September 14, 2012
DB Folds DWS Into New Unit
Deutsche Bank has unveiled its growth strategy for the next three years and beyond for its U.S. mutual funds unit, known as DWS, and other businesses.
Most notably, the firm's "Strategy 2015+" includes combining active and passive investment strategies together with retail asset management in one business unit dubbed the Asset & Wealth Management division.
FSA Gives BlackRock 30% Discount on Fine
The Financial Services Authority has fined BlackRock Investment Management (UK) Limited $15.2 million for failing to adequately protect its clients' money market deposits and for failing to have controls in place to protect its money market deposits.
ProShares Shakes Off Disclosure Suit
ProShares last week got some good news from the United States District Court for the Southern District of New York.
The court dismissed, in its entirety, a class action lawsuit filed against the firm in 2009.
Specifically, the court rejected the plaintiffs' claim that certain risks associated with holding leveraged and inverse exchange-traded funds for periods longer than one day were omitted from the disclosures set forth in the registration statements.
Morningstar Cites Growth in ETF Managed Portfolios
ETF-managed portfolios-those that typically have more than 50% of portfolio assets invested in exchange-traded funds-are one of the fastest-growing segments in managed accounts, according to a Morningstar report.
The ETF Managed Portfolio Landscape Report showed that assets in ETF Managed Portfolios grew 30% year-to-date and 48% since September 2011.
Equity Funds Continue to Bleed
Equity funds had estimated outflows of $3.08 billion for the week, compared to estimated outflows of $4.51 billion in the previous week, according to the Investment Company Institute.
Hybrid funds had estimated inflows of $910 million for the week, compared to estimated inflows of $866 million in the previous week. Bond funds had estimated inflows of $5.28 billion, compared to estimated inflows of $6.39 billion during the previous week. Overall, long-term mutual funds took in $3.11 billion for the week ended Wednesday Sep. 5.
U.S. ETFs Top $1T
U.S. exchange-traded fund assets totaled $1.2 trillion as of August 31, up 16.6% year-to-date, according to State Street Global Advisors' ETF Snapshot.
In August, investors added $4.7 billion more to ETFs than they withdrew, as fixed income and commodity ETFs attracted $4 billion and $2.4 billion of inflows respectively, according to SSgA.
iShares to Launch Frontier Index Fund
BlackRock's iShares-the largest exchange-traded fund issuer in the world-added another arrow to its quiver last Thursday when it launched a a fund that will track an index of 20 of the world's riskiest markets, according to a filing.
The iShares MSCI Frontier 100 Index Fund (FM) will track the MSCI Frontier Markets Index, which is down 1.6% year-to-date and primarily tracks energy, financial services and telecommunications securities in 20 constituent nations, including Argentina, Bulgaria, Croatia, Kenya, Nigeria, Oman, Qatar and Vietnam. The ETF will carry an annual expense ratio of 79 basis points.
Gemini Looks to Grow Mutual Fund, ETF Trusts
Fund administrator Gemini Fund Services has new leadership in place, new headquarters in New York, and is making strides in the alternative mutual fund and exchange-traded fund arenas.
The firm in July promoted Andrew Rogers to the position of chief executive officer and Kevin Wolf as president.
In an interview with Money Management Executive, Rogers told MME that the firm is looking to ramp up its latest alternative mutual fund offering, Two Roads Shared Trust, which launched in April to help hedge fund managers start alternative mutual funds (See Page 1 for the interview in its entirety).
Neuberger Offers Commodity Fund
Neuberger Berman Group has launched a Risk Balanced Commodity Strategy Fund (NRBAX, NRBCX, NRBIX). The active, diversified commodity investment strategy of the fund includes exposure in 25 to 30 commodities across six industries.
The fund's lead portfolio managers are Wai Lee, chief investment officer, director of research, Quantitative Investment Group, and Hakan Kaya, vice president.
Long/Short Fund Goes Belly Up
The Triex Tactical Long/Short Fund, a separate series of the Northern Lights Fund Trust, is shutting down on September 27.
According to a Securities and Exchange Commission filing, the fund stopped trading on September 4.
Third Avenue's New Prez Is...
Third Avenue Management has named David Resnick as president and a member of its investment team.
Previously, he was chairman of Rothschild's Global Financing Advisory practice, where he led the firm's restructuring, debt advisory and equity advisory businesses.
SEC Picks Champ's Successor
The Securities and Exchange Commission has named Andrew Bowden as Deputy Director of the agency's Office of Compliance Inspections and Examinations (OCIE). He succeeds Norm Champ who was named in July to head the SEC's Division of Investment Management.
As Deputy Director, Bowden will work closely with OCIE Director Carlo di Florio on OCIE's strategy, governance structure, risk-based exam process, training programs, and technology.
Investment Data Shop Adds Sales Chief