For years a profound shift has been taking place in the financial community as individual investors have increasingly favored a passive, low-cost approach over the traditional actively traded assets. Last year, that shift reached a significant milestone as the value of assets under passive management surpassed the value of active … … READ MORE >
Financial services
Opportunities for insurers in a low yield bond environment
Lower yields on bonds, underscored by an inverted yield curve and 10-year rates below 2%, are cause for insurance companies to reevaluate their fixed-income investment positions. … READ MORE >
Public scrutiny over ESG holdings will cause universal reporting change
As environmental, social and governance investing continues to grow in popularity, investors need to carefully evaluate how their holdings will be viewed by the public. Asset managers must balance their desire to promote ESG consciousness with their fiduciary duty to drive financial returns. … READ MORE >
Family office direct investing is on the rise
The amount of wealth managed by family offices continues to grow as more families sell out of their founding businesses. Direct investing by these offices have grown more than 100% in the last 10 years. … READ MORE >
Foreign investors eyeing U.S. companies may want to learn more about CFIUS
For a very long time the United States has attracted direct investment from overseas. As the trade war between the United States and China has escalated, CFIUS, a little-known U.S. regulatory body that has traditionally operated behind a veil, is becoming more visible following legislation in 2018 that gives it more power to scrutinize inbound dollars. … READ MORE >
Low rate environment poses challenge for banks
The Fed recently cut its lending rate by 25 basis points and is expected to cut again later this year. Meanwhile, as longer-term rates continue to decline, banks will be faced with further pressure on their net interest margins. … READ MORE >
For private equity funds, bigger is not always better
The rise of billion-dollar private equity buyout funds reflects the growing demand from large investors willing to write big checks. Interest rates remain historically low and, with additional rate cuts almost certain to come, investors continue to expect high returns. The larger the fund, so the thinking goes, the larger … … READ MORE >
Hedge fund performance may be tested—again
The average performance of the hedge fund sector since the Great Recession has lagged the returns of passive investments including broad-based equity index funds tied to the S&P 500 as well as exchange-traded funds. The underperformance of hedge funds, a risky but historically high-flying sector whose managers are compensated on their ability to outperform the markets, has resulted in net capital outflows and lower fees … READ MORE >
Venture capital tech investments show strength in first half of 2019
For cash-intensive technology companies, access to capital is often required to sustain operations and quickly achieve scale. Venture capital firms invested over $30 billion in tech startups in the second quarter of 2019, according to data from Pitchbook, putting total investment on pace to eclipse $100 billion for the second straight year. … READ MORE >
BDCs’ popularity unlikely to be slowed by recent Fed rate cut, but headwinds remain
Business development corporations are unlikely to lose their momentum in the near term, despite last week’s interest rate cut by the Federal Reserve and the ongoing trade conflict with China. … READ MORE >