Our weekly roundup of industry highlights
Fidelity to cut fees on 14 mutual funds and ETFs
Fidelity Investments slashed fees on 14 of its mutual funds and ETFs, according to Bloomberg News.
In its statement, Fidelity said those funds now have lower net expenses than comparable funds at Vanguard. The cuts go into effect Aug. 1 and are expected to save investors $18 million, the statement said.
One of the funds undergoing fee reductions is the Fidelity Large-Cap Index. Expenses for the small investor share class are expected to decrease to 17 cents for every $100 invested. Previously, investors were charged 12 cents per every $100 invested.
Fidelity's active funds lost about a net $21.5 billion in the first half of the year, while its passive funds generated inflows of $20 billion, according to Morningstar.
"Investors should not be basis-point wise and pound foolish," John Woerth, a Vanguard spokesman wrote in an email in response to the Fidelity announcement. While expenses are important, people considering an index fund need to look at other factors, including how closely the fund tracks its index and after-tax returns, he said.
TMI Trust picks up services portfolio from BMO Global
TMI Trust Company announced that it will provide fiduciary, accounting and trust tax services to the family office business of BMO Trust and Custody Services, part of BMO Global Asset Management.
"These services are a very good fit for TMI," Anthony A. Guthrie, TMI executive chairman, said in a statement. "They complement our existing niche oriented fiduciary and custodial services and we can support the needs of our clients with our high level of service delivery and the capabilities of our new team members."
TMI offer services to family clients and staff in Milwaukee and Appleton, Wisconsin, and Naples, Florida, according to the company. TMI tapped the executive vice president and head of BMO Global Private Bank, Ken Krei, to lead the project.
Vanguard recruits $17.2B TimesSquare Capital
The $17.2 billion TimesSquare Capital Management joined the Vanguard International Explorer Fund's advisory group, according to the firm.
TimesSquare Capital, along with two other firms, will oversee Vanguard's $3.4 billion small- and mid-cap international equity fund.
The New York City-based firm manages both domestic and international equity funds. Initially, it will manage less than 5% of the International Explorer Fund, according to Vanguard.
"Vanguard continuously scours the globe for world-class investment talent, forging relationships with firms that bring particular expertise and experience to specific mandates," said Vanguard CEO Bill McNabb. "Our long-term approach and in-depth engagement with firms ensures strong and stable advisory teams that offer differentiated, but complementary investment approaches to the benefit of our clients.
Transamerica launches new line of strategic beta ETFs
Transamerica announced the launch of four strategic beta ETFs. The funds have been designed with risk-management features crafted into their equity strategies, according to the firm.
Transamerica's goal for its DeltaShares ETFs is to give investors an opportunity to invest in rising equity markets while decreasing the risk of falling markets. The ETFs all have expense ratios lower than 0.5%, according to the company.
The DeltaShares S&P 400 Managed Risk ETF (DMRM) and DeltaShares S&P 600 Managed Risk ETF (DMRS) both have expense ratios of 0.45%. The DeltaShares S&P 500 Managed Risk ETF (DMRL) and the DeltaShares S&P International Managed Risk ETF (DMRI) have expense ratios of 0.35% and 0.50% respectively.
To control volatility, DeltaShares ETFs track the S&P Managed Risk 2.0 Index Series.
BATS adds 30 new iShares funds
Thirty new iShares funds have been added to the BATS ETF Marketplace, according to the company. With the new additions, topping nearly $110 billion in combined AUM, the exchange now lists a total of 75 iShares funds.
"We have worked tenaciously and creatively to ensure the BATS ETF Marketplace provides the best opportunity for issuers to realize the true potential of their funds - both new and existing - and believe this is epitomized in today's transfer of 30 iShares funds," said Laura Morrison, senior vice president and global head of exchange-traded products at BATS.
"The iShares team have been enduring and exceptional teammates and we are proud to expand our relationship by providing the highest quality markets and services for their investors."
Nationwide Funds names new head of investment research
Nationwide Funds appointed former Nuveen Portfolio Manager Mark Hackett to head of investment research, the firm said.
Hackett is now responsible for leading Nationwide Funds' capital market analysis and mutual funds thought leadership efforts, according to the firm. Hackett has been tasked with developing educational content for the firm's advisors and their clients. He will report to Christopher Graham, chief investment officer for Nationwide Funds.
"[Hackett] has expertise in developing content to educate internal and external audiences on the financial markets with the ability to communicate in an easily understood format," Graham said.
Prior to joining Nationwide, Hackett held research roles for both Nuveen and Vanguard, according to Nationwide.
Steadfast hires global credit fund president
Michael A. Tamasco, the former managing director of Optima Fund Management, was named global credit fund president at the Steadfast Alcentra Global Credit Fund, an unlisted closed-end fund advised by Steadfast Investment Adviser, an affiliate of Steadfast Companies, and sub-advised Alcentra NY.
In addition to serving as president at Optima, a hedge fund and multi-product alternative investment firm, Tamasco was head of North American business development.
"Michael is a proven leader in the financial services arena, with a wealth of knowledge and experience in both the United States and internationally," said Christopher Hilbert, president of Steadfast Companies.
CIG Capital Advisors appoints managing director
CIG Capital Advisors promoted Kenneth G. Chaput, previously an executive vice president at NorthStar Financial Partners, to oversee the firm's compliance and operations, according to its founder.
Chaput has also served as the head of compliance and operations for several firms including Seger Financial and CCM Financial.
"Kenny's expertise and experience will allow him to take CIG to the next level," said Osman Minkara, founder and managing principal of CIG Capital. "We are enthusiastic about the future of CIG and look forward to building it together as one team."
Provasi Capital recruits Franklin Square president
Provasi Capital hired former Franklin Square Capital President Lance Murphy to lead its distribution expansion efforts, the firm said.
"Lance brings an incredible track record of success and is immensely qualified to lead critical strategic initiatives across our enterprise," said Provasi Capital Partners CEO, Frank Muller. "He led one of the most successful distributors in our industry during this decade and we believe his talents will help us further deliver on our brand promise."
Prior to joining Provasi Capital Partners, Murphy head leadership position in the distribution divisions at Hines Securities and Van Kampen Investments.