1)
Pimco Attracts $60 Billion as New Stock Funds Offset Total Return’s Woes
Bloomberg | 1/5/2012
Because… Fund firms could take a leaf out of PIMCO’s book. While investors’ flight to fixed-income instruments has certainly helped PIMCO raise assets, it is the firm’s product development effort that has contributed to its significant asset growth. From the introduction of go-anywhere funds to the expansion into stocks, PIMCO has built a solid, diversified product line that gives the firm the ability to weather various market environments without relying solely on its flagship fund.
2)
ETF Growth Slows in 2011
On Wall Street | 1/5/2012
Because…Although numbers indicate a slowdown in 2011, we expect the ETF industry to continue its growth in a difficult market. The big three – iShares, SSgA, and Vanguard – will remain dominant, but there should be room for other players as well. The rise of alternative fund sponsors (e.g. IndexIQ and ETF Securities) and new entrants with enhanced-index offerings (e.g. Russell and Northern Trust) shows that true innovations that meet investor needs, rather than opportunistic attempts, will improve an ETF provider’s chance of success.
3)
Wave of New Offerings Coming from Flagging American Funds
Investment News | 1/9/2012
Because… The headline that a firm which rarely launches funds will roll out new offerings evoked much enthusiasm, but the fledgling enthusiasm dissipated the minute we learned that each of eight funds will be a fund-of-funds that invests in existing American funds. Investors are already pulling money out. Would new funds composed of existing funds be able to stem massive outflows? Would new funds be closet indexers as the holdings overlap issue among American funds has become a growing concern? Questions like these need to be answered…