Executive Briefs

NEWS SCAN

Ex-Roxbury PMs Form New Firm

A new Portland, Ore.-based investment shop has bagged its first sub-advisory mandate courtesy of its affiliate.

Robert Marvin, Brian Smoluch and David Swank, former portfolio managers of the small cap growth team at Roxbury Capital Management, earlier this year broke away and formed Hood River Capital Management. The trio last month picked up their first mandate: a sub-advisory agreement to manage the formerly named Roxbury Small-Cap Growth Fund.

 

FINRA Issues Investor Alert on Alt Funds

Buyer beware! The Financial Industry Regulatory Authority has issued an investor alert regarding the burgeoning alternative mutual fund asset class.

According to FINRA, in addition to the usual market and investment specific risks mutual funds have, alternative mutual funds carry additional risks from the strategies they use.

 

Forward Takes Another Step Backwards

San Francisco-based Forward Funds is once again looking to scale down its alternative mutual fund offerings liquidating.

This time, the firm is liquidating its Forward Global Credit Long/Short Fund (FGCLX) on July 26, according to a regulatory filing. The fund was launched on September 30, 2011 and managed just over $8 million as of June 10, according to Bloomberg. The firm in April shelved the Forward Strategic Alternatives Fund and the Forward Focus Fund.

 

Thornburg Sets Up Shop Across the Pond

Santa Fe, N.M.-based Thornburg Investment Management, an $87 billion asset manager, has established an office in London, the first overseas office opened by TIM. The firm has also appointed Chris Elsmark and Karim Elfar to the newly-created positions of joint managing directors in the firm's new London office.

 

Stadion Lands on Retirement Platform

Athens, Ga.-based Stadion Money Management's family of actively managed risk-based and target date retirement funds have found a new home on the Mid Atlantic Trust Company's platform.

Mid Atlantic Trust Company provides access to some 20,000 mutual funds and exchange-traded funds, as well as trust and custody solutions for retirement plans and other accounts.

 

 

RESEARCH

Mutual Funds Should Pay More Visits to Wirehouses

Despite challenges, wirehouses are still the most attractive distribution opportunity for product manufacturers, according to Boston-based global analytics firm Cerulli Associates.

Wirehouses scored 129 points out of a possible 150 on Cerulli's Opportunity Index scale versus regional broker-dealers (107) and independent broker-dealers (106) coming in at second and third, respectively.

 

Investors Flee From Bond, Equity Funds

Investors redeemed $11.53 billion from mutual funds for the week ended Wednesday, June 5, according to the Investment Company Institute.

Bond funds saw outflows of $10.93 billion, compared to estimated inflows of $1.36 billion during the previous week.

Equity funds had estimated outflows of $942 million for the week, compared to estimated outflows of $1.0 billion in the previous week.

 

 

PRODUCTS

NY Firm Preps Alt Multi-Strat Fund

 

New York-based Loeb & King Capital Management has filed with the Securities and Exchange Commission to launch the Loeb & King Alternative Solutions Fund, a multi-strategy alternative offering.

The fund will have exposure to hedge-like strategies such as merger arbitrage, event-driven value and long/short equity. It won't come cheap to investors because its operating expense net of fees is a hefty 375 basis points for Investor Class shares and 350 bps. for Institutional Class shares.

 

Nuveen Preps Global Tactical Fund

Nuveen Investments is currently prepping the Nuveen Global Tactical Opportunities Plus Fund to launch within the next few months, according to a regulatory filing.

The fund will look to outperform the Merrill Lynch 3 Month Treasury Bill Index by 750 basis points gross fees and expenses by making bets on the U.S., international and emerging market equity, fixed income, commodities and currencies markets.

 

Chinese Firm Targets U.S. Retail Investors

Beijing, China-based Harvest Fund Management is taking a stab at the U.S. market with the launch of New York-based Harvest Krane, which will distribute China and Asia-focused mutual funds to institutional and retail investors in the U.S.

The first offering in the U.S. is the Harvest Funds Intermediate Bond Fund (HXIIX), which will bet on investment grade and high-yield China bonds.

 

 

ARRIVALS

RidgeWorth Adds Three National Accounts Sales Execs

RidgeWorth Investments is beefing up its sales team with the addition of Christopher Danos, Scott Goldberg and Mallory Carr as national accounts managers.

Previously, Danos was vice president and director of strategic relationships at Highmark Capital Management in Boston. Goldberg most recently served as senior sales consultant at Hartford Funds in Atlanta and Carr served as senior national accounts manager and vice president at Invesco in Houston.

RidgeWorth Investments currently manages some $50.4 billion of assets under management as of March 31.

 

Catalyst Adds Sales Exec, Plans More Alts Funds

Huntington, N.Y.-based Catalyst Capital Advisors has added George Amrhein as director of business development to build upon the firm's key distribution relationships and manage the continued expansion of its lineup of mutual funds.

Catalyst intends to expand its lineup of funds, which includes hedged, equity and fixed income offerings, with Amrhein as a member of its management team, according to the firm.

 

 

Prudential Boosts Real Estate Unit

Prudential Real Estate Investors has added Michael Gallagher as a director and portfolio manager to its global real estate securities team. Gallagher, who joined PREI in September, 2012 as an associate portfolio manager for European real estate securities, will now be responsible for all aspects of portfolio management for the fund's European securities.

In addition, Gallagher has also been added as a manager on the Prudential Global Real Estate Fund (PURAX), Prudential International Real Estate Fund (PUEAX) and the Prudential U.S. Real Estate Fund (PJEAX).

 

ProShares Adds Tech, Product Chiefs

ProShares has added Ramesh Babu as chief technology officer and William Poulin as head of product management.

Babu, former chief technology officer for Allianz Global Investors, is responsible for providing strategic direction and management of ProShares' technology infrastructure. He reports to Tim Coakley, chief financial officer.

Poulin, former head of product strategy and development for Columbia Management, is charged with product positioning and targeting, and ensuring product-related initiatives are prioritized and supported in an integrated fashion. He reports to Steve Cohen, managing director and head of strategy.

 

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