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Executive Briefings


Hatteras Goes on Alts Road Show

Raleigh, N.C.-based Hatteras Funds is hosting its own alternative investments road show. The series of forums across the U.S. will allow advisors, home office research teams and consultants to meet the managers of the Hatteras alternative mutual funds, which include Alpha Hedged Strategies Fund, Long/Short Equity Fund, and Long/Short Debt Fund.

Huntington Still Has Midas Touch

Huntington Asset Services, Inc., a wholly owned subsidiary of Huntington Bancshares Incorporated, has extended its relationship with the Midas Family of Funds through March 2015.

Midas has been a Huntington Asset Services client since 2002.

Stocks Party Like It's $99 Million

It was only $99 million.

But it was the first gain registered by mutual funds that invest long-term in U.S. publicly listed companies since the start of June.

The $99 million inflow reported by the Investment Company Institute for the week ended July 18 does not erase the $11.8 billion pulled out of such funds in the prior six weeks.


Huntington Adds to Active ETF Lineup

Columbus, OH-based Huntington Asset Advisors, Inc. has launched a second actively managed exchange-traded fund, US Equity Rotation Strategy ETF, into its ETF family known as Huntington Strategy Shares. The Huntington EcoLogical Strategy ETF (NYSE Arca: HECO) made its debut last month.

The US Equity Rotation Strategy ETF will bet on large-, mid- and small-cap companies included in the S&P Composite 1500 in the utilities, consumer staples, information technology, healthcare, financials, energy, consumer discretionary, materials, industrials, and telecommunication services. Paul Koscik and Martina Cheung are the portfolio managers of the fund.

Vanguard TIPS its Hand About Latest Fund

Vanguard has filed a registration statement with the Securities and Exchange Commission to launch the Vanguard Short-Term Inflation-Protected Securities Index Fund in Q4.

The new fund will track the performance of the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index, a market-weighted index that measures the performance of inflation-protected public obligations of the U.S. Treasury that have a remaining maturity of less than five years.

Its ETF Shares will have an estimated expense ratio of 10 basis points. Its Investor Shares sport a 20 bps expense ratio, the Admiral Shares 10 bps, and the Institutional Shares seven bps. To offset the transaction costs of purchasing TIPS, the fund will assess a 25 bps purchase fee on all shares (excluding ETF shares).

Direxion Puts HY Bear Fund to Sleep

The Board of Trustees of Direxion Funds is liquidating the Direxion HY Bear Fund based on the recommendation of the fund's investment adviser, Rafferty Asset Management, according to a Securities and Exchange Commission filing.

The fund's liquidation, which will take place on August 29, was "due to its inability to attract sufficient investment assets to maintain a competitive operating structure," according to the filing. It will be closed to new investments on August 15.

Arrow Aims For Active ETFs

Olney, M.D.-based Arrow Investment Advisors is looking to add active exchange-traded funds and more alternative mutual funds to its quiver.

CEO Joseph Barrato (see page 10) told Money Management Executive that the firm is hoping to launch one ETF focusing on yield and another alternative-type strategy by Q1 2013. The firm filed for exemptive relief last fall and received its exemption from the SEC on July 3. "We've looked to see where the potholes are in terms of where the SEC has been slowing the active filing," said Barrato.


Vanguard Calls Out ETF Index Providers

Exchange-traded funds have experienced tremendous growth over the past decade but not all of that growth is positive, according to new research from Vanguard.

As of March 31, more than $1.2 trillion was invested in about 1,400 U.S.-listed ETFs, according to the Valley Forge, P.A.-based fund firm, citing data from Strategic Insight's Simfund. The report also revealed that U.S.-listed ETFs currently track more than 1,000 different indexes and, increasingly, ETFs have been launched using new indexes based on "narrow market segments and alternative weighting methods that often lack 'live' performance history."

BrightScope Pops the Hood on Target-Date Funds

Target-date fund providers are taking two steps forward and three steps back, according to a new report by BrightScope.

On a positive note, the report revealed that some managers have significantly improved the prospectus language describing their funds. For example, some prospectuses now state that their funds are intended for participants expecting to take a lump sum withdrawal at or near the target date, while others state that their funds are intended for those participants intending to begin periodic withdrawals at the target date.

Advisors Favor Vanguard Over iShares

Discount exchange-traded fund provider Vanguard now tops the field of leading ETF providers among advisors in another category: favorable impressions.