Tuesday morning briefing – May 21, 2019
There is no stopping socially responsible investing. The benefits of making personalization a reality. How ETFs rose to prominence. And much more in this week’s briefing.
Economic/industry news
Canada’s inflation rate rises to 2.0% in April: Inflation rises in April as carbon taxes drive up gas prices
Why a Fed rate cut could be problematic for the economy: Fed’s George warns rate cut could lead to bubbles and recession
How ETFs rose to prominence: Why ETFs succeeded for retail investors
Looking beyond fees: Fees aren’t the only cost of investing
MSCI to add more shares to its emerging markets index: MSCI boosts China, adds Saudi to emerging-market indexes
There is no stopping socially responsible investing: Socially responsible investing movement is hot and there are no signs of it cooling off
How DC plans can follow in the footsteps of DB plans: 2019 Top 40 Money Managers Report: Investment lessons for DC plans from their DB parents
News and notes (U.S.)
A look at the hedge fund industry in April: State of the industry – April, 2019
Alternative asset firms looking to enter the retail market: Hiring activity suggests alts firms are eying wealth management
Balancing foreign investment with national security: An increase in foreign investment in the US comes with trade-offs
A look at one of the largest lenders in the world, GSO Capital Partners: The radical, lucrative, and controversial company hiding in Stephen Schwarzman’s pocket
Looking at retirement in the U.S.: Is there really a retirement crisis brewing?
Another delay on the decision of a bitcoin ETF: SEC delays decision on Bitwise Bitcoin ETF again
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: May 14 edition
News and notes (Canada)
Private equity firm, Onex, to purchase WestJet: Onex signs agreement to buy WestJet in $5B deal
BMO announces changes to its investment lineup: BMO Investments announces new fund and series launches
Nest Wealth purchases Razor Logic Systems: Nest Wealth acquires Canadian software firm
Accelerate Financial Technologies launches three ETFs with 0% management fees:Alternative offerings mark firm’s ETF debut
Certain budget measures affecting the financial services industry may not pass before the fall election: Stock option changes, other budget measures unlikely to proceed before election
On the pulse – New frontiers in fintech
Making personalization a reality: Big payoffs for banks & credit unions from personalization
How technological advancements can turn complaints into opportunities: Five year increase in customer complaints an opportunity for banks, Financial Ombudsman reports
House Committee on Financial Services sets up fintech task force: US Congress launches fintech and AI task forces
Responding to cyber risks: Cyber exposure for mutual funds
FINRA to streamline interactions with member firms: FINRA plans digital transformation
Fintech deals grew to $111.8 billion in 2018: Global fintech investment doubled in 2018
Cybersecurity teams should be involved in managing the risks of business and digital transformation: PwC’s Digital Trust Insights survey: aligning business and cyber security drives success
A look at the Chief Data Officer: The evolution of the Chief Data Officer
Amazon moving into the blockchain space: Will Amazon find the same success with blockchain as they did with cloud?
High-net-worth topics
How much money do people need to consider themselves wealthy: You need $2.3 million to be considered truly wealthy in America
Brokerage firms must improve the products and services they offer the high-net-worth:Not good enough
Polls & surveys – What financials are saying
Help from a financial advisor is one of the best tools for retirement planning (Benefits Canada): Advisors top list of retirement planning tools: survey
ETF investors expected to increase their allocation to ETFs to protect against market volatility (Charles Schwab): Two thirds of ETF investors expect to raise allocations this year
Education costs impacting parents’ finances (FP Canada): University costs delay parents’ retirement: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 6, 2019
Movement across borders by millionaires up 14% in 2018. Here are the fintech firms that you need to know for 2019. There is strong optimism and demand for alternative investments. And much more in this week’s briefing.
Economic/industry news
The Fed held its target range steady at 2.25%-2.50%: Fed holds rates steady, citing lack of inflation pressure
The BoE maintained its Bank Rate at 0.75%: Bank of England ups growth view, Brexit keeps rate rise on ice
The Fed’s comments have a big impact on financial markets: Fed needs to develop a better feel for markets
Real assets should benefit from a pause in interest rate increases: How the Fed pause affects real assets
Financial advisor revenue climbed in 2018: Financial advisor revenue reaches record high despite drop in assets
A look at the risks and opportunities in the wealth management industry: Sizing up the competition in wealth management
Understanding how liquidity affects the total cost of an ETF: The importance of ETF liquidity: State Street
How ETFs and index funds can benefit the older generation: Why index funds and ETFs are good for retirees
News and notes (U.S.)
There is strong optimism and demand for alternative investments: Investors remain optimistic about alternatives despite ongoing market volatility
Investors are moving money into hedge funds they are familiar with: Investors weed out their hedge fund managers
78% of hedge fund managers experienced positive performance in the first quarter: Over three-quarters of hedge funds saw positive returns in Q1
Why U.S. VC is poised for another big year in 2019: 15 charts that show US VC could break multiple records in 2019
A look at some of the bigger risks in the fixed income market: This time is different, credit shop argues
Many manufacturers await the SEC’s decision on the ActiveShares proposal from Precidian Investments: A flood of nontransparent active ETFs could be coming – soon
Mutual fund and ETF fees fell in 2018: U.S. fund fees at record lows
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 30 edition
News and notes (Canada)
75% of active Canadian equity managers underperformed the benchmark in 2018: Most Canadian equity fund managers underperformed the S&P/TSX Composite Index in 2018
Canadian VC financing benefited from U.S. investors: U.S. investors powered Canadian VC financing in Q1
A look at cash holdings by sector: Currency & Sector Liquidity Analysis Report: Q1 2019
Macquarie to close equity sales, trading and research businesses: Macquarie shuts down three business lines in Canada
Defined-benefit pension plans in Canada returned 7.2% in the first quarter: Canadian DB pension returns boosted by rallying equities in Q1 2019
On the pulse – New frontiers in fintech
How banks and fintech firms can create a great partnership: 4 myths preventing more fintech+banking partnerships
Traditional banks are looking to fintech for growth: Established companies leveraging fintech capabilities for growth
Here are the fintech firms that you need to know for 2019: These are the top 10 hottest fintech startups and companies in the world
Adopting the cloud can help banks go digital: Banking in the cloud
Thomson Reuters and IBM partner on new regtech initiative: IBM and Thomson Reuters team on AI and data-driven compliance offering
Creating explainable AI is needed to build enterprise and consumer trust: Explainable AI: the future of AI
Global Financial Innovation Network selects firms that will take part in its service: Global sandbox accepts first eight firms
Open data can have a positive impact on society: The beginnings of open data
BMO launches group to fund tech companies: BMO launches Technology & Innovation Group
High-net-worth topics
How the wealthy can teach their kids about money at every stage of life: Here’s how the super rich teach their kids about money
Movement across borders by millionaires up 14% in 2018: Millionaires flee homelands to Canada, Australia, U.S. as tensions rise, taxes bite
MML Investors Services to offer more investment options for high-net-worth clients: MML Investors Services adds new investment options for HNW clients
Polls & surveys – What financials are saying
Americans are behind in their retirement savings (Franklin Templeton): Franklin Templeton: Most Americans lag in saving for retirement
Clients want more service flexibility and pricing options (EY): Wealth management clients want flexibility and transparency, finds EY
Institutional investors interested in holding cryptocurrencies in their portfolios (Fidelity): Fidelity survey finds institutional investors are eyeing crypto
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 29, 2019
Fintech and the fourth industrial revolution. Could European equities benefit from a slowdown in U.S. share buybacks? How fintech can help the underserved. Actual fee disclosure missing in the Regulation Best Interest proposal. And much more in this week’s briefing.
Economic/industry news
The U.S. economy grew 3.2%, annualized, in the first quarter: U.S. economy grows 3.2% in the first quarter, well above estimates
The BoC held its benchmark overnight rate steady at 1.75%: Bank of Canada abandons rate-hike bias amid economic slowdown
Mark Carney to leave the BoE in 2020: Carney left his mark at the Bank of England, now it’s time to find his successor
Lack of inflows into equity markets partially the result of investors’ already high allocation to equities: Why stock-market investors aren’t suffering ‘FOMO’ despite return to all-time highs
Could European equities benefit from a slowdown in U.S. share buybacks?: End to $1 trillion buyback binge may help ‘uniquely hated’ asset
A look at some risks that could lead to a market correction: Roubini: 8 risks that could trigger the next correction
ESG investing does not mean lower returns: Does your client think socially responsible investing means poorer returns?
The number of ESG mandates continues to grow: Asset managers answer the growing call for ESG investments
News and notes (U.S.)
$13.69 billion was redeemed from hedge funds in March: Investors continue to pull money from hedge funds despite performance rebound, says eVestment
Asset and wealth management M&A activity had a strong start to 2019: M&A stays high as asset managers take ‘aggressive measures’ to survive
Average size of PE funds has grown this year: The average PE fund size is skyrocketing in 2019
Mary Meeker raises over $1 billion for her fund, Bond Capital: Mary Meeker raises $1.25B for Bond, her debut growth fund
Vanguard experienced net inflows of $62 billion in the first quarter: Vanguard tops Q1 flows: Morningstar
Potential new changes to Volcker Rule could benefit large banks: Wall Street nears a big win in the latest revamp of Volcker Rule
Actual fee disclosure missing in the Regulation Best Interest proposal: Should the SEC require advisors to make actual fee disclosures, as the EU does?
News and notes (Canada)
TD launches alternative funds for its private wealth management clients: TD Asset Management launches alternative investment funds for HNW clients
First Asset rebrands ETFs into CI First Asset: First Asset rebrands ETFs and announces risk rating changes
Canadians interested in responsible investing: RI continues to grow in Canada: Desjardins
The Ontario Teachers’ Pension Plan launches investment platform to help late-stage tech companies: Ontario Teachers’ launches venture capital investment platform
Responding to international events: What should Canadian investors do about the news?
On the pulse – New frontiers in fintech
How fintech can help the underserved: Fintech touching millions of lives by redefining financial services
Digital transformation must keep the needs of customers in mind: Digital banking transformation requires cultural reboot
Ignore the excuses and begin your digital transformation: There’s no excuse why your financial institution can’t embrace digital transformation
Fintech and the fourth industrial revolution: Why fintech should embrace the fourth industrial revolution
Horizontal security layers can minimize the risk of a cyberattack: How horizontal security layers offer your organisation the best protection
People are concerned about their privacy when working with voice assistants: 41% of voice assistant users have concerns about trust and privacy, report finds
The benefits of a robo-advisor: Key benefits of robo-advisors in fintech
The impact of digital assets on financial markets:
The Blockchain comeback: How institutions effectively use digital assets
TD to adopt Microsoft Azure for its data and AI initiatives: TD Bank opts for Microsoft Azure
Fidelity makes additions to its Wealthscape Integration Xchange: Fidelity expands its digital store for advisors
High-net-worth topics
Forbes Family Trust purchases Optima Fund Management: Forbes Family Trust, LGL buy $2 billion fund manager Optima
Polls & surveys – What financials are saying
Investors expressed positive sentiment towards the majority of asset classes (Horizons): Advisors and investors are bullish on 10 of 14 asset classes: survey
Americans don’t feel financially prepared for retirement (Fidelity): Americans are confident about their finances. Retirement? Not so much.
Social and governance issues just as important as environmental concerns (Allianz): Social issues prominent among U.S. ESG investors, survey says
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Tuesday morning briefing – April 23, 2019
Hedge funds can’t ignore the widespread adoption of ESG principles. Family offices becoming the preferred model for high-net-worth advisors. How organizations can optimize their use of data. And much more in this week’s briefing.
Economic/industry news
The inflation rate in Canada rose to 1.9% in March: Inflation rises 1.9% on higher fresh vegetable prices, mortgage costs
China’s economy expanded 6.4%, annualized, in the first quarter: China’s economy had a steady start to 2019
Business sentiment is falling: BoC survey finds negative level of Canadian business sentiment
Institutional investors believe that equities are reaching their peak: More than half of institutional investors think equities peaking
Plan Sponsors are using less-conservative default investment options: How default investment funds are becoming smarter
The shift from the AUM pricing model: 5 truths about the pricing revolution in wealth management
What you need to know about a fund’s performance history: How important is a fund’s performance history?
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 1.06% in March: Eurekahedge Hedge Fund Index up 1.06 per cent in March
Hedge funds off to a strong start in 2019: Hedge funds had their best first quarter in 13 years to start 2019
Hedge funds can’t ignore the widespread adoption of ESG principles: Hedge funds ponder the ethics of shorting unethical companies
Secondary buyout deals growing: The median size of US secondary buyouts has nearly doubled since 2015
VCs showing interest in the “mystical services market”: Why are venture capitalists pouring billions into astrology?
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 16 edition
Will New Jersey institute a fiduciary rule for financial advisors?: New Jersey moves to impose fiduciary rule on brokers
Ensuring ETF names stay true to their objective and strategy: SEC cracks down on ETF names that could be misleading investors
News and notes (Canada)
BMO looking to expand its alternatives business globally: BMO’s Asset Management arm eyes alts expansion
Ninepoint purchases LOGiQ Global Partners: Ninepoint Partners acquires institutional advisory business
Agora Dealer Services launches wealth management platform for independent advisors: New digital platform for independent advisors
Advisors taking interest in the RI designation: RI designation gaining momentum among advisors
On the pulse – New frontiers in fintech
Canadians are concerned about privacy issues in open banking: Accenture survey reveals consumer hesitancy toward open banking
There’s plenty of opportunity for traditional banks to take advantage of the weaknesses in direct banks: Direct banks may be good, but they’re not unbeatable
A look at the benefits of contactless payments: The benefits of a cashless society
The European Commission provides ethical guidelines on testing new AI systems: European AI guidelines give hesitant developers green light
A look at a few developments in the AI space: 5 artificial intelligence developments to watch
How insurtech is catering to the younger generation: How insurtechs are shaking up a trillion dollar industry
Challenger banks must be able to respond to customer problems: Leaving customers digitally high and dry … big mistake
How organizations can optimize their use of data: The three considerations of data: standardize data, data strategy and data culture
Mastercard purchases POS financing company: Mastercard moves into POS financing with Vyze acquisition
Fintech firm merges with Difference Capital: Digital disruptor Mogo announces merger for accelerated growth
High-net-worth topics
Family offices becoming the preferred model for high-net-worth advisors: For high-net-worth clients, it’s not about the brand name, it’s about the experience
The impact of holding digital assets in trust: Digital assets in Bermuda
Advisors must get to know, and understand, the children of high-net-worth clients: What you need to know about the children of your wealthy clients
Polls & surveys – What financials are saying
Customer satisfaction with investment firms declined in 2018 (J.D. Power): Canadians’ satisfaction with investment firms drops
58% of millennials in the U.S. are saving for retirement (LendEDU): Most millennials are saving for retirement, prefer human advice: study
Many Americans don’t know about social investing (Newton): New survey finds most Americans unaware of ESG investing
Only 10% of Canadians are very comfortable with self-directed investing (TD): TD survey finds Canadians aren’t comfortable with self-directed investing
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – April/May 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- On April 24, the Bank of Canada (“BoC”) will announce its interest rate decision. At its previous meeting, the BoC maintained its benchmark overnight interest rate at 1.75%. Trade uncertainty and a slowdown in global economic activity factored into the BoC’s decision. While the BoC believes that current rates are still needed to support the economy, the BoC will continue to monitor economic developments before any further interest rate increases
- The U.S. will announce its first quarter advanced gross domestic product (“GDP”) growth rate on April 26. The U.S. economy grew 2.2% annualized in the fourth quarter of 2018, a slowdown from the 3.4% growth in the previous quarter. The advanced figure will give investors an early reading on the strength of the U.S. economy over the first quarter of 2019
- The U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision on May 1. In March, the Fed maintained the target range for its federal funds rate at 2.25% to 2.50%. The Fed also announced that it would slowdown its balance sheet reduction. The Fed’s statement and economic outlook turned cautious, while projecting that there would be no rate increases in 2019. Still, markets will keenly observe and measure any and all comments from the Fed
- The Bank of England’s (“BoE”) interest rate decision will be announced on May 2. The BoE held its Bank Rate steady at its last meeting, citing global economic concerns and Brexit uncertainty. The official departure of the U.K. from the European Union (“EU”) has been delayed, again, as all parties work towards an approved deal. The International Monetary Fund has projected a substantial drop in GDP growth should the U.K. leave the EU without a deal
- Also on May 2, Europe’s final manufacturing PMI (“PMI”) will be announced. Europe’s PMI has been trending lower for over a year. In March, it was led lower by a significant slowdown in German manufacturing. Furthermore, the PMI was hurt by a reduction in export orders and easing price pressures. The announcement will be closely watched to gauge any improvement, or deterioration, in Europe’s economy
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 8, 2019
A look at why fintech firms’ valuations are surging in Latin America. New hedge funds are raising minimum investment amounts. A look at how liquid alts can add value to an investor’s portfolio. How to establish digital trust. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate was 3.8% in March: Job market bounces back in March with 196,000 gain in payrolls
The Canadian unemployment rate was steady at 5.8% in March: Canada’s job run stalls in March with first drop in seven months
Financial institutions need to be prepared for a possible no-deal Brexit: Financial firms should prep for “no deal” Brexit: report
Europe holds the largest amount of sustainable investing assets: Global sustainable investment assets grew by a third in 2 years: report
Preparing investors’ portfolios for a slowing global economy, possible recession: Why investors shouldn’t panic over the yield curve inversion
Regulation is required to protect retail investors: Behavioural economics are useful, but regulation is essential: report
News and notes (U.S.)
New hedge funds are raising minimum investment amounts: New hedge fund study shows funds placing premium on strong start
Institutional investors may increase allocation to private capital: Stock market fears push investors toward alternative assets
Blackstone closing in on largest PE fund ever: Blackstone surpasses $22B mark for what could be biggest PE fund ever
BlackRock undergoes massive organizational changes: BlackRock starts big reorg of leadership, units
A review of M&A activity in 2018: 10 charts detailing the state of M&A in 2018
Year-to-date, 73 funds added ESG criteria to their investment strategy: More funds are formally considering ESG in their investment process
Fixed income ETFs continue to attract investor money: Fixed income ETFs received over $34B in flows during Q1
Mutual fund sales and performance figures over the past two weeks: Mutual funds scorecard: April 2 edition
SEC extends deadline for two bitcoin ETF applications: SEC delays decision on 2 bitcoin ETF filings
News and notes (Canada)
A look at how liquid alts can add value to an investor’s portfolio: Investing in liquid alts
Dynamic launches another liquid alt: Dynamic Funds expands its liquid alt offerings
Russell Investments launches liquid alternative fund: Russell Investments launches new Yield Opportunities Pool
Robust equity markets this year have helped defined benefit plans: Canadian pension plans in strong solvency position in Q1 off surging equity markets
Fiera Capital purchases majority stake in Palmer Capital: Fiera acquires 80% stake in Palmer Capital
Canadian ETFs had net inflows in March, led by fixed income: Net inflows for Canadian ETFs hit $1.9 billion in March
On the pulse – New frontiers in fintech
Banks must remain flexible to adapt to the changing technological landscape: Bank strategy in the world of fintech
The time is now for digitalization: Banks’ digital experiments need to produce results
A look at how banks and fintech firms can work together: Banks and fintech: Why the future looks brighter together
Why machine learning can help in the stock selection process: Machine learning can help with stock selection: study
A look at why fintech firms’ valuations are surging in Latin America: Why fintech startups are rapidly becoming unicorns in Latin America
How to establish “digital trust”: How to empower secure collaboration, communication and sharing in financial services
Interest in cryptocurrencies on the rise in private banks: How private banks are demonstrating interest in digital currencies
Bitcoin’s price spikes: Bitcoin surges as cryptocurrency market suddenly springs to life
High-net-worth topics
Careful estate planning an absolute must for high-net-worth families: U.S. billionaires are living longer, making heirs wait
High-net-worth investors show preference for independent advisors: HNW clients favour independents
Polls & surveys – What financials are saying
Most retirement plan participants aren’t saving enough for retirement (Natixis): What retirement plan participants want, need
Canadians need to focus on better tax planning throughout the year (CIBC): CIBC poll finds 63% of Canadians view tax refunds as an unexpected ‘windfall’
Advisors should strive to create a great client experience (Cerulli): How focusing on client experience helps advisors get ahead
Teens not confident about their financial futures (Junior Achievement USA and Citizens Bank): When it comes to finance, the kids are not all right: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 1, 2019
Blockchain is a foundational technology that will take decades to foster. The wealth management industry must take note of how women entrepreneurs are managing their portfolios. Banks must partner with tech firms to avoid losing business to challenger banks. Are there enough private investment opportunities to meet demand? And much more in this week’s briefing.
Economic/industry news
U.S. economic growth was revised down to 2.2%, annualized, in the fourth quarter: U.S. economy revises down Q4 growth rate to 2.2%
What does the inverted U.S. yield curve mean for the economy?: The yield curve just inverted, putting the chance of a recession at 30%
The BoC could be forced to hold interest rates steady as Canada’s yield curve inverted: Canada’s inverted yield curve signals holding pattern for Poloz
FTSE Russell to launch an indicative digital assets index: FTSE Russell to establish indicative digital assets index
Passive to overtake active in the next couple of years, according to Moody’s: Moody’s declares passive investments will surpass active in 2021
Dispelling some ESG investing myths: Ignore the myths: Factor and ESG investing work together
News and notes (U.S.)
Three quarters of hedge fund managers had a positive month in February: Hedge funds continue recovery in February
BlackRock purchases eFront: BlackRock’s Aladdin adds alts power
Are there enough private investment opportunities to meet demand?: Not enough private equity to go around
Charles Schwab introduces flat-fee subscription pricing plan for its premium digital advisory services: Why Schwab’s new pricing plan is a big deal
Regulation Best Interest still a top priority for the SEC: Clayton declines to share timetable for best interest rule
A look at retirement from J.P. Morgan: The 4% retirement rule is back: J.P. Morgan
Public employees likely to stay in retirement plans if they were automatically enrolled: Public fund employees are big fans of auto enrollment – survey
Customized target-date funds’ assets on the rise: Custom target-date funds growing in U.S.: survey
Mutual fund assets were $14.8 trillion at the end of February: Mutual fund assets start year with a growth spurt: Cerulli
News and notes (Canada)
Scotiabank launches the Scotiabank Healthcare+ Physician Banking Program: Scotiabank caters to physicians with new suite of banking services
How the federal budget could impact investors: Federal budget impacts investors, employees, retirees
A look at the OSC’s policy priorities for the next year: OSC will continue to focus on DSCs, client-focused reforms
Onex announces purchase of Gluskin Sheff + Associates: Gluskin Sheff surges on Onex takeover deal
Now that all of the major banks offer ETFs, will it change the investment fund industry?: ETFs: all the banks are in
On the pulse – New frontiers in fintech
Banks must partner with tech firms to avoid losing business to challenger banks: Citi urges incumbents to grow their own challenger brands as new entrants shrink the market
Big data can help all facets of the asset management business: Big data helps asset management industry across value chain
Blockchain is a foundational technology that will take decades to foster: Blockchain is dead
Eliminating paper cheques for businesses: Mineral Tree offers businesses an alternative to paper checks
U.K. financial services firms not prepared for the AI revolution: The financial services industry is not ready for the AI revolution, new study finds
The Federal Reserve Bank of New York establishes advisory group to review and provide guidance on fintech: New York Fed launches fintech advisory group
The Information Commissioner’s Office in the U.K. looking to provide environment to support innovation: ICO opens sandbox beta phase to enhance data protection and support innovation
A look at the new Apple Card: How Apple Card works
Innisfil, Ontario to begin accepting bitcoin as payment for property taxes: Ontario town to accept bitcoin for tax payments, in one-year pilot project
High-net-worth topics
The wealth management industry must take note of how women entrepreneurs are managing their portfolios: How women entrepreneurs are redefining wealth management:
High-net-worth clients are demanding private investments, here is how to help them: Russ Prince: Here’s how to help your wealthy clients invest in PE
Polls & surveys – What financials are saying
More than half of gig workers are saving for retirement (T. Rowe Price): Gig workers report being more involved in their finances
Signals point to a weak Canadian economy in the first half of 2019 (Russell Investments): Modest weakness for Canada in Q2: Russell Investments
Canadians approaching retirement saw their wealth increase, largely due to real estate (C.D. Howe): Housing market boosted wealth of Canadians approaching retirement
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March, 25, 2019
Understanding the differences between sustainable investing approaches. Companies benefit from API adoption. The financial advice industry needs regulators to act quickly on adopting digital technology. Three key steps to transform a bank. And much more in this week’s briefing.
Economic/industry news
The U.S. Federal Reserve Board (“Fed”) held interest rates steady: Fed holds line on rates, says no more hikes ahead this year
Will the pause by the Fed lead to a more vulnerable economy?: Guggenheim’s Minerd says Fed making economy more vulnerable
Canada’s inflation rate rose to 1.5% in February: Inflation edges up, but underlying pressures soften
The BoE maintained its Bank Rate at 0.75%: Bank of England holds interest rates as Brexit extension remains uncertain
Is a trade deal with China still close?: Some U.S. officials said to see China walking back trade pledges
Understanding the differences between sustainable investing approaches: Three approaches to sustainable investing
Low return environment could have institutional investors substantially changing their portfolios: Institutional investors changing portfolios to deal with uncertain markets: survey
News and notes (U.S.)
The Barclay Hedge Fund Index gained 1.24% in February: Hedge funds extend winning streak to a second month, says BarclayHedge
Net flows into hedge funds were weak in February: Hedge funds see lowest February net flows since 2009, despite positive month
MFA head to step down from position at the end of 2019: Head of top hedge fund association to step down
What does the future hold for private equity (“PE”) and the retail industry?: What remains for private equity and retail?
Assets in private debt expected to double in the next five years: Shadow banking tops lending activity in private equity
An in-depth look at the performance of four large PE firms in 2018: A visual representation of 2018 performance from four PE giants
BlackRock cut the fee on its S&P 500 Index Fund for its largest clients: BlackRock charging its lowest fee ever for an index mutual fund
2018 was a tough year for U.S. equity funds: 69% of U.S. equity funds underperformed in 2018
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: March 19 edition
News and notes (Canada)
RBC launches ESG ETFs: RBC iShares launches six ESG-focused ETFs
Proposed tax changes could affect investment funds: Proposed federal tax changes prompt fund assessments
3iQ to get hearing on Bitcoin fund application: OSC hearing on bitcoin fund set for April
Canaccord Genuity to acquire wealth management business in London: Canaccord Genuity set to acquire Thomas Miller Wealth Management
A look at some of the key items from the 2019 Federal Budget: Highlights from the 2019 federal budget tabled Tuesday
On the pulse – New frontiers in fintech
Will technological advancements change the way that we categorize stocks?: Forget growth vs. value, think digital vs. decline
An in-depth look at contextual banking: Exceptional customer experiences depend on more than data alone
Open banking and real-time payments could help banks grow: Convergence of real-time payments and open banking helps banks to grow revenue and attract customers
Three key steps to transform a bank: Transforming the bank: Three phases of change
Employing business intelligence software helps firms grow revenue: New research finds business intelligence tech leads to 24% higher revenue
The financial advice industry needs regulators to act quickly on adopting digital technology: Regulators must embrace digital innovation: C.D. Howe
Companies benefit from API adoption: How APIs can transform your company
Amazon Pay will now be available through Worldpay’s API: Worldpay becomes first acquirer to enable Amazon Pay
High-net-worth topics
The high-net-worth are looking for a high level of investment expertise in a wealth manager: Wealthy investors need skilled and savvy advisors
Here are some common wealth transfer concerns of the wealthy: Wealth transfer: the most common question families ask
Helping the high-net-worth with their spending: Inside Merrill’s new framework for wealthy families
Polls & surveys – What financials are saying
Fitch lowered its 2019 global growth forecast to 2.8% (Fitch): Global growth looks weaker, Fitch says
Allocation to equities falling (Merrill Lynch): Jumpy investors continue to flee stocks: Merrill
Canadians willing to share personal information with financial services firms for lower prices (Accenture): Nearly half of Canadian consumers willing to share significant personal data with banks and insurers in exchange for lower pricing, Accenture Study Finds
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March 18, 2019
Wealth management falling behind in creating a great mobile app experience for clients. Price growth in luxury real estate slowed in 2018. Global banking regulators offer guidance on exposure to cryptoassets. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The U.S. inflation rate was 1.5% in February: US consumer prices rise for the first time in 4 months
The Bank of Japan held its key short-term interest rate at -0.10%: BOJ keeps policy steady, cuts view on exports and output
Where’s the inflation?: Low inflation is Federal Reserve’s maddening unsolved mystery
London may remain an important financial center, even after Brexit: What does the #brexit vote mean for banking and fintech?
Strategic beta ETPs ended 2018 with $797 billion in assets: Strategic beta ETP market still expanding
Climate change also a risk to life insurers: Why life insurers are investing with ESG in mind
News and notes (U.S.)
A look at the hedge fund industry in February: State of the industry – February, 2019
The Eurekahedge Hedge Fund Index rose 0.86% in February: Hedge funds up 0.86 per cent in a calm month, says Eurekahedge
Unicorns going public: The unicorns are coming (to Wall Street)
Mutual funds participating in shareholder activism: Mutual funds start to put their mouth where their money is
Salt Financial to offer ETF that pays investor: Forget no fees. ETF breaks ground by offering to pay investors
JP Morgan to launch ETF with 0.02% expense ratio: JPMorgan planning cheapest-ever stock ETF
Charles River Development partners with Axioma to enhance its portfolio management platform: State Street ramps up competition with BlackRock’s Aladdin
News and notes (Canada)
Franklin Templeton launches liquid alternative fund: Franklin Templeton introduces alt mutual fund
Canadian annuity sales hit the highest level ever in 2018: Annuity sales hit record highs in 2018, led by buyouts: report
Wealthsimple launches Wealthsimple Trade: Wealthsimple launches zero-commission trading app
CIFSC announces new alternative-focused categories: IFSC category definitions for alternative funds
Brookfield to acquire stake in Oaktree Capital: Brookfield reaches agreement to acquire 62% of Oaktree Capital
On the pulse – New frontiers in fintech
Fintechs have an opening to help small- and medium-sized businesses: SMEs “historically ignored” by banks
The rising importance of a digital scientist: Standardising the data scientist
Looking at the impact from data control on banks and customers: Data control changes are in the air: What does it mean for banks and consumers?
BNP Paribas launches AI assistant to help customers manage their budget: BNP Paribas Luxembourg brings a touch of Genius to mobile banking app
Fintechs need to be held to the same consumer protection standards as banks: Why are fintechs getting a regulatory pass?
Wealth management falling behind in creating a great mobile app experience for clients: J.D. Power: Wealthy clients not happy with mobile apps
Global banking regulators offer guidance on exposure to cryptoassets: Regulators set guidance for banks’ cryptoasset exposures
High-net-worth topics
Why family meetings should be considered a must for high-net-worth families: The importance of family meetings
The high-net-worth are showing an interest in gold: Fresh optimism on gold, thanks to ‘triple bubble in stocks, bonds and real estate’
Price growth in luxury real estate slowed in 2018: Wealthy investors see end to stellar returns from luxury homes
Polls & surveys – What financials are saying
Over 20% of working Americans aren’t saving money (Bankrate): Why aren’t Americans saving? They just haven’t gotten around to it, survey says
Canadians struggling with debt (FPSC and Credit Canada): One in 5 Canadians will need to liquidate an asset to pay for debt: survey
Advisors should use the same set of questions for prospective clients (Morningstar): Advisors can reduce gender bias: study
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – March/April 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- On March 20, the U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision. At its latest meeting in January, the Fed maintained the target range for its federal funds rate at 2.25% to 2.50%. The Fed is expected to hold its interest rate steady for a second consecutive meeting partly as a result of the slowing global economy, easing inflation and continued trade uncertainty
- The Bank of England (“BoE”) will announce its interest rate decision on March 21. The BoE has held the Bank Rate steady at 0.75% since its last increase in August 2018. The BoE intends to raise rates at a gradual pace. However, slowing domestic and global economic growth, as well as the uncertainty of Brexit, will weigh heavily on the BoE’s decision
- Canada will announce its inflation rate for February on March 22. Inflation fell to 1.4% in January, the lowest rate in over a year. This pullback was primarily the result of falling gasoline prices and an overall decline in the price of food. The Bank of Canada (“BoC”) expects lower gasoline prices to persist, which may keep inflation below 2% throughout 2019
- On March 27, the U.S. will announce its balance of trade for January. The U.S. trade deficit widened to US$59.8 billion in December. Exports fell 1.9%, while imports rebounded, rising 2.1%. As a result of ongoing trade uncertainty, this will be a closely watched measure to anticipate its impact on the overall health of the U.S. economy
- China will announce its first quarter gross domestic product (“GDP”) growth rate on April 16. China’s GDP grew 6.4% in the fourth quarter, slowing from the 6.5% recorded in the third quarter. While economic activity has been affected by the trade dispute with the U.S., the Chinese government is looking to boost domestic economic activity through fiscal policy. Furthermore, the People’s Bank of China has added more liquidity into the system through its ongoing reduction of the required reserve ratio for banks
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Bloomberg and ext. – raising the bar on content and research for our clients
Marketing is a collaborative effort. It takes a group of creative, knowledgeable and dedicated people who are all focused on one important goal: to market a solution, product or service well.
In asset management, where real-time research, analysis and statistics are paramount to success, Bloomberg is the gold standard in the industry. Asset management professionals trust Bloomberg, and so do marketing departments – especially those that assist portfolio managers in developing their commentaries, reporting and market insights.
Communicate better, faster and more accurately
Capital markets are, by nature, dynamic. From the impact of the U.S. Federal Reserve Board’s interest rate decisions to Apple’s stock price to the shape of yield curve, there is a lot to track in financial markets each day.
At ext., we use our in-house Bloomberg terminal to help investment firms communicate better, faster and more accurately. We understand the importance of real-time information and statistics as they relate to communicating about market developments, and we stay on top of industry developments, understand where the market is trending and know how the global economy is performing. This ensures we are always on the same page as our clients.
Get an edge
A Bloomberg terminal gives our clients an edge – they no longer have to use their portfolio management teams’ valuable time to access information that will help them stay ahead of market developments.
By partnering with ext., you can access the same leading information as your firm’s research and portfolio management teams. Our analysts and CFA-level writers use this valuable information to help you create timely, impactful content for your clients.
Saving you time and money
Having a Bloomberg terminal helps our clients achieve efficiencies and allows us to conduct important research that our clients would normally request from other departments at their firms. This, in turn, frees up time and resources, as well as enabling expedited access to information.
Bloomberg is a big win for our clients: by partnering with us, you can communicate better, expand your edge and work more efficiently.
Take your content to the next level today by contacting us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March 4, 2019
An in-depth look at how Amazon is entering the financial services industry. Eleven fintech firms to keep an eye on. How to attract high-net-worth investors. The four key pillars to help protect your company against cyberattacks. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
U.S. GDP grew 2.6%, annualized, in the fourth quarter: Fourth-quarter GDP increases 2.6%, better than expected
Canadian GDP growth slowed to 0.4%, annualized, in the fourth quarter: Canadian economic growth slowed in the fourth quarter
Canada’s inflation rate fell to 1.4% in January: Canada’s inflation rate falls to 15-month lows on lower gas prices
Global ESG ETFs experienced $730 million of inflows during January: Global inflows into ESG ETFs steady in January
The Financial Conduct Authority found fee disclosures lacking: U.K. Regulator zeroes in on asset managers’ fee disclosures
Bondholders could benefit as companies fear a downgrade: No BBB bust as $140 billion bet on fallen angels is ‘overpriced’
What retirement will look like in the future: 5 trends that could reshape retirement
The challenges of an index becoming more concentrated: S&P 500? More like the S&P 50
A look at four major real estate markets: What’s driving demand in global real estate
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 2.35% in January: Hedge funds record best January since 2006
Hedge funds more concentrated in managers’ best ideas: Never before has the fate of hedge funds turned on so few stocks
Hedge fund assets rose despite redemptions: Hedge fund assets up in January as performance offsets investor redemptions
It could be another strong year for PE fundraising: Here’s why 2019 could be another fundraising boom year for US PE
Cost-cutting alone cannot help companies grow: The lesson of The Kraft Heinz nosedive: Radical cost-cutting is out, brands are back
A comprehensive look at women in VC: The VC female founders dashboard
Fidelity has expanded its multi-factor ETF lineup: Fidelity debuts three multifactor ETFs
Another vote on Brexit could be helpful: Carlyle’s David Rubenstein wants second Brexit vote as UK PE deals dwindle
Mutual fund assets rose 5.3% in January: Mutual funds add $947 billion in assets in January
News and notes (Canada)
Mackenzie launched three more liquid alt funds: Mackenzie introduces liquid alt funds
Franklin Templeton launched three ETF portfolios: Franklin Templeton enters ETF portfolio fray
The BoC proposed reforms to the Canadian Dollar Overnight Repo Rate Average: Bank of Canada unveils benchmark reform proposals
The OSC declined a Bitcoin fund application from 3iQ: Regulators refuse proposed Bitcoin fund amid investor protection concerns
Canadian mutual fund assets grew in January, despite net redemptions: Mutual funds saw $53 million in net redemptions for January
Tips to successfully invest in your RRSP: 6 rules for successful RRSP investing
On the pulse – New frontiers in fintech
Automating testing can have a big impact on the success of a digital transformation: Driving a successful digital transformation strategy
Canadian’s usage of alternative payment tools has increased 14% since 2016: Canadians are increasingly choosing alternative payment tools
The growth of payment alternatives will bring new and complex regulatory requirements: Harnessing regtech to build payments reputation
An in-depth look at how Amazon is entering the financial services industry: Everything you need to know about what Amazon is doing in financial services
Financial services companies are expanding their use of AI: The world’s biggest banks are doubling down on artificial intelligence
Cybersecurity spending expected to grow: Cybersecurity spending to reach $223.7 billion by 2024, says Rethink
The four key pillars to help protect your company against cyberattacks: Four steps in cyber risk management
UOB integrating AI to speed up loan process: UOB applies AI to transactional data to speed up loan approvals for SMEs
11 fintech firms to keep an eye on: Fintech focus – 11 to watch now
Retail shopping through virtual reality and blockchain: The convergence of blockchain and online VR retailing
High-net-worth topics
The high-net-worth demand personalization: Themes from the 2019 U.S. Millionaire Report: Personalization
How to attract high-net-worth investors: You don’t need a Super Bowl ad to attract high-net-worth clients
Polls & surveys – What financials are saying
Global corporate debt reached $13 trillion at the end of 2018 (OECD): Why corporate debt is a risk to the global economy
The majority of economists expect a recession in the U.S. by the end of 2021 (National Association for Business Economics): 75% of business economists expect a US recession by 2021: survey
Women don’t believe they will be able to afford their desired lifestyle in retirement (RBC): A third of Canadian women not confident about maintaining lifestyle in retirement: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Canadian regulatory trends – 2019 and beyond
Ongoing regulatory changes in the financials sector don’t tend to get much press, but they do have a significant and widespread impact on our industry. Read on to learn how you might be impacted by the actions of our country’s many regulators over the coming months and years.
Deferred sales charges fade into obscurity
The elimination of deferred sales charges (“DSC”) has been a popular topic in the Canadian financial services industry over the past couple of years. While the Government of Ontario voted against eliminating DSCs, many firms have already eliminated DSC options in their fund lineups. We expect the firm-led end of DSC to continue in 2019 and beyond.
The rise of liquid alts
Liquid alternatives (“liquid alts”) have been on regulators’ agendas for years. After multiple reviews and comment periods, liquid alts are today considered an asset class of mutual funds and ETFs.
Similar to what occurred in the U.S. and Europe when liquid alts were introduced into those markets, liquid alts will be a game changer for the Canadian hedge fund, mutual fund and ETF industries. Many firms launched liquid alt funds ahead of the official release date and we expect many more liquid alts to be launched in 2019.
The CSA Regulatory Sandbox makes waves
The Canadian Securities Administrators (“CSA”) is dedicated to fostering innovation and advice in financial services technologies. To meet this priority, the CSA has launched the CSA Regulatory Sandbox.
Whether they are a start-up or they are already a large corporation, firms can now get exemptive relief from securities laws if they are taking steps to innovate and enhance Canadian payment systems, creating innovations in open banking, and/or making Canada competitive in the field of financial services disruption.
While 2019 may not be the busiest year for our regulators, their efforts to shape the Canadian financial services industry will definitely continue for many years to come.
Contact us today at 1.844.243.1830 or info@ext-marketing.com to find out how regulatory changes will have a direct impact on your marketing efforts this year.
Monday morning briefing – February 25, 2019
Asset allocators are looking for ways to access private equity. Is Apple entering the credit card market? The number of Canada-based targets from activist investors grew in 2018. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
European inflation down to 1.4% in January: Top News: Eurozone consumer inflation slows to 1.4% in January
The U.S. Federal Reserve Board released its policy meeting minutes: Fed releases minutes from Jan. 29-30 policy meeting
Housing and investment risks could put the BoC on hold, for now: Bank of Canada’s Poloz says rate hike path ‘highly uncertain’
Private equity’s interest in ESG is growing: ESG a growing priority for private equity finds PwC survey
Global dividends rose 9.3% in 2018: Global dividends surged to new record in 2018: Janus Henderson
Could a lack of transparency in index creation harm investors?: What’s really in your index fund?
Exchange-traded products continued to experience robust growth: Size of exchange-traded products industry tops US$5 trillion: report
The U.K. government is looking to add more illiquid investments to defined-contribution plans: U.K. consults on incorporating illiquid assets in DC investments
The greatest benefit from ETFs is how you use them: Are ETFs about to rule the world?
News and notes (U.S.)
The Barclay Hedge Fund Index rose 3.88% in January: Hedge funds make solid start to 2019
Institutional investors plan to hold or increase their exposure to hedge funds this year: After hedge funds’ mediocre year, investors still want more
Redemptions from hedge funds were $42.3 billion in December: Hedge fund redemptions hit five-year high of USD42.3bn in December
Corporate VCs invested $52.95 billion into start-ups in 2018: The rise of corporate VC
Newer private equity funds are attracting much more capital than their predecessors: More than 90% of PE funds are outpacing their predecessors
Asset allocators are looking for ways to access private equity: McKinsey: Private equity growth drives creative fund structures
Inflows into active U.S. equity funds outpaced passively-managed funds: Active beat passive in asset flows in January: Morningstar
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: February 19 edition
Future mergers could have greater government scrutiny: What the T-Mobile, Sprint hearing means for the future of M&A in the US
The SEC issued a proposal to allow IPOs to gauge market interest before filing: SEC proposes easing IPO rules
News and notes (Canada)
CC&L launched three liquid alternative funds: CC&L Funds introduces 3 liquid alts
Provisus Wealth Management launched nine actively managed PTFs: Provisus: We’re putting our money where our mouth is
Impact investments have grown in Canada: Impact investing gains traction in Canada
The number of Canada-based targets from activist investors grew in 2018: ‘You need to watch out’: Activist investing stronger than ever in Canada, M&A lawyer says
International sub-advisors don’t improve performance: International subadvisors don’t have a performance edge
Volatility was good for some active managers in 2018: Stock-pickers need some volatility
On the pulse – New frontiers in fintech
How to take a step forward in digital banking in 2019: Digital banking strategies and investments for 2019
How private banking can benefit from digitalization: Why digitalization is the way forward for private banking and wealth management
Companies are looking toward a product-based structure to help in their digital transformation: Gartner: organisations shifting to product-centric application delivery model for digital transformation
Customers need to be shown how open banking will help them: Consumers don’t know what open banking is – and that’s OK!
Is Apple entering the credit card market?: Apple could be working with Goldman Sachs on a credit card
There is a big difference between technology and handling a customer’s money: Are you in banking or technology?
A look at what the future may hold for wealthtech: The future of wealthtech
A look back at the technological advancements in the financial services industry, and a look ahead to where the industry is going: The growth of fintech: From the first wire transfer to blockchain technology & beyond
National Bank will use AI software to help with cybersecurity: Element AI, National Bank partner on cybersecurity
Helping institutional investors with digital asset trading: Bank Frick targets institutional investors with digital asset trading
High-net-worth topics
The Mather Group has acquired family office, Astraeus Advisers: Chicago’s Mather Group buys $1 billion family office
High-net-worth clients should be looking at different types of alternative investments: Too few investors are looking beyond stocks and bonds, wealth advisor says
Manulife bolstering its services for the high-net-worth: Manulife targets Canada’s rich in industry a decade behind U.S.
Polls & surveys – What financials are saying
Important investment themes you need to know for 2019 (Raymond James): 10 hot investment themes for 2019: Raymond James
Advisor-directed clients are receptive to a fee-based structure (Cerulli Associates): Advisor-reliant clients prefer fee-based accounts: survey
Many Canadians don’t understand the difference between an RRSP and a TFSA (BMO): Better advice needed on the difference between TFSAs and RRSPs
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – February 11, 2019
A look at long/short equity hedge funds during the fourth quarter of 2018. Preparing your employees for the age of digital disruption. The impact of regulation on fintech. Will we see a shift back to active management? And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The Canadian unemployment rate rose to 5.8% in January: Canadian job market surges on record private-sector hiring
European GDP expanded 0.2% in the fourth quarter: EU’s GDP growth rate slows down to 1.5 pct in Q4 2018
BoE holds its Bank Rate steady at 0.75%: Bank of England leaves policy rate unchanged at 0.75% as expected
The RBI cut its benchmark interest rate: Five key takeaways from India’s new central banker’s maiden policy review
Global net flows into investment funds were $606 billion in 2018: Global fund flows had worst year since 2011: Morningstar
Here are some ESG trends for 2019: Emerging MSCI ESG trends to watch in 2019
The three categories of ESG investments: 3 ESG investment strategies: passive, integrated and active
The green bond market is set to grow in 2019: Global “green bond” issuance set to surge in 2019
Clients showing more interest in sustainable investing: How sustainability is becoming an industry focus
Will we see a shift back to active management?: Is the index bubble about to burst?
Some wealth management trends for 2019 that you need to know: 10 wealth management trends in 2019: Aite
Operating margins falling despite higher assets: Asset growth no longer equals fatter profits for fund managers
News and notes (U.S.)
Bill Gross announces his retirement: Bill Gross retires after storied four-decade career in bonds
Hedge funds with a poor December rebounded in January: December’s strugglers bounced back in January, says Lyxor
A look at long/short equity hedge funds during the fourth quarter of 2018: Fourth quarter 2018 review of the long/short equity hedge fund space
Carlyle Group had a sharp increase in pre-tax distributable earnings: Carlyle outperforms rivals in latest earnings report
U.S. retail investors out of the stock market: Mom and pop sit out rally, with stock exposure at 6-year low
Fidelity launches two model portfolios that will use ETFs: Fidelity debuts its first Model Portfolios that employ ETFs
Ark launches the ARK Fintech Innovation ETF: ARK rolls out fintech ETF
Institutional plans in the U.S. struggled in 2018: ‘Worst calendar year performance’ for U.S. institutional plans since 2008: report
Looking to improve U.S. retirement savings: Rep. Kind to reintroduce Retirement Savings Act
BB&T to purchase SunTrust Banks: BB&T to buy SunTrust in biggest bank merger in a decade
News and notes (Canada)
Canadian ETF assets fell 3.9% in the fourth quarter: Q4 asset drop couldn’t stop Canadian ETF boom
The S&P/TSX Composite Index could be a strong relative performer in 2019: It’s time to stop ignoring the TSX
Institutional portfolios benefited from the strong performance of Canadian real estate in 2018: Canadian real estate boosted institutional portfolios in 2018
Know Your Client shouldn’t be the same for all clients: MFDA warns against one-size-fits-all approach to KYC
IGM Financial invests more money into fintech firm: Personal Capital raises $50 million in new funding
Vanguard adds two more asset allocation portfolios to its lineup: Vanguard launches two asset allocation ETFs
A rough equity market in the fourth quarter hurt Canadian defined-benefit pension plans: Canadian DB pensions finish 2018 in negative territory: reports
On the pulse – New frontiers in fintech
The impact of regulation on fintech: Fintech innovation – is regulation a significant barrier?
How fintech will help the unbanked and underbanked in 2019: How will fintech offer disruption to financial services in 2019?
Canada is behind in its potential to adopt open banking: Canada lags in readiness for ‘open banking’
How AI can help perform testing in your digital initiatives: Artificial intelligence in testing: Top five use cases in financial services in 2019
Fintech’s impact on the future of wealth: Wealth is the next big fintech game changer
Fintechs aren’t providing the necessary help to millennials: How fintech companies are failing to help millennials with financial security
How to access the mobile ad market: How financial marketers can tap the surging mobile ad market
A look at why companies should consider a digital transformation: Why digital transformation? Challenge vs opportunity
Preparing your employees for the age of digital disruption: Learning and development in the digital age
A look at why bank branches shouldn’t be closed down: Why banks should stop closing branches
Automating trade data: A smarter way to report on financial trades?
Goldman Sachs and HSBC invest in tech start-up: Goldman Sachs and HSBC invest $20m in startup trying to make banks more like Apple
Barclays makes investment into fintech start-up: Barclays invests in payment-linked loyalty startup Bink
Scotiabank to launch fintech lab in Mexico: Scotiabank partners with Mexican university to open fintech accelerator
Trade groups team up to push digital assets and blockchain forward: Blockchain associations form new lobby group
High-net-worth topics
A look at family offices and their potential future: Multi-single-family offices are the future of UHNW families
Here a few mistakes the high-net-worth make: 10 big financial mistakes wealthy families make
A look at how the ultra wealthy are currently investing: Tiger 21 annual conference: CNBC interview with Tiger 21 founder Michael Sonnenfeldt on how the ultra-wealthy invest
Polls & surveys – What financials are saying
Asset managers see steady growth over the next seven years (Bloomberg): 5 asset management predictions for the next 7 years
The Canadian housing market and consumption could slow in 2019 (PIMCO): Downside risks for Canadian economy: PIMCO
Looking after a family member in cognitive decline has significant impact on family finances (RBC): The impact of cognitive decline on families’ finances: RBC survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Learning from the U.S. experience in liquid alts
While liquid alternatives (“liquid alts”) are new to Canada, they’re already a mature market in the U.S. And Canada can learn a lot from the introduction of liquid alts in the U.S. marketplace.
Launches, launches and more launches
Going into 2019, dozens of liquid alts had already been launched in Canada. We believe liquid alt launches will continue to snowball in 2019 and 2020. Some firms will be more methodical and launch one liquid alt solution at a time. Other companies will launch entire suites of liquid alts and see what resonates with advisors and investors.
One of the many interesting things to watch for will be the strategies that are most favoured by investors. Long-short equity, market neutral and non-traditional bond funds have been successful in the U.S. It’s likely that one of these will stand out from a sales perspective in Canada as well.
Another unknown is whether mutual fund or exchange-traded fund (“ETF”) versions of liquid alts will be more popular. The answer might simply come down to accessibility for advisors.
Education
Although this is a newer investment type and there is still a lot of uncertainty about liquid alts, many companies are going to launch liquid alt mutual funds and ETFs before they have educational content ready – and this could cause some problems.
Why? Because advisors and investors may not fully understand these new solutions, and getting people to review content after they’ve already started selling/buying liquid alts might be difficult. But educational content is – and has always been – key in successfully understanding the features, benefits, risks, etc. inherent in any investment solution.
We believe the best advice for any firm planning to launch liquid alt strategies is to get your content – specifically content geared toward educating investors and providing value to advisors – ready before your launch. This might be a challenge, but ext. can help.
Is your firm launching liquid alts in 2019? Contact us today at 1.844.243.1830 or info@ext-marketing.com to improve your clients’ knowledge about this important asset class.
Monday morning briefing – January 21, 2019
How technology will impact banking this year. Private equity showing a lot of interest in franchise chains. Personalized service key for millennial banking customers. Here are some important trends family offices should be focused on. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
Canada’s inflation rate increased to 2.0% in December: Canadian inflation unexpectedly accelerates on airfare surge
U.K. inflation rate falls to 2.1% in December: Inflation falls to lowest level in nearly two years
Brexit deal rejected by Parliament: Theresa May loses Brexit deal vote in Parliament
Is debt the primary catalyst for U.S. growth?: Gundlach warns U.S. economy is floating on ‘an ocean of debt’
Alternative investments could help investors navigate through challenging markets: Increased volatility in 2019 will benefit alt investments, J.P. Morgan says
Liquid alternatives should be used for diversification within a well-constructed portfolio: ‘Liquid alts are a diversification tool not a hedge’
Obtaining ESG data is costly: The rising cost of socially responsible investing
Is now the time for a little more international diversification?: Time for more international exposure?
The investment industry’s approach to managing funds, and selling them, has changed: Data picks investments, storytelling sells them
Waypoint to launch Waypoint All-Weather Portfolio: Waypoint seeking to start one of Canada’s largest hedge funds
MD Financial launches MD Precision Index Portfolios: MD Financial launches index portfolios
On the pulse – New frontiers in fintech
How technology will impact banking this year: 10 ways technology will change banking in 2019
Keeping the focus on the customer: Digital banks are led by clear customer-obsessed principles
A look back at the first year of open banking: Infographic: one year of open banking
Personalized service key for millennial banking customers: A year into open banking, 8 of 10 millennials would switch banks for personalised service
How to prepare your employees for AI: 3 ways to prepare your bank’s workforce for AI
How to obtain value from your data management efforts: 6 trends in insight driven data management
The questions that you need to answer for a successful digital transformation: Digital transformation: Three top questions answered
Facial recognition is a powerful tool, but needs to be regulated: Regulating facial recognition
Temenos to partner with Bloomberg for NAV estimates: Temenos signs strategic collaboration with Bloomberg to deliver industry-first solutions to buy-side institutions
Fintech merger estimated at $22 billion announced: Fiserv is buying First Data in a $22B fintech megadeal
Fintech firm, Plaid, purchases Quovo: Plaid buys Quovo in its first major acquisition
News and notes (U.S.)
Founder of Vanguard, John C. Bogle, passed away at the age of 89: Jack Bogle, founder of Vanguard Group and creator of the index fund, dies at age 89
The Barclay Hedge Fund Index fell 2.61% in December: Barclay Hedge Fund Index drops 2.61% in December; difficult 2018 ends with Index down 5.11% for the year
There could be a shift towards global macro managed futures and fixed income strategies: Rising concerns over slowing economic growth in 2019 could drive changes in hedge fund investing, says new survey
PE had its biggest year since 2007: Massive 4Q leads to PE’s biggest year since the crisis
Private equity showing a lot of interest in franchise chains: Private equity is buying more franchise systems – here are the key legal issues they are looking at
While assets are booming, costs continue to rise: Investors see PE opportunity but margins need to improve
End of trade dispute with China could boost equity markets: Head of world’s largest asset manager says stock market has hit a bottom – but this would make it surge
Looking to change the SEC’s Regulation Best Interest Proposal: Fiduciary groups meet in joint resistance to SEC Reg BI
Fixed income ETFs in the U.S. accrued $97 billion in assets in 2018: Fixed income ETF volume jumped in 2018, says BlackRock
Ten straight months of redemptions push Bill Gross’ bond fund under $1 billion: Bill Gross’s bond fund dips under US$1B after redemptions
High-net-worth topics
Here are some important trends family offices should be focused on: What do banks believe family offices should focus on?
Tax reform that could help the high-net-worth: Opportunities for wealthy clients under tax reform
BMO brings together private banking and full-service brokerage units: BMO creates BMO Private Wealth Canada and Asia
The total wealth of Canada’s high-net-worth fell 1.2% in 2018: Canada is 7th in the world for HNWIs but wealth has slipped
Polls & surveys – What financials are saying
Less than 15% of fund managers expect a global recession in 2019 (Merrill Lynch): Fund managers’ outlook for growth and profits is bleak: Merrill
Global growth is slowing (Fitch): Global growth is slower but not stalled: Fitch
Entrepreneurs to scale back investment in 2019 (BDC): Canada’s entrepreneurs are cautious about investment
Canadians feel that they don’t have enough for retirement (TD): Growing number of Canadians unprepared for retirement
Millennials say saving for a down payment is the biggest challenge to home ownership (Clever Real Estate): How millennial homebuyers approach the housing market
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – January/February 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- Canada’s inflation rate for December will be announced on January 18. Inflation in Canada declined to 1.7% in November, from 2.4% in October. The decline was primarily the result of the fall in gasoline prices caused by lower oil prices. The Bank of Canada (“BoC”) expects the impact on inflation from lower oil prices to linger for most of 2019
- The European Central Bank (“ECB”) will announce its interest rate decision on January 24. The ECB concluded its asset purchase program at the end of 2018, thus removing some stimulus from the European economy. The ECB felt that strong consumer spending and rising inflation could withstand the negative effects from tightening conditions. The ECB expects to hold its benchmark refinancing rate steady until at least the fall of 2019
- The United States’ fourth quarter advanced gross domestic product (“GDP”) growth rate will be announced on January 30. U.S. GDP grew 3.4% (annualized) in the third quarter, down from 4.2% in the second quarter. This advanced figure will give an indication as to the performance of the U.S. economy, which faced a number of headwinds including trade tensions with China and higher interest rates
- Also on January 30, the U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision. At its final meeting of 2018 held in December, the Fed raised its federal funds target range to 2.25% to 2.50%. However, the committee lowered its forecast on the number of rate increases expected in 2019. The Fed is expected to hold rates steady at this meeting, but investors will no doubt scrutinize the meeting notes to try to anticipate the timing of the next interest rate increase
- The Bank of England’s (“BoE”) interest rate decision will be announced on February 7. The BoE maintained its Bank Rate at 0.75% at its last meeting in December. While the BoE is looking to gradually increase its interest rate, uncertainty around a Brexit deal weighs heavily on its decision. Additionally, inflation has pulled back in recent months and may drop further given the significant decline in oil prices
- Canada’s unemployment rate for January will be announced on February 8. The labour market ended the year strong as jobs were added in both November and December, with the unemployment rate falling to 5.6%
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Flipping the script on investment commentaries
It’s as inevitable as the changing of the seasons: the return of commentaries for most investment managers. Commentaries tend to result from sales and/or regulatory obligations, and are often viewed as a bit of a distraction when compared to an investment manager’s other core responsibilities.
Just a few small changes, however, can increase the value of the commentaries you produce for your audience, regardless of whether that audience is individual investors, institutional investors or other stakeholders.
Remember your audience
While you may be writing for an investor audience, a significant portion of your readership will likely be made up of industry insiders, including other investment managers, institutional gatekeepers, financial journalists and regulators. While keeping the language plain and straightforward, ensure the commentary is high quality and sufficiently detailed.
Identify and avoid obscurity
Whether you’re writing for an investor-level audience, a professional investor audience, or both, clarity of argument is important. Avoid confusing words and phrases (e.g., “contributed negatively to performance”) and avoid sentences that are longer than 50 words.
Avoid information overdose
Investment communications should be about clarity and relaying important information.
There are very few good reasons for an investment commentary to be more than 2,000 words, even for multi-asset or multi-strategy portfolios. Past macroeconomic and market discussion is essential to laying the groundwork, attribution and trading activity is important to explain what happened over the period and why, and an outlook helps investors focus on the future. Just make sure you are being concise.
Look for teachable moments
In today’s increasingly complex investment world, insider jargon is sometimes unavoidable, even for investor-facing commentaries.
Discussing portfolio alpha and beta, for example, may be essential for certain investment strategies. Mentioning yield curves, duration and spreads is often unavoidable in fixed income commentaries. Instead of either avoiding those terms or using them without context, have a short, standard definition ready for widely used terms, to insert into commentaries (even in parentheses).
It’s one thing for your investors to be informed, it’s another for them to walk away from your commentaries having learned something. Done correctly, this is where your commentaries can rise above others and become a hub for valued information.
Looking to offload more of your investment commentary tasks to an industry leader in the field? Contact us today to learn more at 1.844.243.1830 or info@ext-marketing.com.
Liquid alternatives: regulatory primer
When an asset class such as liquid alternatives hits the market, you can be sure that it comes with plenty of regulatory scrutiny.
Regulators are looking to protect investors … and bring them new investment possibilities.
Liquid alternatives are an asset class that needs extra attention as the concept, players, opportunities and strategies are new to most retail investors and many advisors.
Liquid alternatives will be offered to retail investors through a Simplified Prospects framework, making them similar in structure to mutual funds and ETFs. Liquid alternatives are being brought to market largely by mutual fund managers, as well as alternative investment managers, either on their own or as a sub-advisor for a mutual fund company.
The Canadian Securities Administrators’ Modernization of Investment Fund Product Regulation – Alternative Funds notice includes new rules for alternative funds that include:
- Concentration restrictions: increase the concentration restriction from 10% to 20% of net asset value (NAV) for liquid alternative funds
- Borrowing: liquid alternative funds can borrow up to 50% of their NAV
- Short selling 1: alternative funds able to short sell securities up to 50% of their NAV, up from the current 20%
- Short selling 2: alternative funds to limit short sales of a single issuer to 10% of the fund’s NAV, up from the current 5%
- Leverage: leverage through borrowing, short selling or derivatives cannot exceed the fund’s NAV by three times
If you want to keep reading, first check out our recent posts on liquid alternatives here and here. If you still want more, here are some helpful resources:
- In-depth detail on the proposal from the Ontario Securities Commission
- A thorough synopsis of the Canadian Security Administrator’s proposal
- An overview of the liquid alternatives space in Canada from Mackenzie
- A good description of liquid alternatives, liquid alts vs. traditional alternative funds and what this means for investors
- List of Canadian hedge funds, by type