Private Credit’s Big Arbitrage Trade Gains Backing From Advisors
Advisors are urging clients to sell non‑traded business development companies (BDCs) at net‑asset value and buy their listed counterparts, which currently trade about 25% below NAV. Redemption pressure is mounting, with Ares Management reporting withdrawal requests of 14.4% in Q2, up from 11.6% in Q1, while its publicly‑traded BDC trades at an 8% discount to a $19.59 NAV per share. Public BDCs now sit at a price‑to‑book ratio of 83%, well under the 95% long‑term average, highlighting a pricing gap. The trade offers investors daily price discovery and easier liquidity, but differences in leverage, fees, and asset composition mean the arbitrage is not risk‑free.
Automated Online Investing: How Technology Helps You Build Wealth Passively
Automated online investing, driven by robo‑advisors and AI algorithms, lets investors set preferences once and have contributions, rebalancing, and dividend reinvestment handled automatically. The model emphasizes consistency through dollar‑cost averaging and diversified ETF portfolios, reducing emotional decision‑making and time spent...
Half of Australian Adults Have Never Sought Retirement Advice
A new ASFA survey finds only half of Australian adults have ever sought retirement information. The study also reveals that licensed financial advisers have dropped 40% in ten years, while two‑thirds of adults admit little understanding of superannuation. Younger people...
Crypto for Advisors: Bitcoin: Planning for Inheritance
In a June 25 newsletter, Zak Townsend of Meanwhile outlines seven tactical questions investors should ask when planning to pass Bitcoin to heirs, emphasizing disclosure, access, legal authority, health contingencies, single points of failure, clear instructions, and backup durability. He stresses...
Do New Isa Rules Mean I Have to Pay Tax?
The UK government will tighten ISA rules from the 2027‑28 tax year, cutting the cash‑ISA allowance for under‑65s to £12,000 (≈$15,200) while keeping the £20,000 (≈$25,400) limit for those 65 and older. Any cash held inside a stocks‑and‑shares ISA will...
The Cost of Foreign Taxes on Returns
Matt Halperin quantifies the drag foreign withholding taxes impose on U.S. investors. Using MSCI data, the MSCI ACWI ex‑USA index delivered a 10‑year net return of 9.82% versus a gross return of 10.36%, a 54‑basis‑point gap that persists year‑over‑year. The...