Navigating Investor Apathy: A Candid Look at the Challenges Faced by Today’s Advisors
Many advisors are finding their clients show little interest these days in how the markets are doing.
Unlisted Infrastructure – Highway to Diversification
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
Bank of England: A surprise end to UK rate hikes?
Today, in a shock decision, the Bank of England (BoE) left its policy rate at 5.25% by the tightest possible majority vote of 5-4. All but one of 65 economists polled by Reuters had predicted that the BoE would raise the rate to 5.5%.
6 Steps to Tax-Efficient Onboarding of Clients With Direct Indexing
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
Do We Really Need to Be Worried About the Banking Sector?
Banks have reemerged as a potential pain point for the investment community, as rating agencies recently embarked on a downgrade cycle in the sector.
A Recession Is Possible, but Far From Certain. So How Should You Consider Positioning Your Portfolio?
Given the uncertainty over a recession, there are other incremental steps that investors may want to consider instead. These include making adjustments to a portfolio’s market beta and credit exposure.
China Hits a Speed Bump. Could the Road Ahead Feature More Stimulus?
Soft consumer confidence and property-market woes are playing a large role in the slowdown of China’s economy.
What Do Investment Outsourcing and Ice Cream Have in Common?
For some organizations, a partial outsourcing of their investment program is preferable to total outsourcing. Despite this, some OCIO providers will still try very hard to sell companies on a full OCIO solution.
Building Resilient Portfolios: The Power of Diversification
Diversifying a portfolio means spreading the investments across a variety of asset classes, industries and geographies.
Three Opportunities To Grow Your Advisory Business Now
Advisors can capitalize on the expected transfer of wealth between generations, the expected wave of retirements among older advisors, and referrals from other professionals.
C Is for Customized Experience and Family Wealth Planning
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
How To Build Better Relationships in a Virtual World
We are now a few years past the onset of the COVID pandemic, and we've had a chance to think about some of its changes in the wealth management business. Even if we wish certain things hadn't changed, we must acknowledge that they have – and adapt accordingly.
The Value of Staying in the Middle of the Net
While money market assets have risen in recent years, returns have historically lagged behind a diversified portfolio.
Real-Time Risk Exposure Report
Investors should be aware of potential real-time market exposure risks when implementing large changes to their portfolios.
Back to the 1990s? Bank of England Rate Hikes May Pinch London’s First-Time Homebuyers
Bank of England raises interest rates again as expected. Rate hike likely to hurt first-time homebuyers in London. UK gilt curve appears to be pricing in a "higher rates for longer" scenario.
How Referable Is Your Business?
Referrals from established clients are a good way to organically grow an advisory business.
The Economics of Immigration: The UK vs. Australia and Canada
Australia and Canada are experiencing a surge in population growth, while growth rates have slowed substantially in the UK due to post-Brexit frictions.
Q2 2023: A Tale of Two Different Responses to the Debt-Ceiling Saga
Equity and fixed income markets experienced heightened volatility amid the Q2 debt-ceiling saga, while currency and derivatives markets were mostly unaffected.
How To Use Direct Indexing To Offset Taxes on a Future Financial Windfall
The sale of a business, property, or large stock position can generate a financial windfall that may trigger a large tax liability.
Allegory of the Summer Barbecue: Analysis on the Stance of Fed Policy and the Likely Path Forward
The Fed continued to signal a "meeting-by-meeting" data-dependent approach to monetary policy. While the June Summary of Economic Projections suggested that there might be one more hike after today's, we think it's also possible that today's hike may be the last one.
What Are Today’s Opportunities and Risks in Fixed Income Credit Markets?
Higher yields for corporate bonds generally correspond to higher credit risk based on an issuer's credit rating.
July 2023 Equity Market Outlook: Positive Sentiment Emerges as Inflation Slows
Q2 2023 was a more favorable environment for Emerging Markets, Europe, Australia and Real Assets managers.
UK Disinflation Under Way
UK gilts rally after headline and core inflation numbers surprise to the downside.
B Is for Behavioral Coaching: How Much Value Does Your Guidance Add?
An advisor’s greatest contribution to an investor’s bottom line is their guidance through volatile markets.
Non-Profits: Should Inflation Risk Management Be Your Goal?
Over the past two years, higher inflation has led to a higher return hurdle for investors who have established real return objectives, making it harder for them to achieve their return objectives over the short term. But is this likely to be the case over the long term as well?
Take a Look and Pick a Book: Introducing Our 2023 Summer Reading List
In what's quickly become one of my favorite annual traditions at Russell Investments, I survey our associate base for their summer reading recommendations every year around this time.
To Divest, or Not To Divest? That Is the Question
We believe that avoiding whole sectors or business models introduces portfolio risk and should be done only with careful consideration and a strategic, holistic plan.
Case Study: How A Currency Management Strategy Can Work as A Diversifier
The ARCS strategy is a currency management strategy that gives a diversified exposure to three factors: Carry, Value and Trend.
$20 Billion Club Strategy Series – Funding Policy
In 2022, the funded status of $20 billion club members reached its highest level since 2007 due to steep rises in discount rates.
2023 Global Market Outlook – Q3 Update: Slowly Slowing
We believe that the creeping economic slowdown in the United States will probably persist for a few more months, with a recession possible over the next 12-18 months. The onset of the recession may be delayed until 2024.
What Should You Look For in A Direct Indexing Provider? 10 Things To Consider
A direct indexing solution can help make an investment portfolio as personalized as a home.
The Global Housing Inspection Report – 2023 edition
Aggressive monetary policy tightening in developed markets led to a drawdown in house prices in 2022, but not a meltdown.
Bank of England: Forced into Overtightening
In a hawkish move coming on the heels of data that showed a reacceleration in inflation, the Bank of England raised its key lending rate by 50 basis points at today’s policy meeting.
Why Hiring a Skilled Active Manager Is Critical During Today’s Highly Concentrated Stock Market
Today's U.S. equity market is highly concentrated, with seven stocks contributing to an astonishing 96% of the Russell 1000 Index's year-to-date return.
Supercars vs. Uber Drivers: Risk Management for Actual Humans
The complexity of some risk management platforms can lead to a steep learning curve for institutional investors, draining resources and creating stress.
Are We There Yet? The Perennial Question of the FOMC Road Trip
At its June meeting, the Fed opted to forgo an increase in its key lending rate for the first time since March 2022 but projected that more rate hikes may be possible by year-end. Our investment strategy analyst shares his thoughts on when the central bank’s rate-hiking journey could finally end.
Confessions of an Overlay Manager
Our director of Customized Portfolio Solutions and overlay portfolio management, Brian Causey, shares his key takeaways from 20 years of working on overlay solutions.
What Investors Need To Know About the Surge in Interest Rate Volatility
Interest-rate volatility on shorter-duration assets is running near historical highs, even as rate changes begin to level off.
What’s Your Succession Strategy for Managing Your DB Plan?
While the retirement of several high-profile CIOs has generated ample news, and headlines, there’s been very little press coverage about OCIO as a potential solution. We find this perplexing.
Value of an Advisor: A Is for the Active Rebalancing of Investment Portfolios
In a difficult year such as 2023, rebalancing between asset classes that are declining may seem a futile exercise. But rebalancing, even in down markets, remains vital to keeping a portfolio within the right risk/reward ratio and is a key element of the value that an advisor can provide to their clients.
Debt-Ceiling Showdown 2023 Is in the Rearview Mirror
The passage of the debt-ceiling deal removes a significant threat to the economy and markets. The focus now shifts back to where it’s been for the past 18 months: inflation, the Fed, and recession risks.
Know How To Get There: Three Implementation Capabilities You Should Demand From Your OCIO Provider
A robust implementation strategy and real-world implementation capabilities are both necessary in order to achieve your portfolio’s preferred position.
Factor Investing and U.S. Recessions: How Have Key Equity Factors Performed on a Historical Basis?
In the five months prior to U.S. recessions dating to the 1920s, the equity Momentum factor was the top performer, with an annualized cumulative excess market return of +6.7%, on average.
Is the Commercial Real Estate Market a Potential Threat to the Banking System?
The stresses in the CRE market do not appear to pose a systemic threat to the global banking system.
Making Cent$ Of the Dollar: Understanding the Challenges to Its Global Reserve Currency Status
As other nations seek to become less dependent on the U.S. dollar, rumors of the greenback’s potential demise continue to swirl. Can the dollar remain king of the world’s reserve currency?
$20 Billion Club Strategy Series – Benefits Policy
Over the past decade or so, there has been a broad trend in the industry toward closing and freezing defined benefit plans.
Opportunity From Crisis: How Private Credit Stands to Benefit From Recent Tumult in the Banking System
The terms private credit and private debt are often used interchangeably to describe direct origination credit strategies. But, the business is also known by another name: non-bank lending.
U.S. Debt-Ceiling Scenarios: 4 Different Ways the Negotiations Could Play Out
Negotiations among lawmakers in Washington, D.C., to raise the debt ceiling might trend in a more favorable direction.
Final Approach: May 2023 Economic Update
The U.S. economy is likely slowing down, and a recession seems likely in the 12-18 month time horizon.
Know Where You Want to Be: How a Skilled OCIO Provider Can Help Investors Navigate Opportunities and Threats
Working with a skilled OCIO provider can help you position your portfolio to benefit from investment opportunities and avoid uncompensated risks.
Getting Income From a Portfolio Is Easier These Days but Risks Remain. Model Portfolios May Be the Answer.
Rising rates in today's fixed-income markets have led to more attractive bond prices and higher yields, alleviating some of the challenges facing income investors.
How Has the Stock Market Historically Fared During U.S. Recessions?
Many investment strategists are forecasting that the U.S. economy could experience a recession in the next year or two.
How to Attract High Net-Worth Investors With Direct Indexing
One of my mentors once told me that "Hope is not a strategy" and since we can't predict the markets, I have decided to focus this blog on using Direct Indexing to attract new high net-worth clients.
What Investors Need To Know as the U.S. Debt-Ceiling Deadline Approaches
U.S. Treasury debt is considered the closest debt in existence to having no default risk. The ongoing game of financial chicken between Congress and the White House puts this assumption in doubt.
The State of the SPAC Market
In the past three years, special purpose acquisition companies (SPACs) experienced stratospheric growth, became a manic bubble as sponsors raised new IPOs with a relentless fervor along with a market happy to oblige.
The State of The SPAC Market
The volume of SPAC IPOs and mergers has reverted to pre-hype levels. Funding from public and private investors has plunged, while redemptions by existing investors have increased sharply.
Top 5 Benefits of Direct Indexing: Our View
Direct indexing is an innovative investment strategy that can solve a variety of investor challenges. We discuss the five main benefits of incorporating direct indexing in a client’s portfolio.
Top 5 Tips For Managing Taxable Portfolios
Tax season isn't the only time advisors should think about how taxes may impact their client portfolios. There are various strategies advisors can use year-round to ensure they are investing in a tax-efficient manner. Helping your clients maximize their after-tax wealth is an important element of the value you provide.
What Is a Tax-Managed Mutual Fund?
Tax-managed investing has gained in popularity in recent years. But what exactly is a tax-managed mutual fund? We do a deep dive into the concept.
Top 5 Reasons to Use Direct Indexing
- Most mutual funds or ETFs can't solve certain issues that your high-net-worth clients may face today
- Direct Indexing can help investors with tax management, diversifying concentrated positions or imposing restrictions for a variety of reasons.
- Direct Indexing may help solve investment challenges that requires personalization and tax management
Is the 60/40 Balanced Portfolio Broken? Not Forever.
Everyone knows it by now: 2022 was not a kind year for investors, particularly balanced fund investors. There were no silver linings, no shelter from the storm; it seemed that no matter what levers you had in place to protect clients’ wealth, there was very little to cheer about on investor return statements.
Tax Planning for High-Net-Worth Individuals: Avoiding Collateral Damage
Many advisors today are helping clients with a broad range of their financial planning needs.
Is the Money Safe?
Worries about the health of the overall banking system have led to a drawdown in deposits, with investors yanking nearly $100 billion in deposits from U.S. banks during the week that ended March 15. What’s more, there are fears that the stresses in the banking sector could be the start of the next financial crisis.
Confessions of a Currency Manager
Predicting spot exchanges is tricky, but there are still ways of adding value in currency markets, including through a disciplined approach we call currency factor investing.
March Fed Rate Hike: Sometimes the Moments That Challenge Us the Most Define Us
In a closely watched decision, the Fed lifted its benchmark lending rate by 25 basis points to a range of 4.75% to 5% at the conclusion of its March policy meeting.
SECURE 2.0: Top 5 Items to Discuss with Your Clients
The new SECURE Act 2.0 (Setting Every Community Up for Retirement Enhancement Act) seeks to make it easier for U.S. taxpayers to save for retirement and expands access to retirement plans.
Municipal Bond Outlook 2023: Three Reasons for Optimism
We believe municipal bonds boast several key factors that position them as an attractive asset class in general, but especially so when markets are volatile.
WISE Words from Women on International Women’s Day
International Women's Day is a global observance that recognizes and celebrates women's social, economic, cultural, and political achievements.
Women and Investing: What Is Your Brand?
- By 2030, $30 trillion, or two-thirds of U.S. personal wealth, will be controlled by females
- Women are increasingly making decisions for themselves and their families in all other aspects of their lives, and financial advice is no different
- Women-only events can be a way to achieve that deeper connection with this important demographic and help advisors not only retain their current business but potentially grow it
$20 Billion Club: It's Been a Minute Since We've Seen Numbers Like This…
We just finished up our annual report on the $20 billion club, and we've concluded that 2022 was a weird year for pension plans.
Is Your Client Selling a Small Business? Here’s How to Ensure You Are Part of the Conversation
Advisors who have business owners as clients need to adapt their discovery process and service plans to help these independent and resourceful investors.
Six Tax Planning Strategies for a Good Start to 2023
With the new year in its infancy, it may be too early to think about where to spend Thanksgiving or booking your car’s fall tune-up.
February Fed Meeting: Tough Talk for a Smaller Hike
At the conclusion of its inaugural policy meeting of 2023 today, the U.S. Federal Reserve (Fed) delivered a smaller, quarter-point rate hike, as widely expected by markets.
2022 ESG Survey Deep Dive: Active Ownership Review
Our 2022 ESG manager survey findings reinforced our belief that the integration of environmental, social and governance (ESG) factors into investment processes is here to stay.
Here’s How Advisors Can Help Make Dreams Come True
This fall was a memorable time in the Halverson household.
Are Your Clients Worried About A Market Crash? A Checklist For Survival
It's the end of the world!
It’s Official: U.S. Retirement Plans Can Consider ESG Factors
After years of uncertainty around how U.S. retirement plans could consider ESG factors, the dust is finally settling. It’s official: A Nov. 22 rule issued by the Department of Labor (DOL) allows retirement plans to consider financially material ESG factors when selecting investments and exercising shareholder rights.
Private Credit: Why We Believe ‘Now’ Is the Time to Invest
We believe private credit is an attractive investment with greater market coverage and a timely opportunity to benefit from the scarcity of fresh capital.
What Is the Tax-Cost Ratio and Why Does It Matter?
Everyone seems to be paying more attention to the cost of goods and services these days. But there is one cost that many investors pay without realizing it – the cost of taxes on their portfolios. Here's why this cost matters and what you can do to help your clients avoid it.
2022 Annual ESG Survey: The ESG Journey Accelerates
Our annual ESG manager survey of active managers assesses the integration of ESG considerations in investment processes among equity, fixed income and private markets managers, and spotlights firmwide policies, use of data, engagement and integration.
Is Now the Time to Elevate Your Hedge Ratio?
Corporate defined benefit (DB) plan sponsors face two primary risks: equity risk and interest rate risk.
Tax Drag: Are Your Clients Being Held Back On Their Investment Journey?
Is tax drag holding your clients back?
Impact Investing: How a Fund of Funds Approach Can Help Address Challenges
Balancing financial gain and personal values can be a challenge for investors. A fund of funds approach to impact investing can help to provide the best of both worlds.
Tax Planning in Difficult Markets: Creating Silver Linings When Clouds Are Gray
When markets are challenging, your clients look to you to help manage their expectations as well as their hard-earned money.
What Steps Should DB Plan Sponsors Consider Taking Ahead of a Potential Recession?
Is a recession lurking around the corner in 2023? If so, how might it impact defined benefit (DB) plan sponsors—and what steps, if any, should they consider taking?
Risk Transfer Potholes: How to Avoid Them or Brace for Impact
10 years have passed since the watershed year for pension risk transfer.
Are Your Clients Prepared For a Potential Recession?
Let’s face it, the last three years have been challenging for investors. The global pandemic has had a domino effect on so many aspects of our lives.
Do You Know Where Your Carbon Reduction is Coming From?
With the ever-increasing need to decarbonize our global economy, investors are now focused not only on the why behind decarbonizing, but also the how.
Q3 2022 Global Market Outlook
It’s been a tough first half of the year, with the MSCI All Country World Index down by 21.7% and the Bloomberg Global Treasury benchmark losing about 9% as of June 17.
Will the Inflation Reduction Act of 2022 increase taxes?
The world of politics and political maneuvering never ceases to amaze us.
What’s the Early Read on Q2 Earnings Season?
On the latest edition of Market Week in Review, Chief Investment Strategist for North America, Paul Eitelman, and Research Analyst Laura Bardewyck reviewed early results from second-quarter earnings season.
When It Comes to Portfolio Transitions, Minutes Matter
As institutional investors, we most often represent risk as annual standard deviation or tracking error. But when we implement changes in our portfolios, the real-time risk happens much faster.
What is Holding Back China Stimulus?
One of the vexing questions for China watchers has been the lack of stimulus delivered, despite the maintenance of the government’s 5.5% GDP target for 2022 (although there is skepticism around the ability to reach that 5.5%).
Direct Indexing: An Efficient Way to Turn Tax Losses Into Tax Assets
While a direct indexing strategy is a great addition to an investor’s portfolio, you’ll want to ensure your clients are properly diversified and also poised to reap the benefits of active management, while recognizing that active management doesn’t generate as many tax losses as tracking the index does.
2022 Global Market Outlook – Q3 update: Fear of the known
Recession fears and central-bank tightening are driving market volatility.
June Swoon: U.S. Stocks Slip Into Bear-market Territory As Inflation Concerns Rattle Investors
After months of hand-wringing, U.S. indexes are now in bear-market territory across the board, down 20% from their most recent highs.
Bank Of Canada Lifts Rates By 50 Basis Points Again. Is an Even Steeper Increase in the Cards?
On the latest edition of Market Week in Review, Director of Investment Strategies, Shailesh Kshatriya, and Director of Institutional Investment Solutions, Greg Coffey, discussed the recent PMI (purchasing managers’ index) readings from China and the U.S.
Responsible Investing Roadmap: Part 1
There is increasing awareness among investors of the important role that responsible investing plays in a well-diversified portfolio.
Top 10 Things Tax-Smart Advisors Do After Tax Day
Tax Day has come and gone.
Key Reasons Why Investor Interest in Private Markets Continues to Grow
Investor interest and participation in private markets continues to grow.
Best Practices For Fixed Income Restructures: Evaluating Four Portfolio Transition Strategies
It's no secret that in fixed income markets, excess performance above the benchmark is difficult to achieve over the long run.
The U.S. Treasury Yield Curve Briefly Inverts. Should Markets Be Concerned?
On the latest edition of Market Week in Review, Director of Investment Strategies, Shailesh Kshatriya, and Director of Institutional Investment Solutions, Greg Coffey, discussed market reaction to the latest developments in the Russia-Ukraine war.
2022 Global Market Outlook – Q2 Update: Dented, Not Derailed
Russia's invasion of Ukraine has sparked higher inflation, unleashed additional market volatility and will likely lead to a slowdown in global growth rates. However, we believe above-trend growth is still possible this year, provided hostilities ease and energy prices stabilize.
Some Stories You Can Tell The Fearful Investor
Last week, I was driving home from a business trip when I suddenly got a call from my parents.
Women Investors: 3 Things to Know
This year's theme is #BreakTheBias and I thought it might be fitting to look at a few of the common biases when it comes to female investors - and how financial advisers can work toward better addressing some of these, not only with clients, but with their teams as well.
Cycle Uncertainty: How Is the Russian Invasion Impacting the Economic Cycle?
We believe the war in Ukraine will likely negatively impact growth rates during the first half of the year and lead to higher inflation, with Europe taking the biggest hit. However, we think growth could rebound during the second part of 2022 if energy prices decline.
$20 Billion Club Report: Why You Should Care What The Big Plans Are Doing
Since 2011, we have issued annual reports on the largest listed corporate defined benefit (DB) sponsors in the U.S., codenamed the $20 billion club.
Russia Invades Ukraine. What Does This Mean For Investors?
What many feared may happen came true overnight with Russia invading Ukraine from all sides—Crimea, Belarus and Russia.
When It Comes To Talking About Taxes, Sometimes All You Need Is The Right Story
As we begin 2022, there is a lot of noise in the marketplace: midterm elections, omicron and everything in between.
Capital Gains: When Being Below Average Is A Good Thing
From 2008 onward, U.S. market returns have been strong and consistent, and 2021 was no different, with the S&P 500 returning a solid 29%.
Direct Indexing: What Exactly Is It And Why Are So Many Talking About It?
The term direct indexing is somewhat of a misnomer.
3 Ideas To Help Advisors Get A Jump Start On 2022
Many people will see the beginning of 2022 as motivation for a resolution.
The 2022 List Issue, Part 5: 4 Steps for Non-Profit Fiduciaries to Consider This Year
Rougher seas lie ahead for non-profit fiduciaries as the COVID-19 pandemic stretches into 2022 and refuses to retreat quietly into the night.
The Great Resignation: Has it Increased the Risk That Comes From Portfolio Manager Exits?
Talent is quitting. And new talent is hard to hire.
Active Ownership Can Help Combat Climate Change. Here's How.
While world leaders seem unable or unwilling to pass legislation to meet their commitments, Russell Investments is on a mission to support the low-carbon economic transition through our active ownership activities.
Private Markets: How to Embed Responsible Investing
Private markets can help to future-proof your portfolio through responsible investing. Samantha Steele, director, private markets, dives into the main trends and challenges that investors should consider.
The 2022 List Issue, Part 1: Global Markets - Top 9 Investment Watchpoints
With 2021 almost finished, it's a good time to look ahead to the key questions and themes for 2022. Overall, we believe economic growth, inflation and investment returns should moderate through 2022, but expect growth to remain above trend, which should support the outperformance of equities over bonds.
7 Sources of Assets That Could Benefit From a Tax-Managed Approach
Taxable assets make up nearly half of the U.S. mutual fund universe. Helping your clients reduce the tax bite on these assets could help you differentiate your value proposition.
2022 Global Market Outlook: The Great Moderation
After a year of rebound and recovery, we believe that economic growth, inflation and investment returns are likely to moderate in 2022.
The ‘Old’ New Fed, an Accelerated Taper and a Heavily Mutated COVID-19 Variant
Key takeaways from Powell's renomination and his remarks on inflation, as well as an assessment of the risks the omicron variant of COVID-19 may pose to markets.
Equities Are Expensive. Bond Yields Are Low. How Can Income Needs Be Met? Enter Model Strategies.
As the last wave of baby boomers heads into retirement, the need for a consistent and reliable stream of income is growing. Advisors seeking a balance between generating income and providing for future growth may want to consider income-focused model strategies.
Why We Believe Private Equity Is a Better Ownership Model
Investor participation and interest in private equity continues to grow. Investors are attracted to private equity for different reasons, including access to the significant investable opportunity set that exists across the universe of private companies, along with lower volatility when compared to public equities.
Q4 2021 Fixed Income Survey: The Persistence of Transient Inflation
In this latest survey, 53 leading bond and currency managers considered valuations, expectations and outlooks for the coming months. With the economic recovery undeniably ramping up, we asked managers for their thoughts on valuations in the markets.
Risks in China Are Growing, but Manageable
Increasing regulation and stress in the property sector have led to lowering expectations for Chinese economic growth in 2022. Could the global economy be impacted as well?
Our Top 10 Advisor Podcasts of 2021
At Russell Investments we have created a series of podcasts aimed at helping you gain insight in how to build a better business, or attract female clients, minimize the impact of taxes on a portfolio or articulate the value you bring to your clients.
2021 Annual ESG Manager Survey: The Red Flag Is Raised on Climate Risk
This year marks our seventh annual ESG manager survey. Our survey of active managers assesses the integration of ESG considerations in investment processes among equity, fixed income and private market managers and spotlights firmwide policies, use of data, engagement and integration.
Worried About Inflation? Let’s Take a Trip Back to the Future
Transitory or not, the current inflation rate has many investors concerned. A look back in history can put today’s situation in perspective.
Mitigating taxes while transitioning to a new strategy
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:
- The Timeline approach which moves the existing portfolio to the new strategy over a set number of years.
- The Tax-Budget approach which moves the existing portfolio to a new strategy while limiting taxes or capital gains per year.
Survey: Managers Increasingly Bullish on China, Despite Headlines
How do managers in the emerging markets, global/international, Asia and China equities spaces feel about the market’s reaction to events in China? Here's what our recent survey reveals.
Still Transitory: U.S. Fed Maintains Stance on Inflation, Announces Start of Tapering
Chair Jerome Powell and the Fed had been holding the market’s hand in the lead-up to the tapering decision, making it abundantly clear that a decision was imminent at today’s meeting and effectively pre-announcing all of the relevant details of the decision...
What Is the Task Force on Climate-Related Financial Disclosures (TCFD? And Why Is It Important for Investors?
In the lead-up to the 2021 United Nations Climate Change Conference, the TCFD released several important updates. We take a look at what the TCFD is and why the TCFD’s recommendations are becoming an increasingly important reference for investors and financial regulators.
Small Cap Managers Appear to Be Doing Poorly. But Are They?
Given the inherent volatility of small capitalization stocks, even small differences in benchmarks can affect relative returns. Investors should be aware of the composition of the index used to define the opportunity set when comparing performance.
Q3 2021 Equity Manager Report: How Are Inflation Concerns Impacting Manager Viewpoints?
Performance highlights from the third quarter of 2021, plus manager expectations for the final months of the year.
10x10, Part 1: Asset owner and manager perspectives on diversity & inclusion
Excerpts from Cerulli Associates' report on asset owner and manager perspectives when it comes to promoting diversity & inclusion.
Capital Gains Distributions: The Trend Is Not Your Friend
Many mutual funds will distribute capital gains every year—no matter what the market does. As 2021 comes to a close, advisors can begin to prepare their clients for the impact of those distributions and take steps to minimize the tax bite going forward.
11 Sales Ideas to Try This Fall
Need some new ideas about how to attract new clients or get greater share of wallet from ones you already have? Try a few of these on for size.
Tax increases are likely. What are you doing about it?
With potential tax increases on the horizon, advisors can take steps now to minimize the impact of any changes in tax policy.
3 potential factors behind the rise in U.S. Treasury yields
On the latest edition of Market Week in Review, Director of Investment Strategies Shailesh Kshatriya and Investment Strategy Analyst BeiChen Lin discussed recent political headlines in Washington, D.C., the rise in U.S. government bond yields and the potential outcomes of Germany’s recent elections.
2021 Global Market Outlook – Q4 update: Growing pains
As the globe enters the waning months of 2021, concerns over inflation, the delta variant of COVID-19 and the unwinding of easy-money policies loom large for markets. Despite this, we believe that the business cycle is still in a recovery phase, although it’s maturing. We expect more cyclical upside for economic growth outside the U.S. in the months ahead, allowing market leadership to rotate toward the rest of the world.
Is Wage Growth Becoming a Concern for the Fed?
On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Head of Portfolio & Business Consulting Sophie Antal Gilbert discussed U.S. consumer prices and wages, key factors impacting U.S. small businesses and home sales in China.
Legislating Tax Changes: The Rubber Hits the Road
The numerous proposals around tax policy in the upcoming budget debates mean it’s an opportune time to discuss tax-smart strategies with your clients.
A Worker’s Market: U.S. Job Openings Hit All-Time High
On the latest edition of Market Week in Review, Senior Portfolio Manager Megan Roach and Julie Zhang, head of North America sales enablement and analytics, discussed the latest data on U.S. jobs and wages, recent central bank actions and the state of the global economic recovery.
What’s Powering The Surge In Labeled Bond Issuance?
The labeled bond market has seen explosive growth in issuance over the past two years.
4 Tax Hazards You’ll Need to Overcome in 2021
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.
P Is For Aligning Products To Meet Each Client’s Unique Goals, Circumstances And Preferences
P is for aligning products to meet each client’s unique goals, circumstances and preferences.
How is China’s Crackdown on Big Tech Impacting Emerging Markets?
The current wave of regulatory intervention by the Chinese government has been far reaching, addressing matters including anti-trust, data protection, property speculation, climate change and various interventions in relation to social abuses.
Is the SPAC Party Over?
Key drivers behind the recent selloff in SPACs, and the market outlook going forward.
The 4 A’s of Preparing for Capital Gains Season
Tax proposals and changes to the tax code are a near daily story right now.
C Is For A Customized Client Experience: Looking At The Holistic Planning Services Advisors Now Provide
If there is one experience common to us all during the global pandemic, it is that the spread of COVID-19 around the world caused everyone—young or old, rich or poor, male or female—to reassess our priorities.
Climate Change Risk Metrics: The Rising Tide
The industry is now seeing an expansion in data-driven practices, with new ESG and climate datasets emerging and becoming mainstream.
The Wave Of Female Wealth Is Here: Why Your Practice Should Never Underestimate The Power Of A Woman
As a woman who has worked in the financial services industry for 23 years, I’m keenly aware of the central role we play in money decisions.
What’s Next for Municipal Bonds After a Strong First Half of the Year?
As summer hits its stride, here are some musings about municipal bond performance to mull over as you unwind at the beach or on the couch (no judging!).
What the Pandemic Has Taught Me
Everything changed for me, my family and everyone I know on a Friday the 13th.
2021 Global Market Outlook – Q3 update: The song remains the same
The global economic reopening remains on track as COVID-19 vaccination rates climb.
Is today’s bull market sustainable?
U.S. and global equity markets are up 92% and 81%, respectively, from their March 23, 2020, lows through May 31, 2021.
Real World Overlay Solutions in Challenging Times
With only a few brief downturns in an otherwise upward trend in the U.S. equity market since the Global Financial Crisis, declining interest rates have pulled forward the net present value of distant earnings and propelled growth stocks (and the market as a whole) higher.
Building your advisory business, Part 3: Creating a system for success
Something that I am asked by advisors over and over again is what ideas have you heard?
Russell Investments: 2021 Value of an Advisor Study
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.
Caught off guard: Why the Fed meeting minutes surprised markets
On the latest edition of Market Week in Review, Director of Investment Strategies Shailesh Kshatriya and Head of Portfolio & Business Consulting Sophie Antal Gilbert discussed the meeting minutes from the U.S. Federal Reserve (the Fed), the latest inflation data and the recent volatility in cryptocurrency markets.
Why U.S. Rates Are Only Likely To Rise Modestly In 2021
Effective vaccines, historic fiscal stimulus, Democratic Party control of the legislature, even more stimulus, reopening economies, 6% U.S. real GDP (gross domestic product) growth, 25% U.S. EPS (earnings per share) growth, and maybe even an infrastructure plan sprinkled on top.
Growth vs. value: Preparing for the big one
It’s coming. Is it here? Perhaps. Or maybe not. But sooner or later, it is coming. Preparing now for the eventuality seems the most prudent course.
In the Face of 2021 Tax-Rate Uncertainty, Tax Planning Matters Even More
Investors and planners desire clarity around tax rates to help make informed decisions around investment moves and related impacts to portfolios.
Building a Stronger Bridge Into 2021: U.S. Congress Reaches $900 Billion Stimulus Deal
We believe that the recently announced U.S. stimulus deal reinforces the positive economic outlook for 2021. Here's why.
The 2021 List Issue, Part 2: The Re-Evaluation List for Non-Profits and Healthcare
As the sun sets on one of the most challenging years in memory, many healthcare systems and other types of non-profits find themselves in starkly different financial situations than they were at the start of the year.
The 2021 List Issue, Part 1: Global Markets – Top 7 Investment Watchpoints
Is the rotation toward value here to stay? What could stall the economic recovery? In the first in a four-part series of blog posts, we explore the key issues that are likely to impact the investment landscape in 2021.
Time for U.S. to Address Savings Crisis for Workers
The ravages of the pandemic mean a shift is needed to boost financial resilience, Chairman and CEO Michelle Seitz writes in the Financial Times.
2021 Global Market Outlook: The Old Normal
We anticipate that COVID-19 vaccines and the easing of lockdowns will allow for a return to more normal economic activity by mid-2021.
Income is the outcome, Part 1
Passage of last year's SECURE Act may spark increased adoption of lifetime income products in defined contribution plans. Here's why.
What changes could a Biden administration bring to ESG investing?
Will support for ESG investing in the U.S. increase under the administration of President-elect Joe Biden?
Making a trade and checking it twice: Trading mistakes to avoid over the holidays
Trading over the holidays? You’ll want to check this list—errr, article—twice.
T is for tax-smart planning. And the time is now.
This is the fifth and last blog in our 2020 series, discussing why Russell Investments believes in the value of advisors. Here we discuss tax-smart planning and investing.
Private Markets: Diversifying for the Future
Amid the ongoing COVID-19 crisis, we believe that investing in private markets may offer a raft of potential opportunities. Here's why.
Amidst an Uncertain Election, Three Factors Contribute to Market Strength
In today’s blog, I will update the current status of the election results, extend the conversation with regards to the market reaction at this point and revisit what we see as the most important factors investors should be considering going forward.
Cross-Currency Basis: An Eventful Year, but Year-End Should Be Quieter
The volatility of the cross-currency basis was a point of focus throughout March and April, swinging wildly in either direction as funding stresses surfaced. A scramble for liquidity and dollars was, with impressive effectiveness, ultimately satiated by the handiwork of central banks, most notably the U.S. Federal Reserve’s flooding the monetary system with the pre-eminent reserve currency.
Q3 2020 Equity Manager Report: Special U.S. Election Edition
The latest on how equity managers across the globe fared during the third quarter, plus how the upcoming U.S. election is impacting manager viewpoints.
Rethinking Defensive Asset Allocations After a 40-Year Bull Market in Treasury Bonds
U.S. Treasury bonds are not likely to repeat their spectacular performance as income-producing risk reducers in portfolios of the past four decades. While bonds still have an important role to play in some settings (e.g., liability hedging for retirement plans), we believe investors should look at alternatives for diversification, including inflation-protected securities, gold, defensive currencies and stocks and option protection.
Why the Climate Transition Means Renewables Are Here to Stay
The transition toward a more sustainable energy system presents potential opportunities for investors. We explore what those opportunities are, and identify potential watchpoints.
Building Portfolio Wealth: It’s Not What You Make, It’s What You Get to Keep
We believe now is as good a time as any to do a portfolio assessment. Here’s why investors and their advisors shouldn’t lose sight of how diversification and taxes affect portfolio returns.
Is This Funding Stabilization or Funding Stagnation?
Despite stellar equity returns over the last decade, the funded status for many defined-benefit plan sponsors has either stagnated or fallen. Here's why.
Taxes: Potential Benefits of Kicking the Can Down the Road
We believe paying taxes is a scenario where kicking the can down the road can actually be a good thing for taxable investors. Here’s why.
2020 Global Market Outlook – Q4 Update: The Old New Cycle
It's a new cycle for the economy, but some asset classes look decidedly late cycle in terms of valuation. What might this mean for markets through the remainder of the year?
Tax Drag: Seeing is Believing
Imagine if you could show your clients the impact of taxes between funds and categories. Now you can. Here’s an exclusive first look at our Tax Impact Comparison Tool.
How to Prospect Your Network (Without Being Salesy)
Your social network may be an untapped and robust source for uncovering prospects. While you may be suffering from COVID-19 fatigue, we believe prospecting and having introductory conversations about the services you provide could be one of the best uses of your time.
Open Season: Capital Gains
It’s open season on capital gains. Four ways advisors can help clients navigate potential unpleasant taxable distributions.
Regardless of the Election Outcome, Expect Limited U.S. Policy Changes in 2021
With the COVID-19 crisis far from over, we expect increased policy stability in the U.S. next year, no matter who wins in November.
The Perils of Passive Investing Amid a Highly Concentrated S&P 500
Five companies now comprise 26% of the market capitalization of the S&P 500® Index, making for the most concentrated U.S. equity market in the last 40 years. What are the potential dangers of this for investors?
How Climate Change Can Impact Investments
With multiple future scenarios as to how climate change may play out, there are also multiple potential consequences in store for investments. This post takes a detailed look at climate-change risk management.
Is the U.S. Stock Market Looking Through the Recession? History Has the Answers
The U.S. stock market seems to be looking through this economic catastrophe. For the five months and one week since the start of the recession—March through August 7, 2020—the U.S. stock market, as measured by the S&P 500, has returned +14.3%.
3 Big Challenges for Emerging Markets Amid COVID-19
Emerging markets are confronting a slew of short-term challenges caused by the coronavirus pandemic. Is there hope for a turnaround on the horizon?
Currencies Likely to Reflect Countries' Pandemic Strategy Success
We believe that the Norwegian krone and the New Zealand dollar stand to benefit from how their governments have handled the coronavirus, whereas the appeal of the U.S. dollar may wane due to high infection rates.
No Voting Rights? Engagement Still Matters in Fixed Income
We explore the increased use of engagement terminology by fixed income market practitioners as a part of their ESG integration efforts.
Environment, Social and Governance Risks Are Financial Risks
Ultimately, we believe that investors who are unaware of ESG and do not integrate ESG into their investment processes may be exposing themselves to additional, unnecessary and possibly unrewarded risks.
Does the U.S. Presidential Election Pose a Risk to Markets?
With less than four months to go until Americans cast their votes for president, we’ve fielded an increase in questions from clients as to whether the U.S. presidential election poses a risk to markets and the economy. The short answer is yes.
YOU Are the Guru, Guide and Gladiator to Your Clients
Imagine telling clients you’re their guru, guide and gladiator. Learn a simple framework to help articulate your distinctive value.
B is for behavioral mistakes: How much value comes from prevention?
This is the second in a series of posts focusing on the formula of advisor value. In this post, we tackle the behavioral mistakes that investors typically make. Addressing the investment behavior of your clients may be the greatest value you provide.
What Is Today's Opportunity in Small Cap Stocks?
The case for considering tactical and long-term allocations to small cap stocks.
2020 Global Market Outlook – Q3 Update: The Great Reopening
Markets have rallied on hopes for an economic recovery as coronavirus-imposed lockdowns are eased across the globe. The rebound has been helped by oversold investor sentiment, but with sentiment back to neutral, so too is our strategists’ market outlook.
Grow Your Business in Today’s Market Environment—Virtually!
Can you reignite the growth of your business in the the second half of 2020? We think so. Here’s why we believe the next six months may hold a once-in-a-lifetime opportunity.
Q2 2020 Fixed Income Survey: The Quarter of Quarters. a COVID-19 Special.
In this latest survey, 68 leading bond and currency managers considered valuations, expectations and outlooks for the coming months.
An Oldie but a Goodie: The Global Balanced Portfolio
Having trouble helping your clients appreciate a balanced portfolio? These charts may help.
All the World's a (Virtual) Stage and We Are Merely Players
Our secrets for hosting a great virtual meeting.
Why Is the Stock Market Rising in the Middle of a Severe Recession?
Three factors that may explain today’s disconnect between Wall Street and Main Street.
Growth Pains? the Case for Leaning Into Value Over Growth
We're excited about the opportunities we see in value investing going forward. Here's why.
A Is for Annual Rebalancing. and It's Never Been More Vital.
I’m trying to think of a year when rebalancing has been more important. None come to mind.
3 Reasons Why Value Stocks May Outperform Soon
Potential for a large payoff on value strategies may exist soon, if history is any guide.
Now What? Why Now Is Not the Time to Abandon Your Asset Allocation Process
Capital markets are in disarray in reaction to the coronavirus crisis and the necessity of pausing the global economy. The CBOE Volatility Index (the VIX) rose to over 80 in March and thankfully has settled down to a level of about 35, which is still over twice its trailing five-year average of about 15.
What's next for China after COVID-19?
Key watchpoints for China as it emerges from the COVID-19 crisis.
Transitioning Fixed Income Assets in Fractured Markets
Drawing on lessons learned from the credit crisis of 2007, here's how we're transitioning fixed income assets amid the coronavirus pandemic.
Deeply Committed to Our Clients: A Message From Our CIO
I hope this message finds you and those close to you in good health as we all navigate the fallout that happens when a health crisis spills over and triggers an economic crisis.
The Case of Two Masked Returns
I started in the business in a mutual fund call center right out of college in 1999 (DVD players were all the rage, Y2K panic was a thing and “Who Wants to be a Millionaire” was on). At that point, average annual returns were high for the S&P 500 and most mutual funds—until the bubble burst.
Doing Well While Doing Good: Where Value and Values Can Intersect
Russell Investments has long held that it is possible to create investment value while incorporating values into the decision-making. In this blog post, we continue on that theme and highlight a small collection of securities that demonstrate doing well while doing good.
Q1 2020 Equity Manager Report: Special COVID-19 Edition
See how the coronavirus pandemic is impacting manager viewpoints across key geographic and equity regions.
The Language of Clients
Client language is different from advisor language. If you want clients to understand you—and more importantly, you want to understand them—consider adopting these tips.
How Are We Going to Pay for All of This? the COVID-19 Impact on U.S. Tax Policy
Two months into one of the most disruptive crises of our lifetimes, we have all become accustomed to words and phrases such as unprecedented, severe, social distancing, etc. Although these words are perhaps less jarring than they were prior to the onset of the coronavirus outbreak, they truly do capture the impact of this health crisis on the economy, now and in the years to come.
In the Midst of COVID-19, Don't Forget About Earth Day
The health of our planet depends on responsible investing. On Earth Day and every day, it has our full support.
5 Key Ways Advisors Deliver Value in the Face of 2020's Adversities
What is the value of a financial advisor in 2020? We believe financial advisors have never been more valuable than they are right now. This annual Value of an Advisor study quantifies that dedication and the resulting benefit.
Good News vs. Bad News: The Tug-Of-War Facing Markets Over the Next Month
News is an interesting concept, in that information really only counts as news if it’s unexpected. On the flip side, information isn’t news if it is expected. April, however, is showing that even when the expectation is for bad news, the cumulative effect of so much negativity can still weigh on markets heavily. In other words, just expecting bad economic data does not necessarily make the market invulnerable to mountains of it.
ESG Considerations in Fixed Income
While ESG was initially a hot topic for equity investors, fixed income market investors are quickly catching up. In this blog, we aim to share some key ESG integration trends we see among the fixed income market participants.
Slow, Complicated and Careful: What a Reopening of the Economy Might Look Like
With a very healthy dose of humility, let’s take a look at what a reopening of the global economy may look like.
Don't Be Fooled by Most ESG Rankings. Focus on Materiality Instead.
When it comes to ESG, not all issues matter equally across industries. We believe our newly updated ESG scoring methodology best captures the issues that are truly material to companies.
The Full Extent of Income Support for Impacted U.S. Households Is Impressive
Global equity index futures are trading up about 4% this morning. The coronavirus data over the weekend was less bad. The growth rate in new confirmed cases over the last 24 hours globally was the lowest since March 17—a welcome sign that containment measures are gaining some traction in slowing the spread of the disease.
Our Best Practices for Working From Home
Just about every facet of life has changed due to the coronavirus pandemic. For many, this has involved adapting to working from home. We share our best practices and tips to help you maintain your productivity—and your sanity.
A Closer Look at the (Mis)Behavior in Markets
As the world continues to grapple with the coronavirus, some areas of the market are showing signs of incremental improvement.
Reasons for Hope
Hope is not stupid. My colleague, Paul Eitelman, did a nice job yesterday preparing our clients for the likely horrible news that will most likely greet us for the month of April each and every morning. Today, I would like to take a moment to talk about reasons for hope.
Relative Risk to Policy in a Liquidity-Challenged Environment
Rebalancing is a case where inaction creates risk to policy in volatile times. One of the most critical rebalancing points of the past decade is ahead of us. So now what?
The Coronavirus Response: Why so Much Talk about the U.S.?
Policy makers in the U.S. generally have more work to do to limit the damage of the coronavirus crisis than their counterparts in Europe. Here’s why.
2020 Global Market Outlook – Q2 Update: Cycle, Further Interrupted
A global recession is likely through the first half of the year, with a rebound possible during the second half of 2020, provided the virus threat subsides.
The Fed Goes Past All-In. Congress Drags Its Feet.
The U.S. Federal Reserve unveiled a series of significant policy measures to help sustain the economy.
Volatility Persists, but Responses Continue to Roll In
We have spent much of the last week talking about the efforts coming out of the U.S., as the Federal Reserve and government leaders are working hard to offset the real economic damage being inflicted by the crisis.
Down, Up, Down, Up, Down: Looking Through the Chop
Amid ongoing market chop, more positive signs are emerging from policymakers and central banks as efforts to soften the economic damage caused by the coronavirus continue.
Managing Survival Instincts During Market Volatility
It has been long said that fear and greed drive the market in the short-term. In the long run, however, fundamentals ultimately determine price. When we say fundamentals, what we are really talking about is that the future earning potential of a stock will ultimately drive its value
Coronavirus Stimulus: The UK Responds, While Markets Wait on EU and U.S.
Markets are eagerly awaiting an announcement with regard to the type of fiscal support the U.S. and other governments will come to the table with. This support will be aimed at preventing potential temporary economic headwinds from becoming more permanent impairments to the global economy.
Coronavirus Update: As Market Volatility Continues, Fiscal Response Looms Large
One of the keys to the outlook here is the ability of businesses to get to the other side of potentially acute short-term cash flow problems. Fiscal policy holds the necessary antidotes in its ability to provide targeted, material support to impacted sectors.
Coronavirus Update: Energy, Equity Markets Battered by Oil Price War as Epidemic Spreads
Whatever the news of the day is for the foreseeable future, it is this tension and search for answers that is driving daily market activity. As we have said before, the unpredictable nature of this threat is making finding those answers more difficult. The market hates uncertainty above all things, as uncertainty begets volatility. Expect volatility.
Coronavirus and Interest Rates: What's the Outlook?
Our outlook for interest rates, assessed through our investing framework of cycle, valuation and sentiment.
Assets and Liabilities Peak Again While Contributions Plunge in Another Record-Breaking Year
Overall, the net effect of this is that funded status stayed roughly the same, likely frustrating sponsors who saw assets rise without a corresponding increase in funded position.
Municipal Bond Funds: The Involuntary Move toward Risk
Limited supply and high demand for high-yield municipal bonds may adversely impact an investor’s financial position. Plan now for potential client conversations about exposure to lower quality tax-exempt securities.
The Coronavirus Market Selloff: 3 Watchpoints for Markets
Markets around the world are tumbling on fears that the coronavirus could significantly derail global economic growth.
Will China's Growth Rebound This Year
In light of the ongoing coronavirus outbreak, we examine whether a rebound in China’s economy is still possible this year.
Signal vs. Noise: Is Noise Affecting Your Ability to Focus on Investor Behavior?
This is going to be one of those years where we believe behavior—for advisors and clients—is going to really matter. At Russell Investments, we believe one of the biggest detriments to a client’s return is their own behavior.
The SECURE Act, Explained
Here’s how the SECURE Act may impact your clients. Plan now for these conversations.
Growing a Sustainable Book of Business Based on Advisory
Like the three little pigs building their houses, financial advisors have many choices of how they will build their books of business. Many of the most successful advisors embrace fee-only wealth management. In this blog post, we put some numbers to these theories.
How 3 Black Economists Helped Illuminate Inequality in America
Learn more about the remarkable lives and contributions of three leading African American economists.
The Unintentional Biases of ESG Portfolios
What makes an investment philosophy or product ESG-friendly? The answers may surprise you.
Our Top 10 Questions Designed to Help Advisors Navigate the Decade Ahead
The past decade has been one for the record books. There has been unprecedented change in almost every aspect of life including technology, transportation, politics, etc.
Get Smart or Die Trying: 4 Steps for Advisors to Consider When Working With Clients in 2020
What can advisors learn from institutional investors? Try these four key moves.
Value and Growth Investing: How Are You Positioned?
Conventional wisdom has long held that value stocks and growth stocks work in different ways, and therefore wouldn’t be found in the same mutual fund. In recent years it has become increasingly difficult to tell the difference between a value and growth manager’s portfolio.
Is Passive Feeding the Faanged Mega-Cap Beast?
Has passive investing helped drive the outperformance of mega-cap stocks?
Proposals as Fact-Finding Missives
Maybe you don’t have a goals-based tracking and reporting system, but you want to have illustrations to show whether a client is on track (or not) to meet their goals.
Risk from Chinese Debt? We Think It's Overblown
As the worries mount, it’s worth addressing whether these concerns are truly warranted, or overblown to an extent. Let’s dive right in and tackle this, as well as look at how much of a handbrake such a high level of debt may have on Chinese growth.
2020 Global Market Outlook: Cycle, Interrupted
Central bank easing and the cooling China-U.S. trade war have set the scene for a global economic rebound in 2020. Our forecast pushes the risk of recession into late 2021, giving equity markets modest upside potential for 2020.
5 Preventative Measures for Fiduciaries to Take in 2020
With simmering trade tensions, sputtering growth worldwide and a historically long, but slow, U.S. economic expansion, investors will have to brace themselves for a challenging investment environment in 2020. Change, adaptability and diversification are the key words. Here are steps you can take early in 2020 to position your investment program well for the rest of the year.
Top 10 Things You Can Do in 2020 to Position Your Pension Plan for Future Success
A few months ago, we published a paper called Institutional investor best practice by 2025. In this paper, we addressed how investors will need to fundamentally change how they approach capturing opportunities, mitigating risks and managing costs within their investment portfolios to set themselves up for success in 2025 and beyond.
The Secure Act Affects Your Retirement Plans. Here Are 7 Key Implications for Employers.
Seven things to know about the new U.S. retirement legislation.
Our Top 10 Favorite Blog Posts of 2019
As the year winds to a close, take a look back with us at our top ten favorite blog posts of the year—the thought leadership pieces that sparked the highest levels of engagement among our readers.
The Ghosts of Investing Past, Present and Yet to Come
Once upon a time—of all the good days in the year, on Christmas Eve—old Ebenezer Scrooge sat busy in his counting-house. Rise from your bed, O Investor and hear first from our very own Ghosts of Investing Past, Present and Yet to Come.
Confessions of a Beta Jockey
If beta is a racehorse, many investors often assume it takes care of itself in the race toward investment objectives. But doesn't the skill of the jockey matter as well?
UK Elections: Conservatives Win Big, Brexit Will Happen – What Kind of Brexit Is Still Unclear
While the election outcome was quickly reflected in the pound exchange rate, the direction from here depends on what kind of relationship Boris Johnson really (really) wants to have with the EU. Find out more from our currency expert.
2020 Global Market Outlook: Cycle, Interrupted
Central bank easing and the cooling China-U.S. trade war have set the scene for a global economic rebound in 2020. Our forecast pushes the risk of recession into late 2021, giving equity markets modest upside potential for 2020.
PREP: Important Steps to Consider When Building an Outcome Oriented Portfolio
What steps are needed to help build a successful portfolio? One of our divisional directors shares his perspective.
5 Factors for Healthcare Organizations to Consider When Choosing an Ocio Provider
As the clock ticks toward 2020, the overall economic picture remains muddled. Ongoing trade tensions and slumping global growth have cast a cloud of uncertainty over the globe, and forward-looking return expectations continue to look less than impressive.
Evolving Advisors Don’t Fear Change. They Embrace It.
Nearly every aspect of the advisory industry is undergoing some form of transformation today—spelling an opportunity for those advisors who are committed to continuously evolving their approach.
Year-End Fixed Income Survey 2019
Throughout the year we asked leading bond and currency managers to consider valuations, expectations and outlooks for the coming months.
Was the September Repo Spike an Anomaly?
The news media, bank executives, the U.S. Federal Reserve (the Fed) chairman and even presidential candidates have made remarks about the recent spike in short-term funding rates. What caused the spike and why is it important?
The Fed Cuts Rates Again. Is a Pause Next?
The U.S. Federal Reserve (the Fed) cut interest rates again—its third such move in as many meetings—lowering its benchmark rate to a target range of 1.50% to 1.75%.
Better Late Than Never…Ge Pension Risk in Focus
Among the 20 largest US-listed corporate DB sponsors, General Electric Company ended 2018 with the third lowest funded ratio at 75.6%.¹ This is a precipitous decline from 2007, when their funded ratio was the third highest among this group at 129.1%. Over that time period – when the average funded ratio dropped about 20 percentage points - GE's dropped by over 50 percentage points.¹ How did this happen?
Q3 2019 Equity Manager Report: Are Growth Concerns Growing?
Are equity managers reconsidering their exposure to more expensive growth stocks? Check out the latest insights from our manager research team.
The Perils of Not Discussing Taxes with Clients
If you’re committed to helping your clients achieve their financial outcomes, don’t avoid discussing taxes.
Quitting Tobacco: See If ESG Exclusions Hurt Performance
Quitting tobacco is good for your health. But how is it for your portfolio?
PRI Makes Strides in Changing the Global Attitude to Responsible Investing
The United Nations-supported PRI has made strides in changing the global attitude to responsible investing.
Why Downside Protection May Matter More Than Upside Growth
Amid ongoing trade tensions and slumping growth worldwide, the global macroeconomics and geopolitical outlook remains highly uncertain—suggesting that an environment of low rates, sluggish growth and high valuations may linger well into 2020.
Harmonizing DB and DC: Part two - Investments
Learn the potential benefits of a harmonized investment approach to your organization's DB and DC plans.
Foreign Stocks Aren't as Foreign as You Think
Is home-country bias limiting your portfolio’s (future) potential? Here's why we believe global diversification should be an integral part of an investor’s portfolio.
Back-To-Back: Fed Cuts Rates Again Amid Murky Outlook
The Fed lowered interest rates for the second time this year at the conclusion of its FOMC meeting. Is another cut possible before year-end?
7 Things Every Advisor Should Know about the Slacker Generation
An industry veteran—and slacker—shares his perspective on reaching and communicating with Generation X clients.
Mutual Fund Liquidity: A True Oasis, or Merely a Mirage?
While the clear majority of mutual funds provide daily liquidity, it's not guaranteed. This is why understanding the potential risks to liquidity is key.
What's Driving the Demand for Listed Infrastructure?
Why listed infrastructure? Let’s follow the logic chain: Equity-market volatility, low fixed-income yields and increased economic uncertainty all stand as potential stumbling blocks that threaten to derail even the best-laid of plans.
2019 Capital Gain Distributions: Are You Letting History Repeat Itself?
Taxes are going to cost you a lot this year. By how much, you're wondering? Let’s start first by looking back.
2019 ESG Survey
The importance of environmental, social and governance (ESG) factors in investment decisions continues to grow exponentially—to the point where an understanding of ESG now appears critical to carrying out a skillful investment process.
Your words matter! Especially when it comes to taxes
What’s the difference between a tax-aware, tax-efficient or tax-managed approach to investing? See why it matters and why we believe managing for taxes can make a difference for investors.
Recession Outlook: If China Sneezes, Could the Rest of the World Catch a Cold?
As China embarks on a transition to a more consumption-based economy, its health is likely to have an increasing impact on the well-being of the global economy.
The Hidden Costs of Carrying Cash
While cash can be comforting, it may come at a cost to an investor’s ending wealth.
Here Be Monsters? U.S. Economic Expansion Enters Uncharted Waters
How much longer could America's record-setting economic expansion continue?
Diversification: A Potential Cure for Emotional Investor Behavior?
The concept of diversification is nothing new for investors. The adage “don’t put your eggs in one basket” simply states why diversification is vital. There are several potential benefits of a diversified multi-asset investment portfolio, and one of the most important is to reduce concentration risk.
Hybrid Qdia: A Natural Evolution of Default Investing
Forget the either/or. When it comes to investing your hard-earned money for retirement, wouldn’t you want as many options as possible?
P Is for Planning. See Why It's so Valuable to Investors
Planning has become table stakes in our industry, but I say that with a note of caution. When a financial plan feels like a box-checking exercise, it can be seen as a commodity. When you position your own planning process to your clients, be intentional.
How Low Can You Go: Monetary Policy Constraints and Options for the Next Recession
This is the longest U.S. economic expansion ever. And while expansions don’t die of old age, it’s prudent for investors and central bankers to think now about the potential consequences of the next global recession.
Enhanced Portfolio Implementation, Part 2: How EPI Separates Implementation from Insight
In Part 2, Global Chief Investment Officer Pete Gunning drills further into the details behind our overlays, and the value we see in harnessing investment insights from our managers.
Enhanced Portfolio Implementation, Part 1: How EPI Separates Implementation from Insight
Global growth is slowing. Corporate profits are shrinking. Business investment is waning. And the seemingly-perpetual bull market, buoyed by the longest U.S. expansion on record as evidenced by the S&P 500, may be entering its final stages.
Stocks Sell off as Trade War Intensifies
An escalating China-U.S. trade war sent stocks reeling, as markets weighed potential impacts to U.S. consumer spending, corporate earnings and job growth.
July Rate Cut: Muted Inflation Allows Fed to Provide Some Insurance. Markets Wanted More.
The Fed lowered its benchmark interest rate for the first time in over a decade today, but stocks still moved lower. Why?
Real Assets, Real Opportunity
Under today’s current market conditions, real assets may provide an opportunity for portfolio diversification and growth.
Q2 2019 Equity Manager Report: Piggybacking on the Positives
How did active equity managers fare during Q2? Check out the latest insights from our manager research team.
Go Counterintuitive with Our Summer Reading List
Our annual summer reading list, with a twist: Our top 3 books on counterintuitive thinking.
Prospecting Your Own Book for Revenue Growth
Looking to grow revenue? Your greatest opportunity may exist within your own book of business.
When It Comes to ESG and Performance, Can You Have Your Cake and Eat It Too?
Let’s cut to the conclusion: Does an ESG-related mandate require a performance hit? No.
Investing like it's 1999
The technology sector has helped fuel one of the longest economic expansions in the history of the United States. It’s worth looking back to the late 1990s to recognize what expectations were created for the tech sector and better understand where we are today.
C Is for Cost: What Is the Cost and Value of Basic Investment Management from Advisors?
This is the third in a series of posts focusing on the formula of advisor value. Here we discuss the cost of basic investment-only management—which is not only worthwhile, but necessary. Yet it should also be a warning sign if your value proposition is based solely on your investment management prowess.
Mid-Year 2019 Fixed Income Survey: Who'll Act First – the Fed or Markets?
Our latest survey of global fixed income investment firms reveals conflicting viewpoints between interest-rate managers and credit managers on growth expectations and risk assets.
2019 Global Market Outlook – Q3 Update: China Syndrome
An escalation in trade-war tensions between China and the U.S. has sparked a slowdown in global growth and a yield-curve inversion. Could global central bank easing and China stimulus turn the tide?
Dovish Tone from Central Banks Lifts Markets
On the latest edition of Market Week in Review, Quantitative Investment Strategist Dr. Kara Ng and Rob Cittadini, director, Americas institutional, discussed the recent rise in markets, deteriorating economic data and newfound optimism surrounding the China-U.S. trade war.
June Fed Meeting: Everything but a Rate Cut
The U.S. central bank left interest rates unchanged at the conclusion of its June meeting, but signaled it may lower borrowing costs next month.
B Is for Behavioral Mistakes—Preventing Them May Be Your Greatest Value
This is the second in a series of posts focusing on the formula of advisor value. In this post, we tackle the behavioral mistakes that investors typically make. Addressing the investment behavior of your clients may be the greatest value you provide.
Tax-Managed Investing 101: Understand the Basics and Slay the Beast
Here’s how you can slay the tax beast and help your clients minimize the impact of taxes.
Does the Latest U.S. Jobs Report Make a Rate Cut More Likely?
In the latest update:
- U.S. job growth in May falls short of expectations. Is a Fed rate cut next?
- Deep-dive: How the trade war is hurting business spending
- What’s powering the stock-market rally?
The Case for Private Markets, Part 1: Plugging the Gap
3 reasons why we believe private markets are an attractive alternative.
Fact vs. Feeling: Retirement Confidence Is at an All-Time High. Should It Be?
The disconnect between retirement confidence and preparation—and 3 simple ways advisors can make a difference.
Weaponizing an Interest Rate Outlook
3 principles to focus on when weighing risk in a bond portfolio.
What if the next bounce falls short?
Until early 2018, the market had been behaving in a consistent pattern for several years. Corrections were short-lived, as were spikes in implied volatility–as measured by the CBOE Volatility Index (the VIX)–from otherwise suppressed levels. While the correction in Q4 2018 was longer-lived, we have already bounced back from this drawdown, with the promise of prolonged monetary accommodation by the U.S. Federal Reserve (the Fed).
A Fed Rate Cut Looks Unlikely This Year. Here's Why.
Is the market-implied probability of a U.S. Federal Reserve (the Fed) rate cut later this year overblown? Our answer: Yes.
Millennials and Responsible Investing
Are you engaging with millennials on the topic of responsible investing? Here’s how trusted advisors can both educate, develop a financial plan and address their specific preferences in investing.
Will the U.S.-China Trade War Hurt Consumer Spending?
On the latest edition of Market Week in Review, Quantitative Investment Strategist Abraham Robison and Sophie Antal Gilbert, head of AIS business solutions, discussed the recent setback in U.S.-China trade negotiations and what it may mean for markets going forward.
Working on That 7-10 Split
If you’re even an occasional bowler, you know about the dreaded 7-10 split. For advisors, it can feel just as hard to keep clients invested in international equities, after U.S. equities have done so well for so long.
When It Comes to Mandates like ESG, It's All About Control
We believe that full portfolio control is more critical than ever in today’s investment landscape. Here’s why.
A Is for Annual Rebalancing. Do Your Investors Know Why This Matters?
Russell Investments believes in the value of an advisor. It is part of our corporate DNA. Delivering, communicating and elevating your value so your investors have a better chance at meeting their financial goals has never been more important.
The U.S.-China Trade War Escalates. Will Business Confidence Levels Take a Hit?
On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Research Analyst Brian Yadao discussed the implications for markets after prospects for a U.S.-China trade deal soured.
Bridging Generational Investing Goals, Circumstances and Preferences
We summarize investing trends across generations, including similarities and differences, as well as potential opportunities for financial advisors.
Five Key Ways Advisors Deliver Value in 2019
What is the value of a financial advisor in 2019? We break down the full value of an advisor’s services in this easy-to-follow equation.
Building Unlisted Infrastructure into Your Portfolio – Overcoming Four Key Obstacles.
Does exposure to unlisted infrastructure benefit the average portfolio?
The U.S. Ends Iranian Oil Waivers. so Why Did Oil Prices Drop?
In today’s episode of Market Week in Review, Head of AIS Business Solutions Sophie Antal Gilbert was joined by Chief Investment Strategist, Erik Ristuben. Together, they talked U.S. GDP, earnings seasons and Iranian oil waivers.
Digital Technology: Friend of foe? Part 1
According to a 2018 study of 403 advisors by BNY/Pershing, over 90% of advisors spend less than 5% of their day on various forms of social media...
Q1 2019 Equity Manager Report: The Pendulum Swings Back Toward Growth
Our manager research showed growth outperforming value, though managers from both styles of investing bought the 2018 fourth quarter correction.
Will Inflation Accelerate This Year?
Inflation has remained muted through the first quarter of 2019. Could the pace pick up later in 2019?
Repeat After Me - Ouch. Ouch! OUCH!
Robert Kuharic, Investment Strategist, shares 3 key numbers tax-smart advisors should know that illustrate the tax pain reality of 2018.
China Beats Expectations and Brexit Avoids the Cliff Edge. What Does It Mean for Markets?
On the latest edition of Market Week in Review, U.S. Institutional Senior Director Rob Cittadini and Senior Investment Strategist Paul Eitelman discuss recent economic data from China, the Brexit deadline extension, and the contrasting impact on global equity and fixed-income markets.
$20 Billion Club: DB Sponsors Shift Asset Allocations to Fixed Income
Members of the $20 billion club continue to look for ways to reduce the cost and risk of their jumbo-sized DB plans. Read about these latest trends.
Confessions of a Portfolio Manager #4: The Agency Problem
Today, we examine another type of behavioral bias: the agency problem, which looks specifically at the issues that arise when one party is expected to act on behalf of another.
2019 Global Market Outlook Q2 Update: The Pause That Refreshes
Markets are caught between incoming data that point to slower global growth and forward-looking factors that suggest improvement later in the year. With the pause in U.S. Federal Reserve rate hikes, we expect modest recovery in global cycle conditions.
The Function of the Form: What Advisors Need to Know About the New Form 1040
Are investors paying too much in investment taxes? Can you help them create better after-tax outcome? Without a basic understanding of the individual tax forms, it can be challenging to critically analyze. Given this is the first tax year to reflect the Tax Cut and Jobs Act, there are a few changes advisors should understand to better prepare for reviewing clients and prospects tax situations relative to their investments.
Target Date Glide Path Expectations
The industry provides a range of target date glide paths—and a range of different outcomes. See the rate of return for a given savings rate and retirement income target.
2019 Global Market Outlook - Q2 Update: The Pause That Refreshes
A shift in monetary policy among central banks has boosted markets since the start of the year. How much longer could the window of opportunity last before recession risks set in?
The Fed Could Still Hike Rates Again This Year. Here's Why.
As expected, the U.S. Federal Reserve (the Fed) left interest rates unchanged at the conclusion of today’s policy meeting, once again emphasizing a patient approach to monetary policy in the months ahead.
Best Practices for Preparing Your IRS Form 990
Most tax-exempt organizations are required to file the IRS Form 990 annually. The form demonstrates an organization is fulfilling its tax-exempt purpose, and its financial resources are being used to further these purposes. It’s also meant to encourage accountability and transparency of activities, governance and relationships.
Where Might You Find Returns in 2019? Consider Private Markets.
How much of your portfolio is allocated to private markets? How big is the total opportunity set?
Don't Break Your Team
I’ve talked with too many teams seemingly under stress over the last year, and not necessarily stress created by the markets. Rather, the stress has been internally induced, often stemming from poorly executed or evolved service models.
Fallen Angels to the Rescue? Ways to Survive the Next Liquidity Crisis
December offered credit investors a taste of what a real cyclical downturn might look like in a post-GFC (global financial crisis) world. Unsurprisingly, most did not enjoy the flavor.
DB Contributions Expected to Plummet in 2019
Observing the latest developments of the largest corporate defined benefit (DB) plans in the U.S. offers a glimpse into the DB industry, and perhaps a foreshadowing of things to come. After two of the strongest years ever for pension contributions, the coming year may feature the weakest seen in a generation.
5 Strategies for Outcome-Oriented Advisors in 2019
It’s the beginning of the year and markets have been volatile. You’re thinking about client reviews and outlooks, and the fee discussions that may come along with those meetings. As you prepare to step into that conversation, remember one thing: Your job is to help your clients stay focused on the outcome.
Stay of Execution: Will the Fed's Rate Pause Breathe More Life into the U.S. Expansion?
As we head deeper into the year, the U.S. economy continues to grind slowly forward despite trade concerns and Brexit worries. Markets have rebounded from their Christmas Eve lows, and the Fed has signaled that rate hikes are on hold for several months. Does this mean the all-clear has been sounded?
2019 Fixed Income Survey: Is a Change in Market Dynamics Afoot?
Throughout the year we ask leading bond and currency managers to consider valuations, expectations and outlooks for the coming months. Today, we ask: Is the Fed providing markets with false comfort?
It Takes 2 (Questions) to Make a Thing Go Right
If you've been in the industry long enough, you may have been able to look a client in the eyes and tell them the 3 greatest words an advisor can tell a client. “We did it.”
Not-So-Great Expectations: Will Market Struggles Continue This Year?
Is there a path upward for markets this year? Much has been made in the news recently about the possible onset of the next recession—and rightfully so, in our opinion, as we believe the next economic downturn is a matter of when, not if.
2 Critical Metrics for Your Advisory Business
For over 20 years, Russell Investments has partnered with thousands of financial advisors to help them evolve and deepen client relationships. I’ve found that when advisors hear about our data-driven business solutions capabilities, advisors are generally most curious about two things…
4 Potential Outcomes for Brexit: Probabilities and Market Impact
With no-deal Brexit risks increasing and sterling having already experienced a strong year-to-date rally, we are now expecting to see sterling fall against the dollar and euro.
4 Psychological Reasons Investors Buy
Early on in my career, I learned there are four psychological reasons investors buy (listed from strongest to weakest).
Do Your Client Portfolios Carry Hidden Baggage?
After ten years on the road, I finally bought a new piece of luggage and discovered that my act of consumerism and client portfolios have a lot in common. Have I piqued your interest?
January FOMC Meeting: A Pause, but (Probably) Not the End of the Tightening Cycle
Leading into today's Federal Open Market Committee (FOMC) decision, Chair Jerome Powell and a host of regional Federal Reserve (the Fed) bank presidents had unanimously expressed support for a pause in the Fed's tightening cycle. Even perma-hawk Esther George, from the Federal Reserve Bank of Kansas City, advocated for a cautious and patient approach to monetary policy in her speech a few weeks ago.
2018 Capital Gains: Adding Insult to Injury
Investors are likely looking at their portfolios and trying to determine how the volatile fourth quarter impacted their returns and how it impacted progress toward their financial goals. Having the market (Russell 3000® Index) pull back -14% in a single quarter and drop -5% for the year is tough, but for taxable investors, the possible tax hit will add insult to injury.
Q4 Equity Manager Report: Playing Defense
Defense wins championships, the saying goes. Did it also help equity managers survive an otherwise bruising fourth quarter?
Winning New Business from Existing Clients
Asset allocation proposals--helping an investor visualize how a particular asset allocation can best help them meet their goals--are a mainstay of winning new clients. But proposals can also be used to generate new business from existing clients. One way is through introducing the concept of asset location: allocating assets across the various accounts within a household to be more tax-efficient.
Top 5 Investment Themes to Watch for 2019
How might 2019 shape up across the investment landscape? Here’s our take on the key issues to pay attention to.
Excellent Adventure or Bogus Journey? How the Next Recession May Unfold
We believe the U.S. is likely to experience a recession by the end of 2020. How might it stack up to previous ones?
Our Top 10 Favorite Blog Posts of 2018
Which blog posts generated the most interest from readers in 2018? We wrap up the year with a look back at our favorites.
Bah Humbug: U.S. Markets Tumble to Yearly Lows After Fed Guidance Projects More Rate Hikes for 2019
Markets dropped sharply after the Fed raised interest rates again today and indicated two additional increases are likely in 2019.
To Fear or Not to Fear the Yield Curve
An inverted U.S. Treasury yield curve has historically been a telltale sign of a looming recession for the U.S. Does the recent curve flattening spell trouble for the U.S. economy?
2019 Global Market Outlook: The Late-Late Cycle Show
Can markets grind higher in 2019 before the clock runs out on the current cycle? See what our strategists’ views are for the year ahead.
U.S.-China Ceasefire: Reasonable Outcome for Markets, Brief Respite for Economies
How might the ceasefire on new tariffs between the U.S. and China impact markets and economies?
Why ESG Matters to Investors and Investing
We believe that embedding ESG factors into an investing strategy can accomplish dual mandates of delivering value and aligning with investor values. Here's why.
2018’s Biggest Winners Turned into the Biggest Losers This Week
What's driving the current market selloff?
Multi-factor investing, demystified: Part 2
Here’s a recap of the second part of our podcast on multi-factor investing, examining the strategy’s potential pitfalls.
Multi-factor investing, demystified: Part 1
Here’s a recap of the first part of our podcast on multi-factor investing, answering frequently asked questions such as: What is a factor? What are some common factors? Why is multi-factor investing so popular today?
Q3 Equity Manager Report: The Froth Has Left the Market
Do markets still have room to run? See what equity managers across the manager universe are thinking in our Q3 report.
Year-End Fixed Income Survey: Opposing Viewpoints from Global Credit and Interest Rate Managers
See what our latest survey of global fixed income investment firms reveals about expectations for U.S. interest rates, credit fundamentals and emerging market foreign exchange.
Mama Mia! Here We Go Again: Italian Budget Woes Unnerve Investors
Italy's proposed budget deficit for 2019 has been ill-received by markets. Could things get worse before they get better?
Value and Growth Stocks: The Case for Being Overweight in Both
Growth and value stocks are often seen as opposing one another—but we believe they can be complementary within an equity portfolio.
Do Markets Care About Midterms?
What impact are the looming U.S. midterm elections likely to have on financial markets?
Fed Hikes Rates Again in Slam-Dunk Decision. Could a Trade War Derail Future Raises?
As expected, the Fed raised interest rates today following its September policy meeting. Could the escalating trade war between the U.S. and China impact plans for future increases?
2018 Global Market Outlook – Q4 Update: Maximum Pressure
What impacts could escalating trade tensions and rising U.S. interest rates have on global markets and economies in the months ahead? See what our strategists’ views are for the fourth quarter of 2018 and beyond.
How Do the Rich Get Richer? It’s Probably Not from Chasing Performance.
A new study suggests that earning wealth through the stock market may be better accomplished by focusing on slow and steady long-term growth, rather than chasing top-tier performance.
Is the Corporate Bond Market Overheating? Look at the Lenders.
We believe that warning signs are starting to creep into the corporate lending market—and that the ramifications could be problematic for credit investors.
2018 ESG Survey
We asked hundreds of equity and fixed income managers how they are integrating ESG factors within their investment process. Which countries are lagging their peers? Does AUM correlate with ESG integration? Today, we share our findings.
Investing is a house
When looking to build investment portfolios that target and solve for specific client objectives, we should be conscious of our competencies. We believe finding the appropriate expert to address or complement investor needs is just as important as acknowledging proficiencies.
Governance Checklist for Today’s Fiduciaries
Corporations are delegating more of their asset management responsibilities than ever. How does increased delegation affect fiduciary oversight?
Demystifying Big Data: How to Critically Assess Quantitative Investment Signals
As leaders in manager research, we have unique insight into the implementation of big data in equity portfolios. Today, we share our key observations.
Confessions of a Portfolio Manager: Preparing for a Market Crash
Senior Portfolio Manager David Vickers discusses the difficulties of predicting stock market crashes, while offering up four watchpoints that could help fuel the next one.
Why Meetings Matter
We believe detailed conversations with managers are crucial to developing informed opinions on investment strategies. Here’s how our manager meeting process typically unfolds.
Is Goldilocks Awake? Time to Consider Exposure to Alternatives.
In the concluding piece of a three-part series focusing on how to potentially get returns in today’s bull market while protecting against the downside, Global CIO Jeff Hussey outlines why we believe alternative investments should be considered in a multi-asset investing strategy.
No Shortcuts in This Summer Reading List
We offer up three books to consider reading as summer hits its stride.
2018 Global Market Outlook – Q3 Update
Do increasing political risks pose to a threat to global economic growth? See what our strategists’ views are for the third quarter of 2018 and beyond.
Q2 2018 Fixed Income Survey: The U.S. Growth Domino Effect
Every quarter we ask bond and currency managers to consider valuations, expectations and outlooks for the coming months. Today, we’ve put the spotlight on U.S. rates and inflation expectations, credit markets and casualties from rising U.S. interest rates.
June Fomc Meeting: Slow and Steady with Another Rate Increase
In predictable fashion, the Fed increased borrowing costs again today. How long could the central bank stick to its quarterly rate-hiking rhythm?
Are Recession Risks Increasing in the U.S.?
The U.S. economy has been growing for nine straight years—but current macroeconomic indicators hint that the good times may be coming to an end as soon as next year.
Uncertain Times for Italian Politics: Questions and Watch Points
Italy’s proposed coalition collapsed over the weekend after the president refused to accept euroskeptic Paolo Savona as Minister of Finance. Markets have since reacted, with Italian government bond yields rising above their eurozone counterparts. Unsurprisingly, with the possibility of another election in the cards, market sentiment has shifted to risk-off in light of the political uncertainty.
It’s Not Just the Tweets. Some Things Are Different.
Fiscal stimulus in the U.S. and newly imposed tariffs make today's late-cycle bull market stand apart from previous ones. Does this mean it could end differently too?
Should I Stay or Should I Go?
A strong start for markets in January was quickly replaced by uncertainty and volatility, which continue to this day. How might the rest of the year play out?
11 Months to Go: Why We Expect a Soft Brexit
We believe there are five primary constraints for the UK that will push it toward a soft Brexit when it officially leaves the EU next March.
Did Active Management Hold up During First-Quarter Volatility?
The first quarter of 2018 was plagued by volatility in equity markets. How did active managers fare in light of this?
What's Behind the Recent Commodity Rally?
Commodity prices have picked up steam recently, particularly in energy and metals. How long could the surge last?
Optionality: Why We Use Derivatives to Manage Risk
In the first of a three-part series on getting returns in today’s bull market while protecting against the downside—running with the bulls without getting trampled, as we like to say—Global CIO Jeff Hussey explains why using put and call options may help.
#DeleteFacebook: Data Privacy Concerns Flood the Social Network
On March 16, news broke that British political consulting firm Cambridge Analytica had gained improper access to data from as many as 50 million Facebook users (an estimate that has since been upped to 87 million).
The Bond Market Is Waving a Flag That We Should Pay Attention To
The slope of the U.S. Treasury yield curve is often one of the more reliable precursors of a recession. Is it hinting that an economic downturn may be brewing in the not-too-distant future?
Q1 2018 Fixed Income Survey: Expectations for Rising Rates, Volatility and Emerging Markets
See what our quarterly survey of global fixed-income investment firms reveals about expectations for increasing interest rates, market volatility and emerging market currencies.
2018 Global Market Outlook – Q2 Update: Shifting Winds?
Is change in the wind for global investment markets and economies? See what our strategists’ views are for the second quarter of 2018 and beyond.
Hawks, Doves and Jays: Takeaways From First Fed Rate Hike Under Jerome "Jay" Powell
With new chair Jerome Powell at the helm, the Fed increased borrowing costs today for the sixth time since the U.S. economic expansion began. Can markets expect continued rate hikes under Powell's watch?
A Curve in the Fiduciary Road: What the 5th Circuit Court of Appeals' Decision May Mean for Advisors
The Fifth Circuit Court of Appeals’ decision essentially wipes the Fiduciary Rule off the books. But, that doesn’t mean everything returns to the way it was before the Rule.
Record-Breaking Contributions and Returns for $20 Billion Club
2017 was a record-breaking year for the $20 billion club—our name for the U.S. publicly-listed corporations with the largest pension liabilities—in at least five different ways. Contributions were double 2016 levels and nearly triple 2015 levels.
Retirement Risk: Don't Trade Downside Protection for More Upside
Are Fidelity Investments’ target date funds too risky? We evaluate the short and long-term risks for a typical participant.
Materiality Matters: Targeting the Esg Issues That Can Impact Performance
We’ve developed a new way to measure a company’s ESG (environmental, social and governance) score. Our research suggests that these material ESG scores can potentially provide more insight than traditional ESG scores.
Adjusting Your Portfolio? 3 Implementation Capabilities to Keep in Mind
In the concluding piece of our three-part series on portfolio management best practices, Global CIO Jeff Hussey identifies the core capabilities we believe are necessary to successfully carry out a portfolio implementation strategy.
The Counterargument: Why We Believe Giving up on Europe in Favor of the U.S. Is Wrong
We respectfully disagree with BlackRock’s stance on U.S. and European equities. Here’s why.
Why Uncomfortable Investing May Be the Way Forward
The ability to withstand the next market correction may require making investment decisions that go against the grain. Can a multi-asset approach help?
Why the Things In-Between Matter: Diversifying Beyond U.S. Stocks and Bonds
During times of market volatility, we believe that exposure to in-between asset classes may be of increasing value. A look at their performance during the recent market downturn suggests as much.
U.S. Consumer Price Index Rises Sharply. Does This Mean More Fed Rate Hikes Are in Store?
U.S. inflation data for January came in stronger than expected. What effect could this have on future Fed interest rate increases?
Living in the Tension Between Long Term and Tactical
In the second of a three-part series on portfolio management best practices, Global CIO Jeff Hussey discusses the importance of knowing the preferred position of your portfolio—and of anchoring tactical views to a set of strategic beliefs.
What’s Behind Monday’s Stock Market Sell-Off?
We believe Monday’s stock market pullback was likely driven by concerns over valuations, rather than fears of a recession. Here’s why.
Do Fed Rate Hikes Mean Bond-Market Disaster?
Recent media coverage has often equated future Fed rate hikes as disastrous for the bond market. We explain why that’s unlikely to be the case.
Ocio Innovation. What Does It Look Like?
Impactful innovation only occurs when OCIO providers work as true fiduciaries. We believe there are four OCIO innovations in particular that meet this bar.
We Signed the Fx Global Code. Why Are Other Signatures Missing?
As a provider of foreign exchange services that places a premium on robustness and transparency, we’re proud to have signed the FX Global Code. We believe others should follow suit.
CalPERS Increases Equity Exposure. We Believe a Different Approach May Be Worth Considering.
At a time when equity valuations are at historic highs, increasing exposure means increasing risk. We believe there are better approaches that may help deliver a portfolio's required returns.
Managing success: How do active managers handle increasing AUM?
Some larger AUM managers can produce strong returns—but how? Our director of investment strategy research, Leola Ross, explores possible reasons and shares our preferences for evaluating managers with increasing AUM.
The Top 5 Most-Read Posts of 2017
Which blog posts generated the most interest from readers in 2017? We wrap up the year with a look back at the top five most-viewed posts on the Russell Investments blog.
Taxes, Taxes, Taxes: Economic and Market Implications of the New U.S. Tax Bill
The U.S. Congress passed a significant bill today that makes sweeping changes to the country’s tax code. How much of a boost could the new law provide to financial markets and the nation’s economy?
Happy Holidays: Fed Wraps up 2017 with Another Rate Hike
The U.S. Federal Reserve (the Fed) delivered another rate hike today, raising its target policy rate by 25 basis points to a new range of 1.25-1.50%. The decision was widely anticipated by economists and fixed income investors.
2018 Global Market Outlook: Running with the Bulls
Will the global growth momentum of 2017 carry over into next year? Is there a risk of a pullback in the short term? See what our strategists' views on global investment markets and economies are for the year ahead.
How Much Runway Is Left for the U.S. Expansion?
The U.S. economic expansion is now the third-longest on record. Does this mean a recession is looming? Senior Investment Strategist Paul Eitelman digs into the data and assesses the risks.
The Risk of Taking Risks
In the concluding piece of our three-part series on principles of the low-return imperative, we discuss why we believe investors can no longer take on risks they don't expect to get paid for—and identify two key risks we see as unrewarded.
The Importance of Implementation Efficiency
In the second of a three-part series on principles of the low-return imperative, we zero in on the value of efficient implementation—and identify three ways it may help achieve desired outcomes.
It's Late in the Market Cycle. Do You Know Where Your Portfolio Is?
Global CIO Jeff Hussey discusses why we believe having a clear view of your portfolio—with detailed, real-time knowledge down to the street level—is essential in today's market environment.
Bank of England Rate Hike: One and Done
The Bank of England (BoE) has bitten the bullet and hiked the base interest rate from 0.25% to 0.5%, but in a dovish turn also provided forward guidance that outlines a very gradual path for future hikes. This was a close call with compelling arguments in favor and against.
Mutual Fund Ratings, the Wall Street Journal, and the Value of Manager Research
By definition, mutual fund star-rating systems focus on past performance—not future results. We believe that the key to identifying potential outperformers lies in extensive manager research—and that's what we do.
New Report Spotlights Russell Investments’ Multi-Asset Investing Approach
In a recently-released report from Clear Path Analysis, multi-asset solutions team members Brian Meath and Rob Balkema explain why we believe a multi-asset investing strategy is the right approach.
Life in a Low-Return World: To Hedge or Not to Hedge?
Currency Strategist Van Luu shows how thoughtful management of currency risks and opportunities may help reach investing objectives, despite the low return environment.
3 Reasons to Consider Infrastructure Investment
In the first of a three-part series on principles of the low-return imperative, we go under the covers and explain why infrastructure investment may help investors improve the probability of achieving their objectives.
Missing the Forest for the Trees: Why Valuation Matters
In today’s expensive U.S. equity market, valuation may be more paramount than ever—and not necessarily just in the long term.
Harvard Goes Multi-Asset
Harvard University’s endowment has transitioned from a portfolio of asset class sleeves to a generalist investment model—an approach we see clearly as multi-asset. At Russell Investments, we made the same move eight years ago—and are proud of the single, globally integrated investment team we have today.
2017 Global Market Outlook Q4 Update: Momentum vs. Asymmetry
The final installment of our 2017 global market outlook is here. See our strategists’ views on global investment markets and economies.
A Case for Multi-Asset Investing: The Low-Return Imperative
The data suggests that future market returns are likely to be lower than in the past. Can a multi-asset investing approach help make up the difference?
Problems of plenty: Can active managers manage their AUM?
It’s no secret that Russell Investments expects active managers with relatively low assets under management to have better average performance. But as Investment Strategist Leola Ross explains, increasing assets under management is not necessarily the kiss of death.
A New Approach to Reduced-Carbon Portfolios
Environmental, social and governance (ESG) investing has led to a spike in reduced-carbon portfolios. But the standard investing approach may actually be lowering exposure to carbon alternatives like renewable energy.
Quantitative Tightening Likely This Fall: What It Might Mean for Markets
The Federal Reserve is widely anticipated to begin the process of balance sheet normalization, or quantitative tightening, this fall. What kind of impact to markets is expected?
Why Downside Protection May Matter More Than Upside Growth
Portfolio Analyst Stella Liu explains why, in today’s environment, we believe preserving capital may be more important than chasing growth.
Making Sense of Current Equity and Bond Pricing
Jihan Diolosa, Associate Director of our UK Institutional team, poses questions to our lead multi-asset portfolio managers based on some of the key issues keeping investors awake at night.
Active, Passive and the Low-Return Imperative
Global CIO Jeff Hussey discusses why we believe investors should consider a multi-asset approach in today’s low-return environment.
Where Did the Stock Market Volatility Go?
Stock market volatility in 2017 has been so low that it’s been hard to miss. This unusual tranquility may be sowing the seeds of future turmoil.
Active vs. passive: Should you use both in fixed-income?
The debate between active and passive management in fixed-income continues. We take a look at both sides of the coin for investors.
2017 Global Market Outlook — Q3 update
We’re in a late-cycle, momentum-driven market, where valuation is at an extreme. Momentum can drive markets beyond fundamentals for an extended period. No investment process is going to pick the peak in the cycle, but we’d lean out as the risks increase.
Debunking Active Management Myths
With $504 billion flowing into passively managed products and $316 billion fleeing actively managed mutual funds in 2016 in the U.S., the active-versus-passive debate appears to be tipping in favor of passive management.
Global Market Outlook 2017 Mid-Year Update: Late-Cycle Lean Out
It’s time for our mid-year update to our 2017 Global Market Outlook. And the short story is that we’re not changing many of our views from our annual outlook.
The Trump Agenda Update: Does It Still Matter to Investors?
The Trump agenda was an ambitious one. Senior investment strategist Paul Eitelman breaks down its progress piece by piece and shows the potential impact on markets and investors.
Our Summer Reading List for Investors
Although we’re just five months into 2017, I’ve focused on the notion of building a foundation in the new year, as well as looking to the future. It’s with these concepts in mind that I’ve approached my 2017 reading list and come up with a selection of books that encompasses economic fundamentals, modern international economics, and the art of market forecasting.
Investment Strategy: How to diversify across active and passive
We all know that investing is inherently risky and that diversification is one way to help to manage risk. Most investors or advisors—who know just how important a diversified portfolio can be—would not go all fixed income, or all value stocks, or put all their money in a single company.
Mean Reversion Strategy: Bet Against It at Your Peril
Russell Investments’ Chief Investment Strategist, Erik Ristuben explores the importance and power of mean reversion in this latest post.
Senior Loans in a Multi-Asset Portfolio?
When looking to help diversify a multi-asset portfolio, one of our experts presents the case for when and why an investor might consider senior loans.
100 days of Trump: A look at U.S. Equities Now
Russell Investments’ Chief Investment Strategist, Erik Ristuben examines the impact on US equities of U.S President Trumps’ first 100 days in office.
Brexit Heats Up: 4 Things to Watch
Russell Investments’ Senior Investment Strategist, Wouter Sturkenboom reviews the Brexit drivers for the upcoming June 8 snap election as well as four key things for investors to watch as the mechanics of the UK leaving the EU get underway.
French Presidential Election: Macron and Le Pen Run-Off May 7
Russell Investments’ Senior Investment Strategist, Wouter Sturkenboom reviews the initial French presidential election results and gives his views on what to expect from eurozone markets in the days ahead.
Recession: Is it still unlikely in the U.S?
Senior Quantitative Investment Strategy Analyst Kara Ng reviews key economic indicators in the U.S. and if a potential recession in the economy is still unlikely.
Investment Strategy: What Matters in the Search for More Return Sources
Managing Director, Investment Practice Adam Goff believes that an investment strategy, when dynamically managed, using cycle, value and sentiment as a way to examine opportunities, is more likely to help investors achieve their intended outcome.
Plan Sponsors: What Might You Learn from the $20B Club?
Are you using the whole pension toolbox? See what large plan sponsors are up to in this latest blog post from Bob Collie.
Investment Strategy: The Right Mix of Active AND Passive?
Active AND passive. The case for both. Russell Investments Global CIO Jeff Hussey explains.
Global Markets Forecast: Is the Rally Based on Fake News?
Key points from Russell Investments’ latest Global Market Outlook: See what their strategists believe is ahead for global markets in 2017.
2017 Global Market Outlook — Q2 Update
Our global team of investment strategists warn that investor expectations have run ahead of market fundamentals in the global equity markets. They maintain a call for caution as inflated expectations for global growth and U.S. fiscal policy drive markets higher, despite looming global economic headwinds.
The Value of the U.S. Dollar: Where to Next?
The value of the US dollar is a key player across global economies & markets. How is the value shifting and what might it mean for investors?
When Should We Care About Geopolitical Risk?
Russell Investments’ Senior Investment Strategist, Wouter Sturkenboom explores geopolitical risks through the three building blocks of our investment process: Cycle, Value and Sentiment.
Trump vs. Emerging Markets: Who might win?
Emerging Markets rebound after post-election "Trump slump," indicating that Trump’s economic policies may benefit some emerging markets countries and assets.
Should Investors Stay Home or Go Global in 2017?
Russell Investments’ Chief Investment Strategist, Erik Ristuben explores global investing against 2017’s altered political backdrop.
Today's ESG Investing Is Not Your Father's SRI
Environmental, Social, Governance (ESG) is much broader than the Socially Responsible Investing (SRI) of the past.
Renewable Energy: The Implications for Investors
Renewable energy is growing and offers potential opportunities for investors, but also challenges. Learn more about what investors may need to know.
Interest Rates and the U.S. Stock Market: What's the Real Relationship?
Interest rates and the U.S. stock market have a complex relationship. Don’t be fooled by correlation statistics on the matter. Read more now.
2017 Global Market Outlook
The search for investment portfolio returns is not going to get any easier in 2017 against a backdrop of record U.S. equity prices, narrow credit spreads and low bond yields.
The Search for Returns in a Low-Return Environment
3 rules that may help your clients navigate the low-return environment.
2016 Review: Global Politics, DOL Rule and Volatility
The top five most read Russell Investments blog posts of 2016 cover a multi-asset approach to investing strategy during volatile times, understanding the potential impact of political events on markets and preparing for the DOL rule.
Italian Referendum and Global Markets: What's next in 2017
Multi-asset investment strategist Wouter Sturkenboom looks at the Italian referendum outcome and its potential impact on 2017 global markets for investors.
Will the Election Trump the DOL Rule? Don't Bet on It.
Despite speculation about the fate of the DOL fiduciary rule under the new Trump Administration, Russell Investments believes advisors should stick to their current implementation plans.
The Coming Fiduciary Rule: A Promising Time for Advisors?
How might the coming DOL fiduciary rule impact advisors’ practices in the days to come?
The U.S. DOL Fiduciary Rule: A European Perspective
From my office in London, when I look at the newest U.S. Department of Labor (DOL) fiduciary rule from across the Atlantic, it appears that the regulations shift what a U.S. advisor is required to deliver to end-investor clients, from suitable advice to best interests. And that shift—toward the interests of end investors—appears to be happening nearly everywhere in the world right now, as my colleague, Tim Noonan mentioned just a few weeks ago.
Passive Investing: Are You Buying High?
Despite its recent popularity, many still don’t understand the potential opportunities and risks of passive investing. One of our experts takes a look at the potential trap of buying high.
Fiduciary Responsibility: A Global and Welcome Disruption
Introducing a four-part series on the growing, and welcome, changes in fiduciary responsibility for financial planners worldwide, starting with a look at the latest DOL rule.
LDI: Can Interest Rates Ever Be Too Low?
Low interest rates should not affect whether a pension plan chooses to pursue an LDI strategy, but they may change how that strategy is implemented.
Market Timing amid Volatility – Tricky as Ever
Recent volatility has reinforced the benefit of staying the course. Trying to time the market to miss the worst days requires two decisions - getting out and getting in. It’s hard to get one correct, let alone both.
Poised for a Rally?
Russell Investments’ Senior Portfolio Manager Rob Balkema discusses how our strategists’ latest global market outlook insights might be implemented in a multi-asset portfolio, with special focus on emerging markets.
The Impact of 2008 Is Still Being Felt by Pension Plans
Pension plan funded status remains stubbornly low due to low interest rates despite many other key plan metrics returning to pre-crisis levels. Could the 2008 financial crisis be to blame? Bob Collie investigates.