SI in the Media

October 26, 2008
Financial Times
“Traditionals to gain as alternatives falter”

The financial crisis will spark mutual-fund growth at the expense of hedge funds, this article asserts, based on a report from Strategic Insight entitled “Global Fund Distribution.” The report, written by SI Managing Director and Head of Global Consulting Daniel Enskat, concludes the crisis highlights the advantages in transparency, liquidity and diversification of mutual funds. “Uncertainty will only make mutual funds look better,” Enskat says.

October 23, 2008
Ignites
”MoneyVoices: What Fund Firms Should Do Now”

In this guest column, SI Director of Research Avi Nachmany summarizes a recent SI research report that provides perspective on the current uncertain times. The column points out the mutual fund industry’s relative stability, and recommends that fund firms be proactive in: addressing investor psychology and self-esteem; helping advisors reach out to clients; and prioritizing the maintenance of existing relationships and strategic partnerships. “Today, mutual fund firms have an opportunity to lead the financial services industry from a position of confidence and strength,” Nachmany writes.

September 1, 2008
Registered Rep
“Are Fund Fees Excessive?”

This column points out that mutual fund fees continue to drop, especially as more financial advisors shift to fee-based practices; it noted that this trend was illuminated by a Strategic Insight survey of major fund firms selling through advisors that found that in 2007, ‘A’ shares with 4-percent-or-greater loads only accounted for 6 percent of the participants’ total sales, while no-load funds accounted for 34 percent. SI Director of Research Avi Nachmany said, “The traditional front-end load business is being marginalized.”

August 26, 2008
Ignites Europe
“Managers Need to Think Beyond Europe: Report”

The story previewed a Strategic Insight Global report on the global mutual fund distribution landscape, noting that cross-border strategies – including European-managed products for Asian investors and vice versa -- have become common in the fund industry. This means firms are seeking talent in new growth regions, the report explained, and Asia, Europe and the US are no longer isolated form each other. SI Managing Director Daniel Enskat said, “Now there’s really a true globalisation of the fund industry.”

Aug. 15, 2008
International Herald Tribune
“Investors stick with mutual funds in down economy”

The article cites Strategic Insight data showing that US investors shifted a lot of cash into money-market funds in July, while stock funds experienced modest net outflows. SI Director of Research Avi Nachmany is quoted as saying that a continuing rebound in stocks could trigger slightly improving flows into equity mutual funds in coming months.

Aug. 6, 2008
Asian Investor
“Asian mutual funds gain $35 billion of inflows”

The article quotes Strategic Insight Global’s data showing that Asian mutual funds captured net inflows of $35 billion in the second quarter. SI Senior Managing Director Jag Alexeyev noted that Asian investors added $80 billion to local funds in the first half of the year.

July 7, 2008
The Financial Times
“Asia's Army of Investors Rides In”

In an article about Asian investors helping buoy the global fund industry, SI Managing Director Daniel Enskat said the firm expects $1 trillion of net flows per year from Asia. He also noted that some global fund management companies are tapping Asian demand by launching products in Asia first, then taking them elsewhere, which is relatively new for the industry.

July 2, 2008
NAVA 2008 Operations & Technology Conference
“Hybrid – Combination Products”

Tamiko Toland, editor of SI’s AnnuityInsight, spoke on a panel about “standalone living benefits.” This emerging category of product adds VA-like guarantees to mutual funds or unified managed accounts, and is worth watching because it could reach beyond the traditional VA audience.

June 2, 2008
Ignites
“Fee-Based Fund Sales Lift Load-Waived A Shares”

In an article about SI’s survey of intermediary-based fund sales trends, Director of Research Avi Nachmany noted that more than half of “A” share sales in 2007 were without commissions, a dramatic decline from a decade earlier. With the survey showing that fund distribution is shifting to fee-based products such as wrap programs and investment-only defined contribution plans, SI Senior Research Analyst Loren Fox said fund firms may want to examine how they’re reaching fee-based audiences.

May 5, 2008
Barron’s
“Aiming for a Bull’s-Eye”

SI Director of Research Avi Nachmany pointed out that target-date asset allocation funds have been on a trajectory of extraordinary growth in part because they keep individuals invested through good and bad markets. “It is essentially asset allocation by default, and it addresses the behavioral problem that 90% of people have in response to market declines,” Nachmany said.

May 1, 2008
NAVA Outlook
“Simplicity Makes for Better Decisions”

Tamiko Toland, editor of SI’s AnnuityInsight, wrote a guest column urging carriers and brokers to focus on simplicity in the variable annuity sales process. The industry must focus on education and clear illustrations of products’ main points, because “clients need to understand outcomes more than they need to grasp financial mechanics,” Toland wrote.

April 15, 2008
FundForum Asia 2008

SI Senior Managing Director Jag Alexeyev and Managing Director Daniel Enskat gave a presentation at this conference on product design and distribution trends in the Asia-Pacific asset management industry.

Feb. 11, 2008
Investment News

“Legg Mason, Citibank team to offer funds to Chinese investors”
SI Managing Director Daniel Enskat noted several joint-venture mutual fund offerings in China that were oversubscribed and demonstrated strong investor interest. But, Enskat noted, “A more difficult component is to educate investors about fund investing and not just trading… Chinese investors have extremely short holding period.”

Feb. 7, 2008
ReFlow Symposium 2008

SI Managing Director Kevin Shine gave a presentation on the forces shaping the worldwide mutual fund industry in 2008. His presentation touched on such points as the growth of international funds and the growth of asset-allocation programs, as well as the business opportunities in Asia.

Jan. 27, 2008
The Washington Post

“In Troubled Times, Mutual Fund Investors Hold the Course”
SI Director of Research Avi Nachmany explained that most mutual fund investors are buy-and-hold types, and don’t flee funds during troubled markets. SI research showed that any mutual fund redemptions tend to be short-lived, Nachmany said.

Nov. 12, 2007
Barron’s
“The Asian Question”

SI Director of Research Avi Nachmany discussed SI’s report on the Asian mutual fund industry, which projected that mutual-fund assets in Asia could more than quintuple, to north of $8 trillion, in the next five years. "What you have is an insatiable demand coming from Asia for high-quality investment management," said Nachmany.

Oct. 12, 2007
Ignites
“VA Suitability Not Just a Compliance Concern”

 Tamiko Toland, editor of SI’s AnnuityInsight, noted that deciding on the suitability of annuity products for customers has long been a tricky issue. Real suitability goes beyond merely avoiding negligence, Toland said, and should extend to “really trying to capture a better idea of what the industry believes a properly educated broker should do.”

Oct. 11, 2007
Investment Company Institute
Closed-End Fund Workshop

SI Director of Research Avi Nachmany spoke on a panel regarding distributions made by closed-end funds. Nachmany pointed out that recent closed-end fund IPOs tended to feature high distribution yields, underscoring the product’s ability to generate income.

Aug. 13, 2007
The Christian Science Monitor
“Could red-hot foreign markets burn out?”

In an article about Americans investing overseas, SI Director of Research Avi Nachmany commented that increased allocations to internationally-investing mutual funds is an irreversible trend among U.S. investors. "Financial advisers are recommending much higher allocations abroad and investors are taking their advice," Nachmany said.

June 19, 2007
U.S. Securities and Exchange Commission
“Roundtable on Rule 12b-1”

SI Director of Research Avi Nachmany spoke on a panel with SEC Investment Management Division head Andrew Donohue and others, at the SEC’s roundtable on 12b-1 fees. Nachmany discussed possible misconceptions in attempts to reform Rule 12b-1, among them the probability that externalizing the costs now covered by 12b-1 fees would increase costs for mutual fund shareholders.