Funds Hub

Money managers under the microscope

from Global Investing:

Survival of the fattest?

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Is there room only for the biggest, most aggressively-marketed funds in crisis-hit Europe?

Europe's ten best-selling funds have attracted nearly a third of net sales across bonds, equity and mixed assets so far this year, as the grey bars show in the following chart from Thomson Reuters' fund research firm Lipper.

TEN MOST SUCCESSFUL FUNDS' NET SALES AS A PROPORTION OF ALL SALES

The numbers -- which exclude ETFs -- are even more staggering if looking at at the concentration of sales into groups/companies, rather than at fund level.

Then, data compiled by Fitch ratings using Lipper shows that over the past three years Europe's ten biggest firms have attracted around 80 percent of  flows into fixed income, equity and mixed assets.

from Global Investing:

LIPPER-ETF tiddlers for the chop?

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(The author is Head of EMEA Research at Thomson Reuters fund research firm Lipper. The views expressed are his own.)

By Detlef Glow

The exchange-traded fund (ETF) market has shown strong growth since its inception in Europe. Many fund promoters have sought to capitalise on this, seeking to differentiate themselves from rivals and match client needs by injecting some innovation into their product offerings. This has led to a broad variety of ETFs competing for assets, both in terms of asset classes and replication techniques.

from Global Investing:

The ETF ‘Death List’

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Our colleagues at Lipper have put together some eye-catching data on developments in the ETF industry. You can read the slides here.

Most intriguing is the idea of a slumbering cohort of 241 exchange-traded funds forming what Lipper calls a 'Death List'; ETFs which are more than three years old, but which have failed to drive assets up to the 100 million euro-mark.

LIPPER: Are ETFs in trouble?

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By Detlef Glow,  Head of EMEA Research at Thomson Reuters fund research firm Lipper. The views expressed are his own.

Exchange traded funds (ETFs) have found themselves under ever more scrutiny from regulators and market participants this year and expectations are that new rules for the sector are just a matter of time.

from Reuters Money:

Actively managed ETFs and other wrinkles

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David Gaffen is pictured in this undated handout photo. REUTERS/HandoutThe following is an edited excerpt from Never Buy Another Stock Again: The Investing Portfolio that Will Preserve Your Wealth and Your Sanity, written by David Gaffen, who is the Reuters markets editor. It was printed with permission of FT Press, an imprint of Pearson.

One of the biggest growth industries in finance right now is in exchange-traded funds, and further growth in ETFs appears likely to come from several places.

Steer clear of the free lunch, says Noster

Diversification is meant to be the only free lunch in investing.

But according to hedge fund Noster Capital, with most markets looking toppy and with problems ahead, it’s not necessarily one that investors would be wise to tuck into.

“This is not the time to be invested in broad ETFs or in very diversified funds, because the indexes will likely not do much in aggregate,” it says in its end of year letter.

Morning Line-Up: 2010 returns, expert networks, ETFs

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News and views on the asset management industry from Reuters and elsewhere:

Hedge funds offered weak returns in 2010 – Reuters

Hedge fund scandal shakes expert network industry – International Business Times

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