Search

The article reports on the plan of DoubleLine Capital to hire two to four external wholesalers and two product specialists over the rest of 2012 and early 2013 as part of its shift to a traditional wholesaling structure driven by the growth of assets under management.

The article presents a round-up of U.S. asset managers who are looking to explore Latin America to boost their respective assets under management (AUM). The executives cite the region's strategic importance over the next 5 years as ongoing pension fund reforms allow funds to outsource investment management to international firms and growing middle classes. Among the firms represented by the executives in the round-up are BlackRock, Franklin Templeton Investments and JPMorgan Asset Management.

The article reports that industry executives are preparing for the potential consequences of an inevitable increase in interest rates. The rise in interest rates is expected to lead to panic selling and finger-pointing toward asset management firms and in returns on fixed-income to plummet. Despite this fear, 17 bond funds were launched in the intermediate-term government bond, intermediate-term bond and long-term bond categories from the beginning of 2011 through the first quarter of 2012.

The article reports on the plan of HSBC Global Asset Management (USA) to launch a new mutual fund in the U.S. market approximately every four months for at least a year. According to Deborah Hazell, head of the firm's North American asset management business, the company intends to focus on emerging markets strategies, which it considers as the cornerstone for growing its retail business in the U.S. In April 2012, the firm launched its fifth emerging markets fund, the HSBC Total Return Fund.

The article reports on the results of the "Cerulli Quantitative Report: Exchange Traded Funds (ETF) and Retail Alternatives" in 2012. Sixty percent of respondents to the survey are planning to launch funds in the commodities and emerging markets in 2012. Cerulli Associates reported that more than 15 respondents hold 90% of the ETF industry's 1.2 trillion U.S. dollars of assets under management. It also revealed that firms are focusing on fundamental index products across asset classes.

The article reports that independent, publicly listed U.S. asset managers were able to outperform asset management subsidiaries of listed U.S. financial conglomerates in 2011. Publicly traded asset managers reported a median profitability of 35 percent in 2011, compared to 25 percent for subsidiaries. Jeb Doggett, a partner at Casey, Quirk & Associated, cited retaining top talent and having lower turnover as the key factors that influenced such success.

The article deals with the plan of Aberdeen Asset Management to more than double its U.S. assets. Executives want to boost the company's 270 billion U.S. dollar assets in the U.S. between 25-30 percent over the next few years. The move would be driven by global multi-asset strategies, according to Nigel Storer, head of U.S. development at Aberdeen Solutions.

The article discusses the findings of a survey conducted by Cerulli Associates, among chief marketing officers (CMO) and asset managers. The survey revealed that CMO and asset managers plan to hire personnel dedicated to marketing technology and value-add programs in 2012. It also discovered the challenges facing asset managers in using social media tools as their marketing strategy.

The article reports on the growing adoption of metrics-driven models by asset managers to measure and reward top performers. Consulting firm Johnson Associates compensation managing director Alan Johnson said that the reasons for the adoption of metrics are because of the qualitative and unique features of each firm based on its culture, product lineup and objectives. A brief description of metrics offered by JPMorgan Asset Management and OppenheimerFunds is provided.

The article reports on a paper from kasina which claimed that firms are not effectively integrating, monitoring or compensating national account managers (NAMs). Kasina noted that NAMs are becoming more important because of the growing use of models and limited shelf space at contributors. It also said that 26 percent of firms do not measure profit and loss for every distribution partner relationship.

The article reports on the plan of BNP Paribas Asset Management (BNPAM) to enter the U.S. retail market by partnering with a large asset manager having a strong brand name that could put the French bank's fixed-income offerings on the market. BNPAM reportedly aims to replicate global fixed-income strategies that it manages overseas in the UCITS format. BNP Paribas, the asset manager of BNPAM, is planning to layoff 1,396 jobs at its corporate and investment.

The article reports on the plan of Vanguard Group to merge its Vanguard Asset Allocation Fund into its Vanguard Balanced Index Fund. Vanguard took over management of the Asset Allocation Fund and terminated a subadvisory relationship with Mellon Capital Management. Since 2008, Asset Allocation Fund has had net outflows of 3 billion U.S. dollars while the Balanced Index Fund has had net inflows of 714 million U.S. dollars. The firm changed the investment strategy of the Asset Allocation Fund.

The article reports on the plan of Merk Funds, a boutique currency specialist, to hire qualitative analysts to its research team by the end of 2011. Merk Funds is also considering to add at least one wholesaler to its five-person team in the first half of 2012. The expansion of research and sales is said to be in response to growth in the firm's asset under management. Terry Tian, an analyst at Morningstar, stresses the need for education on currency funds in the advisor community.

The article reports on the plan of Aston Asset Management to launch a small-cap equity fund in December 2011, which might be included in its lineup of alternative investment strategies. The fund will be subadvised by Silvercrest Asset Management Group. Stuart Bilton of Aston claims that the company in very strict in managing assets under management small-cap strategies. Aston has also launched ASTON/River Road Long-Short Fund.

This article reports on the opinion of David Kelly, chief market strategist at JPMorgan Asset Management, on the need to include alternatives investments in investment portfolios in the U.S. in 2011. According to Kelly, the inclusion of alternatives investments will provide exposure to uncorrelated asset classes. He identified the indications that the country will not experience a recession, including strong corporate profits and moderate inflation.

This article reports on the plan of Eagle Asset Management to launch a U.S. all-cap equity Undertakings for Collective Investment in Transferable Securities (UCITS) fund in 2011. According to Cooper Abbott, chief operating officer (COO) and executive vice president at Eagle, European investors expressed optimism for the U.S. market. The firm has assets under management in nine mutual funds.

This article reports on the goal of Compass EMP to grow its assets under management.