Uday Khanna’s Post

The evolution of passive investing and the rise of active Exchange Traded Funds (ETFs) has prompted investors to prioritize a nuanced understanding of various portfolio-building strategies. Julia Writs, Investment Strategist, and Phil Ravenscroft, Head of Portfolio Construction, dissect navigating active vs. passive strategies to create robust portfolios in diverse market environments. #InvestmentStrategies #Investing https://lnkd.in/eAq8fVj4

The insightful macro view from our Investments Solutions Leader of the Month has me wondering. Is this the year when financial markets finally get back to normal? An equally valid question is, when exactly were financial markets last truly normal? Historically rapid Federal Reserve interest rate hikes to combat rampant inflation followed the global COVID-19 pandemic, which followed the decadelong aftermath of the 2008 Great Financial Crisis, which followed an era of lax mortgage standards for U.S. home buyers at the same time as lax national lending standards for countries in the euro area, which followed the fall of the Soviet Union, and so on. You get the picture. “Normal” financial markets might just be an illusion, or at best short-lived occurrences. This kind of perspective can help financial advisors in their discussions with clients, and the perennial quest to keep them invested over the long-term.

Happy to participate in the Wealth Solutions Report and provide some of our core 2024 investment ideas/themes. Thanks Chris Latham and Larry Roth CPA, JD for featuring me and MRB - The Macro Research Board in this edition. #Investments #WealthManagement #FinancialAdvisors #PortfolioManagment #macro #research 

Meet our newest Investment Solutions Leader of the Month, Phillip Colmar of MRB - The Macro Research Board. Other entries this month include: Orion Adds AllianceBernstein Municipal Fixed Income SMAs Morningstar’s Advisor Workstation Adds iCapital’s Alternative Analytics Savvy Wealth Launches Investment Management Platform For Its Advisors Vanguard Launches 2 New Municipal Bond ETFs StratiFi Technologies Forms Strategic Partnership With AdvizorStack Oppenheimer & Co. Inc. Continues Expansion Of Public Finance Team Leadership Venn by Two Sigma Partners With SimCorp On Axioma Equity Factor Models Sound Income Strategies’ Fixed Income ETF Tops Morningstar List For 2023 Cerulli Associates Finds Passive Fund Strategies Overtake Active In December READ MORE: https://lnkd.in/eys3gNBH #WealthManagement #FinancialAdvisors #PortfolioManagement #Investments

How can the market have price discovery when passive, price-agnostic "investing" encompasses more assets than investors who have differing opinions on fundamental value? This is a question worth pondering. With the rise of passive investing, more assets are allocated to index funds that track a particular market rather than actively managed funds led by investors with differing opinions on those assets' underlying value. This trend has led to a decrease in price discovery, making it harder for investors to find the true value of their assets. In other words, the tail is wagging the dog. As we look to the future, it is important to consider how this trend may continue to impact the market and how we can work to ensure that price discovery remains a vital part of the investment process. #passiveinvesting #pricediscovery #investing #markettrends #investmentadvisors #portfoliomanagement https://lnkd.in/eRJjAhtz

🚀 Unlocking Portfolio Potential with Alternative Investments 📊 In light of market unpredictability, the highlighted discussion emphasizes alternative investments as a strategic approach for portfolio diversification and risk mitigation. Highlighting alternatives such as real estate and hedge funds, the conversation underscores their role in offering downside protection and enhancing returns in various market conditions. A key takeaway is the importance of these investments in creating a more resilient financial strategy for investors seeking to navigate the complexities of today's investment landscape. For an in-depth exploration, consider reading the full article here: https://lnkd.in/ekbuDPh6 #InvestmentStrategy #WealthManagement #AlternativeInvesting 💡

Too early to pluck🍇👇 Ever wondered what happens when an investment needs more time to mature? Funds typically operate within a 10-year lifespan, with average investments lasting between 3-5 years. But what if investments require more time to reach full potential? Enter the Continuation Fund (CF). The fund managers create another fund (Continuation Fund/CF) usually before the end of the expiring fund. This fund allows managers to extend the investment period beyond the initial fund's lifespan. The fund managers give existing investors opportunity to rollover their investment into the CF whilst allowing new investors to also buy into it. The CF acquires the existing underlying assets of the expiring fund, thus buying them precious time to mature. However, an existing investor may not be willing to roll-over into the CF. In this case, the CF can acquire the investor’s interest in the expiring fund for a fair market value. And this is where things get a little bit interesting. The fund managers naturally are expected to make the most IRR for its investors; meaning getting the highest price possible for the sale of the underlying investments. However, the fund manager’s interest in the CF and its commitment to new investors may conflict with its commitment to the exiting investors. As a result of this, the data of underlying investments are key into deciding the fair market price to be paid to the exiting investors. Pros of CF 👍 - 💡Disclosed underlying asset and informed decision as against new fund where investors invest in blind pool. -💡enhanced value creation in portfolio company and higher chance of maximum returns. - 💡ability to weather economic downturns without pressure to sell. - opportunity to raise more funds from new LP, make more investments, or increase stake in existing portfolio companies, if necessary. - 💡minimises loss of returns for exiting investor in what could have been a bad deal if fund managers were to be pressured to sell. -💡provides immediate liquidity for exiting investor. -💡boosts private equity secondary market Cons👎 - 💡possible dissatisfaction from exiting investor. -💡conflict of interest As a result of the possible issues that can arise from creation of CF, It's crucial for fund managers to navigate these complexities to ensure fair outcomes for all parties involved. Continuation Funds, also known as GP-led secondary market transactions, offer a strategic approach to maximizing investment potential while balancing the interests of all stakeholders. 🌟 #InvestmentInsights #PrivateEquity #ContinuationFund

“The focus needs to be on what the equal-weighted benchmarks are doing because they are more reflective of the actual market participants’ experience with their portfolios.” For this edition of the “What's In My Model Portfolio” series, we spoke with Eric M. Branson, director of investments, at $1.8 billion AUM Cyndeo Wealth Partners, about the gamble lurking inside the market-cap weighted S&P 500, building a proprietary private credit fund of funds and testing the waters with direct indexing.

Return dispersion in private equity has been large over the years, highlighting the importance of manager and asset selection. Learn more in our 2024 Alternatives Outlook: http://spr.ly/6049TNBuT

The top 20 index funds for 2023 has some fairly risky plays. Appearing high in the list are leveraged funds and ETFs tracking the digital assets industry. Despite their sizable returns, advisors are recommending caution. With comments from: Noah Damsky, CFA, the principal at Marina Wealth Advisors; Ethan Lang, the owner of Launch Wealth; and Sean Beznicki, CFA, MBA, the director of investments at VLP Financial Advisors. #investing #indexfunds #wealthmanagement