This past week saw a number of new offerings in exchange traded products and funds from Deutsche Asset & Wealth Management, KraneShares and FirstTrust, among others. Also, Van Eck Global closes five international-themed funds.
Janus shares surged 43% on Sept. 26, their biggest one-day gain ever, after it announced that Bill Gross would join the firm from Pimco. Hiring Gross was the boldest step yet in an almost five-year effort by Richard M. Weil to attract new money and change the public perception of Janus, a firm still known primarily for its growth-equity funds.
The industry saw Bill Gross attracting $769 million to Janus, the global ETP market breaking an asset record, a prediction on how much of 401(k) contributions that target-date funds will capture by the end of the decade and a J.P. Morgan executive joining Wilton, Conn.,-based Commonfund as CEO.
Carlson Capital, a $9 billion investment firm, plans to start three hedge funds to invest in the debt and equity of energy companies after oil prices slumped to their lowest in five years.
Money managers profits in North America last year surpassed pre-crisis levels, rebounding to $34 billion on asset and revenue growth, according to a study by McKinsey & Co. Profits were 18% above the pre-crisis peak in 2007 after assets reached $30 trillion. Profits at asset managers globally also moved past 2007 levels, increasing 15% to $65 billion from 2007. Assets reached a record $64 trillion last year.
Hedge fund managers now no longer have to hide behind their websites because they are free to advertise openly to investors who meet their investment requirements courtesy of President Obama's JOBS Act.
Stadion Money Management has found itself a new distribution partner.
As investing in alternatives such as real estate, private equity funds, hedge fund strategies and commodities grow in popularity, the way these are being used by institutions and investment advisors is changing.
Investors act emotionally, not logically, toward the securities they buy or sell.