Asset managers face declining profit margins despite rising markets, driven by increased operating costs and weak inflows, prompting a focus on alternative investments for growth and adaptation.
Passive investing in fixed income has evolved, offering customization, precision, and better risk management, despite challenges like liquidity and replication concerns, attracting more investments than active strategies.
E-mini Nasdaq-100 futures, launched in 1999, have grown substantially in volume, reflecting the importance of technology stocks and risk management in today’s market landscape.
Ships near South Africa face severe weather, causing container losses and delays. Many vessels are diverting routes to avoid risk from Houthi militants in the Red Sea.
Low-wage workers experienced significant wage growth of 12.1% from 2019 to 2023, driven by policy responses and a tight labor market, marking a departure from historical trends.
Benchmarking private capital requires accurate data, defined inclusion criteria, and a strong governance framework to measure performance through various index types and calculations effectively.
Asset managers face declining profit margins due to rising costs, weak inflows, and the need for innovation despite a strong stock market. Strategic adaptation is essential for future success.
Burberry’s first-quarter results showed a 22% revenue drop, CEO resignation, dividend suspension, and declining sales, prompting challenges for the new CEO amidst declining brand exclusivity and market presence.
India’s equity market shows significant growth, with over 300 new companies since 2020, highlighting changes in industry profiles and future potential from private market entrants.
S&P 500 expected to report earnings growth above 12% for Q2, supported by historical trends of exceeding estimates, with 81% of companies reporting higher EPS so far.
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---title: "Daily Insights (16.07.24): Declining Asset Manager Margins, Fixed Income Trends, Nasdaq-100 Futures Growth, and Surging India Equity Market"page-layout: fulltitle-block-banner: truedate: 07-16-2024categories: [asset-management,economics,etf,fundamental]tags: [investments, growth, risks, margins, markets, wages, performance, technology, adaptation, revenue]image: /pictures/time-horizon-paper.png---::: {layout-ncol=2}:::{#first-column}In today's curation, we explore key developments in finance and investment. The following topics are highlighted:- Asset managers and declining profit margins- Evolution of passive investing in fixed income- Growth of E-mini Nasdaq-100 futures- Impact of severe weather on shipping near South Africa- Wage growth trends for low-wage workers- Benchmarking private capital effectively- Burberry's challenging first-quarter results- Growth in India's equity market- S&P 500 earnings growth expectations for Q2::::::{#second-column}::::::# Asset Management| Title | Summary ||-----|-----------|| [Why Asset Managers Struggle Despite Booming Markets: Rising Costs and the Push for Alternative Investments Explained (Casey Quirk, 2024-07-15)](https://www.institutionalinvestor.com/article/2dhfi05x8k2pr2loq4v0g/corner-office/asset-manager-profit-margins-get-thinner) | Asset managers face declining profit margins despite rising markets, driven by increased operating costs and weak inflows, prompting a focus on alternative investments for growth and adaptation. || [Unlocking Precision and Efficiency: Why Passive Fixed Income Strategies Are Transforming Modern Investment Portfolios (Northern Trust Asset Management., 2024-07-16)](https://www.institutionalinvestor.com/article/2dg5aji7ohkluumcrwy68/innovation/index-investing-as-an-active-decision-implications-for-fixed-income-investors) | Passive investing in fixed income has evolved, offering customization, precision, and better risk management, despite challenges like liquidity and replication concerns, attracting more investments than active strategies. || [Navigating Tech Sector Growth: How E-mini Nasdaq-100 Futures Shape Modern Investment and Risk Management Strategies (Seeking Alpha, 2024-07-16)](https://seekingalpha.com/article/4703878-tech-growth-25-years-nasdaq-futures) | E-mini Nasdaq-100 futures, launched in 1999, have grown substantially in volume, reflecting the importance of technology stocks and risk management in today's market landscape. |# Economics| Title | Summary ||-----|-----------|| [Shipping Chaos: Violent Storms Off South Africa Cause Major Disruptions and Container Losses (Bloomberg, 2024-07-15)](https://finance.yahoo.com/news/ships-fleeing-red-sea-now-160349344.html) | Ships near South Africa face severe weather, causing container losses and delays. Many vessels are diverting routes to avoid risk from Houthi militants in the Red Sea. || [Pandemic Policies Fuel Unprecedented Wage Growth for Low-Wage Workers Over Recent Four-Year Period (Economic Policy Institute, 2024-07-16)](https://angrybearblog.com/2024/06/fastest-wage-growth-over-the-last-four-years) | Low-wage workers experienced significant wage growth of 12.1% from 2019 to 2023, driven by policy responses and a tight labor market, marking a departure from historical trends. |# ETFs and Index Investing| Title | Summary ||-----|-----------|| [Unlocking the Secrets of Private Capital Performance: A Smart Guide to Benchmarking and Index Creation (MSCI, 2024-07-16)](https://www.msci.com/www/blog-posts/the-cornerstones-of/04783300823) | Benchmarking private capital requires accurate data, defined inclusion criteria, and a strong governance framework to measure performance through various index types and calculations effectively. |# Fundamental Investing| Title | Summary ||-----|-----------|| [Asset Managers' Profits Decline Despite Market Growth, Rising Costs and Innovation Needs Challenge Firms (Institutional Investor., 2024-07-15)](https://www.institutionalinvestor.com/article/2dhfi05x8k2pr2loq4v0g/corner-office/asset-manager-profit-margins-get-thinner) | Asset managers face declining profit margins due to rising costs, weak inflows, and the need for innovation despite a strong stock market. Strategic adaptation is essential for future success. || [Burberry Faces Tough Quarter: Sales Drop, CEO Resigns, and Brand Strategy Questioned (Sherwood, 2024-07-15)](https://sherwood.news/markets/europes-luxury-stocks-have-boomed-burberry-got-left-behind/) | Burberry's first-quarter results showed a 22% revenue drop, CEO resignation, dividend suspension, and declining sales, prompting challenges for the new CEO amidst declining brand exclusivity and market presence. || [India's Equity Market Evolution: New Listings, Venture-Backed Firms, and Potential Power Shifts for Global Investors (MSCI, 2024-07-16)](https://www.msci.com/www/blog-posts/india-s-changed-and-changing/04777168512) | India's equity market shows significant growth, with over 300 new companies since 2020, highlighting changes in industry profiles and future potential from private market entrants. || [S&P 500 Earnings Surge: Historical Data Predicts Over 12% Growth for Q2, Outperforming Estimates (FactSet, 2024-07-16)](https://insight.factset.com/sp-500-will-likely-report-earnings-growth-of-at-least-12-for-q2) | S&P 500 expected to report earnings growth above 12% for Q2, supported by historical trends of exceeding estimates, with 81% of companies reporting higher EPS so far. |
