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Executive Briefings


NEWS SCAN

Stock Funds Lose $11B, Bond Funds Gain $11B

Equity funds had estimated outflows of $11.08 billion for the week ending October 3. Bond funds had estimated inflows of $10.87 billion, according to the Investment Company Institute.

The flight from stock funds has been picking up steam. In the week ending September 12, investors pulled out $3.3 billion. A week later, $5.1 billion. In the week ending September 26, $7.5 billion. And now, the $11 billion, with $10.6 billion coming out of domestic stock funds.

By comparison, taxable bond funds took in $8.1 billion and municipal bond funds $2.8 billion.

PineBridge Collapses Mutual Fund Biz

PineBridge Investments is getting out of the mutual fund business.

According to a Securities and Exchange Commission filing, two former PineBridge Funds-PineBridge US Micro Cap Growth Fund and PineBridge US Small Cap Growth Fund-are being merged into the Jacob Funds family of mutual funds. A shareholder meeting has been scheduled for October 26 to vote on the merger.

MainStay, Marketfield Make It Official

MainStay Investments earlier this month finalized the adoption of the MainStay Marketfield Fund (MFLDX; MFADX).

The fund, formerly known as Marketfield Fund(MFLDX), was originally launched in 2007 and managed by New York-based Marketfield Asset Management. The fund's Class I shares were rated at five stars overall by Morningstar, as of September 30, 2012.

ETF Assets Reach $1.3 Trillion

The exchange-traded funds industry continues to boom, as assets under management hit a record $1.29 trillion as of the end of the third quarter of this year, according to the ETF Snapshot: September 2012, from State Street Global Advisors.

Total assets have climbed 22.7% year-to-date through the first three-quarters of 2012, and there were 1,263 ETFs operating in the industry, the report noted.

MFS Unveils Brand Advertising

MFS has unveiled its new brand advertising featuring the theme "Investment Management for Investment Managers."

The ads, which consists of print and digital media buys in media outlets, is global with key media buys in Canada, Germany, the United Kingdom and Switzerland as well as the United States.

Abby Johnson is 'New Englander of the Year'

Abigail Johnson, the president of Fidelity Financial Services, the parent company of mutual fund giant Fidelity Investments, is on a roll.

Johnson was one of four recipients of a "New Englander of the Year" award at the annual dinner of the New England Council, a Boston-based business lobbying group, on Oct. 4.

RESEARCH

Institutional Investors Rethinking Allocation Strategy

More than half (52%) of all institutional investors around the world plan to rethink over the next decade the traditional way they've always allocated the assets under their control, according to the results of a survey by Pyramis Global Advisors.

With the global economy downshifting since the financial crisis began in 2008, 41% of institutional investors surveyed said they have had to become more "tactical" and opportunistic in their investment decisions.

PRODUCTS

SSgA Offers S&P 500 Low-Vol Index ETF

State Street Global Advisors has launched the first ever exchange-traded fund in Europe to track the Standard & Poor's 500 Low Volatility Index.

The new fund, the SPDR S&P 500 Low Volatility ETF (USLV), is listed on the London Stock Exchange, is physically-backed and carries a total expense ratio of 35 basis points.

Guggenheim Revamps L/S Interest Rate Fund

The Long Short Interest Rate Strategy Fund is getting a new facelift.

To start, American Independence Financial Services has resigned as the $35 million fund's sub-advisor, effective October 2, according to a filing.

In addition, the Board of Trustees of Rydex Series Funds has decided to change the name of the fund to the Flexible Strategies Fund and merge it into the $224 million Guggenheim Macro Opportunities Fund.

ARRIVALS

Mercer Adds National Consulting Trio

Mercer Hammond has added a trio of national segment leaders to service three major components of U.S. investments markets.

The three newly appointed Mercer Hammond National Segment Leaders are: Rich Marra, who will focus on the not-for-profit healthcare systems' endowments, retirement funds and operating pools; Chris Adkerson, who will focus on higher education endowments; and Russ LaMore, who will serve as a consultant to a select group of not-for-profit clients in the foundation and endowment segments.

GSAM Names Ex-SEC Division Head to Legal Post

Goldman Sachs Asset Management has hired Andrew "Buddy" Donohue, the former head of the U.S. Securities and Exchange Commission's Division of Investment Management as its deputy general counsel.

Donohue, who most recently was a partner in the New York office of law firm Morgan Lewis & Bockius LLP, will join GSAM on Nov. 1 and report to Ellen Porges, GSAM's general counsel.

PIMCO Heads For Rio

Pacific Investment Management Co. is setting up a team of about 15 people in Rio de Janeiro as Brazil's record-low interest rates boost demand for global investment products, according to Bloomberg.

Pimco, which manages the world's largest mutual fund, said its first Latin American office will have credit research, business development and client servicing teams through new hires and relocations, said Alec Kersman, a senior vice president and head of Latin America and Caribbean operations.

The Newport Beach, California-based company, which has 13 offices worldwide, expects to set up the 15-person team within its first year of operation, he said.

Curian Nabs ALPS Exec

Curian Capital has hired Amy Temkin as vice president of strategic accounts to drive sales and form long-term strategic relationships with broker-dealers.

The former head of Institutional Client Relations at ALPS Fund Services will be based at Curian's Denver headquarters, and will report to chief marketing officer Mark Schoenbeck.

STATISTICS

254 ETFs, with 336 listings and assets of US$52 billion

were available from 7 providers in the Canadian ETF market at the end of August.

SOURCE: ETFGI

$798M flowed into Canadian ETFS in August.

In the first eight months of 2012, Canadian ETFs saw net inflows of US$8.4 billion.

SOURCE: ETFGI