This week's notable events and trends:
- November ETF Inflows Beat 2013 Record
According to ETF.com, $42 billion was invested in exchange traded funds in November, making it the third-largest month for ETFs in their 22-year history. At more than $192 billion, the year-to-date total inflows have already passed 2013's record $188 billion total, ETF.com adds. Research shows the majority of ETF inflow last month traveled into equities, and total U.S.-listed ETF assets now sit just under $2 trillion. The record for most monthly ETF inflows is $51.1 billion, set in September 2008, and $42.8 billion in December 2007.
- Foreign Asset Managers Need Local Partners to Access Asia
Though the promise of Asia's demographics and wealth concentrations continue to entice foreign asset managers, the market requires a local partner in order to gain a foothold and raise awareness of mutual funds, according to research firm Cerulli Associates. More thought needs to be given as to how to engage with Asian retail investors, the research firm says, as 43% of mass retail investors and nearly 40% of high-net-worth investors in the region are not invested in mutual funds, partly because they have no idea about them. As a result, Cerulli researchers say mutual funds represent just 5% of household assets in Asia.
- Northern Lights, Treasury Group Complete Merger, Form NewCo
The merger of Seattle-based Northern Lights Capital Group and Australian investment firm Treasury Group creates a new multi-boutique asset management company, NewCo. The companies say that the joint venture features investments in 21 boutique funds possessing more than $43 billion in AUM, and pegged the total value of the combined company at $417 million. NewCo's fund interests cross categories, the companies say, from domestic and global equities to alternatives and private equity. "Our boutiques now have the ability to leverage our resources on a global level," says Jack Swift, global head of sales and marketing at Northern Lights, in a statement. "With the ability to form one distribution team, we've enabled our affiliates to continue their growth by reaching investors across the world."
- Confluence Expands European Presence
Extending its reach into Europe, asset manager data solutions provider Confluence announced the acquisition of Belgian data firm Orfival. The terms of the deal were not disclosed by the Pittsburgh-based firm. The acquisition provides Confluence with increased performance risk analytics offerings, the company says, and furthers its goal to grow its European business.
- Russell Investments to Liquidate ETF
Deciding that the Russell Equity ETF has not generated a projected level of interest, Russell Investments announced it would halt any investment into the fund in late January, and close it by Feb. 6, 2015. "While Russell is liquidating the Fund, it does not mean Russell is abandoning the ETF market," states the Seattle-based firm, formerly a subsidiary of Northwestern Mutual. "Russell continues to offer ETFs in the Australian market and believes the active U.S. ETF market still presents viable and important investment opportunities."
