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Executive Briefs


 

NEWS SCAN

Vanguard Emerging Market ETF Has $887 Million Redeemed

Investors withdrew money last month from Vanguard Group's emerging markets exchange-traded fund, the industry's largest, after the firm said it would replace the fund's index.

The $57 billion Vanguard MSCI Emerging Markets ETF (VWO) lost $887 million to redemptions in November while its largest rival, BlackRock's (BLK)'s $41.4 billion iShares MSCI Emerging Markets Index ETF gathered $2.34 billion, according to data compiled by BlackRock.

 

Banks Rediscover Lures of Money Management

 

Global banks, forced by regulators to reduce their dependence on profits from high-risk trading, have rediscovered the appeal of the mundane business of managing money for clients.

Deutsche Bank AG is now counting on the fund unit it failed to sell to help boost return on equity, a measure of profitability. UBS AG is paring investment banking as it focuses on overseeing assets for wealthy clients.

 

OppFunds Cements SteelPath Deal

 

OppenheimerFunds last week officially closed the book on its acquisition of SteelPath Capital Management and SteelPath Fund Advisors. Terms of the deal were not disclosed.

 

IndexIQ Plans to Shutter ETF

 

IndexIQ has announced that it plans to close the IQ Emerging Markets Mid Cap ETF.

Assets in the fund represent less than 0.5% of IndexIQ's ETF assets.

 

Cambiar Fund Slashes Expenses, Launches Share Class

 

Cambiar Investors is giving investors early Christmas gifts this year.

The Denver firm contractually agreed to reduce net operating expenses for the Cambiar International Equity Fund Investor Share (CAMIX) by 10 basis points, effective as of Sept. 1. The new net operating expense will now be at 120 bps, down from 130 bps.

 

A Litman Fund Drops Copper Rock

The Litman Gregory Masters Smaller Companies Fund has made a roster change.

Effective December 1, Turner Investments was added as a sub-advisor, and Frank Sustersic was added as a portfolio manager, to the fund, according to a Securities and Exchange Commission filing.

 

PowerShares Cuts ETF Fees

 

The ETF fee war is raging on.

Invesco PowerShares Capital Management lowered total expense ratios for six PowerShares ETF portfolios as of Nov. 21.

Four fundamentals weighted ETFs saw their expense ratios lowered from the 75-85-basis-point range to the mid-40-basis-point range.

 

 RESEARCH

A November to Remember for ETFs

Global exchange-traded fund and exchange-traded product assets reached an all-time high of $1.9 trillion at the end of November 2012, according to figures from ETFGI's monthly global ETF and ETP industry insights.

 

Strategic Insight Helps Non-US Funds Play Chameleon

Who says outsiders can't fit in?

A new report titled "U.S. Market Entry and Expansion Considerations" from research firm Strategic Insight offers asset managers abroad help in entering the United States and succeeding here.

 

ETPs Continue Torrent Growth Pace

BlackRock's latest November 2012 ETP Landscape Report paints a rosy picture for exchange-traded products heading into the New Year.

For example, in November global ETPs attracted flows of $25 billion, bringing the year-to-date total to $218.9 billion, according to the report.

 

 

PRODUCTS

Compass Moves Funds Into Proprietary Trust

Compass EMP Funds is moving its three multi-asset class funds to a new trust.

Compass EMP Multi-Asset Balanced Fund, Compass EMP Multi-Asset Growth Fund and Compass EMP Alternative Strategies Fund will be moved into the Compass EMP Funds Trust, chief investment officer Stephen Hammers said.

 

Montage Adds to Fund Family

Montage Investments has added Giralda Advisors and the Giralda Fund to its fund family.

The Giralda Fund currently has $220 million in assets and bets on equities of developed and emerging markets. The addition of the Giralda Fund brings the number of mutual funds offered by Montage to six.

 

 

Two Roads Unveils Alternatives Funds, Sort of

Gemini Fund Services has announced that its Two Roads Shared Trust, which launched in April, will soon include alternative mutual funds from Alternative Road Investment Advisers, Belvedere Asset Management, and LJM Funds Management.

 

 

ARRIVALS

Forbes Joins Huntington

Huntington Bank has named Gregory Forbes as Senior Vice President for business development for Huntington Asset Services. Forbes will focus on expanding market share in servicing larger fund companies and institutional clients.

 

MountainView Expands Fixed Income Sales Unit

 

MountainView Securities, a broker/dealer focused on the fixed income markets, has hired Amber Lindsay as Managing Director of Fixed Income Sales.

Lindsay joins MountainView from Sanders Morris Harris, which is now known as Edelman Financial Group.

 

Morningstar Unveils Passive Fund Research Chief

 

Ben Johnson, who has led Morningstar's passive fund research in Europe and Asia, has been named director of passive fund research globally.

Johnson joined Morningstar in 2006 as a senior equity analyst covering the agriculture and chemicals industries, and was named head of European ETF research in 2011.

Also, Paul Justice, who previously led the research firm's North American passive fund research, has assumed a new role for Morningstar focusing on institutional investor research.

 

 

DEPARTURE

SEC's Legal Eagle Preps for Flight

 

Mark Cahn, general counsel at the Securities and Exchange Commission, is leaving the agency at the end of the year to return to the private sector.

Cahn has served as the SEC's general counsel since February 2011 and counseled the Commission on issues ranging from enforcement actions, rulemakings, other administrative proceedings, and appeals throughout the country and in the Supreme Court.

 

 

STATISTICS

$137.6B had flowed into commodity mutual funds by the end of 2011.

That is up from $9.2 billion held in such funds at the end of 2002.

SOURCE: Morningstar

 

14% of households younger than 35 reported that retirement was their primary savings goal in 2010.

But that was the goal of nearly half of households aged 50 to 64.

SOURCE: Investment Company Institute

 

 

 

 

 

 

 

 


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