The ideal rebalancing range varies by investor and depends on an investor’s risk tolerance and market views, among other factors. In a prolonged equity bull market, wider rebalancing ranges will result in higher returns, but also increase a portfolio’s risk.
Private credit is being sought—with the goals of income and capital preservation—to achieve real capital growth and drive portfolio returns among retail and institutional clients alike.
A transition away from fossil fuels is likely required to avert a significant warming of the planet. The primary risk to markets is the energy transition itself, which would require substantial capital expenditures.
U.S. equities have ruled the roost for the better part of the last decade, but another region may emerge as the leader if the business cycle changes.
Russell Investments’ 2023 Manager ESG Survey, now in its ninth year, continues to offer valuable insights into the evolving landscape of ESG practices within the investment management industry.
The Federal Reserve (the Fed) has made some relatively painless progress thus far in its inflation fight. Some other prominent economists have walked back their forecast for a near-term recession.
Some investors are considering making tactical tilts to their fixed income portfolios to take advantage of the current high-yield environment.
There is a growing movement among investors to align their portfolio to their values or belief systems. Advisors can use Direct Indexing products and Separately Managed Accounts to help their clients pursue faith- or values-based investing.
Most investors are aware of certain taxes on their investments, such as on dividends, interest and capital gains. But those are just the tip of the iceberg.
The U.S. Treasury yield curve is currently inverted, with yields on short-term bonds higher than yields on longer-term bonds. Some expect this to unwind with short-term bond yields falling faster than longer-term yields. Amid these expectations, those investors are wondering if they should consider reallocating to shorter-term bonds.
Thomas Jefferson University (TJU) developed a strategic resource allocation framework to rationalize and simplify the complex legacy portfolio structures it had inherited through mergers and acquisitions.
During Q4, we believe there is an elevated risk of market volatility when monthly U.S. inflation data is released, quarterly earnings season begins, and major central banks meet.
We believe a mild U.S. recession is more likely than not in 2024, although a soft-landing scenario cannot be ruled out. A recession is also likely in the UK and eurozone, but appears less likely in Australia.
Many advisors are finding their clients show little interest these days in how the markets are doing.
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
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%.
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
Banks have reemerged as a potential pain point for the investment community, as rating agencies recently embarked on a downgrade cycle in the sector.
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.
Soft consumer confidence and property-market woes are playing a large role in the slowdown of China’s economy.
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.
Diversifying a portfolio means spreading the investments across a variety of asset classes, industries and geographies.
Advisors can capitalize on the expected transfer of wealth between generations, the expected wave of retirements among older advisors, and referrals from other professionals.
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
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.
While money market assets have risen in recent years, returns have historically lagged behind a diversified portfolio.
Investors should be aware of potential real-time market exposure risks when implementing large changes to their portfolios.
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.
Referrals from established clients are a good way to organically grow an advisory business.
Australia and Canada are experiencing a surge in population growth, while growth rates have slowed substantially in the UK due to post-Brexit frictions.
Equity and fixed income markets experienced heightened volatility amid the Q2 debt-ceiling saga, while currency and derivatives markets were mostly unaffected.
The sale of a business, property, or large stock position can generate a financial windfall that may trigger a large tax liability.
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.
Higher yields for corporate bonds generally correspond to higher credit risk based on an issuer's credit rating.
Q2 2023 was a more favorable environment for Emerging Markets, Europe, Australia and Real Assets managers.
UK gilts rally after headline and core inflation numbers surprise to the downside.
An advisor’s greatest contribution to an investor’s bottom line is their guidance through volatile markets.
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?
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.
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.
The ARCS strategy is a currency management strategy that gives a diversified exposure to three factors: Carry, Value and Trend.
In 2022, the funded status of $20 billion club members reached its highest level since 2007 due to steep rises in discount rates.
Spring cleaning is essential to a cleaner home, just like rebalancing is essential to keeping an investor on track.
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.
A direct indexing solution can help make an investment portfolio as personalized as a home.
Aggressive monetary policy tightening in developed markets led to a drawdown in house prices in 2022, but not a meltdown.
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.
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.
The complexity of some risk management platforms can lead to a steep learning curve for institutional investors, draining resources and creating stress.
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.
