WSJ Wealth Adviser Briefing: Chinese Stocks, Goldman Boutique Buy, Million-Dollar HomesMay 17, 2019
Barron’s interviews James Stack of Stack Financial Management, a money-management firm with $1.3 billion in client assets that’s known for its willingness to reduce stock exposure when markets appear overvalued.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
PLANNING & INVESTING
Indexes to Unleash Flood of Money Into Chinese Stocks: Two of the largest global index providers, MSCI and FTSE Russell, will soon begin ratcheting up exposure to companies listed on China’s domestic exchanges. The increases will force asset managers to purchase shares of Chinese companies to match their changing benchmark.
From Dow Jones Newswires
Packaged-food producers were able to have their cake and eat it too in 1Q. Consumer Edge Research’s Jonathan Feeney calculates that major food companies saw sales volumes tick up 0.2% despite pushing through a 1.4% price increase on average in the quarter. “The packaged food peer group did an excellent job passing through elevated input costs,” Feeney says. The question is whether consumers will switch to cheaper private-label alternatives as prices rise. Hershey, General Mills, Conagra Brands, Mondelez International and Kellogg all raised prices in key business units at the start of the year. (firstname.lastname@example.org; @MicahMaidenberg)
The Netherlands’ debut green bond, to be launched next Tuesday, is the significant duration event to watch next week in the eurozone’s government bond market, says Mizuho’s rates strategist Peter McCallum. The Dutch State Treasury Agency said earlier that it would sell EUR4 billion-EUR6 billion in the January 2040 DSL. Mizuho looks for the top end of the offer volume to be reached, and McCallum says bids in excess of EUR20 billion would be seen as good result. McCallum says the new bond comes on a slightly rich part of the yield curve and Mizuho looks for some form of premium due to the green nature of the issue. Mizuho sees an initial pricing expectation of 12 basis points above the pricing reference German July 2040 Bund. (email@example.com; @EmeseBartha)
BUSINESS & PRACTICE
Goldman to Acquire Boutique Wealth Manager For $750 Million: Goldman Sachs Group is buying boutique wealth-management firm United Capital Financial Advisers for $750 million in cash, striking its biggest deal in two decades as it accelerates a push away from Wall Street into lower-octane businesses.
Demand For ESG Investment Products Surges, Says BlackRock: Demand for environmental, social and governance criteria has been surging over the past year and a half, and by far more than anticipated, said Joe Parkin, head of iShares and Digital Wealth UK at BlackRock.
The Dubious Management Fad Sweeping Corporate America: NPS—or net promoter score—is a measure of customer satisfaction that has developed a cultlike following among CEOs. An increasing number of companies use it to develop new products and assign bonuses. It also may be misleading.
TRAVEL & LIFESTYLE
Boutique iBuyers Want to Sell Million-Dollar Homes With the Click of a Button: As part of the company’s “iBuyer” program, which launched last year, Zillow has been buying homes from consumers for an algorithm-determined rate, and then quickly selling them via online platforms for, hopefully, a slim profit.
– NAPFA Spring National Conference/ May 13-16/ Austin, TX
– FINRA Annual Conference/ May 15-17/ Washington, DC
– Investors Conference on CLOs and Leveraged Loans/ May 20-21/ NYC
– TDAmeritrade Elite Linc/ June 4-7/ Laguna Niguel, CA
– BNY Mellon Insite/ June 12-14/ Phoenix, AZ
– In|Vest 2019 / July 16-17 / New York, NY
– NAPFA Fall National Conference/ Oct. 1-4/ Chicago, IL
The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron’s, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.
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