Vontobel has appointed Donald Gentile and Mariana Zubritski-Corovic as National RIA Sales and Consultant Relations Manager, respectively. These newly created roles support the firm’s client-focused commitment and expanded direct distribution efforts.
Donald Gentile will be responsible for building and strengthening client relationships, focused primarily on distributing Vontobel’s mutual fund and SMA offerings to the RIA market across the US. Prior to joining Vontobel, Gentile spent more than 20 years at Putnam Investments, where he held various senior roles in sales and marketing, including most recently as director of RIA sales.
Mariana Zubritski-Corovic will focus on strengthening the firm’s consultant engagements. With nearly 20 years of global institutional experience, Zubritski-Corovic joins Vontobel from Dimensional Fund Advisors, where she led several global consultant relationships. Previously, she was at Mercer Investment Consulting, where she worked in both the US and Canada in various roles including field consultant, as well as strategic research and investment analyst.
“Mariana and Donald have a strong track record working closely with clients to bring them tailored investment solutions, and share our client-centric and investment-led values,” said José Luis Ezcurra, Head Institutional Clients Americas. “At Vontobel, we are committed to enhancing our presence in the US with a solutions-oriented approach across asset classes, helping investors meet their long-term financial goals.”
These hires support Vontobel’s continued growth strategy in the US. On April 22, 2024, Vontobel launched a new addition to its mutual fund suite, further bolstering the firm’s direct distribution to US intermediaries.
Brian McMahon, Vice-Chairman and Chief Investment Strategist at Thornburg, shared his market views for 2024 at the Thornburg Spring Due Diligence Conference in Santa Fe. These are some of the take outs of his presentation, which in a nutshell highlights that the US economy is basically doing OK. This is quite an affirmation, coming from McMahon, who is truly one of the who’s who professionals of investments having been in the market for over 40 years.
Likelihood of a Recession
McMahon noted that the consensus predicts a 35% chance of a recession in the next year, down from over 60% odds a year ago. He cited positive economic data like high job openings and low unemployment as reasons he doesn’t see the ingredients for a classic recession.
Demographics and Economic Growth
Demographics have played a significant role in US economic growth over the past few decades. McMahon pointed out that the US population has grown by 57 million people in the last 22 years, partly due to live births exceeding deaths but mostly due to immigration. This population growth, particularly immigrants, has been crucial for economic activity and job creation in the US.
Concerns about US Government Spending and Deficits
Brian McMahon raises concerns about the level of US government spending and deficits. He notes that government receipts have declined as a percentage of GDP while outlays have increased above 20% of GDP. For the politically minded, he also points out that the trailing 5-year growth rate of spending was 12% under the last Trump administration, compared to only 1% for receipts. With high deficits, the US is issuing significant amounts of new Treasury debt each year that investors need to absorb, now that the FED has stepped back from buying bonds. The investors are individuals, advised by financial advisors, and the new debt will be absorbed mostly through mutual funds and ETFs.
Composition of Ownership of Stocks in US
Households have consistently owned around 60% of US equities, though the composition has changed over time from direct ownership to mutual funds to now ETFs surpassing mutual funds. Pension funds have been net sellers of equities in recent decades as they have more retirees to pay out to and need to shift to less risky assets. Mutual funds have been small net sellers overall, with passive ETFs and index funds being big net buyers and active funds being large net sellers. And corporations, through share buybacks and mergers/acquisitions, have been the largest net buyers of equities. McMahon notes share buybacks have supported market returns, and they are a very good thing for investors.
Economic Indicators Suggesting Continued Strength in US Economy
Some of the economic indicators that currently suggest continued strength in the US economy include high levels of job openings relative to unemployment benefit recipients, wage growth trending above the 30-year average, positive retail sales growth in line with historical averages, strong employment levels that have surpassed pre-COVID highs, and double-digit expected earnings growth for the S&P 500 over the next two years.
In summary, McMahon’s presentation highlighted the continued strength of the US economy, with positive economic indicators and a low likelihood of a recession in the next year. However, he also raised concerns about US government spending and deficits, and the changing composition of ownership of stocks in the US.
Advisor practices that are more extensively incorporating the use of technology within their practice are growing at faster rates than practices that are not, according to The Cerulli Report—State of U.S. Wealth Management Technology 2024.
Cerulli’s research finds advisors considered heavy users of technology tend to outperform other practices in terms of new client growth rates and assets under management (AUM) growth rates. Nearly 30% of heavy technology users are identified as being higher-growth practices over the most recent three-year period, compared to just 9% of light users.
Enhanced efficiency and productivity are undeniable outcomes of technology usage. Cerulli data finds heavy technology users average materially better performance than light users across practice productivity metrics. These improved metrics include higher numbers of clients served per staff member across the practice—the number of clients per producing advisor, the number of clients served per professional staff, and the number of clients per senior advisor.
The tools advisors attribute most to improving operational efficiency include e-signature (65%), CRM (44%), and video conferencing (29%). These technologies also happen to be among the most frequently utilized within advisor practices, ranking first, second, and fourth most widely utilized technologies among advisors, respectively.
“When used effectively, technology is a valuable growth driver,” says Michael Rose, director. “However, more tech is not necessarily better for practices. Simply incorporating more technology within an advisor’s practice can have the opposite desired effect.”
According to Cerulli, the challenges to the effective use of technology that advisors most frequently identify are compliance restrictions that limit functionality or impose other limitations on advisors’ ability to use the technology (73%), followed by a lack of integration between tools/applications (71%) and insufficient time to learn and implement (70%).
“Advisor practices should use a technology strategy that closely aligns with the types of clients that they serve, the specific services they offer, and how they offer them,” says Rose.
“Understanding how to utilize the tools available to advisors in a way that is going to have the greatest positive impact on their practice is critical. Educating advisors on best practices and enabling them to collaborate and learn from their peers is likely to have as much, if not more of, an effect than rolling out the next generation of an existing set of tools and technologies.”
A new research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 months.
The 94% questioned in the global study with institutional investors and wealth managersholding assets of $114 billion under management say fixed income is more attractive with 17% saying it is becoming significantly more attractive.
The research by MPG found growing worries about a global recession and increased volatility in the equity markets plus increased correlation between bonds and risk assets is driving the shift in views.
US investment grade and European investment grade fixed income assets are likely to be the biggest beneficiaries of institutional investors and wealth managers increasing their exposure to fixed income but all asset classes will benefit as the table below shows.
Professional investors still believe there is a possibility of a bond rally if major economies slip into recession. Around 20% believe a bond rally is very likely in the next 12 months rising to 42% saying a bond rally is very likely over the next 24 months.
Around 79% think a bond rally is quite likely in the next 12 months while 57% believe it is quite likely over the next 24 months.
They have little or no correlation to equites or bonds and currently deliver an inflation busting yield of 12%. Also, MPG says alternative asset classes in general are set to benefit from increased diversification as investors look for reasonable returns while equities are set for a tough year ahead.
DAVINCI Trusted Partner (DAVINCI TP), a player in the distribution of third-party investment funds in Latin America, announces a strategic alliance for the private distribution of model portfolios managed by Investec in the US Offshore and Latin American territory.
The model portfolios managed by Investec are structured as Funds of funds registered in Luxembourg with a focus of identifying the best active asset managers for each asset class. This approach is achieved through a rigorous due diligence process of each Portfolio Manager and a high level of conviction in asset selection.
Investec, with more than 20 years of experience in managing investment strategies with an excellent track record, stands out for its active and client-oriented approach, backed by a team of highly trained and experienced professionals, the press release said.
Investec Investment Management is a subsidiary of Investec Limited, a financial institution with a global presence. The Group has a substantial market value, and has 7,400 employees and operates on five continents, reflecting its commitment to excellence and financial strength.
With this strategic alliance, DAVINCI TP strengthens its position in the segment of innovative investment solutions distribution across the region through regulated institutions. The model portfolios managed by Investec offer investors access to diversified strategies backed by solid expertise and a global presence, according the firm information.
Santiago Queirolo, Managing Partner ofDAVINCI TP, commented on the collaboration: “Working in cooperation with Investec represents a significant milestone for DAVINCI Trusted Partner. We are very excited to contribute with such an emblematic global firm as Investec is particularly recognized in our region and this will allow Davinci TP to provide the financial industry with access to high quality investment portfolios”.
Paul Deuchar, Head of Investec Investment Management, also expressed his enthusiasm: “We are pleased to collaborate with DAVINCI Trusted Partners to expand our presence in the US Offshore and Latin American markets. This strategy will strengthen our ability to serve a broader base of investors and provide investment solutions tailored to their needs.”
James Whitelaw, Managing Partner of DAVINCI TP, remarked: “We are excited about this new partnership, as it will provide us with a great opportunity to continue to introduce investment solutions with model portfolios. The model portfolios fund range of Investec offers key benefits for investors such as, daily liquidity and automatic rebalancing investing in leading fund managers, which will allow financial advisers to manage their clients relationship and portfolios more efficiently, as well as enhance their client experience with a firm like Investec.”
DAVINCI TP, already having successful experiences with prestigious firms such as Jupiter Asset Management and Allianz Global Investors in Latin America, reinforces its commitment to introduce the best global investment opportunities to the financial industry, the firm added.
The staff of the Securities and Exchange Commission today published a new report of Registered Fund Statistics, which is based on aggregated data reported by SEC-registered funds on Form N-PORT.
The new report, which will be updated on a quarterly basis, is designed to provide the public with a regular and detailed picture of the registered funds industry—with its more than 12,000 funds and more than $26 trillion in total net assets under management.
The report provides key industry statistics and shows trends over time, including information and trends related to portfolio holdings, flows and returns, interest rate risk, and other exposures across U.S. mutual funds, exchange-traded funds, closed-end funds, and other registered funds.
“Providing data to the public is one of the more consequential things a government agency does,” said SEC Chair Gary Gensler. “This new report will give the public a view into the registered fund industry. Investors, issuers, economists, academics, and the public at large benefit from such regularly published economic data.”
Registered Fund Statistics contains the first aggregated report that reflects both the public and non-public information filed on Form N-PORT, and most of the aggregated data in the more than 70 separate tables of the report is being made public for the first time. Also, the public may download the statistics reported in Registered Fund Statistics in a structured format, which will provide the historical statistical series of information with each publication of the report.
The Division of Investment Management has primary responsibility for administering the Investment Company Act of 1940 and Investment Advisers Act of 1940, including oversight of investment companies, such as mutual funds, money market funds, and ETFs, and for investment advisers, the statement concluded.
The report is available on the SEC’s website here.
Cyberattacks have become a real threat to the financial stability of countries. The banking sector has solidified its position as one of the main targets for cybercriminals due to its high potential for economic gains and access to confidential customer information.
In fact, during 2023, cyberattacks on the banking sector have increased by 53% compared to 2022. This is according to S21Sec, one of Europe’s leading cybersecurity service providers acquired by Thales Group in 2022, in its benchmark report, the Threat Landscape Report, which analyzes the evolution of cybercrime on a global scale.
As a result of the massive digitalization experienced by banking in recent years, cybercriminals have adapted their techniques to online banking systems, resulting in a total of 4,414 attacks on the financial sector globally in 2023, with 2,930 of them occurring in the second half of the year. This new online focus has caused a 40% decrease in attacks on ATMs in recent years.
Among the most commonly used attacks against the financial sector, S21Sec highlights the activity of malware, a type of malicious software designed to damage or exploit any network, device, or service. In the case of the banking industry, these attacks focus on collecting personal and banking information that could allow access to funds from accounts or even cryptocurrency wallets. Cybercriminals use various techniques to obtain this information, such as skimmers, web injections, malspam, or phishing emails.
Sonia Fernández, Head of the Threat Intelligence team at S21Sec, emphasizes the importance of the human factor in these types of attacks: “In most cases, it is people who click on the malicious link, allowing the cyberattacker to enter our device and start their operation. It is crucial to have global awareness around cybersecurity to ensure people’s financial stability, and the first step is to never access a URL without first contacting your bank,” the expert advises.
Danabot, ToinToin, and JanelaRAT: The Most Dangerous Active Malware for the Banking Sector
The company highlights the activity of one of the most active malware in the last six months of 2023, known as ‘Danabot’. This type of attack stands out for its use of web injections, a technique that allows the malware to modify or inject malicious code into the content of websites visited by users, often without their knowledge or consent. Danabot is frequently used for various activities, such as distributed denial-of-service (DDoS) attacks, spam distribution, password theft, cryptocurrency theft, and as a versatile bot for various purposes.
On the other hand, S21Sec highlights the presence of ‘JanelaRAT,’ a type of malware that primarily steals access credentials for banks and cryptocurrency wallets. The most significant credential-stealing features of this malware create fake forms when it detects a visited banking or cryptocurrency site, capturing mouse inputs, keystrokes, screenshots, and gathering system information to carry out the cyberattack. The distribution method used is emails containing a link that, once clicked, shows the user a fake page, automatically downloading the first phase of this malware, which will create a file through which it can remain on the device or website.
Another frequent attack has been the so-called ‘ToinToin,’ which is part of a sophisticated campaign that manages to distribute malware and achieve infection through several stages. The distribution of this type of attack is also carried out through emails containing a malicious URL from which a connection is established to start stealing information.
The outcome of a portfolio is the result of many different aspects, such as commissions, time horizon, asset classes held, among others, and how they align to increase the value of an investment. One of the main determinants of the performance is the strategy that composes the holdings, which is molded by each portfolio manager’s risk appetite, that depending on the capital, goals, and approach, will range from conservative to aggressive, highlights an analysis by the fund manager FlexFunds.
Tracking a portfolio’s performance is a critical and reassuring component of the investment process, enabling investors and asset managers to gauge the efficacy of their strategies.
Typically, conservative portfolio approaches use a 60/40 strategy, which consists of assigning 60% of the value of the total allocations in equities and the remaining 40% in fixed income; the 60/40 model aims to harness the long-term growth potential of stocks while seeking stability via debt instruments. As reported by the 1st Annual Report of the Asset Securitization Sector, gathering the input of 80+ asset management companies from more than 15 countries, more than half of the professionals interviewed believe that the 60/40 model will remain relevant. To implement this strategy, investors must buy many different securities (distributed in stocks and bonds) to have a diversified holding base. Nowadays, there is a comprehensive inventory of available securities that are integrated by different asset classes within a single instrument. An example of such securities can be a structured note.
What is a structured note? It is a hybrid financial product that combines features of different vehicles in the form of a debt obligation, and its performance is tied to the returns of these underlying.
Using flexible products that repackage different assets in a single security offers a significant advantage by accomplishing the desired weighting distribution without the need for multiple subscriptions, which ends up decreasing the total account value due to fees and commissions. For instance, FlexFunds’ FlexPortfolio allows structuring actively managed notes with no limitations on rebalancing or allocation. Since the securities that compose this product are not fixed or embedded, its composition can be adjusted by the manager depending on the prevailing market conditions and clients’ (investors) best interests, all these while being able to supervise the portfolio performance given that the notes have a NAV that is frequently distributed.
Despite the objective and weighting that each underlying (whether equity or debt) may have in a portfolio, there are a variety of ways in which a note can be designed, meaning that any financial goal can be pursued; it is up to the investor to decide what focus aligns the most with its desired outcome. The most common arrangements are the following:
Offer upside and growth potential.
Offer downside protection (hedging).
Offer an illiquid asset in the form of a marketable vehicle.
Offer periodic payments/disbursements in the form of coupons.
Structured investment targets and how they can make a portfolio more conservative/aggressive:
The preceding graph visually demonstrates how the constitution of a structured security can influence the overall risk-return relationship of an investment allocation, given the nature of its underlying. Equity-like instruments tend to augment portfolio volatility while potentially offering superior returns. Conversely, instruments exhibiting bond-like characteristics can introduce an element of price stability to the allocation.
Every investment process has an expected return for a certain level of risk; considering that we are assessing some of the structured notes’ pros and cons and the impact these may have on a portfolio’s outcome, let’s delve into some of the potential structured notes’ risks.
Limited Liquidity
They may have limited liquidity, making it challenging for investors to sell their notes before the maturity date due to a lack of a secondary market. There may or may not be buyers for the note, and investors may be forced to sell the securities at a discount on what they are worth.
Market Risk
While some offer protection against losses, this safety net has its limits. When the underlying experiences high volatility due to market fluctuations, investors can still experience losses. Linking the note to more speculative positions increase the market risk significantly.
Default
Structured notes can possess a heightened credit exposure compared to alternative options. If the issuer of the note files for bankruptcy, the entire investment could be rendered worthless, regardless of the returns produced by the underlying asset.
Although achieving complete mitigation of all potential structured notes risks, or any other risks associated with individual positions or financial instruments, may be challenging, mitigating at least one may provide an edge in the market.
Empower your distribution and reach with innovative yet proven solutions. FlexFunds, a recognized fintech leader in the securitization industry, offers a program of global notes that can help you expand your client base while issuing a flexible investment strategy. Explore which of FlexFunds’ tailored solutions better adapt to your specific needs. Contact us today to schedule a meeting at info@flexfunds.com
Photo courtesyPhil Waller, en un momento de la entrevista.
Phil Waller has been working at JP Morgan AM for ten years, most of that time in private markets. He is currently the investment specialist leading the firm’s European team for alternative investment solutions, with a clear mission: to guide and support JP Morgan AM clients in building alternative allocations tailored to their needs, and to provide access to alternative strategies to increasingly diverse types of investors.
“The democratization of alternatives is a major goal for the industry and a major goal for us for the coming years,” he states emphatically. JP Morgan AM currently manages $213 billion in alternative assets.
At a forum recently organized by the firm in London, Funds Society had the opportunity to speak with Waller about his approach to alternatives, an asset class that, in the expert’s opinion, is too often used as a “catch-all” to define all those assets that are not fixed income or equities, but which actually encompasses a broad investment universe.
At JP Morgan AM, they have decided to focus on five major sub-asset groups: private equity, private credit, real assets (real estate, infrastructure, transport), hedge funds, and liquid alternatives. “These are major categories, and each behaves very differently, offering distinct qualities,” Waller points out, recommending those new to the world of alternatives “think about the set of opportunities they offer.”
Is there a real growing interest in alternative assets? How has the universe of alternatives evolved over the last year?
One of the major developments in the last 12-18 months is, obviously, that the interest rate environment has changed significantly. The major impact of this is that investors now have more options when it comes to earning income. Thus, a more detailed conversation can be had about one of the benefits of alternatives. When it comes to income-oriented alternatives, the approach for investors now is that not all income is equal; they can value the various options more broadly across different asset classes.
At the same time, as interest rates are now higher, some asset classes have benefited, like private credit. What used to be an 8-9% return is now 12 to 13%.
Is there room for new types of investors in alternatives, including retail investors?
Yes, absolutely. Institutional investors have been allocating to alternatives for decades. That has not diminished after the financial crisis. In fact, many institutions are now allocating 20% of their assets within alternatives, some even closer to 50%, because they have longer-term horizons.
On the other hand, individual investors, particularly in Europe, have allocations to alternatives that are in the low single digits, excluding their properties. They are really not taking advantage of the long-term nature of this asset class. We think there is a great opportunity for asset managers like ours to create greater access and education and, ultimately, for individual investors to continue allocating part of their portfolios to alternatives. However, individual investors still need to consider alternatives as an illiquid and long-term allocation, and need their investment horizon to match that.
What kind of conversations do you have with your clients so they can understand the different types of alternatives and their characteristics and qualities?
When it comes to alternatives, some types of clients are very sophisticated, but others have great needs for financial education. Ultimately, we seek to talk to clients about what alternatives bring as opposed to what alternatives are. Are you looking for a stable level of income? Are you looking for inflation mitigation?
The other conversation revolves around the greater offering in private markets. Now, if I do not invest in private markets, I am ignoring a very large part of the investable universe. Companies used to stay private for an average of about four years, now they can remain for more than 12 years and often coincide with the fastest growth phase of their lifecycle. Therefore, gaining access to these companies at that time is a significant added value.
The way we communicate with investors is ensuring that they are goal-oriented, making sure it is done for the right reason, ensuring they understand the benefits, but also the risks of each asset class, given some of the complexities and the illiquidity that comes with these asset classes.
Do you think the model 60/40 portfolio should evolve to also include a structural allocation to alternative assets?
The alternative solutions team at J.P. Morgan AM has been assisting clients, but also building these diversified portfolios. Our view is that it should be a significant allocation for long-term investors. Now, whether it is 20% or 30% will depend very specifically on the investor’s requirements: investment horizon, risk profile, return expectations… What is really important is what is in that 20%. Getting the right mix between income and capital appreciation is really key within the allocation to alternatives in a portfolio. A more granular approach is needed to build it.
Where are you finding investment opportunities currently?
We have divided it into three major categories. The first covers markets that have experienced some dislocation, particularly those more sensitive to interest rates – such as in real estate – or that have experienced notable flows. One of the major trends we saw in 2022, and that has continued into this year, has been that some institutional investors were overweight in alternatives, especially in private equity and private credit and this has created a bit more supply in the secondary market; as they rotate their positions they have created the capacity to invest at a discount. And that has been attractive both for private equity and for private credit.
The second major category is disruption. A big area where this is happening is in private equity, with the emergence of new industries. We have also seen disruption in real estate, due to the boom in teleworking.
Finally, we are seeing that some of the more institutional investors are focusing a lot on the aspects of diversification of alternatives. Core allocations, such as infrastructure or transport, have been a major focus of interest, along with hedge funds.
Aegon Asset Management hosted a Day of presentations in Miami for Latin American and US Offshore investors. The day opened with a macro review and was followed by presentations on global bonds, high yield and dividend investing. In this article we addess the macro review and how should portfolios position themselves given the outlook for inflation, rates and the economy.
According to Frank Rybinski, CFA – Head of Macro Advisory, Aegon AM, inflation in the US is coming down faster than nominal wage growth, creating a gap that boosts real spending power and fuels consumption. He discussed charts showing accelerating real wage growth supporting consumption. However, this “sweet spot” is finite as nominal wages will continue falling. The Fed will need to cut rates to provide monetary support as inflation comes down and consumers become more price sensitive.
Sectors or Industries Most at Risk if the Labor Market Weakens Further
The sectors or industries that are most at risk if the US labor market weakens further would be the cyclical parts of the economy that make up over 70% of non-farm payrolls, excluding the smaller non-cyclical government and healthcare sectors that are currently leading job growth. Frank Rabinski noted that growth in the rest of the cyclical economy, which includes industries like manufacturing, retail, transportation and construction, is only around 1% annually. These cyclical sectors would be more vulnerable to slowing further or contracting if unemployment rises from current levels.
Impact of Divided Government on Fiscal Policy and the Federal Budget Deficit
A divided government following the midterm elections will result in less substantial changes to fiscal policy and reductions in the federal budget deficit. It means you won’t get massive spending bills passed or significant policy changes, as it will be difficult for either party to push their agenda alone. Rabynski also mentioned the current spending sequester will help curb the growth of spending over the next year. Overall, divided control of Congress and the White House is seen as a positive that would limit large fiscal programs and associated deficits going forward.
Credit Sectors Most/Least Attractive Given Corporate Borrowing Trends
Most attractive: Investment grade credit, as companies with stronger balance sheets still have access to debt markets. Technical support from lack of supply could also boost prices. Secured credit such as leveraged loans, as these have higher priority of repayment over unsecured bonds.
Least attractive: Lower-rated high yield bonds (CCC-rated or below), as these companies are more vulnerable to an economic slowdown or rising rates. Unsecured high yield bonds, which have lower recovery rates than secured loans in the event of default.
Rabynski also cautioned against overexposure to private credit markets given recent signs of weakness in underlying fundamentals that are less transparent than public debt markets.
Supply Chain Changes and Trade Policies Influence on Specific Industries
Manufacturing sectors in the US may see boosts as companies onshore production or diversify suppliers globally. Industries like semiconductors are already seeing large investments. Export-oriented industries could be impacted depending on how individual countries are positioned within new trade blocs forming between the US/Europe and Russia/China. Commodity producers may benefit if trade tensions increase demand for non-Chinese/Russian sources. Industries like metals and energy could see pricing support. Transportation and logistics will likely play a crucial role in adjusting to “global fractionalization” of supply chains. Shipping and warehousing demand could increase. Consumer goods that rely heavily on Chinese/other Asian imports may face headwinds or costs rises as companies reconfigure supply chains and inventory management.
How Should Investors Position Portfolios Given the Outlook for Rates, Inflation and the Economy?
Investors should maintain some exposure to equities given expectations for moderate economic growth and rate cuts supporting markets. They should also increase allocations to fixed income as yields have risen, offering more attractive alternatives than in recent years for yield and diversification. Favoring credit over sovereign bonds to pick up extra yield, but taking a cautious approach to lower-rated segments of the market, is also recommended. Consider overweighting high-yield bonds where spreads have widened significantly from a few years ago. Emphasizing diversification across asset classes now that the “fixed income buffet” has more options than the recent low yield environment is also important.
