NEWS SCAN
McNabb: Fee War? What Fee War?
Is Vanguard engaged in a fee war in the mutual fund space? Not according to Vanguard Chairman Bill McNabb.
In fact, in his commentary, McNabb said that his firm has been lowering the cost on its products for more than 35 years and the fact that the firm exists "puts pressure on other providers to do likewise."
Schwab Aims to 'Close ETF Knowledge Gap'
Charles Schwab has launched a new site for exchange-traded fund retail investors dubbed the ETF Education Exchange, which aims to "close the knowledge gap in ETFs by aggregating educational content, research and market insights from ETF industry leaders." The site's content is available to investors free of charge.
Eaton Vance Buys $33 Billion Asset Management Shop
Parametric Portfolio Associates, a Seattle-based subsidiary of Eaton Vance Corp., has agreed to acquire the business of The Clifton Group Investment Management Company, a Minneapolis-based provider of futures- and options-based overlay services and custom risk management products to institutional investors.
The deal is expected to be completed by December 31. Terms are not being disclosed.
REGULATION
FSOC Unveils Money Fund Reforms
Change is in the air for money market funds and this time it looks like proposed reforms, in whatever form they may take, are going to stick. That's because the Financial Stability Oversight Council has voted unanimously to push forward proposed recommendations for reform for public comment.
McNabb, ICI Lash Out At FSOC
The Investment Company Institute and the chairman of the ICI Money Market Working Group, William McNabb, are speaking out against the Financial Stability Oversight Council's meeting last week to discuss money market fund regulation.
In a statement, McNabb said: "It's deeply disappointing that the Council has proceeded without giving due weight to the views of fund sponsors, investors, and the issuers who depend upon money market funds for vital financing."
DATA
DoubleLine Total Return Top $17 Billion YTD
Investors added $27.7 billion to long-term open-end funds in October, according to data from Morningstar. Taxable-bond funds led the way with inflows of $29.6 billion, while U.S.-stock funds saw outflows of $8.3 billion.
PIMCO topped all firms with inflows of $8.1 billion in October, led by PIMCO Total Return Bond which took in $2.4 billion alone. And the DoubleLine Total Return fund took in $1.9 billion during the month and $17.9 billion year to date, making it the most popular mutual fund so far this year, according to Morningstar.
BlackRock's Junk-Bond ETF Sees Record Withdrawals
Investors yanked a record volume of cash from BlackRock Inc.'s exchange-traded fund that buys junk bonds as the notes lose value for the first month since May.
The $16.3 billion fund reported an outflow of 2.4 million shares yesterday, equal to about $218.9 million, according to data compiled by Bloomberg. That's the biggest daily withdrawal in the five-year history of the iShares iBoxx High Yield Corporate Bond Fund, the largest of its kind.
PRODUCTS
Berkowitz's Disciple Opens Up Barnstar's Doors
Charles Fernandez, former president of Florida-based Fairholme Capital Management, has launched the Barnstar Opportunities Fund, a multi-disciplinary, special situations long-bias fund.
Fernandez serves as the chief investment officer of his maiden offering, which will bet across the capital structure in U.S. companies that are significantly undervalued by the capital markets.
Russell Offers Internally Managed Mutual Fund
Russell Investments is broadening its portfolio and skill sets with the launch of its first internally managed, non-cash retail fund, dubbed the Russell Strategic Call Overwriting Fund.
The fund will bet on U.S. equity securities and write index call options, typically on broad-based securities market indexes. It is managed by Richard Johnson, Scott Maidel, Karl Sahlin and Rafael Zayas.
Thomson Reuters Offers Equity, Fixed Income Index
Thomson Reuters has launched a benchmarking product to help custodian banks with performance measurement analytics, and Northern Trust has signed up as the first service provider to adopt the indices for its institutional fund servicing clients.
Praxis Shelves Core Stock Fund
The Board of Trustees of the Praxis Core Stock Fund has decided to fold it into the Praxis Growth Index Fund citing poor performance on the part of the stock fund, according to a recent Securities and Exchange Commission filing.
Invesco Offers DC Advisors 'Game Changer' App
Invesco Distributors, the US distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds, has launched an iPad app for advisors who work with defined contribution retirement plans.
The firm is touting the app as "the first of its kind in the industry" offering retirement plan benchmarking data and analysis with more than 42,000 data points such as "Auto" features and target-date funds.
ARRIVALS
Principal Names Emerging Market Chief
Principal Global Investors has named Mihail Dobrinov head of the emerging market equities team, responsible for the management of $9.3 billion in assets, including portfolio management of the $1.62 billion Principal International Emerging Markets fund and $1.8 billion in Asian regional mandates.
Dobrinov joined Principal Global Investors in 1995 as an international and emerging market debt and currency specialist. He replaces Michael Reynal, who has left Principal Global Investors
Hagstrom Joins Legg Mason as PM
Robert Hagstrom has joined Legg Mason Investment Counsel as Chief Investment Strategist, responsible for communicating Legg Mason Investment Counsel's strategies and market views. In addition, he will be responsible for developing and managing the firm's Thought Leadership Program.
ING Unveils Investor Channel Sales Chief
ING U.S.'s Retirement business has hired Sam Ghazaleh as head of Investor Channel Sales for its Individual Retirement Markets, the company's retail business that provides personal retirement, investment and income guidance and product solutions to pre-retirees, retirees and the rollover markets.
Ghazaleh, who will be based in ING U.S.'s Windsor, Conn. office, will report to Rich Linton, president of Individual Retirement Markets for ING U.S. Retirement. His appointment is effective November 12.
Broadridge Plays Exec Musical Chairs
Broadridge Financial Solutions has made two executive appointments to fill out its management team.
Tim Gokey, who has served as Corporate Senior Vice President and Chief Corporate Development Officer at Broadridge, has been promoted to Chief Operating Officer, replacing John Hogan, who will remain President of Broadridge.
In addition, Stephen Racioppo has joined the company as its Chief Revenue Officer, focusing on increasing sales and building new products.
STATISTICS
70 funds now populate
the Morningstar emerging- markets bond category with total assets of $73 billion.
SOURCE: Morningstar
48% of mutual fund and ETF assets were held
in U.S. stocks in October 2007, prior to the financial crisis
SOURCE: Morningstar
