Bajaj Finserv Asset Management Ltd’s Post

Interest in #privatecredit is booming. The market is expected to grow from $1.7 trillion to $2.8 trillion by 2028 according to Preqin, and retail investors will be a key driver of that expected growth. With double-digit yields, low default rates and low volatility, private credit offers retail investors a compelling opportunity to diversify their portfolios. To increase adoption among retail investors, we need two things – 1) more accessible products and 2) continuous education for #RIAs on the benefits and risks. The first is well underway. Managers are investing heavily in building accessible products for the #wealth channel with more accommodating fund structures that offer lower minimums and flexible liquidity features, avoid capital calls and issue 1099s. As fund opportunities for the private wealth channel grow, education for RIAs will be critical to properly empowering advisors to help their clients to capitalize on these new opportunities. Every day, my team at Churchill Asset Management has conversations with interested advisors where we discuss expected defaults and losses, the impact of competition on spreads and yields, key differentiators between private credit segments, liquidity flexibility and more. I’m grateful to play a small part in democratizing access to private credit. Many thanks to InvestmentNews for allowing me to share my insights on this exciting trend. Read more about this opportunity in my Q&A below. https://lnkd.in/gBd-_Uge

As Senior Investment Strategist Alona Gornick shares, “The benefits of private credit shine brighter in uncertain times.” Read Alona’s Q&A with InvestmentNews below to learn why interest in the asset class is growing among retail investors and why we believe demystifying private credit is key to increasing adoption in the private wealth channel. 

What’s the outlook for financials and fintech stocks in 2024? Investment manager Guy de Blonay discusses where he’s finding the best opportunities, and why he thinks the backdrop could improve as 2024 progresses. Read the article: https://ow.ly/sSBk50Qifxe

Dive into the world of structured notes with Shaun Krom, our CIO of #EasyAssetManagement Retail📰🔍 He unpacks the power of these hybrid investment products, offering a blend of capital protection, upside potential, and income generation. https://lnkd.in/dFtpbg63 We've added the BNP Paribas ZAR Capital Protected Note Structured Product on our platform. Curious? In your #EasyEquities app head over to "New Listings" -> "ZAR" to find the note to invest. BNP Paribas www.easyequities.co.za | #EasyEquities

Although #DirectIndexing is the new #WealthManagement trend for #Retail #MassAffluent segment, it carries the risk of drifting from #investing/Advisory mindset to zero cost trading/#Broking mindset. #CustomIndexing would emerge as a better fitment to address this segment of investors. Learn more about wealth management trends at the link below: https://lnkd.in/gbfCGGwB

Closing tomorrow! The Intelligent Investor Australian Equity Growth Fund (ASX:IIGF) Secondary Offer closes 5 pm Friday, 31 May. https://lnkd.in/eMYu8XSh Although past performance isn’t a reliable indicator of future performance, since its inception, the Fund has returned 12.44%, compared to the ASX 200 Accumulation Index's return of 11.68% over the same time period. IIGF is designed to be a collection of our best ideas. This means finding companies that can grow their profits and dividends consistently over decades to maximise your after-tax returns. Benefits of investing in the Fund include: ✅ A portfolio of 10 – 35 growth stocks. ✅ Low fees – just 0.97% p.a. and no performance fees. ✅ Avoid brokerage costs by investing directly in the Secondary Offer ----- IMPORTANT: This information is general financial product advice only and you should consider the relevant Product Disclosure Statement (PDS), Financial Services Guide (FSG), Target Market Determination (TMD) or seek professional advice before making any investment decision. The PDS for financial products offered through InvestSMART can be downloaded from our website or obtained by contacting 1300 880 160. You should consider the PDS, FSG and TMD before making a decision about a product.

The Intelligent Investor Australian Equity Growth Fund (ASX:IIGF) Secondary Offer opens today. https://lnkd.in/eMYu8XSh Although past performance isn’t a reliable indicator of future performance, since inception p.a. the Fund has returned 12.44% compared to the ASX 200 Accumulation Index return of 11.68% over the same time period. IIGF is designed to be a collection of our best ideas. This means finding companies that can grow their profits and dividends consistently over decades to maximise your after-tax returns. Benefits of investing in the Fund include: ✅ A portfolio of 10 – 35 growth stocks. ✅ Low fees – just 0.97% p.a. and no performance fees. ✅ Avoid brokerage costs by investing directly in the Secondary Offer ----- IMPORTANT: This information is general financial product advice only and you should consider the relevant Product Disclosure Statement (PDS), Financial Services Guide (FSG), Target Market Determination (TMD) or seek professional advice before making any investment decision. The PDS for financial products offered through InvestSMART can be downloaded from our website or obtained by contacting 1300 880 160. You should consider the PDS, FSG and TMD before making a decision about a product.

"This report provides an analysis of how investment funds are distributed to retail investors across 19 European countries, covering assets totalling EUR 4.4 trillion. Fund managers who participated in the survey also shared their perspectives on the expected changes in the fund distribution landscape over the next five years. (i) Banks hold a significant position in the distribution system, with a market share of 45% in Europe and 57% in the European Union. This variation is attributed to the higher market share of portfolio managers, full-service brokers, and financial advisers in the UK, which stand at 70% compared to 27% in the EU. Bank market share ranges from 91% in Romania to 9% in the UK. (ii) Financial advisers rank second in both Europe and the European Union, with a market share of 14% and 18%, respectively. Their presence is particularly strong in Italy and the UK, with market shares of 36% and 33%, respectively. (iii) Insurers follow suit with a market share of 7% in Europe and 9% in the European Union. In Norway, France and Slovenia, insurers play a more substantial role in fund distribution, with market shares of 19%, 18% and 17%, respectively."

With both the asset and wealth management sectors plagued by higher interest rates and fee pressures, the industries have valuable lessons they can teach one another, writes Yuri Bender https://on.ft.com/3yhesNL

The article referenced here is a great read on the robo-advisor hype and some if its setbacks. I’ve included an excerpt that speaks to performance:   ""Wealthsimple’s balanced portfolio made an average annual 4.5 per cent for the past five years, less than several competitors with a comparable mix of roughly 60-per-cent stocks and 40-per-cent bonds. One example is the $54-billion RBC Select Balanced Portfolio Series A, a classic bank offering with a chunky fee of 1.94 per cent and average annual five-year return of 5.6 per cent.""   There are three points to be made here: Empirical Proof: Low fees don’t always result in the best performance. Yes, you are paying 3-4 times more in the RBC Fund example above, but you are also making an extra 5.5% over those 5 years (1.1% annualized). Advisor Support: Not having an advisor leaves the onus on you to act on portfolio changes. These return results don’t include the potential impacts of selling at a bad time, potentially making this spread of missed opportunity even greater. Asset Mix: Choosing the incorrect asset mix can also affect your returns. Maybe you are suited for a growth portfolio but chose the conservative option. This would further widen your missed opportunity.   Fees are an important aspect, but they shouldn’t be the main focal point as the commercials make it out to be.    Happy Canada Day & Happy Investing! #WealthPlanning #FinancialPlanning #Investing #RoboAdvisors #AssetMix #WealthAdvisor #FinancialAdvisor