mutual fund monthly review 12 2012
DESCRIPTION
This monthly newsletter provides an overview of: • Mutual fund industry vital signs (asset growth, sales and performance); • Product development highlights for the month; • Interesting facts about our industry.TRANSCRIPT
Mutual Fund Monthly ReviewMutual Fund Industry Vital SignsStarting assets (November 30, 2012) $686.9 billion+ net sales $1.5 billion+/- estimated market effect $8.0 billion (1.2%)= Ending assets (December 31, 2012) $696.4 billion
Vitals Signs by Fund Category for December 2012
December 2012 – Product Development Highlights Sprott Asset Management announced the merger of Sprott All Cap into Sprott Canadian Equity, the firm’s flagship fund. The merger is aimed at streamlining the fund family and making the Canadian Equity fund larger and more cost efficient.
Horizons Exchange Traded Funds announced the termination of three ETFs effective in March 2013: Horizons Gartman ETF, Horizons Active Income Plus ETF and Horizons Active North American Value ETF. Horizons will be accepting redemption orders until March 18, after which the units will be automatically redeemed.
In a discussion paper released on December 13, the Canadian Securities Administrators (CSA) proposed reforms relating the industry’s use of trailer fees including an outright ban of trailer fees and other embedded advisor compensation. As noted in the study, there is a global trend among regulators towards addressing the conflicts of interest inherent in embedded compensation. In addition to the outright ban, other proposed regulatory alternatives include requiring advisors to specify the services to be provided in exchange for trailer fees, the mandatory unbundling of trailer fees from management fees and the capping of trailer fees.
December 2012
Note: Asset growth figures can be affected by a change in the number of companies reporting to IFIC and by fund category changes.
Source: IFIC except for Performance where the source is Fundata.
Top 3 Categories Bottom 3 Categories
Asset Growth ($) High Yield Fixed Income: $2.995 billion Global Fixed Income: -$2.386 billion Global Equity Balanced: $2.525 billion U.S. Equity: -$687 million Canadian Neutral Balanced: $1.118 billion Alternative Strategies: -$327 million
Asset Growth U.S. Small/Mid Cap Equity: 43.9% Alternative Strategies: -97.7%(as a % of starting assets) High Yield Fixed Income: 16.6% U.S. Synthetic Money Market: -77.2% Misc. – Income & Real Property: 10.7% Global Fixed Income: -37.9%
Net Sales ($) Canadian Fixed Income: $690 million Canadian Focused Equity: -$325 million Global Neutral Balanced: $664 million Canadian Equity Balanced: -$321 million Cdn. Fixed Income Balanced: $617 million Global Equity: -$316 million
Net Sales Cdn. Long Term Fixed Income: 3.3% Japanese Equity: -2.0%(as a % of starting assets) Tactical Balanced: 2.4% Miscellaneous – Geographic Equity: -1.8% Real Estate Equity: 2.4% Miscellaneous – Other: -1.3%
Performance Japanese Equity: 6.1% Retail Venture Capital: -3.0%(Fund category averages) Greater China Equity: 6.0% Precious Metals Equity: -2.0% Emerging Markets: 5.1% Cdn. Long Term Fixed Income: -1.0%
EquiSoft specializes in the design and development of digital business solutions primarily for the financial industry. For more information please contact: Jonathan Georges, CIM, FCSI , Vice President, Financial Products. T: 514.989.3141 X 201 | T: 888.989.3141 | [email protected] | www.equisoft.com. ©2012 EquiSoft consulting and software solutions.
Did You Know?
According to an Investor Economics study, the percentage of advisors’ fund sales compensation derived from trailer fees has increased 137% over the past five years. In 1996, 27% of advisors’ sales compensation came from trailer fees compared to 64% in 2011.
Source: Investor Economics
Trailer Fee Portion of Advisors' Compensation
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20111996
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T: 514.989.3141 X 201 | T: 888.989.3141 | F: 514.989.3140 [email protected] | www.equisoft.com
EquiSoft specializes in the design and development of digital business solutions for the financial industry.Each month this space features an EquiSoft product or service that exemplifies our commitment to the financial industry. This month’s edition highlights our mobile capabilities with the announcement of the launch of EquiSoft’s Life Insurance Needs iPad App now available for free in the iTunes App Store.
Download the App by clicking HERE or simply search the iTunes App Store for “EquiSoft”.
Please see future editions of the Mutual Fund Monthly Review for announcements regarding other financial iPad App launches from EquiSoft.
Use the alternate scenario sliders to immediately assess the impact of changes to each assumption.