Asset management

The difference between 0.03% and zero will prove to be bigger than three basis points.

AllianceBernstein’s Gershon Distenfeld is sounding the alarm bell on a strategy that’s grown increasingly popular with some of the world’s biggest bond funds.

The firm aims to target affluent mainland investors for the first time, while making it free of various offshore investment restrictions.

A large portion of the company’s 100 million-plus Prime subscribers fit the same profile as mutual fund buyers, Sanford C. Bernstein analysts say.

Retail interest in ETPs tied to volatility has dimmed since early February when the S&P 500 tumbled 8.5%.

Whether measuring performance against the market or a client’s own goals, the industry needs accountability.

Rising stock markets have encouraged individual investors to add to their holdings.

The industry is imagining more vibrant, more agile and more inclusive processes that deliver results, says Confluence CEO Mark Evans.

Rapid developments in financial technology are among the industry’s top operational challenges, asset managers say.

Model marketplaces carry major potential for the industry, and experts from BlackRock and Envestnet say they’ve only just begun to make their full impact.

Michael Kitces, Moderator, Partner and Director of Wealth Management, Pinnacle Advisory, Hollie Fagan, Managing Director, BlackRock, Estee Jimerson, Managing Director – Head of Asset Manager Distribution & Engagement, Envestnet, Kunal Kapoor, CFA, Chief Executive Officer, Morningstar, Inc., Natalie Wolfsen, EVP and Chief Solutions Officer, AssetMark, Inc.

Envestnet sees asset management as poised for major changes as broker-dealers move to fee-based business.

The firm’s equity-trading business head Ted Pick, promoted to lead its division of investment bankers and traders, is one possible successor.

The firm plans to expand access to its line of low-cost funds to roughly 1,800, including those from BlackRock, Schwab and SSgA.

The funds, which account for roughly 1% of the $3.5 trillion of assets in ETPs, “pose real risks to American families.”

The firm plans to double in size in the next three years.

The framework targets so-called plain vanilla funds, yet leaves in place a more laborious path for firms wishing to list complex products.

An ETF expert suggests active management is the key to success in the current environment.

Scrutinizing recent performance isn’t a recipe for long-term investment success.

In light of recent losses, risk models will tell managers to cut their exposure to the factor, which could cause a systematic sell-off.