At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $120 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…
July 10th – July 16th
- Actively Managed Equity (FMIJX, HFCSX, SGENX)
- Real Estate (IYR, RWO)
- US Mid Cap (VOT, IWS)
Losers (advisor flows FROM these investments increased substantially):
- Europe Equity (VGK)
- Dow 30 (DIA)
- Emerging Markets (EEM)
Josh here – actively managed funds hit the top spot this week in portfolios driven by advisors for the first time in awhile. All three of the funds listed are new to the winner’s circle, according to Mike McDaniel, CIO at Riskalyze.
Specifically, we see 5-star ranked FMI International, which does foreign large caps and costs a below-average 98 bps. That’s a $4.2 billion fund with a rockin’ track record versus its benchmark.
We also see the $2.5 billion Hennessy Focus Investor fund, which is not cheap (1.46% expense ratio) but concentrated enough to potentially earn its keep. Hennessy is a mid-cap growth manager with just 21 holdings and only 4% annual turnover. These are the types of funds that deserve to succeed – interesting, non-benchmark hugging, unique, tax sensitive.
The legendary First Eagle Global fund, with its reputation for playing in gold / gold miners and its penchant for raising cash in valuation-challenged environments, has also made the list this week. SGENX is about even with the MSCI All-Country World Index over the last three years but year-to-date it’s trouncing it, 8% vs 4%.
Additionally, we see continued enthusiasm for REIT ETFs as well.
In the losers column, European equity continues to be sold. Advisor use of Vanguard’s VGK saw usage by advisors decline 13% week-over-week.
*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).