With its just-announced, $900-million acquisition of employee-stock-plan manager Solium Capital, Morgan Stanley envisions a pipeline to millennials who figure to control significant wealth in the coming years.
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 AND INVESTING
This Options Bet Helps Tame Markets, but There Are Risks: More investors are selling options in a bid to boost returns, a shift that traders say is helping to tamp down market volatility now—but potentially at the expense of greater turbulence later.
From Dow Jones Newswires
Despite trade war risks and a slowdown in China, 18% of fund managers have said they are long emerging markets in the latest Bank of America Merrill Lynch survey. This is “the most crowded trade for the first time in survey history,” BAML says. Things have dramatically changed since last month, when fund managers were short EM. Developing markets’ currencies are all up against the U.S. dollar onTuesday as risk appetite returns to the markets. (email@example.com)
Environmental, social and governance, or ESG, concerns are more important in developed markets than in emerging markets, despite broad belief in markets that the opposite is the case, says HSBC. ESG issues affect developed markets’ credit default spreads more than those of emerging markets, HSBC says. “This might seem counterintuitive, but we think that for emerging-market states, factors other than ESG have a larger impact on their CDS,” HSBC says. Indebtedness and economic performance are factors with bigger impact on where emerging market countries trade than for developed market states. (firstname.lastname@example.org; @EmeseBartha)
BUSINESS & PRACTICE
Survey Shows PE’s Strong Focus on Digitization: When evaluating investments, many private-equity firms are focusing on how technological improvements can drive portfolio company growth, according to a new survey by auditing and consulting firm BDO.
Earning Income With Socially Responsible ETFs and Mutual Funds: A few exchange-traded and mutual funds have launched lately that offer income with a socially responsible sheen—using environmental, social, or governance, or ESG, criteria in their investment process.
A Rarity on Wall Street: A Female- and Minority-Led Activist Hedge Fund: The upper ranks of hedge funds are almost exclusively white and male. Impactive Capital, a new activist fund being launched by two industry veterans, will be one of the exceptions.
TRAVEL & LIFESTYLE
Property Prices Tumble in Dubai, a Mecca for the Superwealthy: Dubai’s property prices have fallen by around 25% on average since hitting a peak in 2015, according to global property firm Jones Lang LaSalle . It was one of the world’s worst-performing cities for real-estate prices over the past two years, property consulting firm Knight Frank said.
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