The economy is still aimlessly lurching from the impacts of the COVID-19 pandemic, and those fits may spill over into tax-filing season. It’s likely that a disproportionate number of filers will have some income and capital gains they weren’t expecting as the result of mutual fund distributions last year. Through an effective tax-managed investment strategy, even a tumultuous year like 2020 can produce benefits. If the investor structures realized losses to manage tax burden, even a difficult year can help you meet your investment goals.
Resource Search
Digital platforms make microbusinesses possible for millions of people, and companies like Etsy and GoDaddy have been an essential backbone behind them, especially during the pandemic (Etsy sellers contributed $13 billion and almost 3 million jobs to the economy last year). In this NOW episode, we discuss the evolution of microbusinesses and what they mean for the growth and resilience of our communities. Later, David Powell, co-portfolio manager of Brown Advisory's Large-Cap Sustainable Growth strategy, joined the conversation to discuss takeaways for investors.
The cryptocurrency market, and specifically Bitcoin, has grown significantly and offers investors high potential returns. It is commonly argued that Bitcoin should be considered by investors as a store of value and portfolio hedge. However, there are a number of risks that investors should evaluate before considering an allocation.
With the rising interest rates and media speculation around the level of credit spreads, corporate bond investors are reminded of the 2013 taper tantrum when credit spreads widened. For investors concerned about increased market volatility, allocating to a rules-based ladder strategy may provide both predictable income and capital preservation.
While April may be the official month of financial literacy, investors should commit to staying informed all year round. Whether dealing with terms like meme stocks (stocks that typically trade on hype instead of fundamentals) or older ones like tracking error, there can be plenty of confusion around the language of investing. For both new and experienced investors, knowing the language can make a world of difference to the success of a long-term investment plan.
When portfolios don’t deliver outcomes as expected, the number one question is “Why?” In this Risk Report, the answers are provided through an examination of more than 200 institutional equity portfolios, representing more than $200 billion assets. What was discovered may surprise you. From a portfolio’s exposure to uncompensated risks to the performance-hindering “cancellation effect,” there were six common drivers of unexpected portfolio results.
Monitoring concentration in investment managers is an important component of portfolio risk management. While portfolio-level analysis on liquidity, beta, and volatility are frequently monitored, a minority of investment teams use active risk to size managers. By considering the return profile of a manager along with its size in the portfolio, active risk provides additional insight to risk management decisions, helps build better portfolios, and contributes to better governance.
Is the Special Purpose Acquisition Companies (SPACs) market dimming? Not likely. Even as the SPAC market takes a breather from its hypersonic acceleration in early 2021, new funders are stepping into the picture. In this webcast, the presenters examined the SPAC environment, evolving deal structures, participants, and risks, as well as important federal regulation changes.
The Biden administration has unveiled a new $2 trillion infrastructure and economic recovery plan, the American Jobs Plan, which is designed to simultaneously revitalize the country’s infrastructure and combat climate change. The Plan will also give municipal investors an opportunity to focus on environmental or “green” project opportunities that range from investing in mass transportation to cleaner energy and water to climate-adaptive infrastructure.
Research has convincingly shown that having diversity of opinions and backgrounds is positively correlated with better decision-making and long-term results. In this two-part series, a deep dive looks at what it means to incorporate diversity, equity, and inclusion (DEI) into your investment program. First, we lay out why DEI initiatives are rapidly becoming a feature of investment programs and how they lead to better performance.