**Investments Roundup: Harris, iCapital, CAIA, Abacus Life, Kingswood, and More**
**Q&A with Rana Wright of Harris | Oakmark – Our Investments Solutions Leader of the Month – and Product News Featuring Morningstar, iCapital, Raymond James, Abacus Life, BlackRock, T. Rowe Price, CAIA, Kingswood, Franklin Templeton, Cerulli, and HFR**
*Chris Latham, Managing Editor, Wealth Solutions Report*
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**Rana Wright, Partner and Chief Legal and Administrative Officer, Harris | Oakmark**
In this edition of the Investments Roundup, we speak with our newest Investment Solutions Leader of the Month, Rana Wright, Partner and Chief Legal and Administrative Officer at Harris | Oakmark, who discusses the firm’s rebrand and investment strategies.
**Other Highlights:**
– Morningstar Wealth releases an asset class conviction report.
– iCapital partners with Ashton Thomas on alternative investments.
– Raymond James Investment Management appoints Mo Sparks as Head of ETFs.
– Abacus Life agrees to acquire Carlisle Management Company.
– BlackRock launches the iShares U.S. Manufacturing ETF.
– T. Rowe Price launches its Intermediate Municipal Income ETF.
– CAIA releases a report on advisors’ hurdles with alternatives.
– Kingswood U.S. expands its investment banking group.
– Cerulli finds limited advisor appetite for crypto.
– HFR reports total hedge fund assets reached $4.31 trillion.
– Franklin Templeton launches SMA and Managed Options Strategies at UBS.
**Larry’s Take:**
*Larry Roth, CEO, Wealth Solutions Report*
Reports from CAIA and Cerulli highlight significant challenges in wealth management. Despite technological and product innovations, many advisors are hesitant to take risks with their clients’ investments. Mutual funds still dominate over ETFs, and advisors remain cautious about adopting new asset classes like alternatives and crypto. However, staying ahead of the curve is essential for attracting and retaining clients. Eventually, advisors will need to embrace these “new” asset classes.
If you’d like to discuss these trends and their impact on your business, contact Larry Roth at larry.roth@rlrstrategicpartners.com.
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**1. Harris | Oakmark Talks Rebranding and Investment Strategies**
Chicago-based Harris | Oakmark, founded in 1976 as Harris Associates, has managed the Oakmark family of mutual funds since their inception in 1991. As of June 30, Harris | Oakmark managed $102 billion in assets, while the Oakmark Funds had $56 billion in AUM. Harris | Oakmark offers strategies for private wealth managers, financial advisors, institutions, and consultants.
**WSR: Why did Harris recently rebrand and what does the rebrand signify?**
**Wright:** Harris | Oakmark reflects our business across institutional and retail shareholders. Our new logo signifies our unwavering value investing philosophy. Harris Associates remains our legal name and will continue to be used when referencing our role as the investment adviser to the Oakmark Funds.
**WSR: How has your legal background prepared you for your role at Harris | Oakmark?**
**Wright:** My legal background equips me to navigate complex regulatory frameworks, ensuring risk mitigation and sustainable returns. It fosters transparency, clarity, and accountability, supporting our client-centric focus.
**WSR: What investment strategies should financial advisors consider given the market environment, and why?**
**Wright:** Financial advisors must determine suitable investments for their clients. At Harris | Oakmark, we offer fundamentally driven, actively managed portfolios for long-term value investors. Our concentrated portfolios allow us to pair well with other offerings, rounding out a client’s investment portfolio.
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**2. Morningstar Wealth Has Conviction on Large U.S. Banks, Chinese Tech Stocks**
Morningstar Wealth’s Global Convictions: July 2024 Asset Class Research favored defensive equities, U.S. banks, Chinese tech stocks, emerging markets debt, and government bonds. The first half of 2024 saw significant returns, with the S&P 500 Index up 15.3%.
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**3. iCapital Partners with Ashton Thomas on Automated Alts Access for Advisors**
iCapital partnered with Ashton Thomas Private Wealth to provide advisors with access to data management and alternative investment opportunities, including private equity, real estate, and hedge funds. This partnership aims to simplify asset management and enhance overall efficiency.
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**4. Raymond James Hires Mo Sparks to Build Out ETF Product Platform**
Raymond James Investment Management appointed Mo Sparks as Head of ETFs, responsible for building out an ETF product platform scheduled for launch in 2025. Sparks brings over 12 years of experience in ETF management and distribution.
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**5. Abacus Life Agrees to Acquire Carlisle Management in Luxembourg**
Abacus Life, an alternative asset manager specializing in specialty insurance products, agreed to acquire Carlisle Management Company for $200 million. The acquisition aims to enhance Abacus’ offerings to institutional investors.
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**6. BlackRock Launches iShares U.S. Manufacturing ETF**
BlackRock launched the iShares U.S. Manufacturing ETF (NYSE: MADE), focusing on leading U.S. manufacturing companies. This ETF aims to capture opportunities from policies incentivizing the reshoring of manufacturing activities.
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**7. T. Rowe Price Launches Actively Managed Intermediate Municipal Income ETF**
T. Rowe Price launched its first federally tax-free fixed income ETF, focusing on investment-grade intermediate-term munis. The ETF seeks to provide income exempt from federal income taxes and has a net expense ratio of 0.24%.
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**8. CAIA: Hurdles Remain for Advisors Looking to Add Alts**
The CAIA Association released a report highlighting the challenges advisors face when allocating alternative investments to client portfolios. Despite improved understanding and access, practical implementation remains underdeveloped.
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**9. Kingswood U.S. Continues Buildout of Investment Banking Group**
Kingswood U.S. expanded its investment banking team with the appointment of Tony Tian as Senior Managing Director. The firm continues to source middle-market companies with strong long-term prospects.
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**10. Cerulli: Well Over Half of Advisors Still Have No Appetite for Crypto**
Cerulli Associates found that 13.7% of advisors use or discuss cryptocurrency with clients, with a mere 2.6% making recommendations. Over half of advisors have no plans to use or discuss crypto, despite significant price increases in Bitcoin and Ethereum.
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**11. HFR: Total Hedge Fund Assets End 2Q at Record $4.31 Trillion**
HFR reported that total hedge fund assets reached $4.31 trillion at the end of 2Q, driven by performance-based gains despite overall industry outflows. The HFRI Cryptocurrency Index returned 25.5% in 1H 2024.
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**12. Franklin Templeton Launches SMA, Managed Options Strategies at UBS**
Franklin Templeton launched active and passive tax-managed SMA strategies on UBS Wealth Management’s platforms. These strategies aim to provide personalized portfolios with the potential to improve after-tax returns.
