Investment Insights

Latest Investment Insight - 09/22/17

A Macro View – Impact of the Fed’s Decision to Reduce Its Balance Sheet

As was widely expected, the Federal Reserve (the Fed) on Wednesday announced no change in the target Federal Funds rate but did signal its intent to begin reducing the size of its balance sheet beginning next month. The plan, as laid out in June, will allow roughly $6 billion in treasury securities and $4 billion in agency debt and agency MBS per month...

09/20/17

The equity market has been kind to investors thus far in 2017. US equity market returns were relatively high in the first half of the year; and international equities (both developed and emerging markets) took off, particularly in growth-oriented stocks. With this in mind, we thought it would be useful to examine how advisors using the Envestnet platform were allocating portfolios, and which investment styles were garnering the most advisor attention.

07/24/17

With the first six months of 2017 now behind us and the markets providing a tailwind, we thought it would be an interesting exercise to extend our analysis of last month’s Envestat (“Are Investors Feeling Overconfident”) and focus on where the flows are going by investment style and asset class. We aimed to answer the following questions:

• If we are in a “risk-on” environment, what investment styles are winning the bulk of mutual fund and ETF flows?
• What styles are experiencing the largest outflows?
• Are the results comparable between UMA and APM portfolios?

06/01/17

After many years of market gains, consumer confidence is high. The market environment appears to be making investors brave and willing to take on more risk. Is now the time to take on more risk and are consumers investing as if they’re invincible? Have they forgotten how devastating large losses can be to a portfolio and how long and difficult it can be to recover?

05/01/17

In this edition of Envestat, we examined average client and advisor fees over the past three years by account size and distribution channel to answer some key questions:

• How significant is the fee compression?
• Does fee compression differ based on the size of the account?
• How are various wealth management distribution channels affected by fee compression?

04/28/17

While much has been assumed about fee compression in the investment advisory space, there has been little data available to help financial advisors and wealth management firms truly understand the marketplace. Guessing blindly about pricing trends has often led advisors to be concerned they are charging fees that are too high whereas firms may assume their financial advisors are charging submarket fees.