NEWS SCAN
GSAM to Acquire DeAWM's Stable Value Business
Goldman Sachs Asset Management (GSAM) announced it has entered into an agreement with Deutsche Asset & Wealth Management (DeAWM) to acquire DeAWM's stable value business, with total assets under supervision of $21.6 billion as of June 30, 2013.
The transaction represents the latest step by GSAM to grow its defined contributionfranchise following last year's acquisition of Dwight Asset Management, a premier stable value asset manager based in Burlington, Vt.
"GSAM's acquisition of DeAWM's stable value business affirms our strong commitment to providing defined contribution plan participants with capital preservation investment options," said Eric S. Lane and Timothy J. O'Neill, co-heads of the Investment Management Division at Goldman Sachs in a statement. "The expert talent and potential client relationships that we gain from this transaction will complement our existing stable value business."
BNY Mellon's Automated 'Waterfall' Process for Private Equity Fund
BNY Mellon has announced the launch of an enhanced distribution "waterfall" capability as part of its private equity fund services.
Distribution waterfalls in a private equity fund establish how proceeds from realized investments will be divided between investors and the fund manager. It's also through the distribution waterfall that fund managers and principals receive their performance and incentive fees, or "carried interest."
"This major new offering marks the beginning of the end of spreadsheet calculations for private equity funds," said Alan Flanagan, global head of product management for alternative investment services at BNY Mellon in a statement. "Our automated and integrated waterfall solution brings the benefits of a more efficient, controlled environment, and that means improved risk management and more transparent reporting for investors and fund managers alike."
Securian CCO Among Top Women in Finance Honorees
Nancy Swanson, vice president and chief compliance officer of Securian Financial Group, is one of the 50 honorees named to the 2013 Finance & Commerce list of Top Women in Finance.
"In this industry nothing is more important than compliance," said Bob Senkler, chairman and CEO of Securian Financial Group in a statement. "Nancy understands that compliance is more than simply following the letter of the law. Of course we do that. You go beyond that and set a high ethical standard that builds trust and confidence among your customers."
S&P Capital IQ Introduces New ETF Style Classification System
Building on its success as the developer of the GICs industry classification structure, S&P Capital IQ has introduced a new system called Exchanged Traded Funds (ETF) Style Classifications. This comprehensive classification system classifies ETFs and ETNs with over 40 standardized descriptive characteristics to reveal the true exposure being provided by over 2,500 North American ETFs and ETNs.
"ETFs are fast growing investment vehicles and the market is finding it difficult to classify them," said Rui Carvalho, managing director of Product and Content at S&P Capital IQ in a statment. "They want supporting information that provides a complete, accurate, and objective profile of the exposures of ETFs. In addition to portfolio exposure and classification, institutions and other investors will also use the system for ETF selection and reporting purposes."
RESEARCH
Protection From Loss is Key Says Allianz Study
The vast majority of Americans ages 25+ with more than $200,000 in investable assets surveyed in the Allianz Life 2013 Investor Market Perceptions Study said they are seeking some form of protection from losses as they accumulate assets for retirement.
In total, 95% of these respondents said they would like a financial product with no potential loss or at least some level of protection from loss rather than one with unlimited potential growth but also unlimited potential loss. More specifically, more than three quarters (76%) said they would prefer a product that offers a balance of potential growth (up to 10%) with a level of protection that shelters them from up to 10% of losses.
"It's clear that for many investors the trauma caused by the 2008 financial crisis is still being felt and is dampening their willingness to take on risk with their savings," said Allianz Life Financial Services, LLC President Robert DeChellis in a statement.
Hedge Fund Survey Shows Value of Research Management Solutions
Advent Software announced the results of a survey on how investors select hedge funds titled, "Pitch Perfect, How Investors Choose Funds." The comprehensive survey was designed to determine not only what investors look for when making new hedge fund investments, but also the potential stumbling blocks fund managers should take pains to avoid when making their pitch.
"Investors now place a much greater value on a research management solution when evaluating funds as an indicator of institutional-grade operations," said Chris Momsen, executive vice president, Sales and Solutions Management at Advent in a statement. "Today, the bar has been raised and the ability to share business-critical information firm-wide and access the information they need easily, when and where they need it, is essential for firms looking to organize and leverage their intellectual capital."
Estimated Long-Term Mutual Fund Flows
Total estimated inflows to long-term mutual funds were $1.00 billion for the week ending Wed., September 11, 2013, according to the Investment Company Institute.
Equity funds had estimated inflows of $5.24 billion for the week, compared to estimated inflows of $903 million in the previous week. Domestic equity funds had estimated inflows of $2.47 billion, while estimated inflows to world equity funds were $2.77 billion.
Hybrid funds, which can invest in stocks and fixed income securities, had estimated inflows of $1.28 billion for the week, compared to estimated inflows of $349 million in the previous week.
Bond funds had estimated outflows of $5.51 billion, compared to estimated outflows of $6.76 billion during the previous week. Taxable bond funds saw estimated outflows of $2.81 billion, while municipal bond funds had estimated outflows of $2.71 billion.
PRODUCTS
Ultimus Adds Two Funds to Managers Trust
Ultimus Fund Solutions, LLC has announced Barrow Funds has launched two funds in its series trust, the Ultimus Managers Trust. Barrow Funds are managed by Barrow Street Advisors LLC.
"We are pleased to be selected as the service provider for an investment firm such as Barrow Street Advisors," said Bob Dorsey, president of Ultimus Managers Trust in a statment. "With the launch of new mutual funds, it is important that the adviser be able to depend on experts who can strategically navigate the funds through the many regulatory, operational and distribution issues that occur. Ultimus brings years of such experience and expertise to its clients, so firms such as Barrow Street can focus on managing assets and servicing their customers."
ARRIVALS
New Head of Fidelity ActionsXchange
Fidelity ActionsXchange has named Will Dolan as its new leader.
Prior to his new position at Fidelity ActionsXchange, Dolan served as senior VP, brokerage products for Fidelity Institutional.
"Will brings a wealth of knowledge and experience to the role," said Janice Morris, executive vice president, who leads the Advanced Electronic Market Solutions organization for Fidelity Institutional in a statment.
