1) CITs Present Huge Opportunity for Investment Managers in Projected $7 Trillion DC Market
SEI | 4/17/2012
Because… The downward fee pressure has driven plan sponsors to look for investment managers that offer collective investment trusts (CITs). Fund firms that consider launching CITs need to assess opportunities and challenges, determine how the CIT fits into their overall business and investment management strategy, evaluate target markets, and develop fee structures and distribution strategies that would be least likely to cannibalize existing business.
2) ICI and U.S. Chamber of Commerce File Lawsuit Challenging CFTC Rule
ICI | 4/17/2012
Because… The lawsuit was filed with the belief that all funds would be affected by the CFTC rule. ICI and the Chamber of Commerce argue that “the CFTC’s new rule looks more like regulation for regulation’s sake. The new rule creates confusion, not clarity, by subjecting mutual funds to redundant, overlapping, and unnecessary regulatory requirements. The CFTC completely ignored its statutory duty to evaluate the costs this unnecessary regulation will undoubtedly impose on the economy.” We will monitor how this case will unfold.
3) ETF Providers Announce Creation of the National ETF Association, "NETFA", the First US-Based ETF Industry Trade Association
PR Newswire | 4/23/2012
Because…Although investors now have an easy access to ETFs, many of them still do not have adequate ETF knowledge. There are misunderstandings even among regulators, which will undoubtedly hurt ETF industry growth. If the newly-established METFA can play an active role in educating investors and regulators, help them separate myths from realities, and represent ETF sponsors in public debates and the rule-making process, it will benefit the industry in the long run.