Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:INews: Regulators Probably Can't Keep Up With Alts Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, September 09, 2013

INews: Regulators Probably Can't Keep Up With Alts

News summary by MFWire's editors

InvestmentNews' Jeff Benjamin asks the age old question: Can regulators keep up with the increasingly complex financial instruments the industry creates? Or will they be forever left in the dust, struggling to catch up?

The short answer? Probably.

Alternative-class mutual funds have quadrupled to 399 over the past 10 years, Benjamin writes, bringing assets to almost $120 billion, up significantly from $15 billion in 2003, according to Morningstar data.

Benjamin interviewed Morningstar's Don Phillips, who was quoted as saying, "Some of the oversight procedures set up for traditional mutual funds don't always work in the alternatives world…For instance, a fund might show some derivatives exposure along with 98 percent cash as collateral for derivatives, but the real impact of those derivatives might add up to a 100 percent footprint in a portfolio."

In other alternative fund news, George "Gus" Sauter, senior consultant to Vanguard Group and former Vanguard [profile] CIO, says alternative funds aren't appropriate for most investors. Sauter was quoted as saying in a The Wall Street Journal "The Experts" piece, "Alternative funds, such as hedge funds, are far more sexier than standard mutual funds…However, I don't believe they are appropriate for most investors. First, how will you identify the best funds or managers? while some alts have produced very impressive results, many have not."

Only in the fund industry could someone refer to alternative funds as " more sexier."

To read more, click here and here 

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use