Globe Advisor’s Best of 2024: Investment trends that resonated in 2024

Open this photo in gallery:

Holistic wealth management has become the prominent way of delivering financial advice to retail clients during the past decade and a half. Still, investments are, and will remain, core to the work advisors do.

That’s because while clients value services such as tax and insurance planning, most work with advisors for their investment management acumen. So, advisors need to be on top of the main themes and trends shaping the investment landscape.

Here are 10 Globe Advisor articles on investing strategies, themes and trends worth another read:

Why more wealth management firms are opting for separately managed accounts

Xem thêm : LPL elevates Marc Cohen to expanded managing director role

Separately managed accounts (SMAs) are gaining traction among Canadian wealth managers, carving out a small but fast-growing niche, particularly when serving high-net-worth clients. SMAs offer access to leading money managers covering equities, bonds and alternative assets. But the main difference between SMAs and mutual or exchange-traded funds (ETFs) is investors own the individual securities in a portfolio rather than units in the fund.

Six bargain REIT picks poised for a recovery

Real estate investment trusts (REITs) struggled for most of 2023 amid higher interest rates that raised debt costs and competition from lower-risk, cash alternatives for their dividend yields. But the outlook is improving. We asked three portfolio managers – Dean Orrico of Middlefield Capital Corp., Lee Goldman of CI Global Asset Management and Dennis Mitchell of Starlight Capital Inc. – for their top picks among undervalued REITs that are poised for a rebound.

How investors are responding after rule changes to HISA ETFs

High-interest savings account (HISA) ETFs are having a tough go after a regulatory change that took effect in January. Competition from new money market ETFs and hot equity markets also led investors to withdraw funds. Asset managers say they expected outflows from the cash alternative ETFs due to the rule change, which required banks to reclassify how they accounted for deposits in HISA ETFs. The change resulted in a cut to these cash alternative ETFs’ yields by about 20 to 50 basis points.

What’s driving the record-setting boom in ETFs?

It’s been a record year for ETFs in Canada. Inflows hit $56.6-billion through the end of October, according to data compiled by National Bank Financial, topping the previous record set in 2021 with two months of sales still to come. But while specific forces have attracted money in previous years, this year’s flows are more widespread, says Daniel Straus, director of ETFs and financial products research at National Bank Financial Markets.

Investors waiting on telecom rebound as regulatory, interest rate headwinds relent

Canada’s telecommunications sector has been missing the mark for almost two years as stock prices have fallen short of market expectations, making it the only Toronto Stock Exchange sector to have a negative return this year. But the regulatory and interest rate environments that contributed to this lacklustre performance are showing signs of settling, with some experts saying the stocks are undervalued.

Where to look beyond the Magnificent Seven for exposure to AI

Xem thêm : Dynasty Adds Raymond James Veteran to Lead Transitions

Big tech isn’t just starting its engines in anticipation of the new artificial intelligence (AI) arms race. Microsoft Corp., Nvidia Corp. and the other large-cap technology companies – dubbed the Magnificent Seven – have already established sizable leads in the next great industrial revolution. Yet, it’s a potentially massive economic boom that’s just getting started with plenty of room for those able to seize upon it.

Balanced portfolios hit sweet spot with soft landing in view

The U.S. Federal Reserve Board’s move to slash its policy rate awakened many investors to the prospect that the fat bond yields that accompanied high inflation are thinning now that consumer price growth is firmly on a downtrend. For many, there’s renewed focus on fixed-income allocations beyond simply snapping up guaranteed investment certificates or parking assets in high-interest savings accounts. “This is the conversation we’re having with our clients every day right now,” says Kristin Mcintosh, senior wealth advisor and portfolio manager at National Bank Financial Wealth Management in Calgary.

Six dividend stocks with rate-cut tailwinds

Canadian dividend stocks that may have struggled when interest rates were rising now have the wind at their backs. Bond proxies such as REITs have started recovering, and falling rates can help other dividend payers, too. The Globe asked three fund managers – Robert Lauzon of Middlefield Capital Corp., Bunty Mahairhu of CI Global Asset Management and Michael Simpson of NCM Asset Management Ltd. – to provide their top picks among dividend stocks that should benefit from rate cuts.

Bonds are back – no, really this time

Many advisors are likely facing a lingering question from clients: Why are they investing in bonds yielding less than 4 per cent? Advisors have a more optimistic answer for clients now.

How to invest in gold as it shines again

Gold’s glitter is back. Given a bullish outlook for the metal by some market observers, investors may consider playing gold through ETFs or similar products instead of buying bars and coins. Jeffrey Christian, managing partner of New York-based commodity research and consultancy firm CPM Group, says he’s forecasting record annual gold prices for this year and in 2025. “We are looking at US$2,050 an ounce or higher for an average annual price this year.”