Launched in 1994, the S&P 600 is designed to track the performance of small-cap U.S. equities and has outperformed the Russell 2000 by an average of 1.6% per year over the past 25 years. This outperformance highlights the importance of index construction. Unlike the Russell 2000, the S&P 600 uses an earnings screen—companies must have a track record of positive earnings before they are eligible to be added to the index. This quality factor exposure has played a significant role in explaining the S&P 600’s relative returns and its status as a harder benchmark for active managers to beat.

Concerns about the degree of concentration in cap-weighted indices like the S&P 500 seem to arise whenever performance is dominated by mega caps. After peaks in concentration, the S&P 500 Equal Weight Index has typically outperformed its cap-weighted counterpart. In this paper, we propose an alternative way to measure concentration. By adjusting the Herfindahl-Hirschman Index to account for the number of names in a sector, we’re able to make meaningful cross-sector comparisons. We show that concentration tends to mean-revert in most sectors, which has important implications for the relative performance of equal weighting.

Declining markets make active management skills more valuable. In the first half of 2022, a significant minority of active managers were able to outperform their benchmarks in several categories. After suffering an 85% underperformance rate in 2021, just 51% of large-cap domestic equity funds lagged the S&P 500 in the first six months of 2022, putting actively managed large-cap U.S. equity funds on track for their best (i.e., lowest) underperformance rate since 2009. Find out if the same held true for mid-cap, small-cap, growth, value, international equity and fixed income funds, and see how the trends play out over longer time horizons.

Offer more ways clients may achieve their retirement plan goals while helping address the diverse investment needs of participants. Learn about our industry-leading investments and expertise—featuring more default options and more personalized asset allocation.

Markets hate uncertainty and so do investors. More investors than ever before are interested in getting financial advice.

In this Guide, you’ll find practical ways to showcase your value and expertise to existing clients and prospects and fill the advice gap.

Download the guide to learn:

• How to start the conversation with your clients
• The 4 investor segments you should prioritize having these conversations with
• Where to access client communication and education tools

Investors can take advantage of the diversification and defensive attributes of value. Higher exposure to financials, utilities, and cyclicals offers potential to mitigate the worst effects of inflation, while also offering greater levels of defense in times of rising rates and more volatile markets.

Help clients achieve their retirement plan goals with default choices that provide flexibility and personalization. Learn about our industry-leading asset allocation expertise and options—and download our latest research findings.

How do you transform volatility into opportunity? Learn how to help clients through volatile times in AssetMark’s new guide.

Market cycles are inevitable in investing, and investors are understandably wary of downturns in the equity market. While today’s interest rate trends may mean that bonds are a less appealing defensive asset than they have been historically, it is possible to position allocations defensively with factor-based equity indices. Combining well-chosen defensive factors with the S&P 500 and bonds has historically resulted in reduced volatility, as well as incremental returns.

The global economy appears to be headed for a downturn and we believe the clock is ticking on the US cycle as well.

The cost of goods may be peaking, but the rising cost of services clouds the inflation outlook. In our view, the Fed’s fight with inflation is far from over and will likely continue to be a headwind for the economy and equity markets. Therefore, our outlook remains cautious, and our Asset Allocation Committee is underweight stocks relative to bonds.

The aftershocks of Europe's gas crisis could shape asset prices in a dynamic manner for years to come – both in Europe and globally.

47 percent of industry assets are managed by advisors over the age of 55, and 49 percent of the advisors retiring within the next 10 years are solo practitioners. This means a relatively steady stream of advisors will enter retirement each year. In Transitioning Your Practice the Way You Want, you'll learn how independence affiliation models expand an advisor’s range of succession planning options, while creating opportunities for next-gen advisors looking to grow their practice through mergers and acquisitions.

Over 4.3 million workers resigned from their jobs in February 2022 alone in what has become the greatest labor shortage in history. As the Great Resignation continues to make hiring and retaining associates difficult, it’s more important than ever for advisors to consider outsourcing as a possibility to attract and retain talent.

Our guide will show you why effective hiring starts with identifying core values and how outsourcing can help you attract the right talent for your firm.

Key insights include:

• Why effective hiring begins with defining your purpose, values, and culture
• How to attract talent that aligns with your unique values
• The importance of developing a strategic hiring process during the Great Resignation
• How investing in your talent using training courses and development programs can help you retain talented associates

As the largest segment of the IG credit market, the BBB rated segment of the USD IG corporate bond market is becoming increasingly important to IG debt investors looking for incremental yield and risk exposure. Learn how the recently launched iBoxx USD Liquid Investment Grade BBB 0+ Index tracks this market, which:

• has outperformed the broader IG market on a risk-adjusted return basis
• may offer a pickup in yield
• may help refine exposure and grant greater flexibility in positioning

More investors than ever before are interested in ESG. Prepare for this growth by incorporating values-driven investing in financial offerings and conversations with prospects and clients.

Download the guide to learn:

• How to start the conversation with your clients
• The 3 investor segments you should be having these conversations with
• Ways to incorporate values into your clients’ investments

Interested in finding a new firm, but worried about the complexity and uncertainty that comes with the transition process? Stop letting fear of the unknown prevent you from taking control of your future.

Gain access to our transition guide to ask the critical questions of your potential transition team, so you can feel confident in their ability to help you through your journey.

Download to learn:

• A professional strategy for evaluating the transition services provided by potential partner firms
• How to find a partner who can meet your current and future needs
• What you need in a firm to avoid client disruption and quickly get back to business

Independence has been the fastest-growing form of advisor affiliation over the last decade. Many affiliation models exist within that space, giving you the freedom to decide what’s best for your firm and vision. Learn how choosing the right partner allows you to run your own practice without giving up critical resources and support.

Right now, hiring challenges and talent shortages are pervasive across every industry. Finding the time and resources to recruit, hire, onboard and retain an in-house CIO – already difficult for growing firms with a lean staff and a tight budget – has become nearly impossible.

And maybe that’s actually not a bad thing.

Download the whitepaper to find out:

• What you can expect to find when trying to hire in house
• The business risks associated with an in-house investment manager or CIO
• The more cost-effective alternative option that could set your firm apart

To stay competitive in an evolving landscape, wealth management firms need to improve operations and consistently deliver an exceptional client experience. As you navigate the technology and service landscape for a partner that can help, keep these questions in mind:

• How do they define innovation?
• Do they offer core customization capabilities?
• Can you rely on their data expertise?

The client experience—from both an advisor/firm and advisor/client perspective—is a differentiating factor in an independent advisor’s success. In Focus on the Experience, the second white paper in a four-part series with Cerulli Associates, you’ll learn how partner firms can support advisors and why choosing the right firm partner will allow you to create the optimal client experience to build strong, lasting relationships.

In our latest eBook, The Advisor Growth Guide, we reveal the biggest challenges – and how to overcome them:

• Why growth-focused advisors don’t waste time on developing digital solutions
• How time-strapped advisors win back a full 8 hours per work week
• How growing firms solve the problem of hiring and developing talent
• The top 2 outdated myths preventing advisors from growing at scale

As investors navigate an uncertain future after QE, the past may be their best guide.

Multi-asset strategies have caught the eye of market participants seeking pre-packaged solutions to diversification. Whereas many of these strategies are becoming increasingly complex—with black-box allocation algorithms, multiple signals, and 10 or more components—the S&P Target Risk Indices offer a more transparent approach.

Read on to explore:

• Allocating between equity and fixed income according to risk appetite

• The performance of conservative indices in past bear markets

• The performance of aggressive indices over the long term

Did you know that 89 percent of advisors who are looking for independence want more autonomy over their business, and nearly all of them want higher payouts? In Demystifying the Independent Channel, the first white paper in a four-part series from Cerulli Associates, you’ll find a further breakdown of which advisors seek independence, and why. You'll also discover what it really means to manage your own business, and how advisors can make a successful transition.

A retirement income plan can simplify Social Security and boost retirement plan success. Get our insights to help your clients and their workers succeed.

Interested in finding a new firm, but worried about the complexity and uncertainty that comes with the transition process? Stop letting fear of the unknown prevent you from taking control of your future.

Gain access to our transition guide to ask the critical questions of your potential transition team, so you can feel confident in their ability to help you through your journey.

Download to learn:

• A professional strategy for evaluating the transition services provided by potential partner firms
• How to find a partner who can meet your current and future needs
• What you need in a firm to avoid client disruption and quickly get back to business

Understanding trends that impact your clients can help you meet their needs. Get our insights to stay informed of the latest data and trends.

Research shows that over 62% of investors prefer a fee-based model. Is it the right move for you and your clients? In this quick reference guide, we reveal how to go from commission to fee-based in 6 steps, so you can free up your time, grow revenue, and give clients peace of mind.

The launch of the S&P 500 ESG Index in April 2019 signaled an evolution in sustainable investing. The S&P 500 ESG Index was built to underlie strategic, long-term mainstream investment products. Intentionally broad, the index seeks to maintain similar overall industry group weights as the benchmark, while providing an improved sustainability profile.

This paper outlines the following index characteristics:

• The easy-to-understand methodology behind the index
• How "financial materiality" drives index construction
• The historically similar risk-adjusted performance profile to the S&P 500
• The improved ESG characteristics of the S&P 500 ESG Index over the S&P 500

An unfriendly macro and market landscape is making life harder for investors today, with traditional core bonds coming up short on income. In our view, focusing on generating efficient income is an effective approach to tackling the challenge of mixing the key building blocks of rates, credit and growth.

As more and more people approach their golden years, you may see a shift in your practice—from a focus on accumulation and growth to one of income and distribution. It’s important that you’re prepared to not only ensure that your clients have enough to live comfortably, but to help them properly allocate the assets they have.

AUM growth, increased referrals, and lower operating costs: just a few reasons why 92% of financial advisors are happy with their decision to outsource. Get the full story in our latest paper.

The Nasdaq Fund Network (NFN) recently announced the launch of model portfolios, separately managed accounts (SMAs) and unified managed accounts (UMAs) on the platform. The registration of model portfolios and managed accounts on NFN make them searchable on market data platforms, financial web portals and other similar media. Eversheds Sutherland published a whitepaper describing NFN's offerings, regulations in the space, and how the work is in accordance with applicable provisions of the New Marketing Rule and relevant SEC guidance.

Factors that outperform over time are also prone to extended periods of underperformance, which are difficult to time. For investors seeking exposure to factors but hoping to access greater diversification and reduced cyclicality, multi-factor strategies may be more suitable than single factors. Meet the S&P QVM Top 90% Indices, covering the U.S. large-cap, mid-cap, and small-cap universes, and combining quality, value, and momentum in a single strategy.

With inflation and growth pressures in abundance, consider TIPS.

All compliance teams are bound by the same rules, but it’s how they create policies to comply with those rules that may make them different.

In this white paper, you’ll learn:

• How to define your ideal compliance partnership
• Which questions to ask about potential firms’ compliance teams
• How to use practical resources to help your evaluation
• What an ongoing relationship should look like

The investment advisory industry took a leap forward when, decades ago, the first advisors broke away to forge their own Registered Investment Advisory (RIA) firms. Today, the ability to act with complete freedom and make decisions in the best interest of one’s clients is a defining feature of the independent model. And it’s giving rise to a new generation of firms called “modern offices.” They’re leveraging technology, reimagined workspaces, and more to serve clients better, anticipate their needs, save time, and hyper-personalize services.

How do you begin to build your modern office? Start by studying how Schwab Advisor Services has helped others do just that.

Get a look at the modern office and what it takes to build one, including:

• How firms select and adopt state-of-the-art technologies to simplify their workdays
• Which new models for work suit advisors’ shifting needs and preferences
• Why and how firms are now prioritizing company culture
• Practical examples of firms upgrading client service models to gain an edge

To read more about solving for the future of work through the independent RIA model, follow the link below.

98% of advisors report they deliver better investment solutions as a result of outsourcing – but that’s not all we measured. We asked advisors deeper questions, like: “How much time did you really save from outsourcing?” and “How were your client relationships affected by outsourcing?” The answers, charts, and graphs are in our new and updated paper.

Tyler Boon had been running a successful independent firm since 2018. So why did he decide to make a big change in the middle of the pandemic? It started with the realization that he needed a more tech-forward partner – one that shares his passion for putting clients first – to give his clients the highest level of support in this new environment. He took a bold leap, and now his clients and team are benefitting from Schwab’s digital tools and expert guidance.

Could making a change bring new opportunities to you and your clients? There has never been a better time to find out. At Schwab Advisor Services, we’re dedicated to helping advisors like you build your business your way.

Get Tyler’s tips for assessing a custodian’s culture and offerings, including:

• How to recognize forks in the road, and what to do when you come to one
• How to make the switch, even in turbulent times
• How self-serve tech provides unexpected benefits
• How to leverage the expertise of your custodian

You Don't Need More Tech. You Need More Time. Tech platforms may promise efficiency but can sometimes actually create bigger burdens for your firm. There's a better way. Download this free e-book and find out how a customizable outsourced offering meets the growing challenges of wealth management firms, striking the right balance between innovative operating technology and fully outsourced offerings.

You may think that going independent means you’ll have less time for client interactions—after all, you’ll have an office to run. Well, that’s not true for breakaway advisors who partner with the right firm. A recent study from Cerulli Associates breaks down how much time breakaway advisors save by choosing a collaborative firm partner.

The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.

This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.

In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.

We’ll cover powerful and practical tech insights and guidance, including:

• Ways technology can help you anticipate client needs and deepen relationships
• How technology can make firms more agile and secure
• Advice based on real-world success

Download this case study to learn how your firm can power a better client experience.

Brad Goodwin’s transition to independence isn’t just a great story to tell, it’s a case study in overcoming fears. He made the leap of faith in one of the most turbulent times possible – and it couldn’t have paid off better for his clients and his firm, San Luis Wealth Advisors. Today, he says he has the control and flexibility to choose the technology and software that will streamline his business, and that his only regret is not making the switch sooner.*

Transitioning business models can be a daunting idea. Doing it in the middle of uncertain times only makes it more intimidating. That’s where Schwab’s Advisor Services team can help. Our goal is to ensure everyone comes out on the other side better equipped for the future.

Brad’s story covers key findings about going independent in today’s world, including:

• What is the tipping point, and whether you should wait until then to make the switch
• How turbulent times could set you up for a successful transition, not a tough climb
• What life is like on the other side of independence
• His advice on why you shouldn’t wait to call Schwab

To read more about Brad’s story and hear his advice on why you should look forward to – not fear – transitioning to the independent RIA model, follow the link below.

There’s no denying that the Registered Investment Advisor (RIA) model brings more freedom and control to those who pursue it. But did you know that choosing the right custodian can make an even greater impact on your future? Schwab Advisor Services™ goes far beyond the basics, with in-depth assistance to help you choose the business model and solutions that are best for you – and continues to support you for the long haul.

Our white paper can help you decide what’s important to consider when choosing a custodian. We’ll go over various topics, including:

• Four essential steps to success
• Different services a custodian can offer
• The value of a benchmark study

Download this white paper to see how the right custodian can impact your business.

Why are more and more advisors choosing independence? The answer is simple: The Registered Investment Advisor (RIA) model has become more than a place to break free from tradition. Custodians and platform providers work together to help position advisor teams to reach their full potential. It's now the destination for those in search of a better way of doing business – one where more freedom and control allows both advisors and their clients to thrive.

As you embark on your journey, consider the:

• Growth of the RIA channel*
• Benefits of independence
• Differences among the five business models for the modern RIA
• Experiences of advisors who chose independence

Download this white paper to discover the five business models for the modern RIA.

For many investment advisors, the ’08 financial crisis and COVID-19 pandemic highlighted just how valuable the Registered Investment Advisor (RIA) model can be for their businesses. With more freedom and control to do what’s best for their clients, independence has helped advisors soar when the odds are stacked against them. In this four-part white paper, we share insights from real RIAs on how the RIA model has helped them navigate turbulent times, the unique advantages they’ve enjoyed through independence, and why now is the best time for you to make the transition.

Download this white paper to discover how the RIA model has helped advisors thrive, with discussions centered around:

• The strengths of the independent model, with firsthand accounts from RIAs who overcame challenges and better served their clients
• Facing the future head-on and how advisors are positioning their firms to beat future challenges
• How independence, and the flexibility it offers, is within your reach
• Seizing the opportunity to break away when it is needed most

The kind of support a Registered Investment Advisor (RIA) receives is based on their personal and professional goals. Whether you want to pursue independence as an owner, an affiliate, or a teammate, Schwab can help you through the transition and support you throughout the life of your business.

In this white paper, we highlight the five most common RIA profiles while exploring topics like:

• The different levels of control an RIA can have over their business
• The benefits of platform provider support, upfront financial support, and existing infrastructure
• Ways to pursue independence without being self-employed

No matter which path to independence you choose, custodians and platform providers will be ready to help you reach your full potential. Download this white paper to learn more.

The past year has taught us to reimagine how we connect, learn, and work. As an independent RIA, having the right digital tools and platforms can offer a simpler, faster, and more secure way to support your clients and manage your business.

This case study explores how Clear Sky Wealth’s Stephanie Barnier has boosted her firm’s efficiency by going independent and customizing her tech stack using Schwab’s flexible, best-in-class technology platform. Now, she’s running a modern, digitally enabled practice that is known for being client-forward, fast-acting, and flexible.

Her story covers key findings about tech you can use in your journey, including:

• How tech can give you an edge right from the start
• What committing to a digital-first approach truly entails
• Being ready to support clients in any environment
• Surprising opportunities tech offers
• Her simple three-step plan for taking your tech further

To read more about Stephanie’s story and hear her advice about choosing the tech that’ll make your firm ready to support clients in any environment, follow the link below.

As a Registered Investment Advisor (RIA), knowing how the industry will change and what tomorrow’s clients will want can make you unstoppable. At Schwab Advisor Services^TM, our mission is to equip you with the innovative products and solutions that firms and investment advisors need to maximize their potential.

In this white paper, we paint a picture of the future of the investment industry – and how independent RIAs will thrive in it – with attention given to these specific areas:

• The needs of high-net-worth investors
• Growth through mergers and acquisition (M&A) activity
• Cultures centered on innovation
• Technology that moves us forward
• The era of dramatic pricing changes

These critical trends have put RIAs in a position to excel, and as a trusted custodian, we are here to help you seize the opportunity. Download this white paper to learn more.

More and more advisors are choosing independence to create the future they imagine for themselves and their clients. Custodians and platform providers work together to help position advisor teams to reach their full potential.

As a Registered Investment Advisor (RIA), you serve clients and design your business the way you know is best. Download this white paper and take a closer look at:

• RIA channel growth
• Benefits of independence
• Differences among RIA models
• Economics of RIA firms
• Planning considerations
• The custodian’s role

You’ll also receive time-tested steps and a roadmap for making your own transformation.

The Registered Investment Advisor (RIA) model is an opportunity to build your own brand and put your clients first – but how do the economics work? Is the transition to independence worth the cost? Does the earning potential compare to wirehouse and independent broker-dealer models?

In Schwab Advisor Services’ latest white paper, The Economics of Independence, we evaluate key areas related to the financial success of a firm. By comparing revenue potential, cost control, and business equity, you can have a better idea of how the economics of independence stack up against those of your current practice.

Download this white paper to explore the rewards of independence.

Learn why billion-dollar teams are breaking away to pursue the independent model and redefine the advisor industry.

• Discover the converging forces fueling the Registered Investment Advisor (RIA) movement.
• Learn the advantages teams gain as RIAs.
• Explore the highly evolved support ecosystem including custodians and platform providers.
• See why experts are calling this the dawn of a new RIA era.

Download this white paper to learn more about how the RIA model is changing the advisor industry.

In the last five years, the number of advisors moving to the independent Registered Investment Advisor ("RIA") space has increased significantly, with custodians and platform providers working together to help advisors reach their full potential. This move to independence brings new opportunities with it, including unique paths like the hybrid RIA model. Hybrid RIAs maintain both a brokerage and advisory business - a combination that can benefit their clients and businesses alike.

Get an overview of the different types of hybrid models. See if one aligns with your goals as you explore key topics:

• Momentum in the hybrid RIA channel
• The hybrid model defined
• Opportunity within the hybrid model
• Differences among the hybrid RIA models

Download this white paper to discover how the hybrid RIA model could help to transform your business.

Learn how you can elevate your offering to appeal to this growing segment of millionaires. In this paper, we explore the unique needs of 4 key HNW investor segments, the top 5 services expected by HNW clients, and where most advisors underperform. You will also learn how to identify and choose the right expert guidance to get started quickly.

Senior Sovereign Analyst Hassan Malik explains why he believes Russia’s role in the global supply chain gives it enormous economic leverage over the West.

The rapid innovation and disruption occurring across industries, coupled with a market that is digesting dislocations stemming from the coronavirus pandemic and a flood of central bank liquidity, mean that differentiating between volatility and actual business risk is more critical than ever for growth investors with a longer time horizon.

How do advisors leave the employer-based channel stress free? John Pratti did it by finding a collaborative partner who was right for him. Learn how his move to independence and client focus led to revenue growth and a better work-life balance. You’ll take a deep dive into what drove John’s need for change, how Commonwealth supported his goals, and how he more than doubled his fee-based AUM since joining!

Investor interest in crypto assets continues to surge. This emerging asset class continues to demonstrate increasing potential and acceptance as a component of investor portfolios. Financial advisors are working to stay informed on these markets, with the ultimate goal of helping their clients understand and participate in this dynamic new asset class.

Together with renowned index provider Nasdaq, Inc. and crypto-focused asset manager Hashdex Asset Management Ltd., Victory Capital has created a way for investors to gain broad-based market exposure to an emerging asset class for a relatively low cost and without lockups.

Small cap equity (as measured by the Russell 2000® Index) had its best two quarters of performance on record in the fourth quarter of 2020 and the first quarter of 2021. However, small caps have failed to break out in a sustained way since their February 2021 peak despite strong earnings results. Mixed signals from macroeconomic data and sentiment indicators appear to have investors on edge. Portfolio managers from Carillon’s diverse affiliates sort potential risks from areas of opportunity in the dynamic small cap space.

We think risk assets can offer opportunity in 2022 as long as investors can stomach potential volatility.

What’s in store for the markets and economy? According to Commonwealth CIO Brad McMillan and his A-team of analysts, the recovery is no longer dancing to the tune of the pandemic. While the emerging Omicron variant and factors like the Fed’s tightening of monetary policy make for uncertainty, the team outlines the upside possibilities for regaining balance and redefining normal in the year ahead.

The global recovery appears on track, but policymakers may be challenged to restrain inflation without stifling growth. U.S. equity valuations are vulnerable to rising interest rates. Slowing U.S. earnings growth could increase the attractiveness of ex-U.S. equity markets. The risk of central bank missteps could produce volatile bond markets.

High-net-worth clients can play an integral role in the profitability of your advisory practice. Are you prepared to meet their multifaceted financial planning needs? Follow this guide for a walkthrough of advanced wealth management strategies, including estate planning, special needs care planning, asset protection, and charitable giving.

The delta variant seems likely to have only delayed rather than derailed the global recovery—perhaps making growth over the coming quarters modestly more robust than it might otherwise have been. How today’s elevated bond and equity valuations will respond to the normalization of monetary policy is an open question, however.

The Great Wealth Transfer is here. An unprecedented $68 trillion¹ is expected to pass from aging baby boomers to their heirs over the next 25 years. Are you prepared for the rapidly changing market?

Find out how you can position your business for future success by meeting the needs of younger investors, including:

• How do you appeal to a younger clientele?
• How likely is an heir to change financial professionals after inheriting wealth?
• How do you adapt your approach to meet the needs of the next generation?

Research shows that over 62% of investors prefer a fee-based model. Is it the right move for you and your clients? In this quick reference guide, we reveal how to go from commission to fee-based in 6 steps, so you can free up your time, grow revenue, and give clients peace of mind.

What really happens when you go fee-only and run your own RIA? The Road to RIA-Only: One Firm’s Journey follows the story of two advisors who are doing both. In it, they speak candidly about the highs and lows of the experience and offer advice for others considering a similar path.

Realigning a client’s taxable portfolio to a new investment strategy can be cumbersome and often generates taxes. This is particularly the case when repositioning an equity portfolio with appreciated shares and the corresponding embedded gains.

Here we discuss two tax efficient approaches to transition an equity portfolio populated with low basis shares to a new strategy:

1. The Timeline approach which moves the existing portfolio to the new strategy over a set number of years.
2. The Tax-Budget approach which moves the existing portfolio to a new strategy while limiting taxes or capital gains per year.

Investing is about to get a lot harder, with thinner return streams and potential pitfalls from inflation, rising rates and market volatility dominating the landscape. In our view, the solution is to build a portfolio that has better up/down capture. Getting that balance right is the challenge for every investor—and requires three main elements: better beta, efficient structure and targeted alpha. Each element can create a favorable return sequence and be even more powerful in combination.

Download AB’s guide to get our views on how to design a portfolio around these elements in the post-pandemic environment.

Modern annuities are sophisticated strategies that can address the core financial-planning areas of retirement: income, tax, and legacy planning. In this paper, K. Orian Williams, JD, LL.M, CFP®, explores the many ways advisory annuities can be useful to fiduciary financial professionals within these important areas and how they can be used to enhance clients’ portfolios.

Annuities can be used to:

• De-risk portfolios using advisory indexed annuities as a bond/fixed-income complement
• Relocate tax-inefficient investments into mirrored tax-deferred subaccounts
• Move clients from commissionable annuities that no longer serve their needs
• Provide income strategies
• Defer and potentially reduce high taxes within irrevocable trusts

Registered investment advisors (RIAs) and financial professionals working within trust companies have been resistant to using annuities for years. In this paper, K. Orian Williams, JD, LL.M, CFP®, highlights exciting new developments in many advisory-friendly annuities. Forward-thinking fiduciary financial professionals may just change their views about these viable strategies.

Recent advisory annuity Innovations:

• Ability to bill on the clients’ assets without triggering taxes or reducing benefits
• Tech-enabled and easier to use
• No withdrawal charges
• Institutionally priced investment options

The global pandemic has further highlighted the importance of environmental, social and governance (ESG) factors in investing. With the 2021 United Nations Climate Change Conference coming up in November, it is an opportune time to focus on ESG—particularly the “E”—and the roles of policymakers, asset managers and end investors.

Financial advisors face an industry in transition. Clients want more personalized, ongoing advice and financial planning support, not just a portfolio. And they want to see value in every advisor interaction to justify the fees they pay. Is outsourcing the most overlooked way to alleviate client-advisor strain?

Markets tend to get a little bumpier at this stage of the expansion, but we believe risk assets should still perform well.

Investors have renewed interest in tax-efficient investment models in search of better after-tax returns. Municipal bonds can be impactful in a tax-efficient portfolio, but equity tax-efficiency can be harder to find. Investors could consider tax-advantaged investment vehicles, dedicated tax-efficient strategies, and active mutual funds with tax-efficient alpha.

Clients looking to give to charity often already know where they want their money to go based on a personal connection or passion for a particular cause. Where they’ll need your help is deciding how to make those donations.

A Quick Guide to Charitable Giving Options reviews a variety of giving methods—offering potential benefits and other considerations for each—and includes a glossary of related terms. With it, you’ll be better equipped to help your clients find the right giving method based on their philanthropic goals.

The value rally has recently fizzled, and growth stocks have regained ground, narrowing the performance gap considerably. However, despite strong fundamentals, growth stock valuations are extreme relative to value stocks. Our Asset Allocation Committee continues to favor value stocks as potential catalysts could be supportive.

“Deep Water Waves” represent the powerful long-term forces that face investors, fundamentally altering the economic, political, and public policy foundations for asset prices.

While it’s tempting to focus on passing market storms, Franklin Templeton Investment Institute explores these forces that look to shape the future of our world—and the investment landscape.

You’ve put time and effort into cultivating great relationships with your clients. As you prepare to leave the wirehouse for independence, learn how to mitigate risk, announce your departure, and create a seamless transition process for your assets.

ESG and SRI investing can no longer be considered a fad but navigating the ESG investment landscape can be confusing. This whitepaper describes 3EDGE Asset Management’s approach to sustainable, impact investing, including an emphasis on ETFs that help reduce the world’s carbon footprint.

See how 3EDGE’s ESG Strategies allow investors to put their capital to work in a way consistent with their values and with the confidence that they are working with a recognized leader in tactical, multi-asset investing -- actively adjusting client portfolios between risk-on and risk-off, depending on our mar­ket outlook.

The ongoing pandemic and resulting economic challenges have left many investors steering an unpredictable course. Meanwhile, the probable upward trajectory of tax rates will likely bring more challenges.

There are four hazards you and your clients should be aware of when considering how to manage taxes on investment portfolios. Request this client-ready guide today and learn more.

Now may be a great time to meet with your tax-sensitive clients and uncover taxable wealth opportunities. Actively managing taxes on investments despite tax rate uncertainty will help you and your clients be in the best position for building their after-tax wealth through the remainder of 2021 and beyond.

Investing overseas has long been a prudent strategy to increase diversification and alpha potential within an overall equity allocation. More recently, non-U.S. investment allocations have dwindled as the U.S. stock market has continued its ascent and investors have followed those gains. But all categories cycle eventually and irregularly, and equity markets are adept for catching investors off guard. While the list is long, we highlight four reasons investing internationally remains a sound investment strategy, and why investors should assess their equity allocations today to ensure they are properly diversified and well positioned for the next 10 years—and beyond.

What You Need to Know
Municipal bonds are the cornerstone of many portfolios, but efficiently navigating today’s complex, fragmented and ever-changing muni market can be overwhelming. Unfortunately, many managers research, evaluate and trade municipal bonds like it’s 1995, missing out on opportunities because they can’t find them in the chaos. The right technology can change that.

The dynamics of the passive investing boom have created both opportunities and risks for market participants. This case study explores these features and introduces a new asset class, Equity Plus Convexity, as a viable solution.

The business development companies (BDCs) sector could follow a growth path similar to REITs.

In March and April, our Asset Allocation Committee modestly decreased the allocation to equities, given elevated stock valuations and a moderating economic outlook. In our view, key performance drivers may peak in the near term, which could temper potential equity returns going forward.

Breaking away from your wirehouse is a life-changing decision. If you know it’s the best move for you and your clients, you’ve taken the first big step. We can help you with what comes next. Download our guide to learn about picking an affiliation model, choosing the right firm to partner with, and starting a new business.

Even with high valuations, we believe earnings growth can beat consensus expectations. In this environment, we’re not shying away from the risk-on trade.

Economic recovery from the pandemic appears set to strengthen across regions and countries in the second half of 2021. A key question is whether growth will be strong enough to meet earnings expectations without fueling inflation. Valuations for many equity averages are stretched, but there may be outperformance potential in some non-U.S. markets.

According to many studies, momentum has been one of the best performing factors over the long run while the Nasdaq 100 Index has been one of the best performing indexes for many years as well. In this study, combining the two together increased both absolute and risk-adjusted returns over the Nasdaq 100 Total Return Index alone.

What’s the story for the rest of the year? In his Midyear Outlook 2021, Commonwealth CIO Brad McMillan says it will depend on whether the economy can find its way through a maze of problems—including rising inflation, labor shortages, and supply-chain gaps. Despite these risks, we’ve made real progress, and a return to normal could soon be in sight.

Loomis Sayles' Macro Strategies team shares their latest views on the credit cycle and key drivers they're watching.

Historically, equities have tended to generate higher medium- and long-term returns than fixed income and cash assets. Our analysis suggests that over the 95 years that ended in December 2020, most investors could have accumulated larger balances by following higher-equity glide paths, even after experiencing large market declines near retirement.

It’s no secret that investors today are wrestling with their fixed income portfolios. On one hand yields remain historically low. On the other hand, fiscal and monetary forces seem poised to boost inflation and send rates higher. We’ve already witnessed this as we emerge from the pandemic, but how fast and how high will rates go? And more importantly, what will this do to traditional fixed income portfolios?

Victory Capital offers an innovative alternative income strategy that aims to capture attractive equity income while neutralizing the equity risk. Learn more about this approach, how it differs from some of the other alternative income funds, and why it might be appropriate as a long-term strategic allocation.

Leaving your wirehouse for the independent channel means you have an exciting opportunity to redefine yourself, what you do, and who you serve. Let our checklist help you create a strong brand identity that resonates with your ideal clients and sets you apart from the competition.

Find out what happens to advisor value when tax-smart planning and investing are offered to clients. In this year of historic government stimulus packages, it seems likely that taxes are only going up as we emerge from the global pandemic.

Discover how an active tax-managed investing approach can potentially provide significant value to your clients. Don’t miss out on this way to further sharpen your value with clients. How do you compare? Get the study.

Outperforming the market, requires looking different than the market. Actively managed, concentrated portfolios are one way to help diversify risk while adding to alpha potential and can be a welcome complement to passive allocations. At Diamond Hill, our equity strategies range from concentrated to highly concentrated—learn more about two of our highly concentrated strategies: Large Cap Concentrated and All Cap Select.

Metal and mining companies face some risk of being saddled with stranded assets, but the story for these companies is complex and nuanced.

Many investors typically focus on bank loans only when the Federal Reserve is expected to raise interest rates in the short term. While loans have historically performed well under those conditions, we believe the asset class can potentially add value as a strategic allocation in various market environments within the economic and interest rate cycles.

Thinking about leaving the wirehouse? Starting your own firm isn't for everyone, but it can be a rewarding journey for you and your clients. Read this case study to learn about two former wirehouse advisors who made the leap to independence, the challenges they faced, and the success they found.

Just over a decade ago, digital assets were a theoretical concept, announced to the world through an anonymous white paper. Today, Coinbase, a digital asset exchange, is trading on the Nasdaq exchange. Coinbase’s recent direct listing represents a watershed moment for the digital assets industry. Learn more about what Coinbase’s listing means for the growth of the digital assets ecosystem.

We believe risk assets have further to run as the credit cycle continues to move forward.

We are witnessing countries using yield curve control policies—despite many unknown factors and potential repercussions.

The challenges of the current fixed income environment may not be fully understood by investors. For that reason, we have identified three issues that we believe investors should consider: focusing on the diversification power of bonds, their performance potential, and their liquidity profile for 2021.

Signs of market euphoria are everywhere. Animal spirits are running hotter now than during the last market peak just before the coronavirus-induced lockdowns began. While this current stock market rally may continue for some time, it is not too early to identify the warning signs that may tip the onset of the next bear market. In his latest whitepaper, 3EDGE Asset Management’s President & CIO, Steve Cucchiaro, discusses how evaluating current market conditions in a historical context can add perspective and help to see the forest from the trees.

One of your best chances for growth comes from client interactions and networking activities. That’s where additional assets, opportunities, and referrals come from. Simply put, the more time you spend with clients and professionals already in your circle, the greater your productivity potential.

Sustainable investing in the United States continues to accelerate at a rapid pace. Here, we dive into the sustainable investing landscape and how the Shelton Green Alpha Fund (NEXTX) fits in a client portfolio with Portfolio Manager, Garvin Jabusch. NEXTX was the top U.S. Equity ESG Fund for 2020 according to Morningstar.

Engaging on ESG issues across our portfolios is part of our commitment to providing superior investment returns.

Examining your marketing strategies and committing them to paper can transform your ideas into a powerful platform for success. 5 Steps to an Effective Marketing Plan will help you create an organized, thoughtful written plan to raise your competitive profile and enhance your ability to attract and retain valuable clients.

Have major central bankers and fiscal authorities effectively pursued Modern Monetary Theory in practice, if not in name, as debt monetization has lost its stigma?

We believe key ingredients are in place for global financial markets to continue discounting the recovery phase of the credit cycle.

Much has been made of the demise of value investing in recent years. This paper will highlight:

• The current opportunity for value relative to growth
• The unique opportunity within value
• The most common counterarguments put forth by growth advocates

Learn how 529 plans can help you:

• reduce current and future tax liability

• pass wealth on to children, grandchildren and future generations

• fully control assets even though assets are outside your estate

After a year that offered the best of times and the worst of times, how might COVID-19 vaccines, a new administration and more global cooperation support a healthy rebound in 2021? Download our 2021 Market Outlook to get 3 strategies for the way forward.

What’s the story for the economy and markets in 2021? According to Commonwealth CIO Brad McMillan, the recovery has been steady and much faster than expected. Even with ongoing uncertainties surrounding the coronavirus and some anticipated setbacks, McMillan outlines why we may still be on track to something approaching pre-pandemic normal by the end of 2021. Download his 2021 outlook.

We have consistently observed that the market is inefficient at pricing specific risk. Loomis Sayles' full discretion investment style follows two core philosophies to help capitalize on this persistent inefficiency in corporate credit and drive excess return potential.

Financial professionals today are finding it harder to stand out from the crowd, in part due to increasingly restrictive selling agreements. For advisors and other professionals feeling frustrated or boxed-in, it could be worth exploring a move to a financial services provider that provides access to a wider range of investment products (including alternatives) and that prioritizes giving financial professionals the freedom and support to structure and operate their advisory business the way they see fit.

U.S. equities have had a great run for more than a decade. Investors may now be over-exposed to domestic stocks, particularly given the size of overseas equity markets and the number of idiosyncratic businesses within them.

Take advantage of the 2020 annual gift tax exclusion of up to $15,000 ($30,000 for joint filers), without incurring federal gift tax.

The Annual Gift Tax Exclusion for 2020 is $15,000 per individual. This planning assumes no other gifts being made to the donee by the contributor. Contributions to an account for a beneficiary between $15,000 and $75,000 can be prorated over a five-year period without incurring federal gift taxes or reducing an investor's unified estate and lifetime gift tax credit amount of $11.58 million (2020). If the account owner dies before the end of the five-year period, a prorated portion of the contribution will be included in his or her taxable estate. Federal gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given beneficiary in the year of contribution if the investor has used up his/her unified estate and gift tax credit.

All information contained herein is intended for general informational purposes only. Such information does not constitute legal, tax or financial advice on the part of Franklin Resources, Inc. and its affiliates. Investors should consult with their legal, tax and financial professionals concerning their personal circumstances. The information contained herein is derived from publicly available sources, but its accuracy cannot be guaranteed.

An investor should consider the Program’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement and Participation Agreement (www.scholars-choice.com/pds) contains more information and should be read carefully before investing. If an investor and/or an investor’s beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits such as financial aid, scholarship funds and protection from creditors that are only available to state taxpayers investing in such plans.

Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Investors, LLC, Legg Mason Investor Services, LLC, or Franklin Resources, Inc., or its affiliates and are subject to risks, including loss of principal amount invested.

Franklin Resources, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Scholars Choice is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Investors, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Investors, LLC and Legg Mason Investor Services, LLC are subsidiaries of Franklin Resources, Inc. Such entities became subsidiaries of Franklin Resources, Inc. in connection with Franklin Resources, Inc.’s acquisition of Legg Mason, Inc. in a transaction that closed on July 31, 2020. Thornburg Investment Management, Inc. is not affiliated with Franklin Resources, Inc.

©2020 Legg Mason Investor Services, LLC. Member FINRA, SIPC. Legg Mason Investor Services, LLC is a subsidiary of Franklin Resources, Inc.

Fixed Income ETFs may help you achieve greater diversification, transparency and control. Make the most of your fixed income strategies through ETFs.

Electoral surprises spur stock and bond market turbulence, but sensibly diversified and balanced portfolios don’t depend on political outcomes.

Hotchkis & Wiley explores potential catalysts for improvement in an unloved industry.

• Poor investor sentiment in banks has created a rare valuation opportunity
• Banks are generally well-positioned to withstand low interest rates and pandemic-related credit losses
• Current bank valuations and capitalization levels create a compelling case for investing in this unloved industry

Implementing a comprehensive estate plan requires meticulous coordination of the financial, legal, and tax aspects of your client’s life. By asking the right questions and being prepared for issues that may arise, you can take a central role in the planning process and cement yourself as a trusted advisor. Our guide provides the steps you can take to help ensure that all your client’s needs and wishes are being met.

Key events related to fiscal policy, social distancing and COVID-19 could dictate US economic performance. Our outlook is broadly constructive.

Emerging markets have come of age, but to capture opportunities while avoiding risks, a disciplined, fundamental, balanced approach matters.

Hiring a next-gen advisor can benefit every aspect of your business and set you up for long-term success and growth. Download our free white paper to learn insights and actionable steps you can take to help you find the perfect candidate and retain top talent to position your firm for the future.

Delaware statutory trusts (DSTs) offer accredited investors a wide range of attractive benefits, including passive income potential and capital gains tax deferral under section 1031 of the Internal Revenue Code. Learn why DSTs make an ideal investment for a broad range of accredited investors.

Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts and qualified opportunity zone funds. Founded in 2012, the investor-centric company has completed more than $2 billion in transaction volume.

CIO Austin Hawley discusses the dramatic underperformance of value stocks relative to growth stocks over the past decade—and why a strategy focused on intrinsic value is still relevant. A shift toward a service- and knowledge-based economy focused on intangible assets, and the emergence of internet-based businesses means traditional definitions of value have become less useful. However, price remains an important factor in determining future returns.

We believe it's time for ESG investing to become a must-have ingredient in portfolios. Put ESG investing into action by exploring 3 trends we expect will drive ESG growth and opportunity:

• The Great Reset in a Turbulent 2020
• Investors Reshaping the Investment Industry
• Boomers Preparing to Transfer Wealth

Behavioral factors can significantly impact a client’s financial wellness. This executive brief focuses on four — Future Concept, Impulsiveness, Materialism and Financial Literacy — to provide insights into identifying and addressing each factor during financial coaching, which financial professionals can use to create the optimal plan for each client.

Infrastructure financing is coming to the municipal bond market. What can we expect?

Federal Reserve and other major central bank stimulus should benefit high-quality value stocks and foster inflation’s “green shoots” as the global economy emerges from recession.

Although many millennial women’s needs will overlap with their more established counterparts, younger female clients face unique challenges and opportunities. Our complimentary checklist shows how you can guide these clients to become more knowledgeable, empowered, and confident about their financial outlook. Learn more about why millennial women are an emerging clientele, ways advisors can serve them better, and the right questions to ask to encourage independence.

The pace of innovation is accelerating. See why Matt Moberg, PM of Franklin DynaTech Fund, thinks the fourth industrial revolution is just beginning.

As investors make post-pandemic plans, the US equity opportunity appears attractive. Plotinus reasons that a reallocation of crisis-driven cash positions and the geopolitical setting will favor broad allocation to the asset class. In an affront to convention, the white paper points out that US equities may act as a hedge against cash, not the other way around, as well as protection against the cost of lost opportunity. The firm offers added perspective on the role of artificial intelligence in exploiting stock-market positions.

Download Coach Through Biases - Yours and Your Clients' to learn how to reframe your client experience through ongoing engagement and conversations about risk — the risk of not meeting goals that is.

That's because when your clients think about risk, chances are they aren’t referring to technical terms like standard deviation. Coaching them throughout your relationship can help combat emotional decision-making and maximize the likelihood of achieving success.

After seven years of massive amounts of QE and nearly four of yield curve control, the BoJ has yet to sustainably keep inflation at its 2% target or revive GDP growth meaningfully.

The fund's portfolio managers explain their differentiated approach and why they believe it can deliver attractive returns in any market environment.

Since 2014, mega-cap stocks have substantially outperformed small-cap stocks. However, today we sit at the widest valuation gap between small caps and large caps in nearly two decades. This doesn’t seem to be a case of simple mean reversion. Rather, there have been several fundamental factors contributing to the performance gulf between large caps and small caps over the past few years—some of which have been more structural in nature, and many of which still exist today.

Supporting the beaten-down labor market is the Federal Reserve’s “major focus,” not inflation nor risk asset prices. Doing “whatever we can and for as long as it takes.”

As the economy moves into a credit repair phase, uncertainty related to the future implications of COVID-19 persists.

Digitization in banking and retail comes in the wake of a massive cellular network rollout, creating attractive investment opportunities in India.

Bain Capital Credit examines the historical performance of US equities, leveraged loans, and high-yield bonds in periods of high, low, and moderate GDP growth from January 1997 to September 2019. The authors use this data to make the case for why investors are better off holding credit assets through the cycle instead of attempting to time the markets.

A manager's alpha thesis can offer insight into an investment strategy's performance potential. Our growth equity alpha thesis is the differentiated philosophy & process behind what we do every day.

Dr. Michael Hasenstab and team examine the economic implications of the global pandemic, then look ahead to reopened economies and a post-virus world.

The continuing threat posed by the coronavirus, necessitating ongoing social distancing, means it is hard to gauge how long the current economic disruption might last. Consequently, we believe consensus expectations may be overestimating the trajectory for improvement and that a return to a “normalized” environment may take longer than anticipated.

In unsteady times, steady talk with your clients can make all the difference in enabling you to strengthen bonds and solidify trust with them. You don’t have to have all the answers—but an effective communications approach can help them feel anchored and ensure that your practice keeps thriving. Our complimentary guide outlines five clear-cut strategies for helping you talk through the uncertainty and position yourself as your clients’ solid ground.

While energy investment retrenches in the wake of COVID-19’s historic impact on oil and gas markets, consumers will benefit as economies reopen. Selective and patient investors should too.

Credit markets are moving fast. But periods of maximum uncertainty often make the most attractive entry points.

As investors struggle to find attractive yield-generating opportunities in a lower-for-longer interest rate environment, many are diversifying into corporate real estate. But not all real estate is created equal. Fundamental Income focuses on the Net Lease real estate sector, which encompasses corporate properties leased to single tenants under long-term, “triple-net” leases. Fundamental Income’s sector-defining approach can help financial advisors access total return strategies that target sustainable income and predictable growth. The key is long-term, contractual cash flows.

The coronavirus has dealt a severe and unexpected shock to people - and markets - worldwide. Our senior investment leaders examine where we go from here, outlining how they see a recovery taking shape once the crisis passes.

The Loomis Sayles municipal credit research team offers their current outlooks on key sectors.

Portfolios comprised of top-notch equities and bonds coming into the economic and market crises should do even better coming out of it.

Numerous surveys show that women often defer to their male partner regarding financial decisions. By doing so, they may be tragically unprepared to deal with their financial affairs in the event of divorce or death of a spouse. But there’s a solution: get women involved in financial planning by sharing your knowledge. Our free checklist details key steps toward helping female clients understand and gain control of their finances.

While times like these are challenging for investors, we believe they can also help sharpen conviction in underlying investments. We have not made any wholesale changes. With a longer-term approach to investing, we believe the fear of others will continue to present us with attractive opportunities.

In a rapidly evolving environment, our credit analysts offer their early takes on how key industries might fare.

We are monitoring two separate coronavirus scenarios, one in China and on in the U.S., in terms of when the health impact peaks and the extent of the economic slowdown. Against this backdrop, we highlight several actionable ideas.

Artificial intelligence has opened up the financial world to new opportunities. While an early focus has been on the role that AI plays in creating back-office efficiencies, we confidently explore the impact on asset management. A common approach is one in which AI assists the investment process, but further innovation addresses the impact of AI on decision-based trading. We conclude by suggesting that the industry is likely to grow comfortable with a hybrid approach to adopting artificial intelligence, with humans still driving the creative process, despite rapid AI adoption.

Loomis Sayles analysts dove deep into the rapidly evolving green bond market. Read on for our findings.

The Secure Act provides financial advisors multiple opportunities throughout the coming year and beyond to engage in meaningful interactions with their clients and industry contacts regarding the impact of the new rules, and potentially create new relationships with prospects. This whitepaper will help you take advantage of the gift that will keep on giving and learn more about how you can grow your business by leveraging the benefits of The Secure Act.

In this white paper, we reflect on the relative role, advantages and disadvantages of active vs. passive investing in emerging markets.

After false starts in the last few years, we believe emerging markets are set to deliver strong performance in the year to come.

Quantitative managers are creating investment strategies that harness AI. How should investors assess them?

Economic and corporate earnings growth will likely have to beat consensus expectations for investors to earn above-average returns in the year ahead.

Risk assets begin 2020 at lofty price levels. Are stocks fully valued, or rather a relative value versus global bonds?

Read a conversation with Thornburg Chief Investment Strategist Brian McMahon who surveys the unfolding investment landscape.

Get 3 portfolio strategies for the new year

Heading into 2020, there are a lot of positive signs in the market. However, the margin for error in 2020 will likely be as small as it’s been in a very long time. Read our 2020 ETF Market Outlook to find out how to:

1. Stay invested, but limit downside risks
2. Actively balance risk in the hunt for yield
3. Position to temper the impact of macro volatility

Register for access to our 2020 ETF Market Outlook

Value investing is a part of who we are and how we manage the Investment Grade Bond Strategy. Learn more about our research-driven, contrarian approach.

China has come to the forefront of investors’ minds, and has become a larger portion of global indices over the past years while dominating global headlines. We believe investors’ slow reaction to the rise of China as a global economic power creates an opportunity for investors who are willing to lead the pack.

Today’s investors are fully aware of the perils of downside stock market risk. There is also a concern for their need to have enough money to retire which has led to advisory discussions on ways to participate in market gains while mitigating principal drawdowns.

Do you have clients who are overspending, have lost sight of their goals, or are stuck in a state of inertia? This guide explains the steps you can take to help them regain control of their financial lives. Understanding the principles of behavior modification, including the five stages of change, is the key to leading clients to execute change and build true confidence. Plus, you won’t want to miss these tips on coaching best practices and keeping your empathy in check.

If you’re a wealth management firm considering outsourcing your investment operations, choosing the right managed account platform can be a time-consuming and difficult decision. When comparing platforms, it’s critical to ask the right questions and challenge the answers given so you fully understand the solutions that are offered. Download this paper to learn the key questions to ask your platform provider, and what the answers will mean for your business and your clients.

The financial services industry is evolving as a result of advancements in risk management strategies, new technology and deeper integration of products into the advice ecosystem.

“Improving Financial Outcomes and Client Confidence Through the Confluence of Human and Digital Advice,” discusses how the coordination of human and digital advice, modern product design, aggregated data, and technology-enabled solutions is helping clients visualize their entire wealth landscape and empowering advisors to provide greater clarity on how clients can improve financial results across all assets in a household.

Supply and demand growth in liquefied gas benefits some producers more than others. For investors in U.S. upstream gas producers and Gulf Coast LNG infrastructure, caveat emptor.

Many investors use point-in-time statistics for the most recent 30 or 90 trading days to assess the liquidity profile of an ETF. This is a problem because — with the exception of a few highly liquid ETFs — a fund’s liquidity profile can change in different market regimes, especially in periods of high volatility. This paper explores how ETFs’ liquidity dynamics impact total cost of ownership (TCO), underscoring why investors need to look beyond a single period statistic when analyzing liquidity.

History shows that once our recession forecast model reaches current levels, aggressive policy can delay recession, but not avoid it.

We examine how the shift favoring passive investment and the surge in artificial intelligence-based applications are crossing paths. These two factors are highly complementary in how they can be brought together to address investor concerns emerging in the post bull-market cycle.

In discussing artificial intelligence, we move away from a black-box mentality, framing both concept and practice. We believe that AI is just as understandable as any other investment approach, offering enhanced asset-management capabilities in a period of potentially greater volatility.

Despite the potential for choppy trade, we could see mid-single-digit returns over the next 12 months.

A growing number of companies are facing secular risks that could impair their long-term growth prospects. While this trend poses challenges for many traditional issuers of high yield bonds, it is also creating a new generation of companies in the high yield market that offer attractive opportunities.

Traditional muni indices are concentrated in higher quality bonds and may have more interest-rate risk.

Passive products that track traditional municipal bond benchmarks may give investors excessive exposure to duration (interest-rate) risk, because of the way traditional indices are constructed.

A strategic municipal bond approach, with a focus on diversification and the flexibility to navigate interest-rate risk and credit risk, may help address this challenge.

We surveyed retirees about their happiness and uncovered 5 common habits. See the results and help prepare your clients for a happy retirement.

In this issue of The Weather Report, we wonder what the ultimate end game is regarding China trade and tariffs (Road to Nowhere), explore renewed interest in the gold market (What's Going On With Gold – An Interview), consider the status of the market cycle and implications for the Fed and credit (Economic Hot Takes), provide our latest Interesting Reads, and analyze the state of the yield curve (U.S. Treasury Curve – How’d We Get Here?).

• Investors who own Master Limited Partnership (MLP) dedicated index ETFs or ETNs are facing a critical problem, and they may not even know it
• Since 2014, the number of midstream companies structured as MLPs has slowly and steadily decreased
• Midstream companies structured as C-Corporations (C-Corps) now account for nearly 40% of the market capitalization of the investible midstream universe
• What should investors do about it? Consider an index, and an investment product that tracks it (ticker: PYPE), that seek to identify and select the C-Corps and MLPs we believe best represent U.S. midstream energy fundamentals, agnostic of entity structure

The market has bid up Brazilian assets in anticipation of economic reforms, but the optimism should be well measured and individual securities well picked.

Uncover new opportunities to expand your practice and help your clients navigate the do’s and don’ts of IRA rollovers in retirement planning.

“There’s no free lunch” is an axiom often heard in both investing and economics. But what if there’s a way to limit the pain of market downdrafts and still gain from the rebounds? Can disciplined security selection, sound portfolio construction and calibrated rebalancing, as position size and market dynamics evolve, improve the odds for risk-adjusted outperformance, if not necessarily bagging something for nothing?

Why we think Asia high yield credit can offer a distinctive opportunity.

We expect modest total returns through year-end, as long as corporate earnings and the global economy continue to expand.

For yield-seeking investors, dividend-paying stocks may present a compelling risk-adjusted return opportunity over bonds.

Investors have become increasingly concerned about the sharp rise in BBB rated corporate debt, and it’s easy to see why. BBB debt has risen over 200% since 2008 and represents about 50% of the investment-grade corporate market’s debt.

Amid the hand wringing over whether the U.S. and China are coming closer together or further apart on a trade deal, a dark horse has emerged in sector investing that seems immune to the cyclic boom and bust of this headline-driven market.

Loomis Sayles Strategic Alpha is a benchmark-agnostic core bond alternative, offering the potential for greater diversification in a risk-aware framework.

The Fed is tasked with keeping prices stable, unemployment low and long-term interest rates moderate. The monetary alchemy with such unstable elements is coming under review.

Commonwealth Financial Network® offers a range of affiliation models for wherever you are—and wherever you're going—in your business evolution. Learn about the vast infrastructure, the people, and the indispensable service that are here to support you and your clients, whether you choose to maintain a mix of fees and commissions or you decide to operate as a fee-only advisor.

• After bottoming in December 2018, the ratio of U.S. stocks to international stocks is re-approaching the all-time highs that they hit in November thanks to strong performance from the Russell 1000®. As illustrated below, this ratio remains considerably above its historical average. In fact, its north of two positive standard deviations of the average.

• Specifically, U.S. shares have outperformed international shares by 3.11% year-to-date, 10.26% over the last 1 year, 4.91% annualized over the last 3 years and 7.07% annualized over the last 5 years. With increased long exposure to the U.S. and risk-controlled short exposure to international markets, the Russell 1000®/FTSE All-World ex US 150/50 Net Spread Index is up 13.77% on the year.

Given the rise of passive strategies in both equity and fixed income markets, today’s investors often hold actively managed strategies to a higher standard of performance than they have in the past. The failure of some “core bond” strategies to meet investor expectations has prompted them to search for alternative solutions.

The Weather Report provides insight into current events, market outlooks and topics we find interesting that may help you achieve success in reaching your clients’ financial goals. Inside this issue, you’ll find our analysis on current events, what to watch for when it comes to inflation and where the opportunities are in fixed income.

In one of its biggest six-month moves since 2016, the price of gold has rebounded about 10 percent from a 52-week low it set back in August 2018. But the precious metal once again found itself hitting resistance in the $1350-$1360 per ounce range. It’s now been about five and a half years since gold topped out at $1,400.

Despite sprinting higher so far this year, developing country equities appear well positioned to sustain their momentum, and with less volatility.

A simple, but yet extremely effective way to help save clients money and gain their trust is to provide cheaper highly correlated ETF alternatives to their mutual fund investments. Raltin runs 2.5 Billion correlations on all combinations of 40,000+ ETFs, mutual funds and stocks to find the most correlated ETF to mutual funds. Just go to Raltin.com and and search for the mutual fund to find ETF alternatives. For example, Raltin’s page for T. Rowe Price Blue Chip Growth Fund Inc (TRBCX) shows that the iShares Russell Growth ETF (IWF) has a 0.97 correlation to TRBCX.

Markets anticipating rebound in growth and continued economic expansion.

While defensive sectors continue to lead cyclicals by 3.23% over the last six months, cyclicals have bounced back over the last three, outperforming defensives by 5.43%, helping bring twelve-month performance firmly in the lead for cyclicals. The market leadership via cyclical sectors highlights the fact that market participants continue to favor firms with higher betas and greater economic sensitivity than the market thanks to reduced concerns about rising rates and optimism regarding China-U.S. trade relations.

Institutional-quality research for you and your clients. Guidance on investment management programs, equities, fixed income, and alternatives. A dedicated SRI/ESG resource. Direct access to our chief investment officer. That’s the value-add you get from Commonwealth Financial Network’s Investment Research team.

The resurgence of volatility in late 2018 took many investors by surprise, given all the prevailing signs of a healthy U.S. economy (e.g., strong gross domestic product (GDP) growth, low unemployment, robust corporate earnings). This volatility was driven by growing investor uncertainty—from interest rates and inflation to trade disputes and geopolitical tensions. 2018 was a year of divergence between economies and markets. While most countries saw their economies expand last year, the performance of their respective financial markets was poor.

Our 2019 Outlook from the Loomis Sayles Sector Teams shares insights and opportunities across every sector, from bank loans to currencies.

Ten charts illustrate the macroeconomic trends most likely to shape Fed policy and investment performance in 2019 and beyond.

Have clients that need help with an IRA rollover decision? This white paper is an investor-friendly look at all the options and considerations for retirement account rollovers. It’s a tool for advisors to help educate their clients on opportunities to explore, including self-directed investment choices, as well as mistakes to avoid.

Modest total returns and above-average volatility may define the risk asset landscape in 2019 as economic and corporate earnings growth slow.

Corporate profits and economic growth remain positive, but are past their peak. Investors may soon find that reaching the summit was the easy part. The real challenges occur in the climb down. Chief Investment Strategist Michael Arone, CFA and Head of SPDR® Americas Research Matthew Bartolini, CFA present three strategies to position for a market with potentially more downside than upside.

Guggenheim Investments’ recently published Fourth Quarter 2018 Fixed-Income Outlook reflects its investment management team’s view that the risk of a sudden widening in spreads next year is rising and could shock fixed-income investors who fail to position defensively now. “The key here is to manage this shift in a timely manner,” said Scott Minerd, Global CIO and Chairman of Investments. “Call it a jog to exit credit and liquidity risk.”

Some advisors today are rushing to sell their practices after very little forethought, and they could be leaving money on the table. If you want to get what your practice is worth, focus on four key tenets—business, management, financial, and market—to demonstrate your value to potential buyers.

Pacific Funds^SM Strategic Income Portfolio Manager Brian Robertson discusses the portfolio management team’s investment process and philosophy.

Growing your business through practice acquisition is a good goal, but it's a long-term strategy that can take years to accomplish. How can you meet your growth objectives in the meantime? By focusing on these client-facing activities that are proven revenue drivers.

Growth and inflation within the world’s largest economies should remain near current levels, keeping the positive operating environment for companies intact.

The Loomis Sayles Multi-Asset Income Team shares their approach to creating sustainable, consistent income through any market environment.

Pacific Funds^SM portfolio managers discuss how they were able to “stay the course” during the market volatility in early 2018.

Given an improving global growth story and rising asset prices, what do we expect for the remainder of 2018? In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market for the rest of the year.

Momentum in the US economy relative to the rest of the world should keep the Fed on its current path to higher short-term interest rates.

At a time of low expected returns, low current yields and economic uncertainty, individual investors are demanding new options. Recent advances in product design enable investors to access less liquid and illiquid institutional-caliber alternatives in a “user-friendly” format which preserves the integrity of the underlying strategy. These new product designs contrast mutual funds which may contain watered-down liquid versions of the original.

New thinking about liquidity, its role in a portfolio and improved access to a wide spectrum of alternatives enables investors to deploy less liquid strategies and capitalize on liquidity premiums.

Christopher Romanelli examines the factors that could support the high yield market in a world of tighter monetary policy.

Most investors, whether institutional or individual, tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky. Investors also tend to believe that investing in alternatives, such as managed futures, necessitates sacrificing some of their stock and/or bond asset allocation. This Insight explains how investors can have both the diversification benefits of managed futures, and their traditional stock/bond portfolio. Thus, the power of “&”.

In a recent Webinar, we introduced the Equinox “Ampersand” concept. Here, we try to provide not just a recap, but a more in-depth “under the hood” look at some of the details of the structure, to which we could not do justice during the relatively short Webinar. We also try to address some of the questions and concerns we have heard.

With current yields for high-yield bonds and floating-rate loans nearly equal, investors give up little income potential to move higher in the capital structure with loans, which helps reduce downside risk and volatility in their portfolio. The portfolio managers of Pacific Asset Management, manager for Pacific Funds ℠ Fixed-Income Funds, discuss how to navigate these markets.

The LOIS spread is at its widest point since the financial crisis. It may be unnerving, but we don't think it's a sign of trouble in the financial system.

Spikes in volatility levels can impact returns on a fund’s portfolio. The relatively low leverage point (1.25X) for Portfolio+ ETFs provide less impact of negative compounding over time for long-term investors.

We expect the upward trend in rates to continue, but at a fairly slow pace that shouldn’t disrupt risk assets.

In recent years, the retail industry has experienced major shake-ups in regard to shifting business models, including the increasing popularity of e-commerce. Businesses that rely on revenue exclusively from physical stores—once the all-important showrooms for goods and services—have not only become less relevant, but also less efficient from a cost perspective.

Part 3 of 3: Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky.

FX trading involves infinite complexities, opportunities and risks. Loomis Sayles breaks down some of the concepts and describes the firm's approach.

Part 2 of 3: Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky.

In recent years, the retail industry has experienced major shake-ups, including the increasing popularity of e-commerce. But the rise in e-commerce has not impacted all retail sectors equally. To understand the implications of this shift, we interviewed the portfolio managers of Rothschild Asset Management Inc., subadvisor for Pacific Funds℠ U.S. Equity Funds.

While many U.S. investors have shifted their holdings from actively managed accounts to indexed vehicles in an effort to capitalize on recent equity market tailwinds, the relative performance of passive strategies over the past decade doesn't necessarily justify that decision. This white paper from Baird Equity Asset Management explains why.

Most investors tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky. “The Risk Contribution of Stocks” is Part 1 of a 3-part series.

Virtually nobody disputes that Asset Allocation has the greatest impact on portfolio performance and yet most Advisor-designed portfolios are dominated by active funds trying to “win” through security selection.

If you want to construct resilient portfolios that can thrive under most market conditions (including periods like the 2008 Global Financial Crisis), it’s time to consider global adaptive asset allocation. We’ve prepared this exclusive whitepaper to explain why. Don’t miss it!

NAFTA is facing an existential threat. The US and its global trading partners could be entering uncharted territory.

In the current long bull market, many investors are wondering if the stock market can continue its steady rise. Are the markets and global economy “as good as it gets,” or is “the best yet to come” for equity investors? Chautauqua Capital Management explores this question in its recent market update and global outlook.

What’s ahead for major market sectors in 2018? Experts from research, trading and portfolio management at Loomis Sayles weigh in.

It’s tempting, and quite natural, to want to attribute strong performance in any given year to superhuman work ethic, insight, or talent. The fact is, our superb results this year reflect less on the value of our strategies, and more on the role of luck on short-term investment results. What made 2017 a perfect positive storm for certain multi-asset strategies? And what features make certain multi-asset strategies more likely to prosper in the years ahead? All this and a lot more insights in ReSolve’s 2017 Annual Review

Are low levels of volatility and continued growth sustainable? In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market in 2018.

While investing solely in a small-cap core strategy can provide a set-it-and-forget-it approach, those who believe in rebalancing or taking tactical views may prefer both small-cap value and small-cap growth strategies.

There’s no questioning Amazon's impact on the consumer sector. The market continues to reward the company for its ambition, demonstrated success in taking market share, disruption of traditional business models, and expansion into new verticals and channels. However, this doesn't mean other opportunities don't exist in the consumer space.

In this recent white paper, Baird Equity Asset Management explores what some have dubbed "The Amazon Effect" in the changing consumer sector. Read on for timely insight on the risks and opportunities in today’s markets.

“The “free lunch” of diversification is that it allows investors to keep more of their money invested in high return assets while lowering the overall risk of the portfolio. Learn how to build explosion resistant, bulletproof portfolios to weather the markets’ most hostile environments. We guarantee you’ve never learned about diversification like this before.

Adopt a rainmaking mind-set to boost revenue. Download our free template outlining the 20-point system that can help you stay focused on revenue-generating activities. Learn practical strategies and techniques you can start implementing today to increase referrals, optimize strategic alliances, network more effectively, market to clients and prospects, and hold yourself accountable for your own success!

Does the high yield bond market offer enough value at this point in the credit cycle?

Investors are much more likely to achieve their target returns, regardless of investment environment, by investing in diversified portfolios with scaled exposure along the Capital Market Line. We showcase a live case study and describe steps investors can take to achieve very attractive results.

Given relative-value considerations and the potential for a return of volatility, bank loans may serve as a strong complement to other risk factors in an overall diversified portfolio. In this article, Pacific Funds portfolio managers, JP Leasure and Michael Marzouk, discuss the loan market, outlook, and portfolio strategy for the remainder of 2017.

Uncertainty abounds in the global marketplace – what are the risks and opportunities, and what is an investor to do in today’s markets? Chautauqua Capital Management discusses how to invest in the current environment.

It’s been 10 years since Charles Schwab Investment Management, Inc. first launched the Schwab Fundamental Index Funds. Fundamental Index strategies were among the first to hit the market within the strategic beta universe.

Eight years into its run, the global expansion looks poised to continue. What might this mean for asset markets?

It’s a common misconception that credit and equity performance move in tandem. When can divergence occur and how can credit investors prepare?

Pacific Funds portfolio managers discuss the current market environment, fiscal and regulatory policy, and their broad positioning for the second half of 2017.

Many income-seeking investors may need a new approach in today's low-yield environment. Loomis Sayles can offer a unique solution.

The Fed is withdrawing from the MBS market, but we see a number of positives supporting agency MBS over the next 6 to 12 months.

Uncertainty was a major theme in the first half of 2017, which had a pronounced impact on the financial markets. In times like these, it’s important to work with investment managers who are experienced at navigating these markets. Pacific Funds^SM investment managers discuss insights, themes, and trends that may shape the market in the remainder of 2017.

Investor confidence in the global outlook for monetary policy, economic growth and inflation has kept risk appetite high and volatility contained. Can it continue?

The post-U.S. presidential election environment has seen a sharp rally in risk assets and economic optimism. In this note, David Weismiller, portfolio manager for Pacific Asset Management’s investment-grade bond strategies, discusses the market environment and current investment positioning.

After an extremely rapid industrial transformation, China sits at a crossroads that presents both compelling opportunities and significant risks. However, investing success demands a deep understanding of China’s long-term plans, political landscape and key trends. Brian Beitner, Managing Partner of Chautauqua Capital Management, discusses China’s complexities and inherent investment opportunities.

Recent trade actions against Chinese aluminum imports may result in higher tariffs. Ironically, the US and China have their interests aligned in this area.

The ongoing economic and profits recoveries mean global risk assets could see modest upside from here.

Will markets be able to climb the wall of optimism given the recent surge in consumer and business confidence driven by the policy actions of the new U.S. president's administration? Pacific Funds portfolio managers discuss market sentiment, potential economic growth, and their outlook for the balance of 2017.

In 2017, the risks to the euro area stem from politics, not the economy.

President Trump’s campaign promises may have important implications for the economy and the stock market. In this Q&A, our U.S. equity investment professionals discuss how the first 100 days of the new administration may impact the market.

We’re modestly optimistic about 2017, but there are a host of unknowns as we become acquainted with our new President Trump, what policies he may pursue, and how they will impact the world body politic. Loomis Sayles' sector teams weigh in on potential opportunities in the year ahead.

Uncertainty was a major theme in 2016, which had a pronounced impact on the financial markets. In times like these, it’s important to work with investment managers who are experienced at navigating these markets. In this outlook, Pacific Funds investment managers discuss insights, themes, and trends that may shape the market in 2017.

For the first time in quite a while, Washington could prove to be a source of positive earnings catalysts in the months ahead.

What a difference a few months can make. The world economy now looks to be on sounder footing, with economic data surprising to the upside, developed and emerging market economic momentum improving, global manufacturing recovering and the US profits recession ended.

Markets were in reflation mode during the final weeks of 2016, sending the 10-year US Treasury yield to its highest level in more than two years. While economic indicators have shown modest improvement, most of the rise in yields is built on lofty expectations. In the coming years, we think a strengthening macro backdrop may support modestly higher yields.

Donald Trump’s presidential upset has stunned financial markets, which had heavily discounted a Clinton victory. What might Trump’s policy proposals mean for markets and key components of the US economy going forward?

With the Fed poised to raise rates and equities trading close to historical valuation peaks, the prospect of lower returns and higher correlations between asset classes has left many investors seeking sources of return which are not correlated to traditional stock and bond performance.

Trend following is one strategy that has the potential to profit from rising rates without depending upon positive equity market performance, however, allocating to the space does present some unique challenges. In a new whitepaper, CSAM seeks to address key implementation questions regarding allocating to trend following, including why now might be an appropriate time to invest and how to fund and size an allocation.

We expect equities to continue their slow uptrend into next year.

Can the shift to value account for the improved relative results for many small-cap active managers in the last year?

Senior Global Economist James Balfour explores some of the key macro themes influencing global markets.

Fiscal policy developments could create bond market volatility going forward, but historically low interest rates are likely to persist.

How can the Fed uphold a dual mandate while recognizing the interdependence of global policies, economies, and financial conditions? Pacific Funds portfolio managers assess the new conundrum that Federal Reserve Board Chair Janet Yellen is facing and what it means for the remainder of 2016.