Sdi Productions | Istock | Getty ImagesAmid growing consumer interest in alternative investments, financial advisors say it's important to find the right way to invest.Alternative investments are a broad category that covers many assets outside traditional holdings of cash, stock and bonds. Alts include private-market assets, real estate, commodities such as gold and oil, and cryptocurrencies, among others.Investing in these products can entail added risks and complexities, advisors said. One smart way to g ...

Core Viewpoint - AllianceBernstein (AB) is positioned as a significant player in the investment management sector, with analysts expressing optimism about its stock performance and potential growth opportunities [2][5]. Company Overview - AllianceBernstein is a global investment management firm providing a comprehensive range of investment solutions, including equities, fixed income, and alternative investments [1]. - The company competes with major firms like BlackRock and Vanguard in the asset management industry [1]. Stock Performance and Analyst Insights - An analyst from Bernstein has set a price target of $43 for AB, indicating a potential increase of approximately 9.39% from its trading price of $39.31 at the time [2][6]. - Zacks Investment Research highlights that AB may be undervalued, with its current price of $39.70 suggesting potential for growth [3][6]. - AB's stock has shown volatility, with a daily trading range between $39.48 and $39.81, and over the past year, it has fluctuated from a low of $32.28 to a high of $43.30, indicating room for growth [4][6]. Market Position - AB has a market capitalization of approximately $4.39 billion and a trading volume of 30,045 shares on the NYSE, reinforcing its status as a significant player in the investment management sector [5].

Core Insights - Major players in the wealth management space, Edward Jones and Focus Financial, are actively discussing the adoption of alternative investments during the CAIS Summit in Los Angeles [1] Edward Jones - Edward Jones is introducing alternative investment options to its 20,000 advisors, many of whom lack experience with alternatives, due to the firm's traditional client base [2] - The firm has partnered with CAIS to expand alternative options while launching Edward Jones Generations, a private client service for U.S. high-net-worth investors [2] - Chubak highlighted the challenge of varying advisor readiness, with some needing minimal tools to engage with alternatives while others require extensive education [3] - The firm is segmenting its advisors to focus on those with the greatest opportunities, rather than attempting to engage all 20,000 advisors at once [4] Focus Financial - Focus Financial's CEO, Nathanson, noted that firms within its network already cater to high-net-worth investors with significant allocations to private markets, providing insights for broader expansion into this asset class [4] - Nathanson emphasized the importance of holistic advice and adapting to market changes, stating that moving into private markets is a recognition of current realities [5] - The firm views the adoption of alternatives as a necessary evolution to remain competitive in the changing market landscape [5]

Core Insights - CAIS, a New York City-based alternative investment platform, has expanded partnerships with Envestnet, Orion, and Vestmark to enhance the management of public and private assets for users [1][3] Group 1: Partnerships and Integrations - The new partnerships will allow users to manage the full lifecycle of alternative investments, reducing operational friction in onboarding, trade processing, fund administration, and custodial connectivity [4] - The integration with Envestnet will provide advisors a single platform to source, allocate, and oversee alternative investments, transforming portfolio management across asset classes [5] - Orion Wealth Management emphasizes that collaboration with CAIS will streamline the integration of public and private investments, enhancing efficiency and transparency for clients [5] - Vestmark's integration with CAIS aims to create a modern foundation for advisors to build diversified portfolios and operate more efficiently [5] Group 2: Industry Context and Trends - The announcement follows CAIS's earlier capability to integrate with third-party TAMPs and managed account platforms, indicating a trend towards expanding access to private markets [2][3] - The industry is witnessing a convergence of technology and alternative investments, which is redefining wealth management practices [5]

Core Insights - RIAs are lagging behind wirehouses in adopting alternative investments for clients, with significant differences in client allocations and operational support [1][3][4] RIA Client Allocations - National RIAs report that 29.9% of their clients hold alternative investments, with a weighted average allocation of 11.2%, implying that 3.35% of client assets are allocated to alternatives [2] - The broader RIA market shows an implied client allocation to alternatives at just 0.78%, significantly trailing wirehouses and broker/dealers [3] Wirehouse and Broker/Dealer Performance - Wirehouse clients have the highest implied allocation to alternatives at 3.75%, with a high average weighted allocation of 16.1% [4] - Independent broker/dealers report that 8.7% of their clients have allocations to alternatives, with an average allocation of 13.4%, surpassing the RIA segment [5] Future Expectations - Committed national RIAs expect to increase their share of clients with alternative investments to 35% by 2026, while wirehouses anticipate reaching 29% and independent broker/dealers 13% [6] - National RIAs forecast that the weighted average for client allocations to alternatives will rise to 15% [6] Operational Challenges - RIAs face hurdles in adopting alternatives due to a lack of operational support, limiting them to registered funds that offer liquidity and ease of reporting [7]

Core Insights - Franklin Resources, Inc. (BEN) is a global investment management firm with a market cap of $12.6 billion, managing over $1.6 trillion in assets across various investment strategies [1][2] Company Overview - BEN operates in over 150 countries and is classified as a large-cap stock due to its market capitalization exceeding $10 billion [2] - The company has a diverse asset management portfolio, including equity, fixed income, and alternative investments, with 30% of its assets managed internationally, providing resilience against regional market fluctuations [2] Stock Performance - BEN's stock has experienced a decline of 7.9% from its 52-week high of $26.08, reached on August 13, while gaining 5% over the past three months, underperforming the Financial Select Sector SPDR Fund (XLF) which gained 5.8% [3] - Year-to-date, BEN shares rose 18.4%, outperforming XLF's 11.2% gains, but over the past 52 weeks, BEN's stock climbed 15.8%, underperforming XLF's 18.3% returns [4] Financial Performance - In Q3, BEN's performance exceeded expectations despite a 2.8% year-over-year decline in operating revenue, primarily due to lower investment management fees; however, revenue surpassed consensus estimates by 3% [5] - The adjusted EPS for the quarter was $0.49, reflecting an 18.3% decline from the previous year, although it beat analyst expectations [5] - A significant decline in operating margin impacted profitability, which may have contributed to a muted investor response [5]

Group 1 - Goldman Sachs and T. Rowe Price are planning to introduce new alternative investments for wealthy clients by the end of 2025 and for retirement accounts in 2026 [2] - This initiative reflects a growing trend among financial institutions to diversify investment options for high-net-worth individuals and retirement savings [2] - The announcement follows recent statements from Goldman Sachs regarding their investment strategies and market positioning [3]

Core Points - Vinci Compass Investments Ltd. will host its second Investor Day in New York City on October 07, 2025, at 1:00 PM ET, where senior management will present the company's strategic vision and outlook [1] - Presentation materials will be available on the company's website prior to the event [2] - Registration for on-site attendance is required, and a live webcast will be accessible for those unable to attend in person [3] Company Overview - Vinci Compass is a leading provider of alternative investments and global solutions in Latin America, with nearly three decades of experience and operations in eleven offices across Latin America and the US [4] - The company manages R$304 billion in assets under management and advisory as of June 2025, with expertise in various sectors including Private Equity, Credit, Real Estate, Infrastructure, Forestry, Equities, and Corporate Advisory [4]

Core Viewpoint - Blackstone is expected to report an increase in quarterly revenues and earnings for Q1 2025, with a focus on its performance metrics and market conditions leading up to the announcement [1]. Group 1: Earnings Performance - Blackstone's fourth-quarter 2024 distributable earnings exceeded the Zacks Consensus Estimate, driven by increased segment revenues and higher assets under management (AUM), although rising expenses posed a challenge [2]. - The Zacks Consensus Estimate for Blackstone's Q1 2025 earnings is $1.11, reflecting a 13.3% increase year-over-year, despite a recent downward revision of 6.7% [4]. - The average earnings surprise for Blackstone over the past four quarters is 5.54%, with earnings surpassing estimates in two quarters, meeting in one, and lagging in one [3]. Group 2: Assets Under Management - Blackstone has seen growth in fee-earning AUM and total AUM, attributed to its diversified product offerings and strong position in alternative investments, with total AUM expected to reach $1.15 trillion, a 9.1% increase year-over-year [5]. - The consensus estimate for total fee-earning AUM is $857.5 billion, indicating a rise of 9.7% [5]. Group 3: Revenue Estimates - The Zacks Consensus Estimate for total management and advisory fees is $1.89 billion, suggesting a 10.5% increase, while fee-related performance revenues are estimated at $283.4 million, indicating a decline of 4.1% due to weak market performance [6]. - Revenues from realization activities are preliminarily estimated to exceed $385 million for the period from January 1 to March 25, 2025 [7]. Group 4: Expense Trends - Blackstone's expenses have been on the rise, primarily due to increased general, administrative, and other costs, as the company continues to invest in its franchises [9]. Group 5: Earnings Prediction Model - According to the quantitative model, the likelihood of Blackstone beating the Zacks Consensus Estimate for earnings is low, as it lacks a positive Earnings ESP and holds a Zacks Rank 3 (Hold) [10][11].

Group 1: Victory Capital Holdings, Inc. (VCTR) Performance - VCTR reported assets under management (AUM) of $175.5 billion for February 2025, reflecting a 0.6% decline from $176.5 billion as of January 31, 2024 [1] - U.S. mid cap equity AUM decreased 2.9% to $30.4 billion, while U.S. small cap equity AUM dipped 5.3% to $14.2 billion [1] - Global/non-U.S. equity AUM rose 5.8% to $20.6 billion, and U.S. large cap equity AUM decreased 3.7% to $13.9 billion [1] Group 2: Solutions and Alternative Investments - VCTR recorded $65.5 billion in Solutions, up 0.1% from January 2025 [2] - Alternative investments asset balance declined 2.6% to $2.9 billion, while fixed-income AUM was $24.4 billion, increasing marginally [2] - Money market/short-term assets rose 1.9% to $3.4 billion [2] Group 3: Market Positioning - VCTR's integrated multi-boutique business model and effective distribution platform are expected to enhance performance in the near term [3] Group 4: Performance of Other Asset Managers - Franklin Resources, Inc. (BEN) reported preliminary AUM of $1.58 trillion as of February 28, 2025, showing a marginal decrease [4] - BEN's decline in AUM was attributed to long-term net outflows of $10 billion, despite positive market impacts [4] - AllianceBernstein Holding L.P. (AB) announced preliminary AUM of $805 billion for February 2025, reflecting a marginal decrease [5] - AB's Equity AUM declined 2.6% to $333 billion, while Fixed-Income AUM increased 1.3% to $303 billion [5]