Shareholder engagement is not a new activity, and it is on the rise in 2020 as millennials continue to drive more interest in responsible investing. Today’s investors see the shareholder engagement as an even more powerful tool—one that can have a direct impact on corporate behaviors and business activities, and therefore, general society.
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For understandable reasons, the United States has adopted a series of laws designed to prevent U.S. taxpayers from taking advantage of foreign trusts as tax shelters from U.S. income taxation. The obvious application of these laws is when a U.S. citizen is attempting to transfer cash or income-producing assets to an offshore Trust. When dealing with foreign trusts, however, these laws can apply in circumstances where unsuspecting non-U.S.-citizen taxpayers can be financially devastated by the consequences.
In this exclusive chat with Mellody Hobson, the President and co-CEO of Ariel Investments, speaks candidly about the importance and value of diversity in finance—how being color brave can improve business and society at large. Mellody shares personal stories and lessons learned from her investment career, including the disconnect that is felt between the diversification of investment portfolios and the lack of it in the hiring process in the industry. She also discusses investment trends and the empowering gift she received at the start of her career.
In this U.S. election year there are not only the current administration's tax reform to consider, but also those of the Democratic presidential candidates. With the possibility of a new president on the horizon, significant changes to the tax code may be on the way.
Despite reduced return expectations in 2020, municipals should remain a valuable building block of an investor's portfolio due to their attractive tax-adjusted yields, diversification benefits, and improving credit characteristics. For investors in high tax brackets, municipals are a great place to get it.
The commodities market appears to be recovering, but will it continue to improve throughout 2020? Find out which economic factors will drive—or sink—the asset class.
Direct indexing has been called the ETF killer, ETF 2.0, and a catalyst that will bring an end to commingled investment vehicles. But to make proper use of all its benefits, the script must be flipped on the narrative of direct indexing to show not only the importance of customization but also that its value comes from understanding how and when to use it. There’s enormous potential for direct indexing to become a lot bigger than it is today. Find out whether it’s right for your portfolio.
Climate change occurs slowly over time, which may make it an easy risk factor for investors to ignore. Recent studies suggest that climate change will have a negative economic impact on long-term global GDP. Over the shorter term, investor concerns about global warming may be priced into their assessment of stocks and bonds. As with any long-term secular trend, climate change will likely result in both winners and losers.
Much of the trade conflict between the U.S. and China can be traced to China’s desire to be a technological power. It is difficult for China to do much more than play catch-up in established technology like semiconductors, where improvements are incremental. Still, emerging technologies such as AI, robotics, quantum computing, and next-gen IT infrastructure present greater opportunities for industry leadership. China is unlikely to cede its ambitions, suggesting there will be an altered landscape moving forward regardless of the trade war outcome.
The insurance marketplace conditions are changing throughout the U.S., particularly for those with homes and other property in catastrophe-prone locations. The results outlined in this study highlight factors to consider when devising an approach to protect family members, properties, and reputational concerns in the face of current and future threats.