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,
Nuveen Merges Funds
Nuveen's board has approved the reorganization of
Former Seligman Manager in Insider-Trading Case
The SEC announced that former Seligman Communications and Information comanager Reema Shah pled guilty to securities fraud and is barred permanently from the securities industry. The SEC says that Shah and a
As of July 31, 2012, Wellington Management will no longer be a subadvisor on Transamerica Quality Value TWQAX. Transamerica announced Levin Capital Strategies will replace Wellington. Transamerica's board of trustees also approved the liquidation of Transamerica Small & Mid Cap Value Select I2 and Transamerica Small Company Growth I2 effective June 1, 2012, and Aug. 31, 2012, respectively. In addition, Transamerica Large Cap Value will change its name to Transamerica Large Company effective July 31, 2012.
Jeppe Ladekarl has been added as a portfolio manager of John Hancock II Currency Strategies J JCUAX. Ladekarl is a director and member of subadvisor First Quadrant's global macro investment team and will work alongside current managers Ken Ferguson and Dori Levanoni.
Franklin Double Tax-Free Income FPRTX will close to new investors effective June 15, 2012. The fund will also close to all purchases (excluding purchases from the reinvestment of dividends or capital gain distributions) effective Aug. 1, 2012.
Delaware Select Growth DVEAX will close to new investors effective June 8, 2012. Current shareholders and certain retirement plans may continue to invest in the fund.
American Beacon launched American Beacon The London Company Income Equity. The fund will have a dividend focus.
Jerry Miller is no longer listed as a portfolio manager of M.D. Sass 1-3 Year Duration U.S. Agency Bond MDSHX. The fund will continue to be managed by the remaining team members.
Paul Nestro and Brian Hopkinson are no longer listed as comanagers on
Russ Kinnel, director of mutual fund research, Dan Culloton, associate director of fund analysis, and mutual fund analysts Kathryn Spica and Rob Wherry contributed to this report.