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Sionline's Executive Insights provide timely and informative
commentaries on topics critical to the fund
business. Written by Strategic Insight's
research team, they draw from our published
reports, client work, and observations of
recent trends and news in the industry.
Subscribers can select from the latest
Insights below or from the list
of all Executive Insights.
All reports are in PDF format [download
Acrobat Reader]
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Financial Advisors In Transition: Establishing Relationships with High-Producing Advisors |
8/9/2010 |
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The post-financial crisis market environment has seen an increase in sales via commission-based platforms among National Broker-Dealer (NBD) financial advisors (FAs). A closer examination of this trend, however, suggests that this shift in business structure may be a temporary one for many FAs. In this special Executive Insight report, we utilize the data contained in Coates Analytics’ Distribution Management System to focus on a large selection of high-producing FAs who transitioned new business toward the commission-based platform structure in 2009. This report profiles these FAs’ sales patterns at an aggregate level to give both historical and forward-looking perspective on the composition of their mutual fund business, and offers lessons of how mutual fund managers might engage such advisors in the future. |
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Are Short-Term Redemption Fees Still Needed? |
1/13/2010 |
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While short-term redemption fees among some funds were effective in the past in negating arbitrage opportunities associated with short-term trading, the implementation and maintenance of such fees can bring with them a bevy of ongoing challenges for fund managers. Given the potential for such costs and complexities, close ongoing examination of the necessity and effectiveness of short-term redemption fees in protecting long-term shareholders’ interests is essential as marketplace forces continue to evolve. In this Executive Insights report, we analyze the role that short-term redemption fees currently play in the marketplace, and discuss whether such fees are still necessary given current market forces and redemption patterns. |
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Looking Ahead to 2010: Cautious Optimism, Persistent Bond Fund Demand, and Possible All-Time Record Net Inflows to Long-Term Mutual Funds |
12/15/2009 |
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On the heels of a financial crisis that shook both the financial services industry and investors worldwide, mutual funds have shown remarkable resilience during 2009. Record inflows into bond funds have reaffirmed mutual funds’ standing as investors’ vehicle of choice for savings. Amid such opportunities, however, this past year has also presented a bevy of new challenges for investment managers. In this Executive Insight report, SI identifies topics of interest for fund managers to focus on as we embark on a new year and also provides our industry sales forecast for 2010. |
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Perspectives on Taxable Bond Fund Redemption Patterns |
11/6/2009 |
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During 2009, bond mutual funds are projected to garner nearly $400 billion in net inflows, by far the largest annual amount ever. While this unprecedented expansion in bond fund investment presents asset managers with opportunities for a range of new relationships and investment solutions, it also triggers concerns about investor expectations around bond fund investing as well as the possible unwinding of bond fund assets in the future. Within this context, this Executive Insight report presents analysis of historical taxable bond fund redemption patterns, with a particular focus on the fourth quarter of 2008 as a case study for taxable bond fund outflow patterns during times of above-average market and liquidity stress, when the management of redemption pressures takes on added importance.
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Perspectives on Intermediary Sales: Trends in Fund Sales by Distribution Channel and Share Class |
5/4/2009 |
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This report presents key findings from our latest annual survey of the mutual fund sales of fund firms distributing primarily through intermediaries. It highlights key themes, including the continued shift towards fee-based pricing models, as reflected in both distribution channel and share class pricing trends. Participants in our survey managed roughly half of industry-wide U.S. open-end stock and bond fund assets at the end of 2008.
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