Catherine Keating

Putting July's Volatility into Perspective In today's video Observations and Expectations, Virtus Senior Managing Director and Chief Market Strategist, Joe Terranova, provides context on the elevated volatility in the month of July. #ObservationsandExpectations

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Interesting article from Douglas Appell in Pensions & Investments about the post-ZIRP, “higher for longer” interest rate environment that boils down to advocating for the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.).   Quoting the inimitable Ben Phillips, “In that world, the relevant benchmark becomes the client’s required cash flows.”   Fresh perspectives and new ideas are warranted. Satisfactory outcomes not benchmarks.

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BNY Investments is proud to be an LPL ETF NTF Partner,* providing access to our suite of ETF strategies to help meet your clients’ needs and ambitions. With BNY’s ETF lineup, you can take advantage of the following: - No transaction fees - Potential diversification through differentiated index and active ETF strategies - Intraday liquidity and possible tax efficiency benefits of an ETF wrapper Click here to learn more about our ETF strategies and read important disclosures: https://bny.mn/3A9uVog *LPL ETF NTF Partner Program is not affiliated with BNY. #IndexETFs #ActiveETFs #ModelPortfolios

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CLO Equity has gained recognition as an institutional investment strategy in recent years. And with good reason. CLO Equity is relatively uncorrelated to other core asset classes and offers the potential for high cash flow and attractive total returns. The drivers of CLO Equity returns, however, are more complex than meets the eye. Conventional wisdom is that the best times to issue CLOs is when the arbitrage (“arb”), or net interest margin, is historically wide. Yet, our analysis, detailed in a recently issued white paper authored by my colleague Stephanie Walsh, suggests this sentiment might be misleading. Despite high initial equity arbitrage being a strong predictor of new CLO creation, it has actually shown a negative correlation with ultimate CLO equity performance. So what are the drivers of CLO Equity performance? To answer this question, it’s essential to look beyond just the arb. We find there are other key influences on CLO performance, such as asset prices, refinancing transactions, and manager expertise, among others. 1) CLOs issued during market downturns, such as in 2020 and 2022, exhibited significant upside, despite poor initial arbitrage, due to subsequent market rallies. 2) Moreover, the ability for CLOs to refinance liabilities after non-call periods added flexibility and, in many cases, substantially lowered debt costs, as seen in the refinancing wave of 2021. 3) Manager expertise also plays a crucial role. We’re privileged to have a 23+ year track record of managing, structuring, trading, and investing in CLOs. Through that experience, we’ve come to understand that credit expertise, loss avoidance, and trading acumen are often key components of CLO portfolio returns. As with many aspects of investing, there is more than meets the eye when assessing the CLO space in our view. We believe one cannot simply look at one or two metrics to determine whether a CLO will perform better or worse relative to history or other CLOs. The arb, and its weak correlation to ultimate CLO equity returns, is a prime example of this. Rather, there are a multitude of factors driving CLO equity returns, some market driven, and others influenced by manager performance and deal structuring. We believe it is important for investors to understand all of these factors when evaluating CLOs and CLO managers. Explore our full thoughts: https://lnkd.in/e48bEvWN

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Value investing is the heart of what we do - today and yesterday.

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Great read Zhiwei Ren!

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Emerging markets (EM) equities remind us of an important principle—diversification and strategic allocation are key to navigating market cycles. Despite recent underperformance, Cambridge Associates maintains a neutral stance on EM equities and recommends keeping allocations in line with global equity benchmarks. Learn more: https://ow.ly/MIhN50T4GiS

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Citywire's Ian Heath discusses US Equities with Matt Benkendorf in a follow-up to their meeting last year. Topics discussed include the #Magnificent7 and investors' changing expectations for rate cuts - click through for the video below Vontobel #QualityGrowthInvesting #USEquities

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It was a privilege to meet Mary Callahan Erdoes, CEO of JPMorganChase Asset & Wealth Management, at the Robin Hood Investor Conference this month in New York City. Under Mary’s leadership, JPMorganChase Asset & Wealth Management has not only sustained its position as one of the largest and most respected investment managers and private banks globally—with over $5 trillion in client assets—but has also upheld a 200-year legacy as a trusted fiduciary to corporations, governments, institutions, and individuals alike. Mary’s distinguished career and unwavering commitment to excellence exemplify the highest standards in finance. Her impact is a testament to how determined, principled leadership can shape not only institutions but entire industries. By prioritizing disciplined and forward-thinking strategies, Mary sets a powerful example for all professionals—especially women advancing in finance—underscoring that integrity and innovation are critical to long-term success. The Robin Hood Foundation, which brought us together, has been a cornerstone in New York City’s fight against poverty for over 35 years, distributing more than $3 billion to transformative initiatives. Founded in 1978 by visionaries including Paul Tudor Jones (and fellow University of Virginia alumnus), Glenn Dubin, Peter B., and David Saltzman, Robin Hood has channeled over $350 million into education, supporting the opening of 177 charter schools across the city. Additionally, the foundation has invested over $125 million into community infrastructure, including high schools, soup kitchens, job training centers, and libraries. Robin Hood’s commitment to data-driven, targeted solutions addresses both immediate needs and root causes, illustrating how meaningful, measurable change is achieved when philanthropy aligns with strategic insight. Today, Robin Hood’s work is a beacon of what’s possible through collective action—demonstrating that a resilient, equitable city can indeed be built by those with the vision and resolve to act. #WomenInFinance #Leadership #RobinHoodFoundation #NYC #FinancialInclusion #Mentorship #Empowerment #ImpactInvesting #Inspiration #DataDrivenPhilanthropy #SocialImpact #WomenInLeadership #FinanceTrailblazers #RobinHoodFoundation #NYCPhilanthropy #ImpactfulGiving #StrategicPhilanthropy #InspiringLeaders #EmpoweringCommunities #EducationForAll #TransformativeLeadership #CollectiveImpact #SocialResponsibility #NewYork J.P. Morgan Private Bank JPMorganChase J.P. Morgan J.P. Morgan Wealth Management Robin Hood Red Apple Group

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Excited to share an opinion piece from Steven Brod, our Senior Partner, CEO and CIO, published in Advisorpedia. The era of the traditional portfolio has ended. Steven argues that while some advisors cater to the growing demand for alternative investments, many struggle to identify the proper funds for clients that incorporate well alongside their traditional equity and fixed-income funds. As the U.S. undergoes one of the greatest generational wealth transfers in history, advisors must adapt and evolve to meet the demands of younger generations, a group that shows increasing interest in alternatives. Read the full piece here: #financialadvisor #alternativeinvestments #generation #wealthtransfer

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Zoom in on "repeatable #alpha" and it often looks less impressive up close. An analogy: Roger Federer gave a hell of a commencement address at Dartmouth College several months ago in which he walked through his career #statistics. In sum, he won - 82% of matches, but only - 76% of sets yet only - 58% of games and, shockingly, only - 54% of points. The idea that long term outperformance often is driven by a surprisingly modest positive win-loss ratio is not new. Traders with 55% win rates are heroes. Poker players with 55% win rates are banned from casinos. #quantitative #finance relies on small average wins. Even #fundamental investors get it. A journalist once asked #valueinvesting legend Howard Marks why all his funds were in the top quartile, and he reportedly replied "because we never leave the second quartile." #Replication of pre-fee #hedgefund returns is built on this same principal. Create a #statistical tailwind and watch it play out over time. Reach out if you want to discuss stats. 😎 https://lnkd.in/e3Z45Dnv

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Surely a US aggregates business is too cyclical to be a quality investment? Perhaps its time to change your perspective argues Markus Hansen from Vontobel's Quality Growth boutique in this article from Trustnet #QualityGrowth #InvestmentInsights

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In recent years, traditional distinctions between public equity investments and private investing capital offerings have diminished due to regulatory changes, increased #privatemarket capital and technological advancements. Wellington CEO, @ Jean Hynes, recently joined @CAIA Association @capital decanted podcast alongside @Franklin Templeton CEO @Jenny Johnson to explore these transformative shifts in #assetmanagement and discuss how embracing multi-strategy approaches can drive new #investment opportunities. Listen now: https://lnkd.in/ee3kfy5u #Leadership #Innovation

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