Author: Anu Heda

Q1 2014 – Big Opportunity for Many

Posted by Anu Heda on Dec 10, 2013, in Thoughts , tagged with ,

Has sufficient time passed to merit investing in funds clobbered during 2008? That’s the primary thought occurring to me when I read this Morningstar article. 5-year returns starting in Q1 2014 will be completely devoid of 2008 performance. I think this situation will be extremely important to asset managers. Many financial advisors are sensitive to negative returns in the 1, 3, or 5 year periods. By that first 2014 fact sheet, many funds will have no negative performing periods.

Implications? Asset managers already free and clear of negative performance and leading with that message need to evolve to something different. Early next year, only positive performance can’t be the primary selling message, as many funds will also have only positive performance. Second, asset managers with newly all positive performance should resist leading with performance for the same reason: it isn’t differentiated.

I’d recommend asset managers consider using the unique time period to communicate changes to risk management practices and/or the underlying investment process to protect investors from the next market downturn. Our FA research aligns with the answers from this RIA (Ignites: subscription required) from Wescott: communicating process and underlying portfolio changes trumps boasting about performance.

Best Blogs of the Week

Posted by Anu Heda on Dec 09, 2013, in Best Blogs of the Week , tagged with ,

Short week for the column and thus only two posts to share.

AllianceBernstein – Interesting post on how DC plan sponsors are considering volatility. If volatility-aware strategies become prevalent, then FAs may see increasing desire to discuss the topic with more clients.

BlackRock – This post provides helpful and timely input on the potential for irrational exuberance in today’s market

 

Best Blogs of the Week

Posted by Anu Heda on Dec 04, 2013, in Best Blogs of the Week , tagged with ,

Hope all had a great Thanksgiving weekend. We thought to move the best blogs to mid-week as everyone gets back in the swing of it. We have two posts to share from the last week and a half.

  • AllianceBernstein – Helpful post on understanding the ramifications (or lack of) from the market’s repeated all-time highs over recent weeks.
  • Oppenheimer – Detroit, you are protected! And Oppenheimer provides a straightforward interpretation for FAs getting calls on the topic.

Best Blogs of the Week

Posted by Anu Heda on Nov 25, 2013, in Best Blogs of the Week , tagged with ,

Many blog posts about China this week. Aside from the China – EU treaty, I’m not sure the impetus. The best two posts this week do not include China but tangible investing strategies.

  • Invesco – This post gets to the mechanics of investing in South Korea. That’s a rare treat.
  • Russell – This post describes equity investing with lower volatility succinctly and with data!