NEWS SCAN
PIMCO Total Return Rakes in $2.7B
Despite declining yields, taxable-bond funds continued to dominate inflows, taking in another $16.9 billion in April, bringing its total inflows to date at $96.9 billion, according to Morningstar, Inc.
The subset remains roughly on track to match 2009's record inflows of $282.5 billion.
The PIMCO Total Return led all funds in April with inflows of $2.7 billion, the fund's strongest month since August 2010, according to Morningstar.
Advisors Shun Long Only, Embrace Long/Short
Financial advisors are shunning traditional diversification and portfolio construction for sexier alternative investment strategies, according to a study released today by Natixis Global Asset Management.
Most notably, the study found that a majority of advisors (63%) do not believe in, or are unsure of the value of, long-term buy-and-hold strategies, and 77% say their clients are questioning this approach as well.
Institutions Smitten With iShares ETFs
Institutional investors are increasingly turning to exchange-traded funds for their investment needs, according to a new Greenwich Associates study.
Specifically, the study, which is sponsored by iShares, reports that a significant number of institutional investors use ETFs for manager transitions and cash equitization management.
iShares, Vanguard Top Social Media Survey
A new social media research report from kasina places iShares, Vanguard, Putnam, Russell Investments, and OppenheimerFunds as the Top 5 social media leaders in asset management.
Specifically, iShares has taken over the top spot in this year's report with its development of timely and informative thought leadership and two-way communications and "social listening".
REGULATION
Stevens: SEC's Proposals Undermine Money Market Funds
Requiring money market fund advisers to hold capital to support their money market funds would fundamentally change the nature of these funds, according to a new study by the Investment Company Institute.
Depending on the size of the capital buffer and the assets covered, the study revealed that a capital buffer could result in advisers shifting to less regulated products or exiting the cash management business altogether. These changes would not benefit investors and could lead to greater systemic risk in the economy it said.
PRODUCTS
Jefferson National Adds Alts to Lineup
Variable annuity provider Jefferson National is adding more alternative mutual fund products to its lineup in anticipation of greater advisor adoption of these hot strategies.
Specifically, Jefferson National is adding the new BCM Decathlon Series of three, quantitative, ETF-based strategies; the Power Income VIT from W.E. Donoghue & Co; and the Hatteras Alpha Hedged Strategies Fund, a daily liquid, fully transparent fund of funds offering exposure to multiple hedge fund managers and strategies.
Nuveen Reopens Two 4-Star Funds
Nuveen Investments has reopened its Tradewinds Global All-Cap Fund and Tradewinds Value Opportunities fund to new investors.
The funds, which have been closed to new investors since August 2011, have suffered redemptions in the wake of the resignation of David Iben, the firm's co-president, chief investment officer, who left the firm to join hedge fund Vinik Asset Management.
BENCHMARKS
ISE, AlphaClone to Offer Hedge Fund Index
The International Securities Exchange and AlphaClone LLC, a provider of hedge fund position replication, have teamed up to promote AlphaClone's innovative hedge fund position replication index, dubbed the AlphaClone Hedge Fund Long/Short Index.
Their partnership will serve as a platform to license and promote the index to third-party exchange-traded funds providers looking to offer their clients to alternative investment products. In fact, the first licensing agreement to bring AlphaClone's methodology to market was made with Exchange Traded Concepts earlier this year to launch a new hedge fund position replication ETF. The AlphaClone Alternative Alpha ETF is expected to launch in the second quarter of 2012.
TECHNOLOGY
Angel Oak Plants Multi-Strat Fund on DB's Platform
Atlanta-based Angel Oak Capital Advisors, LLC, a fixed income asset management shop, today revealed that its Angel Oak Multi-Strategy Income Fund is now on the Deutsche Bank Private Wealth Management platform.
The fund invests primarily in asset-backed fixed income securities, including securities backed by assets such as credit card receivables, student loans, automobile loans and residential and commercial real estate. Brad Friedlander, co-founder, is the fund's portfolio manager.
ARRIVALS
SSgA Snags BlackRock Sales Exec
State Street Global Advisors has appointed Michael Spellman as regional sales director, global cash, reporting to Barry F.X. Smith, senior managing director and global head of SSgA's cash business.
Spellman joined SSgA from BlackRock, where he was director and national sales manager for cash management with responsibility for leading the field sales effort for the US financial institutions team. Earlier in his career, Spellman was director and head of Bank of America/Merrill Lynch distribution unit.
UniCredit Names Pioneer Chief
UniCredit, the parent company of Pioneer Investments, has appointed Sandro Pierri as the new Head of Asset Management. A formal proposal of Pierri's appointment as chief executive officer of Pioneer Investments will be made to the Pioneer Investments' Board of Directors in July.
Pierri will replace Roger Yates, who will step down as CEO to return home to London to tend to "family commitments," according to the firm. This change will be effective July 24, whereby Pierri will report directly to Federico Ghizzoni, chief executive of UniCredit.
Mansueto Taps Former Analyst to Head Data Unit
Morningstar, Inc. has promoted Kunal Kapoor to president of Morningstar's Data division, effective June 4. Kapoor will replace Liz Kirscher who is leaving the firm in June.
Kapoor joined the company in 1997 as a data analyst and worked his way up to president of individual investor software, including Morningstar.com, in 2009.
DEPARTURE
Hatteras' CEO Bows Out
David Perkins, founder of Hatteras Funds, has resumed the role of chief executive following the departure of Brian Jacobs in February. Jacobs is now self employed as a consultant.
According to the firm, the move was made "to reaffirm our commitment and focus on providing financial advisors and their clients with alternative investment solutions across the liquidity spectrum."
STATISTICS
15.7% year to date return of Financial Services sector
The Large Cap Russell 1000 Index has returned 9.5% this year, through May 8, even with a loss of 2.5% in the first 8 days of the month. Financial Services has been the best-performing sector, so far.
SOURCE: Russell Investments
$1.01T amount, in trillions, poured into bond funds since Jan. 1, 2007.
Investors have yanked $505.8 billion from domestic stock funds in the five years and four months ending May 9. But they have rushed into bond funds of all types. That pushed total net assets in bond funds past $3 trillion by the end of March.
SOURCE: Investment Company Institute
