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...Inflows to US money market funds hit a record of nearly $1.19tn in the first 11 months of last year, according to data-tracking company EPFR....
...“There will be some schemes who like the idea that their members will be looked after by a mutual,” he said, aiming at the smaller pension fund end of the market....
...In a 2019 paper titled “Challenging the Conventional Wisdom on Active Management: A Review of the Past 20 Years of Academic Literature on Actively Managed Mutual Funds”, Martijn Cremers, Jon A Fulkerson...
...Pimco has proposed its first mutual fund-to-ETF conversion, according to a regulatory filing....
...Fund providers in Europe that until recently saw little threat to their business model of selling actively managed mutual funds appear to be changing their tune....
...The firm’s ETFs, the first of which launched in 2013, would “probably cannibalise some of the mutual funds”, Johnson said, but mutual funds would remain popular in the retirement channel, she added....
...their own mutual fund families, while TCW and F/m Investments have filed to add mutual fund classes to existing ETFs....
...calculations, compared with 62.4 per cent for active mutual funds....
...Nearly 2,000 ETFs launched in the US between 2019 and 2023, nearly double the 1,100 new mutual funds, according to Morningstar....
...Eventually the mutual fund is dead.”...
...Part of the problem is that investment advisors and mutual funds have been running just to stand still....
...MFS launched the world’s first mutual fund in 1924 and is the ninth largest US mutual fund complex....
...European mutual funds have never had two consecutive years of negative fund flows, data from Broadridge shows....
...So clear focus of minds on T+1 is needed....
...“They are not coming from our mutual fund line-up....
...Guinness Atkinson, the first firm to convert a mutual fund to an ETF, is the latest to file for permission to add ETF share classes to its mutual funds....
...But it is not just ETFs that are taking money from mutual funds....
...ISS projected that active ETFs’ revenue will rise at a 16.5 per cent annualised rate from 2024 to 2028, outstripping its 11.1 per cent forecast for passive ETFs, 9.5 per cent for index mutual funds and 4.9...
...Firstly, many distribution platforms charge mutual funds — but not ETFs — a fee to be listed....
...“Active ETFs have more advantages than a mutual fund,” he said, referring in part to the beneficial tax advantage that US ETFs have over their mutual fund counterparts....
...The result is likely to be a significant decline in mutual fund usage,” wrote Rick Wurster, president of Charles Schwab, the broker and mutual fund sponsor....
...In another test, S&P looked at US mutual funds....
...“The funds will be chosen where the adviser believes the multi-class structure is in the best interest of the ETF class and mutual fund class individually, and the fund as a whole,” the filing states....
...Now it seems even passive mutual funds may be struggling to meet the bar the UK regulator has set in order to tackle claims of fund industry “greenwashing”....
...At the end of December, passive US mutual funds and ETFs held about $13.3tn in assets while active ETFs and mutual funds had just over $13.2tn, according to data released by Morningstar....
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