MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, January 16, 2001 Magnifying Glass and Crystal Ball We have continued to examine the industry's recent past and future through the eyes of various industry watchers. Here's something to mull over: what do people think who get to view your world from a different perspective? For a glimpse into the RIA market, consultant Richard Sincere chimed in with his thoughts. Echoing other pundits, he pointed to the year's performance affecting consumer perception and behavior. "I think the most significant event is that poor performance, coupled with heavy distributions, has made people concerned about many mutual funds," Sincere said. He elaborated by pointing to consumer awareness of tax efficiency. As for the future year, Sincere bucked the view of many by predicting that active management will end up outshining asset allocators. "The significant event is that asset managers will totally underperform active managers. That is, active managers will play a much more important role," he said. "The real issue is that you'll be with an active manager who knows how to do it in a tough market." Geoff Bobroff, industry consultant, had a hard time thinking of a truly significant event during the year 2000. "There was little if anything of real significance which would have a lasting influence," he said, suggesting that, if pressed, changes to corporate governance initiated by the SEC would make his list. As to the future, Bobroff answered without hesitation and very precisely: "There will be a major merger, consolidation, whatever, in the distribution world that will have a lasting influence." While he had no particular suggestion as to the individuals involved in such a merger, his prediction comes at a time when every firm is reconsidering its distribution structure and efficiency. Ramy Shalaan of Wiesenberger demured from making a prediction to the future, citing company policy. As for the past year, his observations too turned to the SEC. "I would think that one of the most influential happenings in 2000 was the foundation of Fund Democracy by Mercer Bullard, a former SEC official," he said. "The organization has initiated many efforts pursuing a better fund industry. From more frequent portfolio disclosures to stricter fund names guidelines, Fund Democracy has had a lot of influence on the SEC's decisions to put some of these concerns into laws. In the end, the benefits of these initiatives should benefit shareholders and fund companies alike." Printed from: MFWire.com/story.asp?s=26353 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |