Advisors to focus on ‘total return’ this year
It’s now the third week of 2024, and advisors are already taking the reins when it comes to managing their investment strategies.
A recent InvestmentNews survey found that one of the areas set to see the biggest increase in interest on net was US fixed income, with 44% of advisors saying they anticipate more exposure to that sector.
Rob Schultz, wealth manager and senior partner at NWF Advisory Services, said there are two reasons for that, “the first being rebalancing.
“With a strong year in in equities last year, any portfolio would be out of balance after a 20%-plus year in the equity markets,” he said. “The second is that you get paid for owning fixed income. On a risk-reward basis, it’s as attractive as it has been in a few years.”
David Settanni, advisor and chief financial officer at Settanni Financial, an independent RIA, said that while the firm has seen new business as a result of the higher rates, it won’t be increasing its allocation to fixed income.
“We’ve seen an influx of fixed-income business because we’ve been able to gain a little bit of market share from banks or from clients or relationships that had bank accounts that were paying a very low yield,” he said. “Our business hasn’t seen an influx of money that has been invested in fixed income, just because we’ve been able to invest clients in Treasuries and earn them a very reasonable rate of return.”
Kim Abmeyer, founder and wealth advisor at Abmeyer Wealth, said while the firm has some ETFs that invest in a broad sector or are index-based, allowing for participation and passive investing, she tends to lean toward more concentration in individual stock names to help improve performance in areas of the market that she thinks will do well.
“Even in a
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