Unconstrained bond funds are growing in popularity, mainly due to low interest rates and their ability to invest in a broad range of assets. But there are some downfalls as well, namely risks related to credit quality, currency fluctuations and liquidity. The CFA Institute recently polled its readers about them, finding that nearly half - 47 percent - think unconstrained bond funds are poorly understood, with their risks underestimated by most investors. Seventeen percent consider them a marketing creation and just 12 percent view them as a welcome innovation.
It’s no surprise that investors are interested in sustainable investing, about 70 percent, according to a new survey from Morgan Stanley. That interest jumps up to 84 percent when looking at millennial investors. But over half of all investors still believe choosing between sustainability and financial gains is a trade-off. Educating investors and the media spotlight is helping—assets utilizing sustainable investing criteria have grown 76 percent in the last two years to $6.57 trillion, but opportunities are on the rise as well. By 2050, the business opportunities for sustainability-focused companies are expected to be between $3 trillion and $10 trillion annually.
Before graduating high school, public-school students in the Sunshine State may soon need a strong grasp on money management, according to a report from the Orlando Sentinel. Separate but similar bills are currently being reviewed in both the Florida Senate and House of Representatives that would mandate a stand-alone, financial literacy course. Florida currently requires that public economics classes include the topic of financial literacy, but the goal for sponsors of both bills is to take that one step further. As it currently stands, only five states require a stand-alone course.