Shifting Focus: Brad Feeley Discusses Active ETFs

Building Relationships with Financial Advisors

Brad Feeley emphasizes a dual approach in their operating model, centering on the needs of financial advisors. At the heart of their business strategy is a commitment to providing in-market resources that bolster the support and service advisors receive. Localized relationships are key, as they strive to maintain a personal, face-to-face connection.

The support structure around these advisors includes a team of specialists equipped to tackle a wide range of market intricacies. Whether it's the distinctions between ETFs and mutual funds or exploring alternatives, experts are on hand to provide detailed insights, enhancing the advisor-client relationship.

A Unique Manager-of-Managers Strategy

Feeley outlines the distinctive manager-of-managers approach used by Manulife John Hancock. As one of the world's leading insurance companies, Manulife provides a mix of fixed income and equity portfolios from esteemed global investors. However, they don’t just rely on in-house capabilities; they also collaborate with a network of boutique and institutional managers who serve as sub-advisors.

This collaboration allows for a diversified thinking process in managing portfolios, all under the John Hancock brand. Notable partnerships include relationships with Boston Partners, known for their global value management, and boutique firms like CVC Marathon, which specializes in public and private credit management.

Current Investment Opportunities

As of mid-September, Feeley provides insights into what might be the best investment routes as 2026 winds down. He notes that this period is often referred to as capital gains season, which is pivotal for advisors looking to build tax-efficient portfolios. This focus on taxes and capital gains drives numerous conversations between advisors and their clients as the year concludes.

Amidst fluctuations in fixed-income markets, Feeley highlights the potential benefits of tax-loss harvesting, suggesting this could be an advantageous strategy for investors. Additionally, he advises a reevaluation of active versus passive investment allocations. Active ETFs are seeing significant growth, driven by factors like cost efficiency and tax advantages.

Feeley encourages advisors to extensively research their choices between active and passive strategies for optimal portfolio management. He believes that understanding where active management can yield the most value is crucial as investors begin to tackle active strategies alongside passive options, ensuring a robust, researched approach to investment decisions.

Looking to the Future

As the financial landscape continues to evolve, Feeley believes the combination of these themes will shape discussions with financial advisors. The goal remains clear: to provide resources and expertise that empower advisors and their clients to make informed investment choices as they transition into 2027.

“The active ETF landscape is changing rapidly, and it's essential for advisors to leverage every tool available to navigate this complex environment effectively.”