NEWS SCAN
Gross' Total Return Receives Lowest Deposits Since 2011
Bill Gross' PIMCO Total Return Fund (PTTRX), the world's largest mutual fund, attracted $32 million in investor deposits in March, the lowest amount since December 2011.
The Total Return Fund drew $2.2 billion in the first quarter of 2013, according to data from Chicago-based research firm Morningstar. Investors last year poured $18 billion into the fund, which has assets of about $289 billion.
Mutual Funds in the Black
Investors pumped $9.12 billion into long-term mutual funds for the week ended Wednesday, March 27, according to the Investment Company Institute.
Equity funds had estimated inflows of $3.81 billion for the week, compared to estimated inflows of $5.03 billion in the previous week.
Hybrid funds also experienced inflows to the tune of $1.82 billion for the week, compared to estimated inflows of $1.41 billion in the previous week. And bond funds continued their winning streak, pulling in $3.49 billion compared to estimated inflows of $5.95 billion during the previous week.
HighMark Cap Unloads Money Market, Mutual Funds
Nationwide Financial has beefed up its mutual fund portfolio by adding 17 new equity and bond funds from HighMark Capital Management worth some $3.6 billion in assets. Terms of the deal are not being disclosed.
In a separate deal, HighMark sold off five money market funds to Reich & Tang. The funds represents more than $4 billion in shareholder assets. The deal is expected to close by July 2013.
RESEARCH
ETP Flows on Record Pace
The global exchange-traded product industry recorded its best first quarter on record, with flows of $70.1 billion compared to the previous record of $65.5 billion set last year, according to Blackrock's latest ETP Landscape Monthly Snapshot.
Fund Firms Brace for Alt Influx
Asset managers have taken notice of the the proliferation of alternative mutual funds in the retail and institutional channels and have changed their game plan accordingly.
One-third of managers expect alternative assets to represent 50% or more of their firm's total assets under management in three years, according to a recent Cerulli Associates survey. And in 10 years, the most bullish hedge fund manager anticipates that 40% of mutual fund assets will be in alternative products, while on average, they are expected to make up 15.8% of total mutual funds, up from less than 3% at the end of 2012.
Consultants to Plan Sponsors: More Active Target Date Funds Needed
New research from PIMCO says that the majority of consultants think plan sponsors should offer their 401(k) plan participants more target date or target risk strategies of the active management variety.
Specifically, the survey found that of the 51 consulting firms PIMCO surveyed, virtually all (98%) believe that sponsors should offer a target date or target risk investment tier. The vast majority (94%) believe it is important to actively manage these global asset allocation strategies.
PRODUCTS
Stadion Unveils ETF Fund of Funds
Stadion Money Management has launched the Stadion Market Opportunity Fund, which will bet on broad market, sector/region and commodity exchange-traded funds. Money Management Executive previously reported on the launch.
The fund was formed through the reorganization of Broadview Heights, Ohio-based Aviemore Funds' ETF Market Opportunity Fund, which launched in 2004, according to the firm.
Guinness, Ranger Prep Passive ETFs
Two more firms are staking their claims to the growing exchange-trade fund space.
Guinness Atkinson Asset Management has filed with the Securities and Exchange Commission to launch a slate of passive funds encompassing domestic equity, fixed-income, international equity and blended funds. The funds will have exposure to the United Kingdom, France, Germany, Italy, the Netherlands, China, Canada and Australia.
Tortoise Offers Energy Fund
Leewood, KS-based Tortoise Capital Advisors has rolled out the Tortoise North American Energy Independence Fund (TNPTX, TNPCX), a mutual fund that invests primarily in equity securities of North American oil and gas production companies.
Expenses range from 146 basis points to 246 basis points, depending on the fund class.
Alger Debuts Focus Strategy
Fred Alger Management has launched the Alger Capital Appreciation Focus Strategy (ALGRX, ALGIX), which follows an investment strategy that concentrates the portfolio's holdings to generally less than 50 securities.
The strategy has the ability to invest in any company that Alger's analysts believe has growth potential, regardless of market capitalization, while maintaining an anchor in large cap.
Global X Ventures into Mongolia, Nigeria
Pioneering exchange-traded fund provider Global X Funds is adding some more frontier market flavor to its portfolio.
Starting tomorrow, the firm will start trading the Global Nigeria Index ETF (NGE) and the Central Asia & Mongolia Index ETF (AZIA) on NYSE Arca, according to the NYSE Euronext. AZIA and NGE will have annual fees of 69 basis points and 68 bps, respectively, according to the fund's marketing documents.
ARRIVALS
Schapiro Joins Consulting Firm
Mary Schapiro, the former chairman of the U.S. Securities and Exchange Commission, has joined Promontory Financial Group as a managing director and chairman of its governance and markets practice.
Promontory is an international strategy, risk-management, regulatory, and compliance consulting firm. Schapiro will be based in Promontory's Washington, D.C., office and will advise clients on corporate governance and risk management issues. She served as SEC chairman from 2009 to 2012 and was instrumental in pushing money fund reforms to the forefront.
Simple Alts Snags Ex-Hedgie
Alternative mutual fund shop Simple Alternatives has added Clark Jones as a portfolio manager, expanding the investment team managing the firms' flagship S1 Fund (SONEX). Jones joins Simple Alternatives from hedge fund shop Tudor Investment Corporation where he was a long/short equity portfolio manager.
Prior to Tudor Investment, Jones managed a long/short equity portfolio at Millenium Partners, based in New York City.
Legg Mason Makes Sweeping Exec Moves
Legg Mason has announced a series of executive appointments and departures following the hiring of Joseph Sullivan as its president and chief executive officer.
The new Legg Mason executive committee members, who will report to Sullivan include: Pete Nachtwey, who has been appointed head of Legg Mason's Global Distribution; Jennifer Murphy, who has been promoted to chief administrative officer of Legg Mason; Thomas Merchant, who has been promoted to general counsel.
