November 30, 2012
Neil Hennessy: Cliff 'Em All
Sure, investors still feel nervous, companies are hesitating to spend cash, and all attention is on fixed income and bond funds. But Neil Hennessy of Hennessy Funds insists equity mutual funds are the way to go.
And Hennessy's thoughts on the fiscal cliff? "Personally, I think [the government] should let [the U.S.] go over the cliff," he said, explaining that the government needs more time to reach a compromise on potential tax increases.
Networking Key for Advisors Courting DC Plans
A new white paper from Franklin Templeton and independent market research firm Chatham Partners is giving advisors a few pointers on how to court defined contribution plans.
According to the study, strong networking are key in picking up clients, with 81% of plan sponsors actively seeking advisors through recommendations or referrals from colleagues, peer organizations, or retirement plan service providers. In contrast less than a quarter of plan sponsors responded to advisor solicitation.
Mutual Funds Leak $5.5 Billion
Mutual funds experienced outflows of some $5.52 billion for the week ended Tuesday, November 20, according to the Investment Company Institute.
Equity funds continued to bleed assets losing some $8.82 billion for the week, compared to estimated outflows of $8.39 billion in the previous week. Domestic equity funds had estimated outflows of $7.51 billion, while estimated outflows from world equity funds were $1.31 billion.
Target Date Funds, ETFs Poised For Growth
Investors will continue to pour money into funds, especially into target date funds and ETFs, according to a report on mutual funds from Tiburon Strategic Advisors.
Overall, Tiburon sees mutual fund net flows increasing to $160 billion in 2012, bringing mutual fund assets to more than $16 trillion. By comparison, during the last stock market upswing, mutual fund net flows were $100 billion in 2006, bringing assets up to $10.4 trillion that year.
ETFs Lose $12 Billion in October
Exchange-traded funds hit a speed bump last month after coasting through much of the year in the black. Assets of all exchange-traded funds fell in October by $12.22 billion, or 1%, to $1.269 trillion, according to data from the Investment Company Institute.
Investors Active on Passive Funds
New research from Cerulli Associates finds that passive mutual fund assets have increased 95% since 2008, jumping from $572 billion in 2008 to $1.1 trillion through the first half of this year.
"We have seen a significant increase in passive investment options from investment managers in the aftermath of the 2008 financial crisis," explained Matthew Pickering, analyst at Cerulli.
Compass Funds Now North of 13
Compass EMP Funds has increased its fund lineup more than five-fold with the launch of 13 new mutual funds. Compass EMP now offers a total of 16 funds in its lineup.
Dreman Shelves Mutual Funds
Contrarian shop Dreman Value Management is nixing its lineup of five mutual funds citing a lack of investor interest, increasing operating costs and a tougher regulatory landscape.
According to a filing, the firm will liquidate its Dreman High Opportunity Fund, Dreman Contrarian Mid Cap Value Fund, Dreman Market Over-Reaction Fund, Dreman Contrarian International Value Fund and the Dreman Contrarian Value Equity Fund on December 28.
Wilmington Drops Whitebox From Alts Fund
The Wilmington Rock Maple Alternatives Fund has dropped Whitebox Advisors as one its many subadvisors, Money Management Executive has learned. Whitebox no longer serves as the fund's subadvisor effective November 23, according to a filing.
The fund's current subadvisors include Acuity Capital Management, ADAR Investment Management, Calypso Capital Management, Rock Maple Services, TIG Advisors, Water Island Capital, Madison Street Partners, Parametric Risk Advisers and Evercore Wealth Management.
Kayne Bumps Foreman to CIO
Kayne Anderson Rudnick, a boutique investment adviser and affiliated manager of Virtus Investment Partners, has promoted Doug Foreman as co-chief investment officer, effective January 1, 2013. Foreman will share responsibility for leadership of KAR's equity team and investment operations with Robert Schwarzkopf, chief investment officer since 2007.
Foreman was hired in July 2011 as director of equities, a role he will continue to hold, and he will continue to report to Schwarzkopf.
Bandon Hires Ex-Van Kampen Sales Exec
Portland, Ore.-based alternative mutual fund shop Bandon Capital Management has added Terry Swenson as Managing Principal, responsible for the firm's distribution strategy in intermediary channels.
Prior to joining Bandon, Swenson spent over a decade as a Managing Director at Van Kampen/ Morgan Stanley Investment Management heading up Variable Annuity and sub-advisory strategy and distribution.
Loomis Adds Emerging Markets Portfolio Managers
Loomis, Sayles & Company has added Peter Frick as an emerging markets debt portfolio manager alongside co-managers Edgardo Sternberg and Dave Rolley. Frick most recently serving as product manager covering EMD and global bonds.
In turn, Hank Lynch was hired to replace Frick. Lynch was most recently senior managing director, global options trading for State Street Bank.
Doll Leaves BlackRock for Nuveen
Nuveen Investments has added equities veteran Bob Doll to its asset management team. Doll, who officially begins work last week, reports to Nuveen Asset Management's head of equities, David Chalupnik.
As the Chicago firm's new chief equity strategist, the former BlackRock chief equity strategist will provide equity market analysis and commentary for advisors.
State Street's CFO Calls it Quits
State Street Corporation's Chief Financial Officer Edward Resch is leaving his post in 2013, after more than a decade in the role. The firm will conduct an internal and external search for a new chief financial officer.
255 ETFs, with 341 listings, exist in Canada.
The seven providers of such funds counted assets of US$54 billion at the end of October.
$11B flowed into ETFS globally in October.
For the first 10 months of 2012, ETFs worldwide saw net inflows of US$182 billion.