1) Morgan Stanley Launches Sustainable Investing Education Course for Financial Advisors Morgan Stanley | 6/13/2017
Because… According to the US SIF Foundation’s 2016 Report on Sustainable and Responsible Investing Trends in the U.S., $2.6 trillion was invested in funds with socially responsible investing (SRI) strategies as of year-end 2015, including mutual funds, ETFs, closed-end funds, and variable annuities. Market demand has propelled many asset managers to launch SRI products, but the proliferation can easily cause confusion to investors because SRI providers advocate different principles and incorporate different SRI criteria into their portfolio construction. The diverse focuses, screening metrics, and factor weighting mechanism make SRI education a must for both advisors and their clients.
2) Half of Investors Have Taken No Action to Reevaluate Their Investment Approach Against the Backdrop of a Shifting Investment Landscape PR Newswire | 6/19/2017
Because… A few reasons may explain inertia among investors. First, they have not fully grasped the impact of the changing market environment on their portfolio. Second, they are not motivated to reassess their portfolio if they are already satisfied with their investment exposure. Third, they may not have sufficient knowledge to reevaluate and improve their investment approach. Fund firms should assume the responsibility of providing guidance, addressing investor concerns, encouraging them to work with advisors, and urging them to review and refine their portfolio to better navigate the evolving market.
3) New Guggenheim Multi-Factor Large Cap ETF: An Advanced Multi-Factor Approach Guggenheim | 6/20/2017
Because… Multi-factor is the second largest smart beta ETF group with assets of $49.3 billion as of May 2017, based on FUSE’s classification. Multi-factor products are supposed to take advantage of each factor’s cyclicality, but most investors do not really understand how various factors work together to provide a sound investment solution under different market conditions. It is also hard for them to conduct peer group analysis because this type of fund may use different combinations of factors. In a challenging market environment where no single factor can dominate the others, more asset managers will introduce multi-factor funds. Keeping investors informed of how the selection of factors can contribute to the performance consistency may help gather new assets.