NEWS SCAN
SEC Can Do Better, Gallagher, Paredes Say
The two Republican members of the Securities and Exchange Commission said they are not opposed to further reform of the money fund industry, but that changes advocated by Chairman Mary Schapiro "were not supported by the requisite data and analysis.''
"Further action must be advanced on the basis of data and rigorous analysis showing that any such changes to our existing rules would be workable, would be effective in achieving their purpose, and would not unwisely disrupt the functioning of money market funds and short-term credit markets,'' Commissioners Daniel Gallagher and Troy Paredes said, in a statement released last month.
U.S. Equity Funds Lose Another $4.48 Billion
For the week ended August 22, investors pulled an estimated $4.48 billion from U.S. mutual funds, substantially more than the $2.72 billion they withdrew the week before.
Outflows from U.S. stock funds accelerated mid-August after hopeful signs that they might be slowing down, according to the latest statistics from the Investment Company Institute.
Forward Preps Marketing Campaign
On the heels of hiring a new chief marketer, Forward is embarking on a marketing campaign this fall to spread the word about its alternative mutual fund products, according to Paul Schaeffer, managing director, Strategy & Thought Leadership at Forward.
Schaeffer told Money Management Executive that his firm is looking to start its marketing efforts next month with online, trade pubs and non-traditional pubs.
"We've been expanding our marketing efforts over the past year with rebranding and redesigning our site," he said.
PRODUCTS
Loomis Closes Small Cap Offering
Loomis, Sayles & Company is closing its Loomis Sayles Small Cap Growth Fund (LCGRX) to new investors on September 14. The fund, co-managed by John Slavik and Mark Burns, was launched on December 31, 1996 and has $760 million in assets as of August 29.
According to the firm, the close was initiated "to preserve the investment team's flexibility in executing the strategy."
Van Eck Preps Short HY ETF
Van Eck Global is prepping to launch the Market Vectors Short High-Yield Municipal Index ETF, which will replicate the Short High Yield Index, according to a Securities and Exchange Commission filing. The index is comprised of publicly traded municipal bonds that cover the U.S. dollar denominated high yield short-term tax-exempt bond market.
REGULATION
Rydex Adds Wrinkle to Futures Fund
The Board of Trustees of Rydex Series Funds has approved a revision of the principal investment strategies for the Trust's Managed Futures Strategy Fund, according to a Securities and Exchange Commission filing.
Specifically, the fund will now use about 20% of its portfolio assets to bet on price movements in the commodity, currency, equity, and fixed income markets, starting September 27.
Program Picks Out Alleged 'Cherry Picking' By Advisor
A computer application deployed by the Charles Schwab Corporation that supported day trading online has flagged "cherry picking" of profitable trades by a Connecticut financial advisor, according to a court filing by the Securities and Exchange Commission.
The SEC is focusing the case on Noah Myers, a 40-year-old financial advisor who resides in Old Lyme, Connecticut. Myers is the principal, chief investment officer, and sole owner of MiddleCove Capital, according to the filing.
ARRIVALS
Abby Johnson Gets Promoted
Fidelity Investments has named Abigail Johnson president of Fidelity Financial Services, consolidating all of the company's core businesses under her leadership.
Johnson will oversee a broad organization comprising the company's financial services businesses: asset management, retail and institutional brokerage, retirement and benefits services, as well as corporate operations and function support groups. In her new role, Johnson will continue to report to her father, Edward "Ned" Johnson, Fidelity's chairman and chief executive officer.
Black Takes Calamos Deeper Into the Dark Side
Calamos Investments last month welcomed an old foe into its fold. Gary Black, former chief executive officer of Janus Capital Group, will join the firm as Global Co-Chief Investment Officer and a member of the firm's Investment Committee.
He will team up with John Calamos, Sr., the firm's founder, to lead the investment team and oversee portfolio management, research, trading and risk management.
Lipper Builds Out Reaearch, Analytics
With a new head of research on board, Lipper announced a new set of initiatives for the second half of 2012 that involves building out research and analytical tools.
"The industry dynamics are changing rapidly across the globe and whether it is within areas of product innovation, distribution, or how portfolios are assembled we want to be positioned with our offering to help differentiate and provide valuable insights," said Lars Asplund, managing director and head of Lipper, who joined the firm in January 2012.
Federated Plans Asia Expansion
Federated Investors has tapped Craig Bingham to lead the firm's new Asia Pacific subsidiary. Federated will open a Melbourne, Australia office in the coming weeks and expects to have a sales and office support team in place by the end of this year.
Bingham will manage Federated's efforts to expand globally through the development of an Australia-based investment management hub that also will serve as a gateway for the firm's new business venture in Asia.
DEPARTURES
Forward's Prez Decamps
Forward's former president Jeff Cusack has taken a new job with rival alternative mutual fund ship Nuveen Investments as Managing Director, RIA and Alternative Investments Distribution. Cusack will focus on growing Nuveen's retail alternative investment distribution platform, and he will report to Carl Katerndahl, head of retail distribution.
A spokesperson for Forward said the firm is currently looking to replace Cusack's position but declined to further comment on the move.
Former Legg Mason CFO Barred from Industry
The former CFO and Treasurer of Legg Mason's fixed income funds has been barred from the securities industry for altering books and records of one of the funds. Frances Guggino was also ordered by the SEC to pay a civil penalty of $15,000.
Guggino resigned in June 2010 during the course of an internal investigation that revealed the document alteration, which appears to have been motivated by a desire to cover up a mistake.
STATISTICS
3,327 global ETFs existed at the end of July 2012,
with 7,477 listings, assets of $1.5 trillion, from 172 providers on 50 exchanges. Also, 37 new ETFs/ETPs were launched by 17 providers on nine exchanges, while three ETFs/ETPs delisted.
SOURCE: ETFGI, Bloomberg
$5.9B flowed into SPDR ETFs' coffers last month,
followed by iShares with $5.8 billion and Vanguard with $4.3 billion in net inflows.
SOURCE: ETFGI, Bloomberg
