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Category : In the News

Seafarer Portfolio Review 3Q2017 – Decoupling

Article Link: “Decoupling – Is It Real This Time?” Summary Decoupling Definition – Generally speaking, decoupling is the divergence of two asset classes from their expected or historical pattern of correlation. For example, if emerging equity markets historically tended to rise and fall with a high level of correlation to U.S. equity markets, decoupling would imply that going forward emerging equity markets would rise and fall with lower correlation than history would imply. Andrew Foster, Chief Investment Officer and Portfolio […]

The Trump Series – DOL Fiduciary Rule

Article Link: http://www.natlawreview.com/article/president-trump-orders-review-dol-fiduciary-rule-no-delay-yet   Summary In this second article of our Trump Series we are going to focus on the Department of Labor (DOL) Fiduciary Rule (“Rule”). Earlier this month President Trump ordered a review of the rule, which was scheduled to go into effect on April 10. The Presidential Memorandum ordered the DOL to examine the Rule to determine whether it may adversely affect the ability of Americans to gain access to retirement information and financial advice. We will […]

The Trump Series – Estate Taxes

Article Link: http://www.investmentnews.com/article/20170205/FREE/170209961/what-will-the-estate-tax-look-like-under-trump Summary The election of Donald Trump as President has generated a very busy news cycle. We have decided to tackle several key topics being discussed in the press in a series of “In The News” posts we are going to call The Trump Series. The goal is to try and summarize the discussions in a way that is relevant to the investment planning strategies of our clients and potential clients. We will not be speculating on the […]

Ashmore: A Structural Growth Story – Emerging Markets Overtakes S&P 500 in Tech!

Article Link: http://www.ashmoregroup.com/insights/research/structural-growth-story-em-overtakes-sp-500-tech Summary Fernando Assad, Jan Dehn and Chris Mader of Ashmore examine the make-up of the MSCI Emerging Markets Index (“MSCI EM Index”), how the composition of the index has changed over the past decade and the potential implications from those changes. Many individuals still view emerging markets as a commodity or cyclical growth story. However, structural growth drivers in technology, consumer, telecoms and health care now account for over 50% of the MSCI EM Index, compared to cyclical […]

BlackRock: Earnings Growth Wanted

(Click on image to enlarge) Summary The chart shown above was shared by Richard Turnill and the BlackRock Investment Institute in BlackRock’s global weekly commentary. The chart displays year-to-date equity returns for a selection of major country/regions through the end of July. The orange circle represents the total return for each country/region. Total return is then broken out between dividends (blue shading), multiple expansion (purple shading), which is calculated as price change minus earnings growth, and earnings growth (green shading). […]

Reuters: Big U.S. brokerages chase the rich in departure from retail roots

Article Link: http://www.reuters.com/article/us-usa-banks-wealth-idUSKCN1090DA Summary Large U.S. brokerages such as Morgan Stanley, Bank of America and Wells Fargo are using a combination of incentives and penalties to push their financial advisors to bring in more multi-millionaires and move away from clients that have less than $750,000 to invest. The shift away from clients with “only” a couple hundred thousand dollars to invest continues to accelerate due to concerns about margins and regulatory change. The story notes that clients with less than $100,000 […]

Barron’s Focus on Funds: Asset Managers Should Impose Capacity Constraints

Article Link: http://blogs.barrons.com/focusonfunds/2016/06/07/ab-ceo-kraus-active-managers-should-impose-capacity-constraints-to-boost-performance/ Summary In a recent interview, the CEO of AllianceBernstein Holding, Peter Kraus, told Bloomberg that he believes the entire active management industry has grown too large and may need to shrink by one-third if active managers want to beat industry benchmarks. He comments that assets in actively-managed products grew significantly for an extended period of time without much restraint and the subsequent performance of active managers (relative to their benchmarks) largely disappointed. He attributes the poor subsequent performance […]

Forbes: Understanding How Financial Advisors are Compensated

Article Link: http://www.forbes.com/sites/wadepfau/2016/05/19/understanding-how-financial-advisors-are-compensated/#660841a67a8b Summary Wade Pfau, a professor at the American College of Financial Services, provides a brief summary on the different classifications of advisors and how they are compensated. Job titles such as “financial advisor” or “financial planner” are not regulated. Anyone can use the terms without oversight of their qualifications, education, training or competency. Financial planners or advisors generally fall into one of three main types: registered investment advisor, stock broker or insurance agent. Brokers and insurance agents are […]

John Mauldin: Thoughts from the Frontline

See chart below. Summary The chart shown above was shared by John Mauldin in his June 4 weekly newsletter, Thoughts from the Frontline. The chart illustrates year-over-year, trailing 12-month earnings per share growth for companies in the S&P 500 (excluding the highest growth sector for the red line and excluding the lowest growth sector for the blue line). Prior to the last two recessions (recessionary periods shaded in grey) earnings followed a distinct pattern – initial earnings recovery after the previous […]

Yahoo! Finance: 170,000 people are about to take Wall Street’s toughest test

Article Link: http://finance.yahoo.com/news/170-000-investment-pros-are-about-to-take-wall-street-s-toughest-test-190327310.html?soc_src=mediacontentstory&soc_trk=ma Summary Investment management professionals in 91 countries sat for one of three levels of the Chartered Financial Analyst (CFA) exam, which the author referenced as the “Mount Everest of Finance.” The Chartered Financial Analyst designation requires passing three levels of exams (the first level is offered twice per year, while the second and third levels are offered once per year). In addition to passing all three levels (each exam is six hours), candidates must meet career qualifications (four […]