FUSE In The News
New ETF players find ways to crack the US market
Several new entrants to the exchange traded fund space in 2011 were able to crack the concentrated market and find early sales successes.
“Unless someone brings in something that is unique from a product perspective or has a significant brand and distribution infrastructure already in place, it’s incredibly difficult to get to a critical scale because there are such strong and established players at the top,” says Mike Evans, president of FUSE Research Network.
Article Published on January 11, 2012
Model SMAs Cheapen Portfolios: Barclays Wealth
The Barclays Wealth approach to model portfolio SMAs may make sense at the margins – in the case where it’s a boutique firm using eclectic managers and harder-to-trade strategies – but doesn’t fit the broader retail high-net-worth market, says Neil Bathon, partner at FUSE Research Network. Many managers in recent years had resisted the shift to model portfolios, arguing that they added value through their trading skill, but they weren’t able to prove those claims to the brokerage sponsors – and ended up relenting, he says.
While it’s possible that high-end managers with specialized strategies may be able to prove their trading value, the case for streamlining delivery of SMAs through model portfolios and having the sponsors manage trading is compelling from a total cost and efficiency standpoint, Bathon says.
Barclays probably won’t gain notice from investors specifically because of its model portfolio stance, he adds. “I don’t think there is an edge there, because I don’t think the typical client looks past the advisor to understand the trading and operations in the background,” he says.
Article Published on January 11, 2012
FUSE's 12 Predictions for 2012
Mike Evans and his colleagues at FUSE Research Network list their predictions for 2012.
Article Published on January 10, 2012
Poll: 2012 Will Be Year of ETFs, Equities
FUSE Research Network founder Neil Bathon also says the coming year will bring the continued rise of passive investing. Institutional investors are already allocating about 30% of their assets to passive management, compared to 20% in the retail space, but institutional trends will carry over to the retail space, he says.
Article Published on December 30, 2011
Fidelity’s ETF push likely hinges on 401(k)s, brokerage
Fidelity’s internal distribution channels and access to ETF-hungry clients make its strategy and motivations different than any other large mutual fund manager looking at launching ETFs, says Michael Evans, president of FUSE Research Network.
The platform and ability to offer commission-free trading combined with its substantial index asset management resources “makes this kind of strategy sensible for Fidelity, where for most other active managers to compete with the likes of iShares and Vanguard and SSgA on the index side is next to impossible,” he says.
Article Published on December 12, 2011
Deutsche Bank Mulls Sale of U.S. Division
Changes at the firm over the last five years have helped unify and strengthen the DWS brand, says Neil Bathon, founder of FUSE Research Network. “They are inching closer and closer to syncing that brand up,” he says. As a result, the business would be more valuable to a potential buyer now, he says. Still, maintaining a strong U.S. retail presence is an important element to developing a truly global brand.
Article Published on November 23, 2011
Gatekeepers Offer Hints on How to Win Business
The increasing influence of the centralized research groups comes as advisors are faced with a surge of new products and increasingly complex client needs, said Neil Bathon, founder of FUSE Research Network. “The best use of the advisor is client acquisition, retention and service, not [asset] allocation,” said Bathon. Despite major upheaval among distributors in the wake of the financial crisis, about 50% of advisors across all channels surveyed by Fuse say they either “trust implicitly” or “think highly of” home office model portfolios.
Even if advisors are not using models built by their home office research team, those models — and others that advisors may find elsewhere — heavily influence the way that they construct their own clients’ portfolios, said Bathon. By 2015, Fuse projects that up to 80% of all fund sales will come through a pre-packaged model, whether directly or indirectly, he said.
Article Published on November 8, 2011
FRC Files for Bankruptcy, Sells Pieces to Strategic Insight
FRC, which was founded in 1987, has undergone several transitions, with management changes coming rapidly in recent years. In 1996, FRC founder Neil Bathon sold the firm to Boston Institutional Group, which in 2001 was acquired by Bisys. Bathon left FRC in 2006. In 2007, Citigroup Inc. bought Bisys. By 2008, Citigroup, facing its own financial turmoil, began cutting staff and selling subsidiaries.
In August 2008, FRC president Michael Evans left FRC to join Bathon in a new venture, FUSE Research Network. The following spring, FRC director of research Sam Campbell joined them.
Article Published on October 4, 2011
T. Rowe, TIAA-CREF, MFS & John Hancock Take Top Honors in NOVA Award Competition
Eight industry executives served as independent judges this year, generously giving of their time to very carefully assess the entries. They are: Neil Bathon, partner and founder of FUSE Research
Article published on October 3, 2011
American Funds Preps Its First Funds of Funds
“The recommendation I would make to my clients is that they should not be starting such funds now because the growth prospects are probably fairly limited. But for American Funds it could work, because its reputation is stellar and it has a strong following.” said Neil Bathon, partner at FUSE Research Network.
Putnam’s A/R Marketing Campaign Draws Criticism
Not every industry observer felt the specific labeling of the funds was an unwise move. Neil Bathon, partner at FUSE Research Network, is one consultant who favors Putnam’s approach. “I like the fact that they stuck their stake in the ground and set clear performance goals, regardless of whether they actually reached them. Too many fund managers use nebulous names to protect themselves from a little criticism
Wells Fargo Taps New Distribution Head
Article Published on September 29, 2011
Model-Only SMA Focus Steers Schroders
Schroders has company – and is bound to have more – among institutional market-focused asset managers tapping the model portfolio route to break into the SMA world, says Neil Bathon, partner at Fuse Research Network, a strategic consultancy.
“There’s a bit of an upswing – a willingness from asset managers that have focused on the institutional market,” Bathon says. “There’s an uptick in interest in this as their way for accessing retail.”
The impetus is both managers’ desire to avoid the onerous back office infrastructure required to run traditional SMAs, as well as the strong push by sponsors to grow their model strategy menus and expand that side of their businesses, he adds.
“Merrill and Morgan Stanley Smith Barney are being particularly aggressive on pushing this approach,” Bathon says.
Article Published on September 28, 2011
Putnam Scores Big Wins in Retirement Market
Article Published on September 14, 2011
S&P Takes Swipe at Active Managers
Article Published on August 26, 2011
Shifting Distribution Erodes Gatekeeper Power
Article Published on August 24, 2011
Eaton Vance Readies Volatility-Fighting Funds
Article Published on August 23, 2011
Alt Funds Face Make-or-Break Moment
Article Published on August 11, 2011
Firms Look to Ease ETF Launch Path
Article Published on July 25, 2011
How Are ETFs Changing Actively Managed Funds?
Article Published on July 20, 2011
Pace of New Fund Launches Gathers Steam in Q2
Article Published on July 11, 2011
Credit Suisse Exiting Equity Fund Biz
Article Published on July 6, 2011
Poll: Wirehouses, RIAs Will Generate Most Flows
Article Published on July 6, 2011
Goldman Guns for Retail Assets With Fee Cuts
Article Published on June 24, 2011
AMG Taps BlackRock Alum to Lead Global Distribution
Article Published on June 22, 2011
AllianceBernstein Down $4B in Subadvisor Work Since 2010
Article Published on June 17, 2011
Advisors: Jury’s Out on Morningstar’s New Ratings
Article Published on June 13, 2011
DWS Makes Play for Direct Shareholders
Article Published on June 8, 2011
Russell, Wells Woo Advisors With Biz-Building, Allocation Campaigns
Article Published on May 24, 2011
BlackRock Winnows 14 Funds From Lineup
Article Published on May 18, 2011
Columbia to Run Grail ETFs, Dump Subadvisors
Article Published on April 18, 2011
Huntington ETF Could Be Bellwether for Fund Conversion
Article Published on April 14, 2011
SSgA Preps Active ETFs
Article Published on April 5, 2011
Columbia Adds Funds, Launches Absolute-Return Campaign
Article Published on April 5, 2011
BlackRock starts to flex retail muscles
Article Published on March 27, 2011
Putnam Recycles Funds for New Retirement Income Suite
Article Published on March 22, 2011
T. Rowe Joins Emerging-Market Currency Rush
Article Published on March 18, 2011
Russell Grabs AllianceBernstein Vet to Grow DC Business
Article Published on March 10, 2011
Schwab Launches ETF Short List for Retail Investors
Article Published on March 10, 2011
New Hires Give Shape to Pimco’s Equity Strategy
Article Published on March 8, 2011
Putnam Shakes Up Fixed-Income Leadership
Article Published on March 1, 2011
Putnam Preps Absolute Return for VA Push
Article Published on February 23, 2011
BlackRock Trims Lineup, Axes Muni Funds
Article Published on February 23, 2011
Schwab changes fee structure on fund platform
Article Published on February 20, 2011
Facing Stigma, 130/30 Fund Drops Name, but Not Strategy
Article Published on February 4, 2011
Janus Preps New Guaranteed Fund
Article Published on February 1, 2011
Alger Axes Money Fund, Launches Emerging-Markets Fund
Article Published on January 24, 2011
American Funds is top fund family for Indie B-Ds
Article Published on January 23, 2011
Top Execs See Stronger Sales, New Alt Products in '11
Article Published on January 19, 2011
Two Indian Firms Set Sights on U.S. Fund Business
Article Published on January 10, 2011
Grail Goes on the Block: Sale or Liquidation Imminent
Article Published on January 7, 2011
ETFs, Equities Loom Large in 2011 Predictions
Article Published on January 6, 2011
DWS Shakes Up Executive Ranks
Article Published on December 30, 2010
Legg Mason Sheds Affiliate Through Buyout
Article Published on December 15, 2010
Barclays Rates SMAs for 'Personality' Traits
Article Published on December 13, 2010
Goldman Sach Readies 'Next-Eleven' Fund for 2011
Article Published on December 10, 2010
AXA Rosenberg Names New CEO, CIO in Reorg
Article Published on December 2, 2010
Research-Heavy Advisors Win Ultra Wealthy Biz
Article Published on November 29, 2010
As Pimco Evolves, It Loosens Ties Allianz Global
Article Published on November 24, 2010
AXA Rosenberg Loses CIO in Latest Blow
Article Published on November 22, 2010
Top 10 SMA Sponsors Pumps up Model Portfolios
Article Published on November 10, 2010
Long-Short Funds Dominate New Launches
Article Published on October 19, 2010
BofA Merrill Restructures Small Plan Business
Article Published on October 18, 2010
Eaton Vance Taps Richard Bernstein for Go-Anywhere Fund
Article Published on October 14, 2010
SMA Due Diligence Unit Zooms In on Manager Ops
Article Published on October 15, 2010
Putnam Preps New Fee Disclosure Initiative
Article Published on October 13, 2010
SMA Managers Win New Assets Through UMAs
Article Published on September 22, 2010
Changing Expectations Push Advisor Portfolio Changes
Article Published on August 31, 2010
Is Commission Based Business on the Wane?
Article Published on August 30, 2010
Brokerage Moves Whole SMA Book to UMAs
Article Published on August 5, 2010
Pimco Builds Equity Bench, Plans to Hire ‘Dozens’
Article Published on July 26, 2010
JPMorgan Names New US Institutional Leader
Article Published on July 12, 2010
State Street Responds to Securities-Lending Exodus
Article Published on July 8, 2010
Poll: Independent Channels Will Be Top Revenue Generators
Article Published on June 30, 2010
AllianceBernstein Preps Fee-Free Funds for Wrap Channel
Article Published on June 24, 2010
Poll: Downside Protection Is FAs' Top Concern
Article Published on June 9, 2010
Small Firm Lures Investors With Novel Promotion
Article Published on June 9, 2010
Bond Funds Headed for Bust: Fixed Income Strategists
Article Published on June 8, 2010
FUSE uses SySys Corporation and FundSysTM to create custom research tool
Article Published on May 25, 2010
Money Management Executive Announces 2010 Fund Operations Award Winners
Article Published on May 20, 2010
Putnam to put plan sponsor fees online
Article Published on May 18, 2010
Fund firms try to coax still-skittish clients to put cash to work
Article Published on May 16, 2010
Vanguard Cuts Escalate Price War on Brokerage Front
Article Published on May 5, 2010
SwanDog Looks to End ConFUSEion Over Asset Management Marketing
Article published on April 30, 2010
Fund Families Need Better Pruning Process: Study
Article published on April 23, 2010
Poll: Mixed Predictions for Pimco's Equity Play
Article published on April 21, 2010
Firms Linking Wholesaler Pay to Company Objectives
Article published on April 14, 2010
More SMAs of ETFs Hit Advisory Market
Article published on April 1, 2010
MFS Taps Market Trends With Two New Funds
Article published on March 16, 2010
Poll: Most Firms Have Rebounded From Market Low
Article published on March 10, 2010
FundFire - What's a Priority for a Struggling Manager?
Article published on February 22, 2010
Legg Nears Finish Line on Sales Overhaul
Article published on February 22, 2010
T. Rowe Latest to Launch Infrastructure Fund
Article published on December 13, 2009
Article published on November 24, 2009
Article published on October 18, 2009
Article published on September 29, 2009
Fundsters Head Back to the Drawing Board
Article published on September 29, 2009
Fixed-Income, ETFs Fuel Fastest-Growing Firms
Article published on September 17, 2009
Article published on September 16, 2009
Article published on September 9, 2009
Article published on September 2, 2009
Article published on August 28, 2009
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Article published on July 1, 2009
High-End Bank Moves $6B to Unified Accounts
Article published on June 9, 2009
Article published on May 28, 2009
Article published on May 20, 2009
Article published on May 19, 2009
CrucialClips FUNDfire - interview with Neil Bathon
Clients Value Wirehouse Approach
SMA Managers Cut Marketing
Managers Unprepared for Unified Acct
Article published on May 6, 2009
Article published on April 20, 2009
Article published on April 21, 2009
Article published on April 6, 2009
Article published on April 2, 2009
Article published on March 26, 2009
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Article published on January 11, 2009
Article published on December 17, 2008
Article published on November 24, 2008
Article published on November 14, 2008
http://www.ignites.com/articles/20081114/rise_mega_banks_will_change_distribution
Article published on November 7, 2008
Article published on October 31, 2008
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Article published on October 31, 2008
New company poses competition to the research firm
Article published on October 12, 2008
Article published on October 08, 2008
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Article published on September 19, 2008
Article published on September 03, 2008