News Mentions & Press Releases

The 20 index funds with the largest net outflows over the past 10 years lost a combined $59.21 billion in assets under management, according to data from Morningstar Direct.

Their losses represented nearly half of their weight in cash, according to the data. The funds — tracking sectors from emerging markets to bonds commodities — had an average net expense ratio more than three-times the typical passively managed product. CLS Investments CIO Marc Pfeffer suspects many long-term investors are simply looking for lower-cost alternatives that accomplish the same goals.

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8 Best Bond Funds for Retirement

July 13, 2020
US News

An actively managed ETF, FBND uses the Bloomberg Barclays U.S. Universal Bond Index as a way to guide its sector allocation and duration exposure. Marc Pfeffer, chief investment officer at CLS Investments, says the managers try to keep the duration fairly neutral to the broader Bloomberg Barclays U.S. Aggregate Bond Index, a key bond benchmark. “They’ve done a fairly good job navigating through this crisis,” he says. FBND uses the same management team and strategy of the Fidelity Total Bond Fund (FTBFX). Holdings include up to 20% high-yield bonds, plus U.S. Treasurys, mortgage-backed securities and corporates, among other securities. The fund’s expense ratio is 0.36%.

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Index funds with the biggest net flows of the decade reported losses this year as the coronavirus left no segment of the industry unscathed.

With nearly $2.8 trillion in combined assets, the 20 U.S. index funds with the biggest net inflows over 10 years through July 1 raked in a combined $949 billion during that time period, Morningstar Direct data show. In the first six months of 2020, the funds reported a net inflow of $12.1 billion. The same funds also reported a YTD loss of nearly 3%.

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Marc Pfeffer, chief investment officer at CLS Investments, talks about today’s municipal bond market and looks to the future. He looks at the advantages of buying into exchange traded funds and sees value in individual names, while stressing rigorous credit analysis by investors. Chip Barnett hosts.

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OMAHA, Neb. & BERWYN, Pa.–(BUSINESS WIRE)–Orion Advisor Solutions, the premier provider of the tech-enabled fiduciary framework that empowers financial advisors to Prospect, Plan, Invest, and Achieve within a single, connected experience; and Brinker Capital, a premier investment management company serving advisors at insurance broker-dealers and independent broker-dealers; today announced they will join forces to create a combined technology and TAMP provider enabling independent financial advisors to grow their businesses, serve their clients, and win in the marketplace.

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The biggest fund families reported tens of billions of dollars in outflows in the first half of a year roiled by coronavirus-driven market volatility.

From January through May, 12 of the 20 largest U.S. fund families reported net outflows from mutual funds and ETFs of approximately $154 billion in combined assets under management, according to Morningstar Direct.

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Top 2030-35 target-date funds take a hit

June 17, 2020
Financial Planning

How have the best-performing target-date funds of the decade fared amid recent coronavirus-driven volatility? For clients approaching retirement, one lesson in the space remains a constant: past performance is not indicative of the future returns.

The 20 top-performing target-date funds with target dates of 2030 and 2035, and at least $500 million in assets under management, posted an average 10-year gain of roughly 9%, Morningstar Direct data show. But so far this year, the 20 target-date funds posted a near 1.5% loss.

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It’s a tale of two sets of asset flows: long term intake, short term stumbling blocks.

“You’ve just seen such dramatic swings of the market this year… it’s now June and if you’ve been on a deserted island for the last five months you couldn’t have fathomed the movements we’ve seen,” says Marc Pfeffer, CIO of CLS Investments.

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Funds that blow away ESG misconceptions

June 3, 2020
Financial Planning

Can funds that address diversity and sustainability deliver long-term outperformance? The answer, one expert says, is an unequivocal yes.

The 20 best-performing mutual funds and ETFs with holdings that pose the lowest ESG risk generated an average 10-year gain of more than 18%, according to data from Morningstar Direct. That comes in well above broader index trackers like the SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF Tracker (DIA), which posted 10-year gains of 13.23% and 12.47%, over the same period. On the fixed-income side, the iShares Core US Aggregate Bond ETF (AGG) posted a 10-year return of 3.78%, data show.

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SEC Gives Nod to More Nontransparent, Actively Managed ETFs

November 26, 2019
Lee Barney — Plan Adviser

The Securities and Exchange Commission (SEC) has just approved more nontransparent, actively managed exchange-traded funds (ETFs).

“The current percentage of ETF assets in active strategies has been growing—but is still only 2%,” says David Mann, head of global ETF capital markets at Franklin Templeton. “We are believers in the value of active management, so we are eager to see different styles and types of ETFs available in the marketplace and welcome this latest news. We will be watching if these new forms of ETFs help those percentages increase.”

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