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Executive Briefings


Cerulli Turns Out Pocket of Distribution Opportunity

Attention, asset managers: The Registered Investment Advisor channel is one place where you can differentiate your offering in a crowded marketplace, according to Cerulli Associates.

Cerulli projects that RIAs, including dually registered advisors, will expand their marketshare of advisor-held assets to 14% by the end of 2012.

The biggest opportunity: the $100 million to $500 million AUM segment.

Mutual Funds Net Inflows in June

The combined assets of the nation's mutual funds increased by $208.5 billion, or 1.7%, to $12.2 trillion in June, according to data from the Investment Company Institute.

Long-term funds-stock, bond, and hybrid funds-had a net inflow of $10.5 billion in June, vs. an inflow of $9.9 billion in May.


Henderson Offers Dividend Fund

Henderson Global Investors has launched the Henderson Dividend & Income Builder Fund (HDAVX, HDCVX, HDIVX), which primarily bets on dividend-paying equities of US and non-US companies.

The fund will be managed by Alex Crooke, Henderson's Director of Value and Income; Job Curtis, Head of Value and Income; Jenna Barnard, Director of Retail Fixed Income; and John Pattullo, Head of Retail Fixed Income.

BlackRock Launches Five ETFs, Eh?

BlackRock's Canadian subsidiary has launched five new exchanged-traded funds designed to offer Great North investors exposure to domestic, international, developed and emerging markets while minimizing volatility.

Canadian investors requested the iShares ETFs, according to Mary Anne Wiley, managing director and head of iShares for BlackRock Canada.

RiverNorth Preps Buy-Write Fund

Chicago-based RiverNorth Capital Management is prepping the launch of another open-end mutual fund, the Dynamic Buy-Write Fund.

According to a Securities and Exchange Commission filing the fund will bet on a portfolio of common stocks, preferred stocks and options on those common and preferred stocks. It will be managed by Eric Metz, who joined RiverNorth this year from Bengal Capital LLC, an investment adviser. It charges management fees of 100 basis points.


Vanguard Cuts Ties With AllianceBernstein

Vanguard Group has severed sub-advisory ties with AllianceBernstein regarding the Vanguard Windsor Fund and Vanguard Global Equity Fund.

According to a filing, Pzena Investment Management will replace AllianceBernstein as sub-advisor of the Windsor Fund and Baillie Gifford Overseas Ltd. will take over as sub-advisor of the Global fund.

Virtus Trumpets Q2 Gains

Multi-manager fund firm Virtus Investment Partners last week reported that it had gained assets for the 13th consecutive quarterand increased sales in long-term open-end mutual funds year over year.

The firm had long-term open-end mutual fund sales of $2.8 billion in the second quarter, an increase of 13% from $2.4 billion in the second quarter of 2011. Sales continue to be balanced among investment strategies, with 31% of fund sales in domestic equity strategies, 38% in international equity strategies, and 31% in taxable fixed income strategies.

An $18B Fund Reopens

The Oakmark Equityand Income Fund (OAKBX) has reopened to all investors effective August 1.

The fund is advised by Harris Associates and has been closed to most financial intermediaries since May 2010.

Doubling Down to Block Money Market Reform

Money-market fund companies have doubled lobbying efforts to convince regulators and lawmakers that they aren't a threat to the financial system. The money may have been well-spent.

The 10 biggest money-fund managers and the Investment Company Institute trade group reported combined lobbying spending of $16 million in the first half of 2012 and $31.6 million last year in disclosures that reference money-market mutual funds, according to a review of documents by Bloomberg News.

That compares with $16.7 million in all of 2010.

F-Squared Wins Target Risk Mandate

Mutual fund sub-advisor F-Squared Investments will sub-advise on the newly launched Reliance Trust AlphaSector Target Risk Collective Trust Funds, which is aimed at 401(k) plan sponsors and participants.

The portfolios, which utilize low cost exchange-traded funds as underlying vehicles, are available as collective trust funds through Reliance Trust Company of Atlanta.

Hansberger Dumps EM Fund

Fort Lauderdale, Fl.-based Hansberger Global Investors, has pulled the plug on its Emerging Markets Fund, according to Securities and Exchange Commission filing.

The 2-star rated fund, which was liquidated on July 27, managed some $52 million as of June 30 and returned 0.52% through the end of June.

The fund has been managed by Francisco Alzuru since Apr 29, 1997.


Bogle Takes on Hype

John (Jack) Bogle, founder of The Vanguard Group, has a new gig.

Advizent, a membership organization of independent investment advisors formed "to combat the marketing and product machine that has become much of Wall Street," has landed Bogle as a senior chairman of its Independent Board of Standards.

Gemini Makes Exec Appointments

Gemini Fund Services has promoted Andrew Rogers to chief executive officer and Kevin Wolf to president. The promotions became effective in the second quarter.

Rogers, who previously served as president, will continue to lead the company, with a major focus of his efforts on new business development. Wolf, who previously served as executive vice president, will oversee Gemini's operations in the areas of fund accounting, fund administration, legal administration, tax and compliance, technologyand transfer agency.

TD Ameritrade Names Institutional Marketing Chief

Kate Healy has been named the new managing director of marketing for TD Ameritrade Institutional, responsible for the development of marketing strategies and focusing on the independent registered investment advisors channel.

She replaces Paul Zettl, who previously held the position and was recently named managing director of retail and social media marketing for TD Ameritrade.


$6.3B was the amount of money investors put into the fund market, including open-end funds and exchange-traded funds, for the week ending July 25. Equity funds saw $11.3 billion in net redemptions.

Other funds saw inflows, such as money market funds, of $13.7 billion; taxable bond funds, $3.1 billion and municipal bond funds, $0.8 billion.

SOURCE: Lipper

4.6% is the amount the exchange-traded fund market grew in June, to $1.167 trillion.

Over the 12-month period ending in June, ETF assets rose 8.3%.

SOURCE: Investment Company Institute