NEWS SCAN
Aberdeen Wraps Up Artio Deal
Aberdeen Asset Management last week wrapped up its acquisition of Artio Global Investors, a U.S. publicly-listed asset manager, effective May 21. The firm paid $179.7 million, a premium of $46.3 million over Artio's unaudited net asset value as of March 31.
Jack Lew: In ETFs He Trusts?
Jack Lew isn't your average Baby Boomer. There's that Treasury Secretary thing, for starters. What may be even more impressive than his resume, though, is his portfolio of low cost, index-tracking exchange-traded funds. Unlike the vast majority of baby boomers, who don't use ETFs at all, Lew is saving himself thousands of dollars per year in fees and beating a solid two-thirds of active mutual fund managers.
IndexIQ Passes AUM Mile Marker
Liquid alternative provider IndexIQ, is celebrating a milestone. The company reported this month that it has surpassed the $1 billion AUM mark.
Adam Patti, IndexIQ's chief executive officer, attributed the growth to interest from the advisor and retail channels. "In a few short years, liquid alternatives have gone from a novelty to playing an important role in a diversified investment portfolio and we've seen strong interest in our offerings from the institutional and retail advisor channels," he said.
Tilson Fund Out of Focus
The Tilson Mutual Funds is saying goodbye to one of its own. That's because the firm is liquidating the Tilson Focus Fund, which bets on undervalued companies.
The fund, which launched in March 2005, managed just over $6 million as of May 20, according to Bloomberg.
Investors Cool Off to Bond Fund
Mutual funds picked up $8.51 billion for the week ended Wednesday, May 15, according to the Investment Company Institute. Bond funds' inflows tapered off to $4.52 billion, compared to estimated inflows of $7.39 billion during the previous week.
Philly Firm Grows ETF Lineup via Chinese Venture Capital
VTL Associates, an independent investment advisory and consulting firm based in Philadelphia, has received an infusion of capital from Chinese venture capital firm, Suzhou Industrial Park Kaida Venture Capital.
VTL expects to use the funds to build out its revenue-weighted exchanged-traded fund line, RevenueShares, as well as its sales team and marketing efforts.
New Castle Pension Picks Vanguard Index
The New Castle County Employees' Pension Program, based in New Castle, Del., has opted to siphon a Madison Square Investors account in favor of Vanguard's index management.
Following manager interviews last month, the County pension fund Board decided to offer the New York Life Investment Management (NYLIM) subsidiary's assets to the Valley Forge, Pa.-based firm, meeting minutes said.
Aberdeen Goes Global
Aberdeen Asset Management is embarking on its first-ever global brand advertising campaign in 30 years starting May 20. The initial campaign, dubbed "Simply Asset Management," will last for six weeks and will be launched in over 20 countries, in 13 different languages, and will focus on traditional print, outdoor and digital media.
The aim of the refreshed brand campaign is to help build a stronger global awareness and understanding of Aberdeen, according to the firm.
Harbor Replaces Sub-Advisor
The Harbor Funds Board of Trustees has replaced Marsico Capital Management as the sub-advisor to the Harbor International Growth Fund (HAIGX) with Baillie Gifford Overseas Limited, effective May 21. Marsico served as sub-advisor to the fund since March 2004.
PRODUCTS
Vanguard Preps UCITS ETFs
Vanguard is preparing to launch several international exchange-traded funds based on FTSE indices. The Malvern, PA-based firm has licensed four new indices from FTSE Group: the FTSE Developed Europe Index; the FTSE Developed Asia Pacific ex-Japan Index; the FTSE Japan Index; and the FTSE All-World High Dividend Yield Index.
Vanguard will use the indices, which are part of FTSE's All-World and All-World High Dividend Yield Index Series, for the creation of UCITS ETFs.
iShares Diversified Alternatives Trust to Cease Trading
BlackRock plans to liquidate and close the iShares Diversified Alternatives Trust (ALT).
ALT will continue to trade and intends to pursue its current investment strategies until May 28. Beginning May 29, ALT will be closed to creation and redemption activity, trading of the shares of ALT on NYSE Arca will terminate, and ALT will seek to liquidate its holdings into cash over a certain period.
Federated Buries Bama Money Fund
Federated Investors has decided to liquidate the Federated Alabama Municipal Cash Trust (ALMXX).
"The fund's adviser and its distributor recommended the liquidation of the fund based on a determination that the fund is no longer economically viable given its asset size, annual maintenance costs, and low prospects for future growth," according to the firm.
The fund will be closed to new investments on May 21 and liquidated on September 20.
ARRIVALS
Direxion Hires Ex-PIMCO Exec
Direxion has added another member to its sales team. Stephen Rudman joined the fund company's advisor, Rafferty Asset Management, the advisor to Direxion Funds and Direxion Shares, as a managing director and the head of sales.
Rudman was formerly head of internal sales at PIMCO, where he played an important role in generating sales growth. Earlier in his career, Rudman was a vice president at Eaton Vance.
BMO Adds Two to Retirement Team
BMO Global Asset Management continues to expand its Retirement Services teams while keeping an eye out for more potential hires.
Don Borschel has taken the role of director of national accounts and Jeff Cole has taken the role of relationship coordinator for BMO Taft-Hartley Services. Borschel will be based in Chicago and report to Mike Robinson, head of intermediary distribution. Cole will be based in Las Vegas reporting to Kristy Perez, managing director, BMO Taft-Hartley Services.
Pioneer Adds New PM to Bond Funds
Pioneer Investments has named Jonathan Chirunga as a portfolio manager on two Pioneer open-end municipal bond funds: Pioneer High Income Municipal Fund and Pioneer AMT-Free Municipal Fund.
Effective May 17, Chirunga will join David Eurkus, who has been a PM on both funds. Timothy Pynchon, previously a PM on both funds, is resigning from Pioneer Investments to pursue other opportunities, according to the firm.
SIFMA Names Judd Gregg CEO
The Securities Industry and Financial Markets Association has named former New Hampshire governor and U.S. senator Judd Gregg as its next chief executive officer. Gregg is known for advocating bipartisan approaches to balancing the national budget.
Gregg succeeds Tim Ryan, who left in February to join J.P. Morgan Chase and Co., the nation's largest banking firm, as its Global Head of Regulatory Strategy and Policy.
STATISTICS
$83B flowed into global ETFs through the end of April.
Assets in ETFs and ETPs are now at a new all-time high of $2.13 trillion.
SOURCE: ETFGI
12% of the mutual fund market share went to Vanguard in April.
The firm took in $10.4 billion last month, representing 27% of all open-end industry flows.
SOURCE: Morningstar
