planning needs. Private equity firms are taking an interest in physician practices. Four phases of a successful digital transformation. It’s time to listen to the lesser known managers. And much more in this week’s briefing.
Economic/industry news
The BoC held its central interest rate steady at 1.75%: Bank of Canada balks at joining global rate-cutting trend
The Canadian unemployment rate was unchanged at 5.7% in August: Canada sees jobs surge in August with 81K new positions
The U.S. unemployment rate was 3.7% in August: U.S. creates just 130,000 news jobs in August, keeping Fed on track to cut rates
Manufacturing states suffering from trade uncertainty: Trump’s trade war inflicts pain on manufacturing states
What happens if the global consumer stops spending?: Trade-war damage piles weight of global economy onto consumers
Assets under management fell for the world’s largest pension funds in 2018: World’s largest pension funds’ AUM decreased in 2018
Fund costs will impact Morningstar’s analyst ratings: How Morningstar’s new ratings reality will affect funds, ETFs
BlackRock’s outlook for the Canadian economy in the fourth quarter: Outlook for final quarter of 2019
News and notes (U.S.)
Time to listen to the lesser known managers: With Sohn Conference bets, pay attention to the no-name managers
PE firms are taking an interest in physician practices: Why are PE firms hot for physician practices?
How the biggest VCs are investing: Breaking down early- and late-stage deals for the top 20 US VC investors (datagraphic)
Why 401(k) sponsors must understand mutual fund fee structures: Fiduciary responsibility and mutual fund fees
ACI to launch five active ETFs: American Century to launch five active equity ETFs under new Avantis banner
Investing in an NBA team: NBA considers vehicle to bring new investors to soaring team values
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 3 edition
News and notes (Canada)
Dynamic launches the Dynamic Credit Absolute Return II Fund: Dynamic Funds launches fourth liquid alternative offering
Waratah launches the Waratah Alternative Equity Income Fund: Waratah Capital launches liquid alternative mutual fund
FP Portfolios launches new ETF: Firm launches ETF alternative to structured products
Canadian ETF assets rose to $186 billion in August: Canadian ETF inflows hit $2.7B in August
Banking leaders are set to adapt to the changing financial landscape: Big bank CEOs talk lower rates, living in ‘unprecedented times’
First-time homebuyers believe new incentive plan may be helpful: First-time homebuyers optimistic about new government incentive: poll
On the pulse – New frontiers in fintech
A look at how fintech is changing the financial services industry: 5 ways fintech is reshaping the financial services industry
Three best practices to help banks become leaders in personalization: How banks and credit unions can take the lead in personalization
Four phases of a successful digital transformation: We just haven’t got a clue what to do!
How AI can help back-office functions: The future of finance is powered by artificial intelligence
Understanding the ethics of AI: Filtering the ethics of AI
A look at five industries being transformed by AI: AI predictions: how AI is transforming five key industries
Helping smaller clients with their financial planning needs: Bringing financial planning to the masses
Plans for a crypto fund-of-funds for institutional investors: Hedge fund manager plans $1bn crypto fund
High-net-worth topics
The high-net-worth are looking for more than just strong investment performance: For HNW clients, digital convenience is no substitute for a personal connection
Managing the high-net-worth’s digital wealth: What you need to know about managing clients’ digital wealth
Polls & surveys – What financials are saying
Canadian productivity hurt by financial stress (Canadian Payroll Association): 43% of Canadians say financial stress is hurting work productivity: Study
Institutional investors not yet fully adopting ESG (CoreData): Institutional investors yet to fully embrace ESG, says new research
Client expectations are the top challenge for wealth and asset management firms (RBC): Client demands overtake regulation as the top challenge for firms
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Monday morning briefing – August 19, 2019
First vegan ETF set for launch. U.S. household debt hits its highest level ever. Teens prefer fintech to manage their money. Plus much more news in this week’s briefing.
Economic/industry news
The U.S. inflation rate rose to 1.8% in July: Higher gasoline prices, rent boost cost of living in July, CPI shows, but inflation still mild
The U.K. economy contracted in the second quarter: UK economy shrinks for first time since 2012. Brexit could tip into recession
The U.K. unemployment rate rose to 3.9% in June: UK unemployment rate on the rise as fears grow ‘glory years over’
Understanding the 2020 version of GIPS: GIPS 2020: Everything you need to know
Why faith-based investors can benefit from impact investing: GIIN: Why impact investing is a natural fit for faith-based investors
Reconsidering the target-date glide path: Building better target-date fund glide paths
Bond markets still show signs of risk in the global economy: Equities on ‘borrowed time’ as recession signal nears inversion
News and notes (U.S.)
A look at the hedge fund industry in July: State of the industry – July, 2019
The Eurekahedge Hedge Fund Index returned 0.69% in July: Hedge fund managers recorded another positive month in July following strong H1 performance
SEC looking to make changes to alternatives regulation: Opportunities ahead as SEC pushes to modernize alternatives regulation
BlackRock finds first investment for long-term PE strategy: BlackRock begins PE foray with $875M bet on Sports Illustrated backer
A look at the most consistent top performers in the PE space: These private equity managers are the most consistent top performers
CBS and Viacom have agreed to merge: CBS, Viacom enter streaming wars with $30B combination
The first-ever vegan ETF to be launched: World’s first vegan ETF launches next month
U.S. household debt is at its highest level ever: Household debt sets new record: New York Fed
News and notes (Canada)
RBC launches three new ETF portfolios: RBC iShares expands lineup of portfolio ETFs
Invesco introduces investment portfolios: Invesco launches new suite of investment portfolios
CI launches asset allocation ETF: CI launches global asset allocation fund
Will the yield curve inversion force the BoC to lower its central interest rate?: Can BoC ignore blaring yield-curve inversion alarm?
OSC branch sees rise in enforcement referrals: Sales practices, suitability remain concerns for OSC
Canadian ETF assets rose to $183.7 billion in July: Canadian ETF assets continue to advance
On the pulse – New frontiers in fintech
Fintech is moving across many sectors of the economy: How fintech is eating the world
The importance of getting digital banking right: Make digital banking both seamless and secure or consumers will walk
Teens using technology to manage money: Fintech gains favor among teens
Successful automation will require quality data: Reliable data identified as key to successful automation
Securities lending through the use of machine learning: Northern Trust applies machine learning to securities lending
A look at the best fintech startups in Europe: The best fintech startups in Europe
A look at some business uses for blockchain technology: Five blockchain use cases: from property to sustainability
How the insurance industry can adapt to the future: How can the insurance industry face its challenges?
Another delay to the decision on a Bitcoin ETF: Bitcoin ETF decision delayed by SEC again
High-net-worth topics
Wealthsimple partners with Grayhawk to access the high-net-worth market: Wealthsimple announces partnership, looks to attract high-net-worth investors
How to transfer wealth: The art of transitioning wealth
Polls & surveys – What financials are saying
Asset managers believe a recession is on the horizon (Bank of America): Recession fears spike to 2011 high as risk of bubbles spreads
Generation Z may need some guidance on managing money (Northwestern Mutual): Gen Zers lack clarity on how to handle money, study says
Caring for elders is putting financial strain on Canadians (Angus Reid): Canadian caregivers worry about financial burden
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Monday morning briefing – August 12, 2019
The top fintech trends for 2020 that you need to know. Taking a long-term view of the hedge fund industry. Geopolitics will hurt some emerging markets countries. And much more in this week’s briefing.
Economic/industry news
Canada’s unemployment rate rose to 5.7% in July: Canada loses over 24,000 jobs in July, but wage growth reaches highest level since 2009
The U.K. economy contracted in the second quarter: Recession fears grow as UK economy shrinks on back of Brexit chaos
Chinese exports rose in July: China exports rise despite simmering US trade row
Could the U.S. consumer be the biggest loser in the trade dispute?: The real cost of Trump’s trade wars
Avoiding firms that pose climate risks: Big money starts to dump stocks that pose climate risks
Portfolios with less risk are more expensive: BlackRock: Least risky portfolios are most expensive
Has bitcoin become a safe haven asset?: Bitcoin joins the ranks of ‘safe haven’ assets
News and notes (U.S.)
Hedge funds’ net leverage shrinking: Hedge funds turn most bearish since 2016, hone long stock bets
Hoplite Capital to close its funds: Hedge fund Hoplite Capital plans to shut down – letter
Taking a long-term view of the hedge fund industry: Largest hedge fund advisers taking a long-term view on business, says new study
PE having a larger presence in the M&A market: PE’s prominence in the M&A scene continues to grow
PE carefully deploying cash towards deals: The private equity conundrum: More cash, fewer deals
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: August 6 edition
Most expensive real estate markets are seeing a decline in home prices: Home prices decline in some of the costliest markets in the U.S.
News and notes (Canada)
Sun Life to offer a sustainability bond: Sun Life to issue sustainability bond
Geopolitics impacted RRSP season in Canada: ‘RRSP season was the worst in a decade’
Requesting that GST/HST be removed from mutual funds in RRSP accounts: IFIC calls for end to federal sales tax on mutual funds in RRSPs
Total assets in Canadian ETFs was just shy of $184 billion in July: July sees $1.8 billion in ETF inflows
A look at the fund industry’s contribution to Canadian GDP: Canada’s fund industry fuels 1.7% of GDP, IFIC reports
On the pulse – New frontiers in fintech
The top fintech trends for 2020 that you need to know: Top 5 fintech trends that will dominate 2020
A look at how fintech could impact the banking industry: The fintech revolution: Who are the new competitors in banking?
Improving customer satisfaction through digital innovation: Financial institutions must become digital innovators
Data and analytics will benefit asset managers: Technology key to future success of asset managers: report
Customer trust and understanding to propel open banking forward: Why open banking is about to have its coming of age
U.S. regulators need to shift focus from penalties to prevention: US regulators need data breach prevention focus
Some business uses for virtual and augmented reality: VR is ahead for now, but AR will be a larger market in the long run
The Apple credit card is almost upon us: Apple readies for credit card launch
Why Canada needs to spread tech jobs across different cities and regions: Is Canada heading for a two-tier digital economy?
High-net-worth topics
Wealthy investors are decreasing their allocation to stocks: These wealthy investors are trimming their stock holdings
The wealthy are adopting mobile technology for their investing needs: Interest in digital tech growing among wealthy investors: Morgan Stanley poll
The mansion tax could spread across the U.S.: ‘Mansion tax’ could sting your wealthy clients
Polls & surveys – What financials are saying
Diversity in hiring at alternative firms lagging (Jensen Partners): Investors complained. Are alts firms listening?
Majority of hedge fund managers are not incorporating ESG strategies (BarclayHedge): More than half of hedge fund managers still not considering ESG: survey
Geopolitics will hurt some emerging markets countries (S&P): S&P: Risks for emerging markets loom despite looser Fed policy
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Monday morning briefing – July 29, 2019
Why financial institutions should focus on educating clients about digital banking. Preparing institutional portfolios for a market downturn. How mutual fund companies can adapt to the challenges they face. And much more in this week’s briefing.
Economic/industry news
U.S. GDP growth was 2.1% in the second quarter: GDP slows to 2.1% in second-quarter but beats expectations thanks to strong consumer
The ECB holds its central interest rate steady: ECB signals rate cut, QE ahead as global stimulus push picks up
What Prime Minister Johnson’s win could mean for Brexit: Johnson’s win elevates ‘no deal’ Brexit risks to U.K. economy
Facebook is not a favourite of ESG funds: Facebook getting booted from ESG index funds
Is there still more runway for global equities?: How long can the equity rally last?
Value stocks are falling behind their growth counterparts: Value stocks haven’t traded this low in nearly half a century
Preparing institutional portfolios for a market downturn: Are institutional portfolios prepared for the next market tumble?
The importance of manager research: Manager research matters even more than you think
News and notes (U.S.)
The forward redemption indicator for hedge funds declined in July: SS&C GlobeOp Forward Redemption Indicator at 2.69 per cent for July
Hedge fund assets that are invested based on ESG criteria are expected to grow: Hedge funds expect large jump in ESG assets
A look at the U.S. PE industry during the second quarter: Here are 9 charts that capture the US private equity industry in 2Q
Private markets may continue to grow: The expansion of private markets is irreversible
A look at some trends in the VC market: 21 charts showing current trends in US venture capital
Every company in the S&P 500 Index now has a female board member: The last all-male board in the S&P 500 finally added a woman
Home price inflation outpacing wages: American dream of owning a home out of reach for many, report says
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: July 23 edition
News and notes (Canada)
Evolve to offer 5G technology category to one of its existing ETFs: Evolve adds a new category to innovation ETF offering
Responsible Investment Association launches marketplace website: RIA launches RI Marketplace
Mackenzie launches emerging markets bond ETF: Mackenzie taps into EM bond market growth
Net inflows of Canadian-listed ETFs increased in the second quarter: Net inflows drive Q2 rebound for Canadian-listed ETFs
The BoC decreased the qualifying mortgage rate: BoC lowers qualifying rate used in mortgage stress tests
Does the new North American trade agreement hurt Canada?: America comes first in revamped NAFTA, report says
On the pulse – New frontiers in fintech
Why financial institutions should focus on educating clients about digital banking: No guarantees digital banking will continue to grow
New types of jobs in financial services will emerge from new technologies: The brightest fintech minds could be right in your office
The who’s who of the fintech industry: Influential business leaders in the fintech industry
Helping small businesses at the point of sale: ING tests software that turns mobile phones into POS terminals
Insurers to increase RPA spend: Insurers to spend $634m on Robotic Process Automation by 2024, as efficiency gains are sought
Using AI to attract deposit growth: AI savings tools help financial brands boost organic deposit growth
Tracking financial markets while driving: TD Ameritrade rolls out car-based tools for investors
Digital advisor to offer chequing and savings accounts: Betterment moves into banking
Technology can help reduce costs for meeting AML requirements: Tech reduces anti-money laundering compliance costs: report
High-net-worth topics
The high-net-worth should consider a family budget: Why wealthy people need to follow a budget, too
The importance of helping clients with their wealth transfer: The key to managing client wealth transfers
Helping clients with their wealth and health: Giving clients health to enjoy their wealth
Polls & surveys – What financials are saying
The IMF expects weaker economic growth in 2019 (IMF): IMF sees a weaker global economy but upgrades U.S. forecast
How mutual fund companies can adapt to a variety of challenges (PwC): Mutual fund industry at a crossroads: PwC report
Women and men differ on their views of financial markets (Nationwide): Women less optimistic than men about the market: Nationwide
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Monday morning briefing – July 22, 2019
Agri-food VC fund gets big investment. Rethinking PE multiples. Hedge fund assets reach their highest level ever. Baby boomers falling short of their retirement savings goals. The high-net-worth are more concerned about education and health than fancy things. And much more in this week’s briefing.
Economic/industry news
Canada’s inflation rate fell to 2.0% in June: Inflation hits BoC target of 2%
China’s economic growth rate slows to 6.2%, annualized, in the second quarter: China second-quarter GDP growth slows to 27-year low as trade war bites, more stimulus seen
How far will the Fed cut interest rates?: With a July cut almost assured, how far will the Fed go?
The impact of geopolitics on financial markets: Geopolitics becoming a primary market driver for institutional investors
Why goals-based planning can eliminate advisor biases: How advisor biases influence client outcomes: SEI study
Index tracking funds regained popularity in the second quarter: Passive investing picking up again
A look at six potential changes to the ETF industry: 6 big changes that could transform the ETF market
Five strategies for the “new” world of investing: Five strategies to replace old investing models
News and notes (U.S.)
Hedge fund assets reach their highest level ever: Hedge fund assets eclipse 2018 record
Hedge funds experienced US$800 million of inflows in May: Hedge fund flows turn positive again in May
BlackRock to start investing through long-term PE fund: A longer-term approach to private equity
Rethinking PE multiples: Median US PE buyout multiples of 12x may be the new norm
Searching for higher returns: Why public pensions are taking more risk
Investors benefiting from reduced mutual fund fees in 401(k) plans: Mutual fund fees in 401(k)s keep on falling: ICI
Fidelity launches four low-cost index funds: Fidelity expands price war with Vanguard with new index fund launches
Living mortgage free: Almost 40% of U.S. homes are mortgage free
News and notes (Canada)
AGF to launch three liquid alternative ETFs and mutual funds: AGF files prospectuses for 3 alternative funds
Picton Mahoney launches another liquid alternative fund: New alt fund, ETF lineup from Picton Mahoney
Agri-food VC fund gets big investment: OMERS investing in agri-food venture capital fund
How to help new Canadians with their finances: Helping new Canadians find their bearings in financial planning
On the pulse – New frontiers in fintech
A look at technology trends impacting retail banking: 5 pivotal technology trends in retail banking
Making the branch feel like home: ING introduces ‘branches that make you feel like home’
Fintech is having an impact on capital markets: How investment banks can respond to the fintech challenge
How small businesses may benefit from fintech: 3 fintech innovations that could end financial hurdles for small businesses
How to improve the account opening process: 5 ways to maximize your account opening and onboarding process
Reimagining Toys “R” Us: Toys ‘R’ Us taps tech startup b8ta to bring its stores into the future
Cybersecurity is a major concern among advisors: Cybersecurity (again) is advisors’ top compliance concern
Regulators are having difficulty with cryptocurrencies: Why regulators are struggling with crypto assets
High-net-worth topics
The high-net-worth are more concerned about education and health than fancy things: Forget the Rolexes and Bugattis, it’s all about education and health for today’s super wealthy
Even the high-net-worth struggle with their financial goals: Most millionaires don’t consider themselves wealthly: Ameriprise study
Polls & surveys – What financials are saying
Hedge fund investors looking for ESG principles in hedge funds (Cerulli): Interest in ESG expected to grow among hedge fund investors
Seniors need help with their finances (OBSI): Senior clients need more from financial firms: report
Fund managers show more bullishness in July (Merrill): Fund manager sentiment perks up in July: Merrill Survey
Baby boomers falling short of their retirement savings goals (RBC): Boomers worried they aren’t saving enough: survey
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Monday morning briefing – July 15, 2019
Hedge funds are changing their fee structures. A new climate change index from FTSE Russell. Turning the branch into an advice center. And much more in this week’s briefing.
Economic/industry news
The BoC held its rate steady at 1.75%: Poloz flags growing trade risks but keeps rates firmly on hold
The U.S. inflation rate fell to 1.6% in June: Consumer prices edge up in June, CPI shows, but inflation is still quite tame
Canadian housing starts rose to 246,000 in June: Canadian housing starts rise in June: CMHC
The debt ceiling may need to be raised by September: U.S. debt ceiling fears surface in “kink” in Treasury bill yield curve as drop-dead date approaches
A new climate change index from FTSE Russell: FTSE Russell launching climate change index for sovereign bonds
MSCI to provide ESG ratings on funds and ETFs: MSCI adds ESG ratings to 32,000 funds and ETFs
New guidelines on performance reporting from the CFA Institute: CFA Institute unveils new global investment standards
A look at the benefits of using multifactor ETFs: Why use multifactor ETFs?
News and notes (U.S.)
A look at the hedge fund industry in June: State of the industry – June, 2019
Hedge funds soared higher in the first half of 2019: Hedge funds post best first half in decade
Will there be a rebound in PE-backed exits?: Will US PE exits make up for lost time in the second half of 2019?
PE funds selling at a premium: The private equity funds selling for more than they’re worth
Charles Schwab adds more funds to its commission-free ETF platform: Schwab adds 25 ETFs to commission-free platform
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: July 9 edition
News and notes (Canada)
CIBC purchases U.S. investment banking firm: CIBC signs deal to buy Milwaukee-based boutique investment bank Cleary Gull
RBC purchases WayPay: RBC buys accounts payable specialist WayPay
Mercer and Wealthsimple partner to create a savings and advice solution: Mercer partners with Wealthsimple for digital investing solution
Canadians finding it difficult to move into higher income brackets: Canadian families are increasingly stuck in their income niche, StatsCan finds
Canadian ETFs experienced outflows in June: ETF flows flat in June as investors get defensive
On the pulse – New frontiers in fintech
A look at five fintech trends: Here is a look at where fintech is leading us and why
Understanding the bank-fintech partnership: Banks and fintech partnerships: A clash of extremes
Banking customers still demand human contact: Financial services customers set to embrace AI but human contact still vital
Turning the branch into an advice center: Branches should be advice centers, but are banks ready?
Creating highly personalized products and services: The market of one
Keeping AI ethical in corporate finance: Preventing unethical use of AI in corporate finance transactions
Advisors should be adopting new technologies: Why more advisors are embracing financial planning technology
JPMorgan enters robo-advice arena: JPMorgan rolls out robo-advisor
High-net-worth topics
The way the wealthy spend their money may be surprising: How do the wealthy spend their money?
The net worth of high-net-worth individuals fell: Wealth declines among the global rich after seven years of growth
A look at some traits of billionaires: The secrets of self-made billionaires
Polls & surveys – What financials are saying
Hedge funds are changing their fee structures (AIMA): Hedge funds replacing ‘2 and 20’ with more flexible fees: study
U.S., Canadian and Japanese investors typically hold their investments for over four years (Schroders): U.S. investors most patient, and demanding, in world, study says
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Monday morning briefing – July 8, 2019
Bitcoin’s volatile June may impede the possibility of an ETF. Funds-of-hedge funds are making a comeback. Ontario to get 50 more cannabis retail stores. 5G technology will enhance digital banking capabilities. And much more in this week’s briefing.
Economic/industry news
The Canadian unemployment rate rose to 5.5% in June: Canada’s jobs market pauses in June after monster start to year
The unemployment rate in the U.S. rose to 3.7% in June: Hiring rebounds as U.S. economy adds 224,000 jobs in June, unemployment rate inched up to 3.7 percent
Global equity issuance slow in the first half of 2019: Global equity issuance dives in the first half, Refinitiv reports
State Street launches ESG money market fund: State Street Global Advisors launches its first ESG money market fund
Christine Lagarde will become president of the ECB: Christine Lagarde: Key issues she must address at the ECB
Will more tariffs come to the EU?: U.S. proposes more tariffs on EU goods in Airbus-Boeing dispute
MSCI plans to add Kuwait to its emerging markets index: MSCI set to classify Kuwait as emerging market, subject to certain conditions
News and notes (U.S.)
Funds-of-hedge funds are making a comeback: They’re baaaaack: The investment that’s making an unlikely comeback
Europe’s interest in alternative investments growing: Interest in alternative investments on the rise in Europe
PE firms looking to raise US$1 trillion in fundraising efforts: Private equity seeks almost $1 trillion globally
Venture capitalists keeping a keen eye on companies that move people and things: Wheeling & dealing: In 2019, VCs can’t stop funding mobility startups
Fixed income ETFs see record inflows in June: Fixed income ETF inflows surpassed $25B during June
Understanding the rules of Reg BI: SEC’s Reg BI adds unexpected fiduciary hurdle for retirement advisors
News and notes (Canada)
Canadian banks meeting global regulatory standards on net stable fund ratio: Reports find Canadian banks meet global standards
Ontario to get 50 more cannabis retail stores: Ontario to issue 50 new cannabis store licences, eight to go to First Nations
Value of Canadian defined benefit pension plans stable in the second quarter: Strong equity market performance helped DB plans in Q2
Project Reconciliation preparing bid for the Trans Mountain pipeline: Indigenous group says Trans Mountain bid could be ready next week
On the pulse – New frontiers in fintech
Using data to drive the personalized customer experience: Digital changes customer engagement playbook for financial institutions
New associations will be important to drive fintech forward: We’re all in this together – The Value of associations in fintech
5G technology will enhance digital banking capabilities: Banking in 5G: Why financial marketers should care (now)
A look at the challenges and opportunities of AI in banking: AI in banking: The pitfalls and opportunities (research paper)
Understanding Intelligent Spend Management: Intelligent Spend Management and the evolution of procurement
Here are 10 payment start-up companies that you need to know about: 10 payments start-ups to watch
NatWest experiments with live chats on mobile, tablet and PC: NatWest trials video banking service for business customers
Online payment startups are focusing on these sectors: What sectors do online payment startups try to target?
Giving businesses unlimited access to their PayPal account: PayPal launches its first UK debit card with unlimited cash back for businesses
Bitcoin’s volatile June may impede the possibility of an ETF: Bitcoin’s wild June is ‘slam dunk’ against crypto ETF approval
High-net-worth topics
Ways business owners can save for retirement: Eight things business owners can do to build up funds for after retirement
Financial planning for families with assets in multiple countries: Cultivating foreign clients
How insurance can mitigate some of the risk for high-net-worth investors: The secret key to protecting your client’s wealth
Polls & surveys – What financials are saying
Professional accountants are bullish on the Canadian economy (CPA): Business leaders feel better about the economy: survey
Canada’s economic growth is dependent on global economic conditions (Russell Investments): Canadian economy not immune to outside forces: report
Why India might be a good source of investment returns (Manulife): Investors chasing higher returns can’t skip India, Manulife says
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Tuesday morning briefing – July 2, 2019
Spotting a financial bubble. The rising stars of the hedge fund industry. The benefits of advisors adopting technology. The affluent market is expected to grow. And much more in this week’s post.
Economic/industry news
U.S. GDP growth confirmed at 3.1% in the first quarter: US economy grew at a solid 3.1% rate in the first quarter
Optimism regarding small– and medium–sized businesses in the U.S. waning: Optimism hits nine-year low at U.S. small, midsize companies
Spotting a financial bubble: Can you spot a bubble before it bursts?
What’s hurting value investing: Two suspects behind value’s apparent death
New climate change indices announced: MSCI launches climate change indexes: Portfolio products
The number of global IPOs declined in the first half of the year: A weak first half for global IPOs, EY reports
News and notes (U.S.)
Forward Redemption Indicator was 3.81% in June 2019, lower than June 2018: SS&C GlobeOp Forward Redemption Indicator at 3.81 per cent for June
Equity leverage rising fast for hedge funds: Hedge funds boost equity leverage at fastest rate in three years
Alternative investment managers expect moderate economic growth for 2019: Alternative investment professionals bullish on prospects for remainder of 2019
A look at the most powerful hedge fund managers: The 10 most powerful hedge fund managers this year
The rising stars of the hedge fund industry: Hedge funds might be under scrutiny – but these rising stars are their future
Will Vanguard enter private equity space?: Vanguard mulling move into private equity: report
Another strong year for PE cashflows: Global PE cashflows eye eighth consecutive year in the black
U.S. tech firms reduced hiring in China amid trade dispute: Silicon Valley cools Chinese growth plans during trade war
Average wage earners having difficulty purchasing a home in many U.S. markets: Homebuying difficult for Americans in three-fourths of markets
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: June 25 edition
News and notes (Canada)
Mutual funds experienced $719 million of net sales in May: Mutual fund sales rebound, despite retreat in AUM, IFIC reports
Steve Hawkins takes over as board chair for the Canadian ETF Association: CETFA welcomes new board chair
Advisor title reform to be reviewed by new provincial regulator: FSRA to lead advisor title reform, while OSC works on other reforms
Tax proposal could hurt Canadian ETFs: Tax proposals get pushback from ETF industry
On the pulse – New frontiers in fintech
Wall Street is learning from Silicon Valley: Wall Street is taking cues from Silicon Valley to innovate fintech
The top trends in retail banking: The Top 5 retail banking technology trends of 2019 (so far)
Why it’s imperative that traditional banks adopt AI usage: Banking brands can’t keep pace with digital giants without AI
What is Facebook’s future in fintech?: Facebook’s Libra cryptocurrency is the future of fintech
Consumer use of fintech growing: More than half of global consumers use fintech
The benefits of advisors adopting technology: Five ways advisors can leverage technology
Welcome to the new Chase retail branch: Chase makes bold statement with stunning new flagship branch
Helping VCs make investment decisions: VCs double down on data-driven investment models
A look at how the investment banking industry can benefit from AI: How AI could shape the future of investment banking
High-net-worth topics
The affluent market is expected to grow: The growing promise from affluent individuals
How to respond to the traits of wealthy investors: 12 surprising traits of the wealthy
Sotheby’s to merge with BidFair USA: Sotheby’s goes private: What it means for the art market
Polls & surveys – What financials are saying
U.S. investor confidence falling (Wells Fargo/Gallup): Investors are battening down the hatches for a recession: Wells Fargo
Geopolitical and market risks affecting the outlook for institutional investors (Manulife): Uncertainty clouding institutional investor outlook: report
Canadians trust financial advisors for their retirement planning (Fidelity): Advisors top list of retirement planning resources: survey
A look at the contributors to growth in robo-advice (BMO): ETFs played a role in robo growth, fee-based shift: report