Five Stocks That Generate Passive Income in 2021
Larry Fink Says Institutional Investors Are Fascinated by Bitcoin, but Still Not Interested
Two New BlackRock Carbon Transition ETFs Are Taking Center Stage
Fund Flows Continue to Rise in the European Union
Fund flows in European equities (EFA) have expanded at a slower pace since 2011. Overall, they’ve grown at an average of 10% over the past three years.
BlackRock’s Diversified Offerings Can Benefit from Rate Hikes
In the first quarter, BlackRock managed ~$1.9 trillion in fixed income offerings, up from ~$1.6 trillion in the first quarter of 2017.
BlackRock’s Retail Continues to Attract New Clients across Classes
BlackRock’s (BLK) retail business had assets under management (or AUM) of $542 billion as of March 31, 2016.
Emerging Market Equities See Valuations Rise on Fundamentals
Valuations rose by 3.10% in the week ended September 11, 2015. The rise was mainly due to buying in India’s equities on higher industrial production and low inflation.
10-Year Treasury Note Market Demand Barely Moved Last Week
On July 8, ten-year Treasury notes worth $21 billion were auctioned—the same as the previous week.
Is KKR a good pick for retirement or growth options?
Is KKR a good pick for growth options? KKR is expected to improve its realizations in 2015 and 2016 after an expected valuation increase of energy holdings.
Fund Flows to XLF Have Been Declining
Exchange-traded fund investors added almost $552.6 million on average to the Financial Select Sector SPDR ETF (XLF) in the last quarter. During the week ending September 25, the ETF witnessed outflows of $318.3 million.
BlackRock Increases Dividend on Improved Operating Performance
BlackRock has historically paid out the major portion of its profits in dividends. It increases its dividend per share in-line with its performance.
How Could a Trade War Impact Asset Managers?
After Trump announced that Chinese investments in US tech stocks would be restricted, the Dow Jones Industrial Average spiked downward.
Overview: A key guide to investing in exchange-traded funds
This series is our attempt to educate our readers about leveraged and inverse ETFs, their structure, and their suitability for retail investors.
Interest Rate Expectations Have Jolted Equity and Debt Alike
Asset managers (VFH) are seeking stability in order to attract funds toward either equity or debt offerings.
BlackRock’s Valuations following the Decline in Global Equities
BlackRock (BLK) stock has risen 27.6% over the past six months and 39.0% over the past year.
Can State Street Recover Its Discounted Valuations?
On a next 12-month basis, State Street Corporation (STT) has a PE (price-to-earnings) ratio of 13.9x. Its competitors’ average is 21.22x.
EU Equities Decline on Greece’s Woes in Week Ended May 29
EU equities outperformed other major markets in 2015 due to quantitative easing announced by the European Central Bank, a weaker currency, and rising exports.
Where Are Interest Rates Going? Ray Dalio Weighs In
Ray Dalio, and Marketplace Morning Report host David Brancaccio discussed the future of the economy and the next recession. Here’s what you need to know.
What Led to Invesco’s Discounted Valuations?
Invesco has a price-to-book ratio of ~1.4x on an LTM basis.
Fixed income ETF must-knows: Comparing Treasuries and other ETFs
Credit spreads associated with lower rated bank loans found in SNLN and BKLN could underperform as corporations see cash flow decline and their ability to service their debt is compromised.
Paul Singer Increased His Holdings in NXP Semiconductor in 3Q17
Paul Singer, the CEO of Elliott Management, increased his holdings in NXP Semiconductor (NXPI) in 3Q17, according to a recent 13F filing report.
Macro investment recovers: Time to short the long end of the curve?
This article considers the possibility of rising rates and the case for taking a bearish view on bond prices.
State Street: A Look at Total Assets under Management
State Street Corporation ended fiscal 2017 with total AUM of ~$2.8 trillion, with an equity component of ~$1.7 trillion.
Why State Street Has Lower Valuations
Wall Street analysts have given a one-year price target on State Street of $117.53.
BlackRock Misses 1Q16 Estimates on Declining Global Equities
BlackRock (BLK) reported its 1Q16 earnings on April 14, 2016. The company missed Wall Street analysts’ adjusted EPS estimates of $4.29, posting EPS of $4.25.
How Wall Street Analysts View Invesco
Of 16 analysts tracking Invesco in April 2018, four analysts suggested a “buy,” and six analysts gave “hold” ratings on the stock.
Allianz Reports 11% Revenue Growth Backed by Insurance Business
Allianz Group offer property casualty insurance, life and health insurance, and asset management products and services in over 70 countries. The company’s major operations are in Europe.
Fixed income must-know: Why the Fed struggles to create inflation
This article considers the Federal Reserve Bank’s continued struggle to reach its inflation target and the implications for fixed income investors.
Why the federal budget deficit is returning to normal levels
This article considers the ongoing decline in the federal budget deficit and considers the implication for fixed income investors.
Why David Einhorn Is Betting against Amazon
On a YTD (year-to-date) basis, Amazon has returned nearly 40% as of November 3, 2017.
How Does BlackRock Make Money?
BlackRock, an investment management giant, had $7.0 trillion in AUM (assets under management) at the end of the third quarter.
Real Estate Price Appreciation widely dispersed by location
The Zillow Home Value Index (ZHVI) rose 5.1% year-over-year to $157,600. The ZHVI is a modeled index, based on the average zillow estimate of home values in each area. The Zillow index is not solely based on home sales, so it isn’t really a comparable index to Case-Schiller. It is closer to Radar Logic, which […]
WisdomTree Trades at a Premium due to High Growth
WisdomTree stock is currently trading at 29x on a one-year forward earnings basis. In comparison, its peers are trading at 16.2x.
Financials Steal the Spotlight on July 15: Stellar Q2 Earnings
Financial-sector companies such as Bank of America (BAC), U.S. Bancorp (USB), and BlackRock (BLK) shared the spotlight on July 15.
Traditional assets: Defining active and passive management
Active asset management refers to those asset managers that essentially try to outperform the average market return, a benchmark, or a hurdle rate that may have been set internally.
The big 3 ETF providers in the US—iShares, SPDR, and Vanguard
In the U.S., Blackrock (BLK), State Street GA (STT), and Vanguard are the top three ETF providers. They have a 40.1%, 22.3%, and 20.7% market share, respectively.
EU Equity Valuations Improved on Strong Earnings
The MSCI Europe Index was valued at 14.9x on a one-year forward earnings basis in the week ending July 31, 2015. Valuations rose by 0.71% that week.
Fixed income ETFs: Key differences in duration and quality
This article considers the trade-offs between high-credit-quality and lower-credit-quality, as well as shorter-duration and longer-duration, fixed income ETFs.
Housing starts dampened by wet weather in the Midwest
Housing starts are a critical predictor of future home builder sales Housing starts are released jointly by the Census Bureau and the Department of Housing and Urban Development. Analysts use the information to anticipate future production for home builders, future demand for raw materials, and labor costs. This data will even affect the forecasts for […]
5-year Treasury notes saw lower auction demand
The difference between five-year and 30-year Treasury (TLT) yields narrowed to 142 basis points (or bps) on September 26. This is the narrowest it has been since January 16, 2009.
Why BlackRock has an inorganic strategy for different markets
BlackRock (BLK) is focusing on diversifying its expanding portfolio more through acquisitions and offerings in emerging markets.
Will BlackRock’s Q3 Earnings Boost Its Stock Price?
State Street’s Asset Position: Still a Concern in 1Q16?
As of the fourth quarter of 2015, State Street (STT) reported average total assets that were 10.6% lower than 4Q14.
Bank of America’s Asset Management Depends on This
BAC was managing ~$2.59 trillion on March 31, 2017, in client balances, which represents a growth of 5% on a YoY basis.
Emerging Market Equities See Positive Flows in April
The iShares MSCI Emerging Markets Minimum Volatility ETF (EEMV) and several other emerging-market ETFs attracted positive flows totaling $0.3 billion for the week ended May 1, 2015.
How Prospect Capital Improved Its Yields in a Difficult Market
Prospect Capital has managed to generate above-market yields through disciplined credit selection and a diverse origination approach.
Blackstone Hedge Funds Outperform Relatively, Expand Assets
Hedge funds performed dismally during the third quarter on lower volatility and geopolitical risks. Alternative managers saw valuations fall.
BlackRock Rewards with Higher Dividends and Repurchases
BlackRock has repurchased $1.1 billion worth of its own stock over the past four quarters. In 1Q16, the company’s stock repurchases were worth $300 million.
Analyzing Wells Fargo’s Interest and Non-Interest Income
Commercial banks (XLF) have seen their interest income and margins rise over the past few quarters due to rate hikes.
European Equities Rise on Expectation of Further Stimulus
European equities rose as the ECB’s president hinted at further stimulus for the European economy amid falling commodities and a slowing global economy.
Analyst Ratings on Blackstone Have Stayed Steady
Asset managers have been negatively affected in 1H 2018 by the unsupportive global environment.
Why Marc Faber Believes US Economic Growth Is Weakening
In 1Q17, the US economy saw a growth rate of 1.2%, according to the report provided by the US Bureau of Economic Analysis.
Asset Managers to See Growth on Diversified Offerings in 1Q18
The recent fall in stocks globally is expected to put some pressure on asset managers’ (VFH) operating performances in 1Q18.
BlackRock expected to benefit from fixed income ETFs
BlackRock benefited the most from the money in motion due to macro factors. Fixed income ETFs in 4Q14 attracted almost half of the total new funds in 2014.
How ETFs Can Impact State Street’s Investment Management Division
In the first quarter, BlackRock (BLK) saw inflows of $35.0 billion in its ETF offerings.
Taxable bond fund flow is still strong with tax free interest still low
Fixed income money flow continues to be dominated by the taxable category with only marginal interest by investors in the tax-free category
The main players in asset management
The efficient market hypothesis maintains that the market prices everything correctly and so it isn’t possible to outperform the market in the long run.
How big is the asset management industry?
Audited and verified annual figures at the end of 2013 indicate that total assets under management of US registered investment companies equalled nearly $17.1 trillion.
Must-know investment pledges to India from Fortune 500 CEOs
The group spoke about how these companies and India could benefit from investment flow into the country. Modi sought investment pledges from many of these CEOs, who were impressed with what India had to offer.
Private equity, hedge funds, and other alternative assets
Private equity is capital invested in companies that aren’t listed on stock exchanges. These alternative assets include venture capital.
Could Volcker Rule Reforms Hurt in the Next Recession?
The US Comptroller of the Currency approved changes to the Volcker Rule. The rule originated after the 2008–2009 financial crisis.
What’s behind Berkshire Hathaway’s 1Q18 Losses?
Berkshire Hathaway announced its 1Q18 results on May 5. Buffett’s investment conglomerate posted a net loss of $1.1 billion, or $692 per share.
IFF: Analyzing Institutional Investors before Its Q3 Earnings
The 13F filings on June 30 indicated that institutional investors own 85.9% of International Flavors and Fragrances’ (IFF) outstanding shares.
Are Institutional Investors Buying or Selling Deere?
The 13F filings of June 30 indicate that institutional investors own ~67.1% of Deere’s (DE) outstanding shares.
Acquisitions Boost Invesco’s Assets under Management
Invesco (IVZ) reported its second-quarter results today, posting EPS of $0.66.
How Berkshire Could Make Use of Excess Liquidity
Berkshire Hathaway’s (BRK.B) liquidity of over $115 billion is rising at a faster pace owing to strong cash flow generation.
Investors Await Berkshire Hathaway’s Next Acquisition in 2018
Berkshire Hathaway (BRK.B) had liquidity of $118 billion at the end of the first quarter.
What Could Help T. Rowe Price in Q2 2018
Of T. Rowe Price’s (TROW) total assets under management in the first quarter, $579.3 billion comprised equity, $135.8 billion comprised fixed income and money market assets, and $299.1 billion were multi-asset funds.
How Macros and Monetary Policies Could Drive TROW’s Performance
Donald Trump’s imposition of additional tariffs on $200 billion in Chinese imports has increased trade tension, which could impact the global economy and business.
State Street’s Investment Servicing Division: What’s Ahead?
In the first quarter, State Street’s Investment Servicing division garnered net interest income of $663.0 million for a YoY increase of 30.0%.
Tariffs: TD Ameritrade’s Views and the Impact on Asset Managers
On July 11, JJ Kinahan of TD Ameritrade Holding (AMTD) stated his views on the rising US-China trade tensions.
What Charles Schwab Predicts for Second Half of 2018
On July 10, Charles Schwab (SCHW) presented its forecast for the second half of the year.
How Wall Street Rates BlackRock and Asset Managers
Analysts gave BlackRock a price target of $613.15 on an NTM basis.
Who Are the Top Institutional Investors in APD?
The 13F filings by institutional investors as of March 31 indicate that institutional investors own 87.0% of Air Products and Chemical’s (APD) outstanding shares.
A Look at Invesco’s Total Assets under Management
At the end of the first quarter, Invesco (IVZ) had total AUM (assets under management) of $934.2 billion.
What Will Invesco’s Revenue Be in Q2 2018?
Of Invesco’s (IVZ) total first-quarter operating revenue of $1.4 billion, the company’s investment management fees contributed $1.0 billion.
What Could Affect Invesco’s Performance in Q2 2018?
In this series, we’ll study the factors that could drive Invesco’s performance, valuations, and analyst ratings.
Can Trade Wars Slow Down the Fed’s Rate Hikes?
Global central bankers have expressed concern about an expected slowdown in the global economy on the back of trade wars.
State Street’s Investment Management Division in Q2
State Street’s (STT) investment management division garners fee revenue from trading services, management and processing fees, and other revenue.
What’s Expected for State Street’s Investment Servicing Business
In the first quarter, State Street’s (STT) fee revenue made up a significant portion of its investment servicing revenue.
How Will Berkshire Deploy Its Cash Pile of over $100 Billion?
Berkshire Hathaway (BRK.B) was sitting on liquidity of $118 billion at the end of the first quarter.
What to Expect of BlackRock Stock amid Lower Flows
BlackRock is expected to post earnings per share of $6.64 in the second quarter, 1.0% lower sequentially and up 26.7% year-over-year.
Apple in Ireland: Looking beyond the Tax Dispute
iPhone sales accounted for as much as a quarter of Ireland’s economic growth in 2017.
How Analysts Are Viewing Blackstone
Blackstone (BX) is covered by 14 analysts in March 2018. Seven of them are recommending a “strong buy” for the stock, and six are rating it a “buy.”
Can Bank of America Generate Alpha for Investors in 2018?
Banks and asset managers (XLF) had a great run in 2017 due to a rise in broad markets, allowing them to generate a higher base and performance fees.
How Could T. Rowe Price’s Valuation Recover?
Price-to-earnings ratio T. Rowe Price (TROW) has an NTM ( next-12-month) PE (price-to-earnings) ratio of 15.0x. Competitors are valued lower, with an average ratio of 15.7x. Peers Franklin Resources (BEN), Financial Engines (FNGN), and BlackRock (BLK) have NTM PE ratios of 11.7x, 17.3x, and 18.2x, respectively. T. Rowe Price’s valuation could fall further, as the company’s […]
T. Rowe Price’s Views on Global Markets in 2018
Strong outlook T. Rowe Price (TROW) expects global markets to be positive in 2018, in both emerging and developed economies. Economies’ movement towards digitization and innovation is expected to help businesses. In 2018, T. Rowe Price expects global equity markets to be supported by improving business models, technological developments, and shifting consumer preferences. Technology giants’ valuation is increasing […]
How T. Rowe Price Aims to Tackle Challenges
Ways to tackle hurdles While T. Rowe Price (TROW) expects to encounter certain long-term challenges, it has identified some measures it may take to tackle them. The company plans to focus on pricing as well as long-term goals. T. Rowe Price has extended its investment strategies, receiving a positive response from clients. To streamline processes, […]
What Are T. Rowe Price’s Plans for the Future?
Outlook Based on its investor presentation on February 21, 2018, T. Rowe Price’s (TROW) current vision is more or less the same as its vision in 2017. The company continues to focus on becoming a leader in active investment management. It also plans to generate and deliver long-term value to customers. T. Rowe Price is […]
These Factors Affected T. Rowe Price’s Assets under Management
Total assets under management As of December 31, 2017, T. Rowe Price (TROW) had total AUM (assets under management) of $991.1 billion, of which the company’s US mutual funds contributed $606.3 billion and other investment products contributed $384.8 billion. In 2017, the company’s total AUM appreciated by $180.3 billion. In 2017, T. Rowe Price’s US mutual funds appreciated […]
What’s T. Rowe Price’s Outlook on Emerging Markets?
Favorable outlook T. Rowe Price (TROW) believes that emerging markets may offer significant investment opportunities after their strong momentum in 2017. Because of improving political and economic situations in some developing countries, many global emerging markets can be looked upon for investments. In 2017, emerging markets saw higher economic growth than developed markets. This trend is expected […]
T. Rowe Price’s Operating Expenses Increased: Here’s Why
Operating expenses Between 2016 and 2017, T. Rowe Price’s (TROW) operating expenses rose 7.8% to $2.7 billion from $2.5 billion in 2016, and its compensation and related costs rose 11.4% to $1.7 billion from $1.5 billion. The increase was mainly due to higher salaries and related benefits and hiring employees. The company incurred compensation and related costs of $446.3 million […]
Behind T. Rowe Price’s Net Revenue
Components T. Rowe Price’s (TROW) net revenue comprises three components: investment advisory fees, distribution and servicing fees, and administrative fees. The company’s net revenue rose 13.5% to $4.8 billion in 2017 from $4.2 billion in 2016. Between 2016 and 2017, the company’s investment advisory fees rose 15% from $3.7 billion to $4.3 billion, due to its average […]
T. Rowe Price Announces Leadership Changes
Assets under management as of January 2018 T. Rowe Price (TROW) had total AUM (assets under management) of $1.1 trillion as of January 31, 2018, compared with $991 billion in December 2017. Of the $1.1 trillion, the company’s sponsored US mutual funds contributed $637 billion, and other investment portfolios contributed $410 billion. Of the sponsored mutual […]
A Look at T. Rowe Price’s Assets under Management
Asset classes In its investor presentation on February 21, 2018, T. Rowe Price (TROW) stated that its core business is helped by the allocation of its AUM (assets under management) in different asset classes and its strong client base. However, the company also believes that targeting new opportunities is crucial for its core business. Of its total AUM, […]
T. Rowe Price Beats Analysts’ Expectations
In this series, we’ll look at T. Rowe Price’s outlook on emerging and global markets, 4Q17 numbers, and future strategies.
Why Wall Street Is Long on BlackRock Post-Rout
Wall Street analysts are expecting a limited upside for asset managers (VFH) as well as broader indexes in 2018.
BlackRock’s Valuations Stable amid Strong Operating Performance
BlackRock is currently trading at a forward price-to-earnings ratio of 17.6x, compared with the industry average of 18.6x.
BlackRock and Competitors Look at Strong 1Q18 Numbers
Among the major asset managers, BlackRock (BLK) is expected to post sequential and year-over-year growth in earnings per share to $6.38 in 1Q18 and $6.83 in 2Q18.
Wall Street Analysts Long on Asset Managers in 2018
Analysts gave BlackRock a price target of $614.92 on a next-12-month basis.