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September 2021

Active management was designed for volatile markets

By Active management No Comments

One of the big problems today is that many investors have turned completely to indexing or passive investing. There is nothing wrong with buying a vehicle like the SPDR S&P 500 AND F Confidence (TO SPY) Where iShares Russell 3000 AND F (IWV). They can form large grassroots farms.

But they’re not perfect either. With indexing, you get both the good and the bad. Investors are subject to the general vagaries of the market, and this includes volatility shocks and shocks. Because of the way most indices are weighted by market capitalization, a few stocks can significantly influence their direction and price movements.

But active management can work differently.

On the one hand, active managers do not have to buy all the stocks in an index or in the same weightings as their benchmark index. It can help reduce volatility. Second, active managers can focus more on dividends. Dividends have long been a great way to reduce overall portfolio volatility. After all, getting 2-4% in cash goes a long way in increasing yields.

One of the advantages of active management over passive management is probably the possibility of not being 100% invested at all times. Active managers have the flexibility to sell stocks as they see fit and flee to cash if they feel volatility is too high or valuations are too high. However, this is not the case with passive indexing. An index fund will hold all of its benchmark holdings even if stocks rebound or trade with triple-digit P / E’s. This ability to hold cash can be a great way for active managers to reduce losses and improve returns for their shareholders.

A recent NAAIM One study highlights this factor and calls it the “buy and hold equalizer”. Looking at 70 years of market data, active managers can actually be on the wrong side of the market almost 40% of the time and still equal buy and hold returns. Indeed, the ability to flee towards liquidity creates a leverage effect during bull markets. Conversely, the remaining 60% who succeed end up outperforming during times of high volatility.

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Meeting with the Health Secretary on abuse of general practice staff – Management In Practice

By Staff management No Comments

BMA GP committee chairman Dr Richard Vautrey and Health Secretary Sajid Javid held a first “emergency” meeting last week on current abuses in general medicine.

At the meeting, the BMA called for “clear public support for general practitioners”, recognizing “the enormous pressure they are under”, urgent investment in primary care to “remove unnecessary bureaucracy” and a commitment government to work with the BMA on “a nationwide campaign to stop abuse of NHS staff”.

He comes as a man has been accused of assault after assaulting four staff at a GP practice in Manchester, and the Prime Minister supported a Daily Mail campaign for face-to-face meetings “by default”.

Doctor Vautrey noted the meeting “allowed us to make clear how unacceptable the growing abuses against hardworking and dedicated general practitioners and general medical staff are, fueled by a damaging and demoralizing disinformation campaign in parts of the media, as well as commentary of politicians “.

He said the BMA has told the government it must “explain to the public that more patients than those before the pandemic have been able to access their GPs, whether by phone, online consultations or online. person “, as” priority “.

He added: “The Secretary of State has to face the reality of unsustainable workload pressures, poor premises, the impact of the backlog of care and the transfer of secondary care to general medicine and we urged him to trust the practices to provide service to patients without the rigidity, bureaucracy and burden of unnecessary QOF or CQC inspections.

“We also called for many more actions to allow practices to increase their staff and for the government to respect its commitment of 6,000 additional general practitioners. Words are not enough, now we need urgent action.

The BMA has also called on Mr Javid to support increased prison sentences for those assaulting healthcare workers and rescue workers, following the Manchester attack.

He also warned last week that a Daily mail campaign for GPs to see patients face to face as a “default” option risk of further fueling abuses and violence against the practices.

A Pulse poll recently revealed that nearly three-quarters of general practitioners experience increased levels of patient abuse compared to before the pandemic.

This story first appeared on our sister title, Impulse.

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10 brokers who offer commission-free trading | Portfolio Management

By Portfolio management No Comments

The trend of commission-free online trading platforms makes investing more accessible to more people, especially as account minimums disappear.

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It is important to understand that when an online broker offers commission free trades, it simply means that they are not charging their own fees to help execute the trade. There could still be other costs involved. Also, keep in mind that exchange traded funds and mutual funds have expense ratios and these fees are always charged even though there is no commission for buying or selling the. funds.

As with any investment, knowing what you’re getting into, understanding the terms, and making sure you’re prepared to deal with potential losses is essential. If you’re looking for a commission-free online broker for your investing needs, here are 10 that don’t charge a trading fee:

A well-known discount broker who reduced their trading commission to zero in 2019, Charles Schwab Corp. free trading. applies to ETFs, shares, fractional shares and Schwab mutual funds. There is no minimum account, so it is relatively easy to open an account and fund it. Schwab also offers several research tools and teaching aids. In addition to this, the broker has an automated investment platform, Intelligent Portfolios, for those interested in a robo-advisor product.

You probably think of Fidelity Investments Inc. primarily in terms of managing retirement accounts. It’s certainly the bread and butter of the business, but Fidelity also has its own discounted online trading platform that doesn’t come with a minimum account. On top of that, you can trade stocks and ETFs without paying commissions. All of the company’s proprietary mutual funds are also traded for free, as are many non-Fidelity mutual funds. Because this is Fidelity, it’s no surprise that there are many investment education and research tools you can use to help you make informed investment decisions.

JP Morgan self-managed investment

This digital platform from JPMorgan Chase & Co. can be a good commission free broker for newbie traders. It charges zero commissions on stocks, mutual funds, ETFs, and options trades, and offers selection tools to help users define their strategies. No minimum account in taxable and retirement accounts, it’s easy to start investing for any financial goal. And if you prefer a less practical approach, you can still invest with the robo-advisor component of the platform for an annual advisory fee of 0.35%. Just be aware that there is a minimum account of $ 500 for the service.

Interactive Brokers Group Inc. has made a name for itself as an options trading website, but it is possible to trade stocks, ETFs, and options without paying a commission. There is no minimum count, so getting started is pretty straightforward. This broker offers an interesting range of tools designed to analyze your portfolio and your options choices, including the ability to use what-if scenarios, which allow you to create a hypothetical portfolio based on your actual portfolio so that you can see how the changes may affect your results. In addition to that, the Index Arbitrage Counter is a great tool that you can use to determine if the index futures prices are at fair value.

For Bank of America Corp. clients, the natural choice for a commission-free broker may be Merrill Edge. The Bank of America branch allows you to link your Bank of America bank account to your Merrill Edge brokerage account so you can view and manage everything from one platform. The platform also offers to trade stocks and ETFs online to complement a fairly robust suite of research tools. Without a minimum account, it’s easy to get started.

How many investors remember the baby of E-Trade Financial Corp. and those smart ads? Well, E-Trade has gone from being one of the most expensive online brokers of the past to offering free trading in stocks, options, and ETFs. There is no minimum account requirement, which makes it easy to get started. E-Trade also offers several research tools, different platforms and charting options to better analyze the data and choose the investments most likely to help you achieve your goals.

Ally Invest

Ally Financial Inc. started out as an online bank, offering high yield accounts. Now it also offers investment services. Ally Invest will allow you to open an account with no minimum, as well as trade stocks and ETFs without worrying about trading commissions. The company has strong investment education resources and offers access to streaming quotes, charts and calculators designed to help you make informed decisions. It also offers a robot advisor option with no management fees and a minimum account of $ 100.

Known for its low cost investing, The Vanguard Group Inc.’s wide selection of funds makes it a great option for long-term investors. As of January 2020, the broker also offers commission-free online trading for stocks and ETFs in addition to its mutual funds. That said, the company is still targeting buy and hold investors more by not providing a lot of tools or calculators for short-term trading. It also doesn’t list leveraged ETFs on its platform, which can involve a lot more risk. The platform provides digital advice both in a purely robotic form through its digital advisor and in a hybrid form with Vanguard Personal Advisor Services.

Now owned by Charles Schwab, TD Ameritrade Inc. is a good option for new and experienced traders. It does not charge any commission on all online transactions of stocks, ETFs and options listed in the United States. TD Ameritrade also provides robust trading and education platforms that meet your level and guide you from there. Without a minimum account, you can also open an account wherever you are and your bank account.

Social Finance Inc. is another online broker offering commission free trades and minimum accounts of $ 0. You can trade free stocks, ETFs, cryptocurrencies, and initial public offerings. You can also buy fractional shares, so if you can’t afford a full share of Amazon.com Inc. (ticker: AMZN) for example, you can buy $ 5 of shares and create your account at go from there. That said, the investment options may be more limited than with other online brokers. For example, you cannot buy mutual funds or bonds through SoFi. So just make sure the site has what you want to invest in before opening a brokerage account. If you do decide to invest, keep an eye out for promotions for new clients as well, as the broker is known to offer sign-up incentives, such as up to $ 1,000 to trade when you open your brokerage account. using the SoFi app.

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China Tumult highlights the strengths of active management

By Active management No Comments

The demise of China’s largest real estate developer and its potential effect on the Chinese economy has added stress to already volatile markets. Previous Chinese government regulations in several sectors as well as Delta hampering China’s economic recovery have already created drawbacks in the markets, and now, with the addition of Evergrande’s default on billions of dollars in debt, Chinese markets and investments in China are shaken.

With stocks going back and forth, this is a time when active management really shines, as active managers are able to exit distressed investments with agility and potentially transfer funds to safer ones, while that passive funds face a roller coaster ride until their next rebalancing.

Adviser Investment Management chairman Daniel Wiener, recently appearing on CNBC AND F Edge believes this is the time when investors “have to work with investment managers, portfolio managers with boots on the ground.”

Active managers are able to react in real time to potential market meltdowns in a way that could save investors a lot of money. Periods of volatility are historically when active management really comes to the fore and outperforms the benchmark and passive peers.

Troubled markets for international investors, along with downturns in US markets, provide actively managed funds the perfect opportunity to showcase their strengths.

Long term, DWS Arne Noack of the group said AND F Edge that he doesn’t think Evergrande’s default is one that will create far-reaching effects in the markets at large.

“Evergrande being a struggling development company obviously concerns us, but we don’t see it as a larger systemic risk in China,” Noack said.

T. Rowe Price in difference and the benefits of active investing and active management. The company currently offers five actively managed ETFs for investors looking to invest in a record IPO environment that benefits stock pickers. The company brings a wealth of experience and research to its products, with portfolio managers averaging over 20 years of investment each, as well as more than 400 investment professionals dedicated to researching companies within ETFs.

For more news, information and strategies, visit the Active site AND F Channel.

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Turbulence in China highlights the strengths of active management

By Active management No Comments

The demise of China’s largest real estate developer and its potential effect on the Chinese economy has added stress to already volatile markets. Previous Chinese government regulations in several sectors as well as Delta hampering China’s economic recovery have already created downside in the markets, and now, with the addition of Evergrande’s default on billions of dollars in debt, Chinese markets and investments in China are shaken.

With stocks going back and forth, this is a time when active management really shines, as active managers are able to nimbly exit troubled investments and potentially shift funds to safer ones, while that passive funds face a roller coaster ride until their next rebalancing.

Adviser Investment Management chairman Daniel Wiener, who recently appeared on CNBC’s ETF Edge, believes the time has come for investors “to work with investment managers, portfolio managers with boots on the ground.”

Active managers are able to react in real time to potential market meltdowns in a way that could save investors a lot of money. Periods of volatility are historically when active management really comes to the fore and outperforms the benchmark and passive peers.

Troubled markets for international investors, along with downturns in US markets, provide actively managed funds the perfect opportunity to showcase their strengths.

Long term, Arne Noack of DWS Group told ETF Edge he doesn’t think Evergrande’s default is one that will create far-reaching effects in the wider markets.

“Evergrande being a struggling development company obviously concerns us, but we don’t see it as a larger systemic risk in China,” Noack said.

T. Rowe Price believes in the difference and benefits of active investing and active management. The company currently offers five actively managed ETFs for investors looking to invest in a record IPO environment that benefits stock pickers. The company brings a wealth of experience and research to its products, with portfolio managers averaging over 20 years of investment each, as well as more than 400 investment professionals dedicated to researching companies within ETFs.

For more news, information and strategy, visit Active ETF Channel.

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How active management can help trade China: a $ 7 billion fund manager

By Active management No Comments

Active management may be one of the only ways to generate alpha from China’s turbulent trade, according to one investor.

Chinese stocks slumped this week over fears that one of the country’s biggest real estate developers, Evergrande, could default on billions of dollars in debt.

Given the growing litany of risks in China – not only from Evergrande, but also regulatory crackdowns on domestic tech, games and education companies – it is imperative to remain nimble in this market, said Monday the chairman of Adviser Investment Management, Daniel Wiener, at CNBC’s “ETF Edge”.

“I don’t think you can index China just yet,” said Wiener, who manages $ 7 billion in assets. “You have to work with investment managers, portfolio managers with on-the-job skills. This means using actively managed funds, not ETFs. “

One such option exists at Vanguard, where Wiener is editor-in-chief of The Independent Adviser, a monthly newsletter.

The Vanguard International Growth Fund, an open-ended mutual fund with an almost 14% position in China, has outperformed Vanguard’s Total China Index ETF since the start of the year and over the past 12 months, three years and five years, Wiener said.

“They have people on the ground. They make choices about which businesses to buy and which to avoid, and that makes all the difference,” he said.

Either way, Evergrande’s debt dilemma is not expected to have a major impact on global markets, said Arne Noack of DWS Group in the same interview.

“We obviously take the issue very seriously and are looking at all the implications,” said Noack, his company’s head of systematic investment solutions for the Americas and the man behind the Xtrackers Harvest CSI 300 China A-Shares ETF ( ASHR).

“Evergrande being a struggling development company is obviously of concern to us, but we don’t see it as a larger systemic risk in China.”

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Economic uncertainty increases investment in active management

By Active management No Comments

Market performance, fears of Delta’s global economic impact, and concerns about inflation are prompting investors and advisers to watch the markets closely for any signs of what many see as an inevitable correction. US markets have consistently outperformed for so long that there are growing concerns about impending volatility and a significant correction looming on the horizon.

It’s a concern that causes advisers to divert funds overwhelmingly to actively managed funds, Wealth Professionals reports.

“With the current cycle moving very quickly, the risk that the correction will be hard increases,” Binky Chadha, chief strategist at Deutsche Bank, warned last week. “Market-level equity valuations are historically extreme on almost every measure. “

A new poll from PGIM Investments, part of the $ 1.5 trillion global investment management firm Prudential Financial, Inc., discovered that advisors had funneled 62% of their clients’ assets into active management and 34% in passive funds.

Fears of COVID the resurgence of the Delta variant and the looming specter of another economic shutdown have a huge impact on how advisers approach investing; 76% said pandemic concerns guide their decisions, and 68% said volatility in stock markets is their main concern for portfolio management.

“What we have discovered through our research and experience is that financial advisors continue to use a mix of assets and liabilities, but rely more on actively managed solutions within the portfolios of customers, ”said Stuart Parker, President and CEO of PGIM Investments. “The ability to generate alpha for clients, especially during times of market volatility, is critical.”

The study also found that while almost all financial advisors use mutual funds, 65% plan to use more ETFs in the next three years.

T. Rowe Price believes in the difference and the benefits of active management. The company currently offers five actively managed ETFs covering a variety of investment objectives. The company brings a wealth of experience and research to its products, with portfolio managers averaging over 20 years of investment each, as well as more than 400 investment professionals dedicated to researching companies within ETFs.

For more news, information and strategies, visit the Active site AND F Channel.

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Patient charged after hospitalization of practice staff – Management In Practice

By Staff management No Comments

A man has been charged with assault after assaulting four staff members at a Manchester GP practice.

Two staff members were rushed to hospital and treated for head injuries shortly after the assault, which took place on Friday (September 17th) at Florence House Medical Practice in Manchester.

Dr Tracey Vell, Managing Director of Manchester LMC, confirmed the Twitter that staff ended up with “deep lacerations”, while a general practitioner had a fractured skull.

She reported that the attack was carried out by a patient, 59 years old.

Greater Manchester Police said the man was charged with:

  • Three counts of assault under section 18
  • One count of assault under section 47
  • A malicious communications account
  • A brawl leader

He also confirmed that he was kept in custody ahead of his appearance in Manchester Magistrates’ Court today (September 20).

Manchester Health and Care Commissioning confirmed this morning that the practice will remain closed temporarily.

Call to the Secretary of Health to act

The incident comes amid growing criticism of the apparent lack of government support for GPs and primary care staff facing abuse from patients.

Last week, the Institute of General Practice Management (IGPM) co-signed a letter to Health Secretary Sajid Javid criticizing a “lack of central support or a public challenge by the government” of the increase in cases of violence .

Shortly after the Florence House Medical Practice assault, the IGPM again tweeted to Mr. Javid ask, “What are you doing to help? When will you respond to our letter of concern? ‘

Separately, Mr Javid said: “Violence against people working in health services is unacceptable.

“NHS staff work tirelessly to care for patients and shouldn’t have to fear for their safety.

“We are doing everything we can with the NHS to protect staff from abuse and bring offenders to justice.”

NHS chief executive Amanda Pritchard also denounced the attack as “unacceptable”.

Meanwhile, the chairman of the BMA GP committee, Dr Richard Vautrey, urged the government to “act and quickly, before more incidents of this gravity occur”.

He added: “Those who commit heinous acts like these must be dealt with by law and it is essential that governments, and every national and local health agency do much more to ensure the safety of personnel working in practices. who are clearly placed at increased risk by current anti-GP rhetoric.

Up to 75% of chiefs of staff, nurses and general practitioners have experienced verbal abuse from patients during the Covid-19 vaccination campaign, with general practitioners warning that it could worsen for the Covid recall and influenza campaigns this winter.


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Global economic uncertainty leads to greater investment in active management

By Active management No Comments

Market performance, fears of Delta’s global economic impact, and concerns about inflation are prompting investors and advisers to watch the markets closely for any signs of what many see as an inevitable correction. US markets have consistently outperformed for so long that there are growing fears of impending volatility and a significant correction is on the horizon.

It’s a concern that causes advisers to divert funds overwhelmingly to actively managed funds, Wealth Professionals reports.

“With the current cycle moving very quickly, the risk that the correction will be hard increases,” Binky Chadha, chief strategist at Deutsche Bank, warned last week. “Market-level equity valuations are historically extreme on almost every measure. “

New survey from PGIM Investments, part of the $ 1.5 trillion global investment management firm Prudential Financial, Inc., found advisers funneled 62% of their clients’ assets in active management and 34% in passive funds.

Fears of a COVID resurgence with the Delta variant and the looming specter of another economic shutdown have a huge impact on how advisers approach investing; 76% said pandemic concerns guide their decisions, and 68% said volatility in stock markets is their main concern for portfolio management.

“What we have discovered through our research and experience is that financial advisors continue to use a mix of assets and liabilities, but rely more on actively managed solutions within the portfolios of clients, ”said Stuart Parker, President and CEO of PGIM Investments. . “The ability to generate alpha for clients, especially during times of market volatility, is critical.”

The study also found that while almost all financial advisors use mutual funds, 65% plan to use more ETFs in the next three years.

T. Rowe Price believes in the difference and the benefits of active management. The company currently offers five actively managed ETFs covering a variety of investment objectives. The company brings a wealth of experience and research to its products, with portfolio managers averaging over 20 years of investment each, as well as more than 400 investment professionals dedicated to researching companies within ETFs.

For more news, information and strategy, visit Active ETF Channel.

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Strong Earnings, Strong Markets – Why Now is the Time to Be Active

By Active management No Comments

PActive index ETFs help investors follow the markets, but they lack the ability to adjust their holdings according to changing market environments. How do you balance the need for exposure to core stocks without being left to the vagaries of the market?

In the next webcast, Strong Earnings, Strong Markets – Why Now is the Time to Be Active, Ken Uematsu, Associate Portfolio Manager, T. Rowe Price, will discuss how active management can beat passive management (without taking unnecessary risk).

T. Rowe Price offers four actively managed ETF strategies, including the T. Rowe Price Blue Chip Growth ETF (TCHP), T. Rowe Price Dividend Growth ETF (TDVG), T. Rowe Price Equity Income ETF (TEQI), T. Rowe Price Growth Equity ETF (TGRW) and the recently launched T. Rowe Price US Equity Research ETF (TSPA).

The T. Rowe Price Blue Chip Growth ETF seeks to provide long-term capital growth by investing in common stocks of high-quality large and medium-sized companies with the potential for above-average earnings growth.

The T. Rowe Price Dividend Growth ETF seeks dividend income and long-term capital growth by investing most of its assets in the common stocks of dividend-paying companies that are expected to increase their dividends over time.

T. Rowe Price Equity Income ETF seeks high dividend income and long-term capital growth by investing most of its assets in common stocks, with an emphasis on large-cap stocks that have a strong track record. dividend payments or which are deemed to be undervalued.

Finally, the T. Rowe Price Growth Stock ETF seeks long-term capital growth and invests in companies that exhibit one or more of the following: superior growth in earnings and cash flow, the ability to maintain momentum in profits even in times of economic downturn, the occupation of a lucrative niche in the economy and the ability to expand even in times of low economic growth.

Constructed in the same way as the flagship investment strategies that have served T. Rowe Price clients well for decades, active ETFs use the same portfolio managers as their corresponding mutual funds and employ the investment approach. The company’s long-standing strategic investment, characterized by rigorous research, risk awareness, and independent decision-making.

T. Rowe Price Active ETFs complement the company’s traditional mutual fund offerings and offer the key features associated with existing ETFs that some investors may prefer, including ongoing daily trading, real-time market-determined prices, and tax efficiency. Over time, T. Rowe Price plans to offer a strong portfolio of ETF products covering investments in various asset classes.

The T. Rowe Price US Equity Research ETF’s strategy maintains similar style and sector exposures to the S&P 500, but uses an active approach to stock selection, seeking to add value from the “best ideas” of research. on the shares of T. Rowe Price. analysts. The US Equity Research ETF is similar to T. Rowe Price’s US Equity Research Fund (PRCOX), with which it shares the same experienced portfolio management team comprising the company’s equity research directors for North America. .

T. Rowe Price Active ETFs also have a proprietary portfolio disclosure process that ensures market makers have enough information to quote prices with a high degree of confidence while simultaneously protecting the intellectual property of professionals. the company’s investment and the interests of its mutual fund shareholders. The proprietary, non-transparent, actively managed ETF wrapper may also attract more fund managers to the ETF space, providing active managers with a way to reap the benefits of the ETF’s investment structure while protecting their secret sauce from the ETFs. potential favorites.

Financial advisors who want to learn more about an active approach to investing can register for the Thursday, September 16 webcast here.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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