FMX | Connect – www.fmxconnect.com - (Reported 9/23/2010)
Asset Gatherers Highlights: Aug.20 – Sep.20
Asset managers were up +9.0%, discount brokers down -0.2% and Swiss private bankers up +7.5% over the past month. YTD asset managers are underperforming the S&P 500 by -5.1%; discount brokers by -19.8%; while Swiss private bankers are outperforming the index by +1.9%.
US equity volumes declined -7% over the past month, in spite of a 6.2% increase in the S&P 500 index.
Our tracking of returns and flows shows a similar behavior to the data tracked by ICI: outflows at equity funds offset by inflows at fixed income funds (in our tracked universe: TROW, BEN, WDR, JNS and LM). Higher market volatility drew investors out of equity funds and into money market funds (see page 7).
• TROW: strong inflows at fixed income funds (though weaker than July) outweighed outflows at higher yielding equity funds
• BEN: fixed income organic growth rate increased 60% to an annualized 22% in August
• WDR: outflows accelerate as performance of the largest fund (Asset Strategy) continues to underperform peers
• JNS: fixed income inflows accelerate, higher performance at INTECH are driving growth at the high yielding quantitative division
• LM is still unable to capture fixed income flows in spite of the market’s appetite for bond funds. Equity funds continue to lose assets in spite of the launch of the $1.3 bn ClearBridge Energy Fund.
The market volatility that’s driving investors out of equity funds is also reducing retail investors’ trading activities, which we expect to cause a -4% M/M reduction in DARTs, reducing volumes to 2Q07 levels (see pages 8-9).
By tracking returns and flows on each of the funds from each manager we estimate inflows and market returns on the companies’ AUMs before they are reported.
• TROW: we track 110 funds accounting for 98% of mutual fund assets. Other portfolios (40% of assets) mimic the returns of equity funds.
• BEN: we track 513 funds accounting for 73% of total AUM.
• WDR: we track 68 funds accounting for 96% of mutual fund assets. Institutional accounts (11% of assets) mimic the returns of portfolios in advisor accounts.
• JNS: we track 125 funds accounting for 91% of mutual fund assets. Separate accounts (30% of assets) mimic returns of mutual fund portfolios.
• LM: we track 413 funds accounting for 37% of total assets. We estimate returns and flows of institutional using mutual fund data by division and asset type and adjusting it to reflect total assets.
Source: ERDesk
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