Entrants and Expansions in the ETF Market
Welcome to this week's News Brief, a roundup of some of Ignites' top stories of the past week.
Recent regulatory reforms have led to a $55 billion-plus?exodus?from prime institutional money market funds, a new report found. Over the 16-month period between the time the?Securities and Exchange Commission?finalized its latest round of money fund reforms and when they became fully implemented, assets in the money fund type shriveled to $220 billion, from $275 billion,?Investment Company Institute?data shows.
The ICI blames a provision within the reforms that calls for the imposition of liquidity fees when prime institutional and prime municipal money market funds' redemptions exceed 5% of overall assets, Ignites'?David Isenberg?reports. Regulators should not consider extending the liquidity fee provision for other types of funds, the trade group said.
Also last week,?Cohen & Steers?launched its first ETF. The three ETFs are similar to existing mutual funds,?Daniel Gil?reported. The firm also recently hired?Griffin Frank, an industry veteran with an ETF background. Most recently, he was vice president for ETF capital markets at?T. Rowe Price, and before that worked at?Vanguard?in its next-generation cost analysis team.
Affiliated Managers Group, meanwhile, has?signaled?an expansion in the ETF market. The firm is working with its affiliates to launch alternative ETFs. "We are off to the races with respect to alternatives," the firm's operating chief said last week. Its?AQR?affiliate offers alternative mutual funds, but not ETFs,?Sabrina Kharrazi?reported.
Feeling the Squeeze
Four out of five fund industry workers expects their workload to increase this year, an Ignites Research survey found. Those expecting the biggest crunch are product and marketing employees.?Melat Kassa?examines?the survey results.
Snip, Snip
Vanguard?has?slashed?fees on 168 share classes across 87 mutual funds and ETFs. The price reductions will cover $2.2 trillion in assets under management. However, most of those cuts will be 1 basis point,?Daniel Gil?reported. "It's clearly a big deal, but it's spread out over a pretty wide number of funds, which means that the reductions are actually quite small," an analyst told Ignites.
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