Mutual Funds Updates

Experts say it will be difficult to make a definitive judgment on smart beta funds, many of which are less than 10 years old, until they are tested by a bear market.

The asset manager also eliminated minimums and cut other fees this week.

A lack of readily available and easy-to-use data sources have kept some advisors away.

Despite a wide array of actively managed and smart beta choices, the funds that shined in the first eight months of 2018 are tracking the boring S&P 500 Index.

The uptick in risk appetite and expectations and another rate hike is less than a month away chased some money out of U.S. Bond Fund groups.

The last week of August saw Europe Equity Funds chalk up their 25th straight outflow, extending their third longest redemption streak since 2000.

The escalating trade war hasn’t pared back flows to either large economy, but investors are turning their backs on others.

Only 36 percent of stock-picking managers survived or outperformed their average passive peer over the past 12 months, according to Morningstar data.

“Passive investment is now growth-tilted, momentum chasing, biased toward popular-weighted indices. Why should you expect the best returns from that?” asks Research Affiliates’ Rob Arnott.

The equity fund carries a management fee of 75 basis points, while the fixed income fund carries a 15 basis point fee.