Study looks at alternative investments usage and more.
Vanguard announced expense ratio decreases at 15 funds and share classes. The
decreases happened at fixed-income, diversified-equity, and sector funds. Some
of the firm's exchange-traded funds also saw cuts.
Is the Popularity of Alternative Funds Waning?
Most advisors and institutions consider alternative investments a key part of their portfolios, but that majority is smaller than it has been in the past, according to a recent poll by Morningstar and Barron's.
The fourth-annual survey of alternative investments usage conducted in conjunction with the financial publication revealed 65% of advisors and 67% of institutions polled mentioned alternative investments, such as managed futures, long/short, or market-neutral strategies, were as important as or more important to a portfolio than traditional investments. But those percentages were down slightly from the previous survey. Twenty-six percent of the institutions that participated in the survey indicated they were allocating more than a fourth of their portfolios to alternatives, down from 37% in the previous study. Inflows, which had been strong in the past, have cooled off, too: $23.2 billion flowed into alternative mutual funds in 2011, down almost $2 billion from the previous year. The $11.6 billion that flowed into alternative ETFs was the lowest level since 2006. The participants--264 institutions and 365 advisors--stated high fees and lack of liquidity were some of the impediments to owning these types of investments.
Osterweis Adds Fee Breakpoints
T. Rowe Price Launches Emerging-Markets Bond Fund
T. Rowe Price recently launched Emerging Markets Corporate Bond TRECX. According to the fund's filings, a majority of the securities will be denominated in U.S. dollars. The fund will be managed by Michael Conelius, lead manager on Bronze-rated T.
BlackRock Fund Gets a Facelift
According to the firm's filing, the fund will no longer have a specific mid-cap focus. Instead, it may invest in securities of any market capitalization. The update to the fund's objective also includes a cap of 20% of assets each in fixed income, real assets (such as commodities), and cash.
The move leaves BlackRock with one dedicated mid-cap value strategy,