High fees and other barriers to entry for hedge funds could spur a rise in multistrategy firms where "multiple return streams can offer a competitive advantage," Tom Wrobel of Societe Generale Prime Services said. "Barriers to entry to hedge funds are only continuing to increase in terms of the amount of money to launch, regulatory approvals and ability to break even," he said.
Although investment advisers are typically attuned to risks associated with individual asset classes, they might be devoting less attention to operational risks, writes attorney Richard L. Chen. A focus on the three P's -- personnel, processes and privacy controls -- will minimize clients' risk of investment loss, asset theft or data leaks, he notes.
Regulatory filings show that the shares of Facebook, Apple, Amazon, Netflix and Alphabet are back in favor with US hedge fund managers, with allocations rising during the first quarter. FAANG stocks lost their luster as last year's bull run ended, but have since recovered to outpace the market with Netflix up 33% and Facebook rising 40%.
While the price of bitcoin rose 30%, cryptocurrency-trading platforms recently saw capital outflows exceed inflows by $622 million, according to blockchain data provider TokenAnalyst.
A panel of industry experts at the Insured Retirement Institute's Action19 conference discussed the shift in annuity sales to fixed and fixed-indexed products. "I think there's a ton of tailwind for this product," said Kevin Mechtley of Sammons Financial Group, adding that the contracts offer features that aren't available from any other product.
Panelists at the Insured Retirement Institute's Action19 conference noted that regulatory initiatives are guiding the development of fee-based annuities. They also discussed how new technologies are affecting the industry.
Federal Life Group has filed an updated registration statement for its individual deferred variable annuity contract with the Securities and Exchange Commission. A stock offering by the life insurer recently raised $35 million, which the company said will be used to increase its variable annuity offerings.
A proposed rule from the Financial Industry Regulatory Authority that would impose restrictions on firms employing high-risk registered representatives and financial advisors may apply to 61 financial-services companies, said FINRA CEO Robert Cook. John Salerno, who manages the high-risk representative program, said hundreds of individuals have been identified as presenting risk to clients.
Mental toughness is a crucial quality elite advisors possess, author Matt Oechsli writes. He offers five suggestions for building mental toughness, including visualizing your day, doing activities outside of your comfort zone and avoiding negativity.
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