Blackrock 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Volatility is likely to continue

“We’ve seen some meaningful shifts in market dynamics since we spoke last quarter. Diverging monetary policy, changes in global economic growth expectations and heightened geopolitical unrest all impacted the investment landscape and resulted in higher volatility in both asset prices and currencies in the past few weeks. And that volatility is likely to continue, as conflicting Central Bank policies and questions about the timing and magnitude of U.S. interest rate hikes led to an ongoing market uncertainty.”

It may take longer to stabilize Europe than people expect

“I believe it’s going to take longer to stabilize Europe than many think and we’re likely to see an aggressive ECB behavior for a long time.”

We’ve never had a centralized CIO

“This team based approach is a critical differentiator for BlackRock. We do not and never had have a centralized CIO. We don’t have a house view where any one person is setting a single investment strategy for our platform. Our process enables our teams to make independent portfolio of construction decisions to meet client objectives. That may result in differing performance for our clients at times, but it means we don’t have an overwhelming bias towards one strategy or an another and we minimize the risk that entails – that it tails.”

iShares assets have nearly tripled in the last five years

” when BlackRock acquired BGI five years ago. BlackRock’s global iShares assets under management were $385 billion. I’m proud to say that BlackRock’s iShares closed the third quarter with nearly $1 trillion of assets under management.”

Scale is not impacting ability to raise assets

“we have not seen one example where our scale is and our presence with our clients are being impacted. We actually won some business from one client already in the DC side, where when we did the BGI merger, they were concerned about our large presence within their plans. Over the course of the year as they become accustomed to our large presence, and they’ve indeed since then have awarded us more business, well we’ve been awarded more business again from them. So we’re not seeing any evidence of that at the moment.”

It’s still too early to tell how much in flows they’ll get from PIMCO

“It’s still too early to determine how much is growing. It’s fair to say there is a sizeable opportunity. It’s in the tens of billions of dollars. We’ve seen recent strong momentum, but it’s going to play out over quarters and maybe a year. And as I said, it’s going to be in the core fixed income strategies, it’s going to be in unconstrained fixed income strategies. You may see people, I think there is evidence of that, you’ve seen some people moving into ETFs and maybe there’s a holding pattern. But I just want to underscore, we’re seeing this type of flows because of our five years of performance.”

Liquidity in bond markets is a problem. We need to address this issue

“I think there’s been some great consistency across the fixed-income market. With that said, we are [ph] worried (01:01:13) about the liquidity in the fixed income market especially in the corporate bond area, where there’s just so many different CUSIPs and so many different issuance and there’s no consistency. And importantly this is the big role that the investment bankers and Wall Street played in terms of providing balance sheet, and navigating your positioning within the fixed-income universe and that balance sheet has been reduced significantly.

And so it does at times present liquidity issues. This is why we have been so loud in stating that we need a more expedient adoption of electronic protocols and markets. I do believe this is one of the areas where regulators need to focus. I spoke about this at an [ph] IMS (01:02:16) session this past weekend, but I think it’s imperative that we focus on this. As the regulators have put more capital demands on banks, by definition the capital markets are playing a larger and larger role in terms of financing corporations and financing different organizations.

With that in mind now, we need to be focusing on how to improve the capital markets and making sure they provide a stable mechanism for buying and selling securities. And we’re in this transition phase right now, and the faster and sooner we have this adaptation of electronic trading, the sooner we have standardization of some form of corporate bond issuance. And then importantly, we need behavioral changes across the board. This is going to take time and so the worry we have is, do we have enough time before there is a true liquidity event that really destabilizes the market. And this is why I said in my prepared statement, if we need to be working with regulators to make sure this – we have a more stable trading environment.”

TD Ameritrade 1Q14 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Strong asset gathering in both retail and institutional channels

“Both our retail and institutional channels continue to exhibit strength in asset gathering.”

Continued retail reengagement

“Our retail channel had its best quarter for net new client assets in three years continued retail reengagement combined with heavier media spend for the Olympics and retirement season yielded a significant increase in traffic to our Web site. This combined with improvements we made to our online account opening process have resulted in strong new client acquisition.”

Volatile markets drive engagement

“The S&P 500 moved 1% or more 25 days within the quarter compared to 12 days in the same quarter last year. Nearly every client engagement metric from logins to number of accounts that traded was up for the quarter. More clients were logging in; more clients were logged in were trading, and more of the clients trading where trading more. Engagement was up across all four of our key platforms with mobile leading the way.”

Retail investors are increasingly bullish

“Retail investor behavior continues to suggest an increasingly bullish sentiment.”

More investors reengaging with the market who need education tools

“as investors continue to reengage with the markets, we’re seeing more client interest in tools and education.”

1Q is retirement season

“We’ve just come out of retirement season, our busiest time of the year with strong results as we finish the first half of fiscal 2014 with 27 billion and net new client assets at 10% annualized growth rate”

Client cash at lowest levels since September 2007

“client cash as a percentage of total client assets ended at 14.8% in the quarter, slightly below our historical range of 15% to 20% and the lowest we’ve seen since September 2007.”

Most high frequency trading has helped retail investors

“Take for instance high frequency trading. This is a term with no agreed upon definition. That means different things to different people. But based on our analysis, there is no question that the regulatory changes and the electronification of the markets, including most high-frequency trading techniques have been good for retail investors.”

There are some bad techniques, which should be addressed

“With that said, there are some techniques that may be harmful and undermine the credibility of the markets. These are areas that should be addressed, but we encourage a thoughtful fact-based review to get at the heart of the issue and the root causes and if predatory practices exist, they should be addressed.”

High frequency trading is technological advancement

“to broadly say that all high-frequency trading is bad is like saying that the advancement of technology big data and analytics is bad. The fact is that the retail investor has never had better access to the markets or better execution quality. 10 years ago, 10 second executions were the norm. Now they happen in less than a second.”

TD doesn’t internalize orders

“we do not internalize orders. We believe that turning all client orders back to the market is more transparent and better aligned with the needs of our clients. Instead we work with multiple market participants which are selected after an extensive due diligence where best execution is our top priority as well as financial strength and stability.”

Margin and short interest both higher

“margin lending has increased again. So it’s higher now than it was at the end of the quarter…And two, the market did have a lot more shorting going on in the quarter and those two elements is what drove the revenue.”

Don’t know if there will be regulation around payment for order flow

“Payment for order flow has been around for a long time, it’s been looked at before. So this isn’t the first time this has come up for a discussion. So, we don’t have any particular inside knowledge, but we’re not anticipating because of books been written, but all of a sudden payment for order flow is going away.”

We’re going to look for ways to get paid for our volume though

“in any situation where something changes…Our flow has value, that’s been proven out, and we’re going to look to whatever variety of ways and alternatives are available to us to make sure that we extract some of that value, but after we’ve looked after our best execution responsibilities.”

Our clients don’t care about Michael Lewis’ book

“trading did not change after Michael Lewis’s book. And just to give you some statistics we don’t pay attention to what certain media people say as much and we don’t pay attention to what some our peers say as much. We pay attention to what our clients say. And we have had, I think it’s — let me get them here for you, 70 phone calls and 112 emails on this. So, this is from our perspective not a hot issue with our customers, that’s not to say we don’t take it seriously, but it’s not a hot issue with our customers. And our perspective on this is, this is a Wall Street issue, not a Main Street issue and we’re on Main Street front.”

Toronto Dominion more focused on going after HNW private banking clients, we’re more mass affluent

“they’re more interested in the high end of the wealth business what you would typically call our A-type of market, and more of a private banking type high end that’s part of the market. We are much more on our retail side, a mass — mass affluent type marketing firm obviously we bump into each other a bit, but that’s common of all wealth models.”

Bullish sentiment plus volatility equals the perfect mix

“anytime you have the kind of increasingly bullish sentiment that we’ve had over the last 6 to 9 months, and you have increase in volatility, our trading is going to be strong than it was this past quarter.”

No discussions with anyone at the SEC over market structure

“I can say, I have had no discussions with anyone at the SEC in the last two or three weeks.”

SEC is really good at listening to all sides

“the SEC has always done this in a very thoughtful way, a very fact based way from our perspective, that’s all you can ask for. They weigh every participant’s views which I think they should — we can all also ask for, but it’s not like lobbying the government, the Federal politics. They’re a very different organization with a very different mandate.”

A lot of people on vacation recently

“We just had a mini correction but we have also had a series of vacations, anybody that lives in New York knows that. New York hasn’t been the normal New York the last week or two.”

Tax harvesting also probably drove activity

“But when the market was up 30% last year people had capital gains and a lot of people did harvest them and if they did basically they’re going to have tax liabilities.”

nearly doubled the ad budget five years ago

“when I first came down we were spending about $140 million a year in advertising in my memory, and now we’re spending about $250 million. So we definitely upped it, because we saw the opportunity in the market and we wanted to broaden out our offer and we made the shift from being just a trading shop — equity trading shop to an equity and option trading shop, but also to an asset gatherer.”

Investing in marketing, view technology as a marketing expense

“marketing is a little bit more dynamic and a bit of a call on the market environment that you’re in. There is certain market environments where it works really well and other ones where it doesn’t work so well. We have been — the hard part is predicting those. But if I had to say, where would we invest right now if we wanted to invest, marketing would be on the list. We have always had sales people on the list, but if I had to pick one right now it would be technology because I do think we’re going through a fair bit of change in technology whether it’s mobile, the trend to mobile to social media, data analytics all those types of techniques that which are pervasive in almost any business and so I have seen quite a shift and we’re investing in each of those areas rather significantly. And the question we keep asking ourselves, are we investing enough in those areas. Because we do see it shifting and normally these shifts start, they pick up momentum and then they get stronger. We have been at the front edge of that but just got to make sure you can stay at the front edge and keep up with the volumes as it continues to grow”

Probably at the trailing end of the cycle

“The — oh geez, good question actually. I would say to you that in terms of the cyclical change I think we are at the high-end here or the trailing end of the cycle, unless the economy, if we do come out the economy turn stronger here and I’d say April, May, June or even in the fall and the market starts to — the economy starts to grow faster. I think you’ll see it go again, then we would be — tend to be bullish. But that’s very much a function of the economy and I’m optimistic, but I have been optimistic for a bit and this has been a long tough slog. But I think that where we are in the cycle is largely a function of the economy. And right now I think we paused. We had a good run last year, we’ve had a positive quarter, we’ve been sideways, we had the weather, we’ve had a few events here and there we’ve got events in Russia and Ukraine. So a lot of it is going to depend on the economy and macroeconomic geopolitical events here I think where we go in terms of the cycle.”

Blackrock 4Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.

Fink, not surprisingly,pitching being fully invested

“2013 was another year that clearly highlighted the benefits of being fully invested and missed opportunities for more than $10 trillion of cash sitting on the sidelines.”

Have to be properly positioned in addition to fully invested

“Just being invested is not enough. Clients need to be properly positioned. At the core of BlackRock’s value proposition for clients is our ability to constantly challenge ourselves and to evolve in the face of these changing market trends and client needs. The global diversified platform and strong alpha generation track record we built over the past 25 years at BlackRock positions us to provide the investment advice and solutions our clients need to meet their investment goals.”

Industry moving away from style boxes towards outcomes

“the investment landscape is moving away from traditional style boxes as clients focus on achieving outcomes rather than buying products. BlackRock has built a very strong foundation to be the leader in the solution and outcome space.”

Blackrock believes in alpha

“BlackRock’s actively managed business is essential to our future growth as we look to generate alpha for our clients.”

Systemic risk in the products not investment management institutions

“As I’ve said repeatedly, it was not the largest institutions the asset management had that created any of the real problems. With long-term capital in the late 90s, that would not have been a large-scale platform. You had Bear Stearns asset management with a leveraged mortgage fund that created the beginning of the crisis here in the United States. And the money market crisis was created by the #9 largest money market fund that was reaching for yield, which plays into this whole concept. As you look at where risk may lie, risk is going to be lying in products. So we need to make sure that products are going to be analyzed in making sure people understand the systemic risk around products and the leverage associated with those products.”

Society demanding a higher fiduciary standard

“And yet, nevertheless, the new regulations, whether it’s Reg FD, whether it’s working on disclosure items, we are spending more money on compliance. We have to have — I think society is demanding higher fiduciary standards for all of us. And we are committed in doing this, and we are building a robust compliance process”

saw a lot of rebalancing in 3 and 4Q

“in the third and fourth quarter, we did see rotation out of index equities, but I’m not certain that rotation all went back into active equities. It was a — and much of it was rebalancing. Because of the huge gains in U.S. equities, a lot of pension plans did rebalancing into fixed income.”

not managing to margins

“we’re not managing the business on a quarterly basis to a margin. We’re not actually managing the business at all to a margin. We’re trying to balance both growth and profitability to come up with kind of the Goldilocks solution.”

rebalancing going on now, but you’re not going to see a persistence

“you generally see the big rebalancing institutionally in the fourth quarter and some people in the first quarter. In our survey that we’re releasing, we did — we heard that there’s still more rebalancing but not so much. If the Institutional survey that we’ll be releasing today is an indication of what the big macro trend is, more investing in alts, and so I don’t think you’re going to see a persistence of rebalancing out of equities into bonds. I think this is just — as I said, it’s more seasonal, especially in light of the equity run.”

You’re going to see pension plans defease if equities keep rallying

“The one thing that we should be mindful of, if we continue to have an equity rally of some magnitude, there are going to be some corporate plans that are going to defease. We’re aware of 1 or 2 large plans that are above their 100% funding rate. And they are having dialogues right now should they defease and should they just immunize their plan, their DB plan.”

Blackstone 2Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“It appears that markets persistently overreacted initially to the Fed’s indication on when and how it march for tapering its bond purchase program.”

“Higher rates, as Tony mentioned, are not per se negative for Blackstone as investors may have initially believed. Historically, we performed well in periods of rising rates and we are well sufficient today given our mix of businesses and investments. When rates rise in tandem with better economic activity, the result is higher cash flows for most of our private equity and real estate assets and higher returns for hedge fund solutions businesses.”

“interest rates rose in 26 of the past 50 years and in every single one of those years, when interest rate grows, home prices actually increased”

“During the quarter, we invested two-thirds of our capital in the United States, one quarter in Europe. We also committed to our first large scale joint deal with our partner in Brazil Patria to acquire a controlling interest in near nations best in class branded national developer or residential lots.”

“ur approach is buy it, fix it and sell it. And you know that happens over periods that vary slightly with changes in economic activity and so you are seeing that accelerate in the US because we started buying very large amounts of real estate really about three years ago in real scale and we’ve been the largest purchaser in the world with vastly exceeding, vastly, multiples than anyone else.”

“The cycle is changing now in Europe where that will be an investment cycle that will take longer to come out of by the nature of the underlying European economy which is evidencing virtually no growth.”

“Asia will have another cycle still because it’s continuing to grow but its experiencing real estate credit shortages as some of those economies grow slower and the economies generate other problems besides just real estate developers who can’t sell out projects.”

“So we actually announced this week that we will be rolling out a product, we can’t really talk about distribution partner and all that yet, you’ll hear from us in the future but it’s a product that we’re really excited about. It took a very long time to figure out, we think, we’re unique in the ability to execute this, the way we are given on our positioning in the hedge fund solutions space, I mean it’s an exciting product, it’s probably a bit early to say much more given that the rollout hasn’t happened…But what we can say is, it essentially for retail investors, it will give them access to some of the leading hedge fund managers but still preserve their ability to have daily liquidity and daily marks. So that was a bit of the trick, it’s accomplishing both those things and we think we’ve done that. So we hope — and we have a strong distribution partner. We hope it works. It will be well received.”

“If higher rates come in a weak economic environment that would be, I don’t see that happening but that would be, I might give a different answer to that.”

“if rates went up high enough, fixed income would look attractive, but on the other hand, they’ll take a lot of mark to markets that will be very, very painful. So, if a sharp and significant increase in rates is probably not good, because they’ll have markdowns that will get into asset allocation issues, and they’ll look at fixed income as having a more attractive go forward return, based on the surveys we’ve done of LPs, they’ve been thinking in the treasuries and investment grades, will future returns will be somewhere between 0 and 2% on their fixed income portfolio. They’ve been thinking that equity markets go forward returns be something in the 6% range.”

“So no matter how you mix those you know 50, 40 or two-thirds, one-third, no matter what mix you put on public securities, you get a low single-digit return if you are a big institution and that just doesn’t get on there, if you are a pension fund that doesn’t pay for your liabilities. So that’s why they are shifting the alternatives and I don’t see rates going up enough to change that.”

“When we talk about rising rates in this environment, we have extremely low levels of inflation. And so rising rates ought to be a very moderate type of phenomenon and it’s clearly being micro managed by the fed to not really hurt an economic recovery.”

“So as the economy goes up and as the real estate market intrinsically gets stronger and with construction so limited of new construction, I would expect spreads as base rates go up spreads come in a little bit and can cushion the blow of higher treasury rates if that happens.”

” in the US…It’s not like all the distress is gone by any means but [real estate] markets are healthier, properties are doing better and private markets are very accommodating. So in the US, that’s starting to happen and there’s definitely less distress then there was a year ago.”

Blackrock Investor Day Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“BlackRock’s principles, which are critical in running our business and preserving our culture…first and foremost, we are a fiduciary to our clients…Second, we are passionate about performance…Thirdly, we are one BlackRock…And finally, we are innovators.”

“BlackRock has the deepest and broadest product set in the industry, managing $3.9 trillion of investments on behalf of our clients.”

“For our retail relationships, financial advisors need product solutions built around key outcomes, such as income and inflation protection”

“Capacity is a very dear resource in this business, and sometimes that’s about investment capacity, but more often than not, it’s about shelf space. There are incremental costs for each and every strategy we offer, and we have to carefully allocate our resources among them, because we recognize that investment management is in many ways a blockbuster business. And what I mean by that is that our results are really often driven by a very limited number of different products and offerings that we provide.”

“Indexing did take a long time to take off. The surprising thing for me is that most people think of this as a mature business, but most of the innovation has actually occurred in the last 10 years.”

“We’re making active decisions in our index funds every day, every month, every year, and those decisions add up over time. How do we invest cash? How do we think about this index change? What do we think about that corporate action? Decisions every day add up over time, and the delivery of index performance is hundreds of decisions over any given year.”

“When you think about the active equity business, it is an extraordinarily competitive business, and through both regulation and technology, the price of our successes is essentially investing in talent, having processes that back up that talent and making sure that you deliver that performance consistently, robustly, repeatedly over time. And we have 18 teams in the fundamental equities area.”

“The other, I think, theological belief we have is that we really believe in focused accountable teams. We do not subscribe to the theory that central research is an effective tool for a firm of our size… You want the alpha generators to be sitting with our analysts in their teams, discussing the very risks they’re taking, not calling up to somebody on a different floor who serves 17 different teams and who they can’t get hold of on a particular day and who reports to somebody else.”

“or beta, it’s about the performance that we deliver each and every day, again, like that Swiss watch; the client experience and our conversations that we have with our clients allow us to create products, create investment solutions, I should say; and innovation, differentiate BlackRock’s beta business. And for alpha, as you just heard Quintin speak to, it’s about the people, it’s about our products and it’s about our investment process.”

“We also observe the very clear evolution of investor behavior. Barbelling is becoming more common, multi-asset and rethinking traditional style boxes in favor of more of a risk factor approach is clearly where the industry is heading.”

“And what we found is that this themes based dialogue really helps deepen relationships, it helps to build trust with our clients and it’s much better served in terms of providing our clients with more access to the resources and depth of capabilities and solutions that we could provide them.”

“The fixed income markets, we think, are the great unexplored frontier for ETFs. On the left is the global equity market, $53 trillion, but notice, about 3% of all equities globally sit inside of ETF. On the right is the fixed income market, $100 trillion, 0.3%.”

“nd I would suggest that the logic for the fixed income ETF is actually more compelling than it is for the equity ETF. Why? Because the equity markets don’t have the problem of investment banks and their intermediation function shrinking. Basel III, the Volcker Rule and financing costs have all made investment banks’ balance sheets shrink. And the way that the bond market traditionally works is you go through an investment bank and their inventory. Investment bank’s ability to do that is shrinking. Bid/ask spreads are widening. And that is what is driving the liquidity into our fixed income ETFs.”

Blackstone at Morgan Stanley Conference Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$BX Notes from Morgan Stanley Conference

“we’re the largest owner of real estate in the world.”

“the premium for our type of investing, which I wouldn’t say is riskless but it is much less risk because of our ability to do due diligence than just buying liquid securities where anything could happen to you. If you don’t like it you can sell them. The only difference is we can’t sell ours but we get compensated with much higher returns and much more knowledge of what you’re buying.”

“It is remarkable, I remember, when we just started the firm and almost everybody turned us down for everything. Our first fund, our 17 closest relationships turned us down. I don’t know how much sort of psychic pain you can take in this audience but we’ve been given a lot of psychic pain over our career and so every investor that we have and we’ve got I guess now around 1300…is really a prized relationship”

“When we went into business, what we said is, “The only reason we need to exist is to do things other people aren’t doing and to do what we do as well as you can conceivably do it.” …go into other businesses that would be great on their own but would make the existing mix stronger, and you had to do it with people who were 10s on a scale of 10.”

“If you’re in business with 10s, it’s like — how many of you watch the Sunday night game with the Heat and the Spurs? Wow. Lebron and all these people, that’s a 10. I mean, they crushed them. And that’s what you need to do a great job starting a new business.”

“our percent of wallet for these large institutions is going up steadily and quite rapidly. …they’re trying to lower their costs, which means they’d like to have fewer people working at these places, and so they’re giving more money to their best managers. So we’re caught in this sort of wonderful situation where they’re allocating more money to our asset class.”

“I own 23% of the stock of the firm, so I’m on your team out there if you’re owners of Blackstone. I’m on your team.”

“It’s much easier to invest in real estate than it is in the company. Companies are very complex, very dynamic and what you find about real estate that’s very comforting is first of all, buildings don’t talk, right?”

“Our latest Real Estate fund is up 32% compounded in the last 2 years…And as a result of that, we are getting hugely disproportionate allocations from almost everyone…We’re currently operating at roughly 4x the size of anyone else”

“As an entrepreneurial business, you know when you’re successful because it’s when people really want to join you who have enormous records of success.”

Fixed Income ETF Growth Since 2000

Over the past decade there have been two major trends in the asset management industry:  the growth of ETFs and the shift in asset allocation away from Equities towards Fixed Income.  Below are some charts that use data from the Fed’s Flow of Funds report to look at both of those trends.

The first set of charts show the growth of ETFs relative to mutual funds.  In 2000 only 2% of equity assets in listed funds were in ETFs and Fixed Income ETFs didn’t even exist.  Today 17.7% of equity assets and 5.5% of Fixed income assets are in ETFs.  Combined ETFs hold 12.5% of assets in listed funds–$1.3T in ETFs vs. $9.2T in open end mutual funds (Note: I excluded closed end funds to make this easier on myself).

ETF Share of Equity

 

ETF Share of Fixed Income

Since I had the data from the first two charts, I figured it would be interesting to put together the chart below, which quantifies how much share Fixed Income has taken from Equities in the last decade.  In 2000 Fixed Income made up only 25% of the assets in listed funds.  Thanks to the financial crisis, that number has grown to 40% today overall (but only 17% of ETF assets are in Fixed Income).  It’s worth noting that a standard balanced portfolio is 60% Equities 40% Fixed Income, which means Fixed Income allocations may be reaching a tipping point.

FI Share of Listed Fund Assets