Core Insights - Vanguard is expanding its active ETF offerings with the launch of three new equity funds, increasing its active equity lineup to eight funds, reflecting a strategic shift to meet current market demands for active management [1][4][8] Active Equity ETFs - The new funds include the Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG), all advised by Wellington Management [1][4] - VUSV focuses on value investing with an expense ratio of 0.30%, VUSG targets growth with an expense ratio of 0.35%, and VDIG emphasizes dividend growth with an expense ratio of 0.40% [11] Active Fixed Income ETFs - Vanguard is also enhancing its active fixed income offerings, launching four new funds this year, bringing the total to nine active fixed income funds [3] Management Expertise - The new active funds leverage Vanguard's 50 years of active management experience and the long-standing partnership with Wellington Management, which has been in place since 1928 [5][6] Investment Strategy - The active management strategy allows portfolio managers to adjust holdings based on market conditions, aiming to optimize returns while managing risks [5][7] - The new funds are designed to work together, providing investors with a diversified portfolio through a mix of different investment styles [8]

"While the Fed continues to have access to various data sources, such as direct conversations with businesses in its local districts, the available picture of the economy's health was murkier than usual due to the government shutdown,†Thornburg portfolio manager and managing director Lon Erickson said in a recent market insight report. "Powell will likely downplay any impact, as market confidence in decision-making is important, but any mistake could trigger volatility.†Prior to the second rate cut, the F ...

Core Insights - Active ETFs experienced nearly $400 billion in net inflows in 2025, indicating a significant shift in investor access to professional money management [1] - Passive strategies attracted approximately $750 billion, with active ETFs capturing over one-third of total industry inflows [1] - The growth of fully transparent active ETFs contrasts with expectations of semitransparent structures leading the trend, reflecting a change in advisor strategies [2] Active Management Trends - Fixed income is highlighted as a category where active managers are adding value through security selection and duration management [3] - The approval of the ETF share class structure is expected to significantly boost the adoption of active ETFs [3][4] Thematic ETFs Resurgence - Thematic ETFs, previously considered "dead" after the 2022 market downturn, have seen a surprising return with $41 billion in net inflows in 2025 [4] - These inflows are focused on areas such as disruptive technology, infrastructure, and natural resources [4][5] - The ALPS Electrification Infrastructure ETF (ELFY) launched in April has quickly reached $100 million in assets by targeting underrepresented sectors in the S&P 500 [5] Gold ETFs Recovery - Gold ETFs, including both physical gold and gold mining strategies, have also seen a resurgence in 2025, indicating a reevaluation of asset allocations by investors [6]

Core Insights - Fixed income ETFs experienced record inflows of $51 billion in October, indicating strong interest despite market uncertainty [1] - The U.S. Federal Reserve has implemented two rate cuts this year, with potential for another before year-end, prompting fixed income investors to consider active management strategies [2] - Active ETFs provide flexibility in uncertain markets, allowing investors to adapt to systematic risks such as changing interest rates [3] Active Management Advantages - Active portfolio managers can navigate the complexities of bond markets, adjusting portfolios to align with current market conditions [4] - Active funds serve as flexible, all-weather solutions, enabling tailored investment strategies to meet specific objectives [4] Investment Options - The Thornburg Core Plus Bond ETF (TPLS) is recommended for those seeking core exposure, offering more flexibility than passive index funds [6] - The Thornburg Multi Sector Bond ETF (TMB) is suggested for income diversification, combining active management to enhance income in a rate-cutting environment [7] Educational Resources - A recent webinar featuring Thornburg's Head of Fixed Income discussed the advantages of active ETFs in the context of lower interest rates [8]

Company Information - Fidelity Brokerage Services LLC is a member of NYSE and SIPC [1] Contact Information - The company's address is 900 Salem Street, Smithfield, RI 02917 [1]

Company Overview - Federated Hermes manages $871.2 billion in assets [12, 14] - The company's total revenue for Q3 2025 was $469.4 million [15] - Federated Hermes has $2.9 billion in financial strength and flexibility [10] - The company manages $652.8 billion in liquidity assets [10, 19] Asset Allocation - Long-term managed assets total $218.4 billion, including $94.7 billion in equity, $101.8 billion in fixed income, and $19.0 billion in alternative/private markets [12] - Liquidity assets make up a significant portion of the AUM, totaling $652.8 billion [19] - U.S Financial Intermediaries account for 68% of total assets under management, U.S Institutional accounts for 25%, and International accounts for 7% [31] Financial Performance - Q3 2025 earnings per share were $1.34 [22] - The company declared a dividend of $0.34 [22] - Total revenue less distribution expense was $356 million in Q3 2025, compared to $159 million in Q3 2013 [27] Asset Growth - Equity assets increased by $5.7 billion, or 6%, from $89.0 billion at 06/30/2025 [22] - Fixed-income assets increased by $3.1 billion, or 3%, from $98.7 billion at 06/30/2025 [24] - Liquidity assets increased by $18.4 billion, or 3%, from $634.4 billion at 06/30/2025 [24]

Core Insights - Emerging markets debt is highly suitable for active management due to its responsiveness to various scenarios such as geopolitical events, credit defaults, interest rate fluctuations, and currency volatility [1][2]. Group 1: Active Management Benefits - The Neuberger Berman Emerging Markets Debt Hard Currency ETF (NEMD) is an actively managed fund that can navigate the complexities of the emerging markets bond market, which is often challenging for passive funds [2][3]. - NEMD's active management allows it to avoid including potentially risky issuers in its portfolio, unlike passive funds that may be exposed to dubious entities [3]. Group 2: Economic Resilience - Not all emerging economies are equally resilient; some, like Argentina, have histories of default, while others maintain stronger fiscal positions [3][5]. - Countries with deeper local investor bases have shown greater resilience to global economic shocks over the past 15 years, although an overreliance on a narrow group of domestic investors can pose risks [6]. Group 3: Market Dynamics - Active strategies like NEMD can identify which emerging markets are better positioned to absorb new issuances, benefiting investors by aligning with more stable markets [5]. - The International Monetary Fund (IMF) notes that large developing economies have expanded borrowing through local issuance, while others rely on shorter maturity financing and foreign currency debt [4].

Core Insights - Active management and stock picking may be making a comeback after nearly 30 years of passive investing dominance, driven by higher interest rates, increased stock dispersion, and heightened market volatility [2][4] - The shift towards active management is seen as essential for outperforming the market, with financial advisors recognizing the importance of investment management despite the rise of automated solutions [3][4] Group 1: Market Conditions - Current market conditions are favorable for active investors, with T. Rowe Price highlighting that the combination of higher interest rates and greater stock dispersion provides key ingredients for potential outperformance [2] - Active management is becoming increasingly relevant as passive investing can lead to "diworsification," where overly broad diversification negatively impacts returns [2] Group 2: Advisor Strategies - Financial advisors are beginning to realize that investment management remains crucial, even as many have shifted focus to financial planning and model portfolios [3][4] - Many advisors are now outsourcing portfolio construction, but some, like Kimberly Abmeyer, are achieving significant outperformance through targeted stock selection, with her clients' portfolios outperforming the S&P 500 by 10% this year [4] Group 3: Model Portfolios - Assets in model portfolios reached nearly $8 trillion in April 2023, indicating a strong trend towards this investment strategy [6] - Over 80% of fee-based advisors utilize model portfolios for at least some of their client assets, reflecting the growing acceptance of this approach in wealth management [6]

Core Insights - Canoe Financial LP has received six awards for its alternative funds at the Alternative IQ 2025 Canadian Hedge Fund Awards, highlighting its strong performance in absolute and risk-adjusted returns [1][2] Company Overview - Canoe Financial is one of Canada's fastest-growing independent mutual fund companies, managing approximately $22 billion in assets across a diversified range of investment solutions [3] - Founded in 2008, Canoe Financial is an employee-owned investment management firm focused on building financial wealth for Canadians, with a significant presence in Calgary, Toronto, and Montreal [3] Awards and Recognition - Canoe Energy Alpha Fund LP achieved 1st place for Overall Best 2025 Canadian Hedge Fund based on 10-year return and Sharpe Ratio, as well as 1st place for 5-year and 10-year returns, and 2nd place for 5-year and 10-year Sharpe Ratios [2][7] - Canoe Global Private Equity Fund secured 2nd place for 3-year return in the Private Equity Category [2] Industry Context - The Alternative IQ Canadian Hedge Fund Awards program aims to celebrate the talent and accomplishments of Canada's hedge fund industry while raising awareness of its expertise among the media and investment community [4][5]

Core Viewpoint - The U.S. Federal Reserve's recent interest rate cut and the potential for further cuts create an opportunity for fixed income investors to seek higher yields through active management, particularly with the MFS Active Intermediate Muni Bond ETF (MFSM) [1][2][3]. Group 1: Interest Rate Environment - The CME Group FedWatch indicator predicts over a 90% chance of additional rate cuts in October and December, indicating a trend towards easing monetary policy [2]. - Federal Open Market Committee member Christopher Waller anticipates further cuts in the next three to six months, driven by incoming economic data [2]. Group 2: Investment Strategy - The downward pressure on yields from cash provides an opportunity for investors to reallocate towards intermediate maturity municipal bonds, which can offer higher income on both absolute and tax-equivalent bases [3]. - The MFS Active Intermediate Muni Bond ETF focuses on intermediate maturity municipal bonds, which are advantageous in the current interest rate environment [3]. Group 3: Benefits of Municipal Bonds - Municipal bonds offer federal tax-free income and stronger credit fundamentals compared to riskier corporate debt, making them an attractive investment option [3][4]. - The investment case for municipal bonds is supported by strong credit fundamentals and attractive yields, emphasizing the importance of active management in this fragmented asset class [4]. Group 4: Active Management Expertise - The MFS Active Intermediate Muni Bond ETF is managed by a team with extensive experience in municipal bonds, which is crucial for navigating the complexities of this market [5][6]. - MFS has been investing in municipal bonds since the 1970s, leveraging a 20-member team that includes legal experts to enhance their investment strategy [6].