Howard Marks said the impact on liquidity of ETFs, liquid alternatives and new rules designed to stop banks from trading with their own money has yet to be tested.
This week's notable news from the asset management industry includes a recent SEC roundtable meeting where some participants discussed the potential "unintended consequences" of universal proxy ballots, global ETP flows in February reached a record $50 billion, the fastest start to any year on record, and leadership at Vanguard were tasked with new roles within the firm.
This week's highlights includes how competition is forcing ETF providers to cut fees on products; research on how corporate bond ETFs can help institutional investors manage investment flows; and Chinese demand for portfolio managers.
Nasdaq OMX is making a push to grab more ETN listings, challenging long- time market leader NYSE Arca for what can be lucrative listing and trading fees.
This past week, the industry saw Pimco suffer more redemptions despite the climbing performance of its Total Return Fund, a BlackRock bond ETF receiving a record $2 billion deposit, Virtus Investment Partners announced an agreement to acquire a majority interest in ETF Issuer Solutions, and a report from Cerulli Associates noting that socially responsible investing has become a frequent request of asset managers from institutional clients.
The 2008 and 2009 global financial crisis left many investors disappointed with the high volatility and negative performance of their portfolios and leading them to re-evaluate the risk reducing ability of asset allocation.
With heavyweights like Pacific Investment Management Company (PIMCO) throwing its hat into the managed futures mutual fund ring, interest from both investors and asset management in this investment vehicle appears to be rising.
It looks like Nationwide Mutual Insurance Company will have its day in court come January 2014 to defend itself against a mutual fund lawsuit.
The U.S. Court of Appeals for the District of Columbia Circuit has put alternative mutual funds on notice after ruling in favor of the Commodity Futures Trading Commission by upholding its recent amendments to Rule 4.5 that will require mutual funds that bet on gold, oil or other commodities to register as commodity pool operators.
Non-traditional investment allocations in defined contribution plans, while commonplace in defined benefit pension portfolios, are a rare sight in today's retirement plan lineup.