European banks are showing a greater willingness to participate in direct lending after shying away from the market as they dealt with new regulations in the wake of the financial crisis, money managers say. Competition in private debt is especially intense in the area of senior-secured lending.
Hedge fund industry leaders expect to make greater use of artificial intelligence and other disruptive technologies and to focus more on responsible investing to meet investor demands in the future, according to a report from AIMA and Aberdeen Standard Investments. "This paper shows that the pace of change and innovation in the hedge fund industry is only going to increase," said AIMA CEO Jack Inglis.
Hedge funds made more hires in marketing and investor relations in the first quarter, as the Cboe Volatility Index reached its highest point since 2015, according to data from executive recruiter Context Jensen Partners. The Q1 hires totaled 81, more than twice the number from late 2017, the data show.
Investors are looking to keep their short positions below the 0.5% disclosure threshold set in EU short-selling regulations, the European Securities and Markets Authority says in a report. AIMA and the Managed Funds Association have encouraged the adoption of a centralized reporting mechanism for net-short positions.
The European Central Bank says it needs additional authority to protect EU member states in case of "exceptional situations" involving clearinghouses in the US and UK after Brexit. Among the powers sought are the ability to increase requirements for US and UK clearinghouses' liquidity buffers and more collateral gathered from clients.
Brighthouse Financial, Lincoln Financial and Symetra launched TV advertisements this week to promote their life and annuity offerings. ThinkAdvisor's Allison Bell notes these spots could lead to increased interest in such products and income planning in general.
Bradley Brown of Royal Paladin Group looked to the Financial Services Institute for help as he led an ultimately successful nearly four-year battle to pressure Ohio lawmakers to allow the naming of successor custodians. FSI president and CEO Dale Brown applauded the effort, writing, "Advocacy is not easy, but Brown's experience shows that one advisor -- with FSI in his or her corner -- can make a real difference in influencing legislation and regulation that impact our industry."
Only 14% of baby boomers and 24% of millennials want the government to be primarily responsible for their retirement security, according to a recent MetLife survey. The survey also shows 74% say they prefer paying into a company-sponsored retirement plan compared with 26% who say they prefer paying into Social Security.
More than 1 million Americans could face cuts to their pension benefits of about 90% if Congress does not act to shore up the Pension Benefit Guaranty Corp., pension actuary Ted Goldman told a congressional committee. Goldman said about 100 multiemployer pensions insured by the PBGC are likely to fail in the next two decades, and even if they don't, the agency could still run out of money to cover pensions by 2025.
Financial advisors should learn to watch for signs clients might be thinking about leaving for a new advisor, writes Brian O'Connell. He states that an outdated portfolio, inconsistency in communication and an advisor's lack of financial success could prompt clients to move on.
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