Mutual funds

The SEC furthered its investigation into whether senior asset-management executives at JPMorgan Chase developed a policy of improperly steering clients into investments for the firm’s own financial gain.

Ronald O’Hanley, who stepped down last year as head of Fidelity Investment’s asset management business, is set to run State Street Corp.’s $2.45 trillion investment arm.

Fischer said regulators must be attuned to the growth and evolution of the asset management industry after funds “that track the returns of indexes of relatively illiquid assets have mushroomed in size.”

BlackRock endorsed stress tests of mutual funds and reiterated its view that individual asset managers don’t pose a risk to the financial system.

Howard Marks said the impact on liquidity of ETFs, liquid alternatives and new rules designed to stop banks from trading with their own money has yet to be tested.

A paradigm shift in operational strategy and approaches to managing data is needed that can only be put in motion by leaders with the imagination to believe that we really can deliver data to investors in real-time.

The perceived threat of asset managers operating as a shadow banking system, thereby needing bank-like regulatory oversight from the Fed, produced the strongest commentary at the ICI forum, as key speakers spoke of pushing back against any attempt to entwine firms into further government oversight.

The ProShares UltraShort 20+ Year Treasury fund has lost $6.1 billion of investor money since its inception in 2008, more than any other ETF has lost during its existence.

This week's notable news from the asset management industry includes a recent SEC roundtable meeting where some participants discussed the potential "unintended consequences" of universal proxy ballots, global ETP flows in February reached a record $50 billion, the fastest start to any year on record, and leadership at Vanguard were tasked with new roles within the firm.

F-Squared Investments, which last year admitted to misleading investors about its performance, has eliminated about 25% of its staff, according to a person with knowledge of the matter.

Clients who turned 70 1/2 last year need to take their first required minimum distribution by April 1 or face a tax of 50%; Plus, reducing fees is the best way to boost investment returns.

The time has come to create the position of chief data officer to manage the tidal wave of data-based regulations and reporting and implement a concrete data strategy - both to meet requirements but also more effectively make investment decisions and streamline back-, middle- and front-office operations.

Scott Mather, who replaced Bill Gross as one of the portfolio managers of the Pimco Total Return Fund, has been buying government-backed bonds, helping boost its total mortgage allocation to 30% on Jan. 31 from 20% in September.

ETFs continue to be dominated by three big players: BlackRock’s iShares, Vanguard Group, and State Street, which collectively control 82% of the roughly $2 trillion invested in ETFs.

A study by S&P Dow Jones Indices -- which clearly has a horse in the race -- says clients will profit more from buying a fund tracking the S&P SmallCap 600 index than one tracking the Russell 2000.

Advisors have gotten better at evaluating target date funds, says James Lauder, CEO of Global Index Advisors. But it remains difficult, he adds, because a uniform benchmark approach toward target date funds isn't available.

According to a Fundstrat Global Advisors survey of 3,265 funds, more than half posted gains that exceeded benchmark indexes in 2015 through March 6, for their best start to a year since 2012.

The total amount of outstanding municipal securities and loans in the market rose 0.6% to $3.65 trillion in the fourth quarter of last year, as U.S. bank muni holdings increased 2.5% and mutual fund muni holdings rose to a record high $658 billion.

Instead of a broad stock index, should advisors consider ETFs weighted by dividend payments?

Even after defaults, high-yield bonds have earned above-market returns.