Insight July 2014

Research on fund developments in the U.S. by Investor Economics In late June 2014 Investor Economics’ U.S.-based parent Strategic Insight held its two-day annual conference: Strategic Insight Fund Trends 2014 (SIFT). The panels and presentations covered a wide array of topics. The subject of what products are selling, which advisors and clients are keen on them, and the ways in which fund manufacturers are responding to advisor and client needs, permeated nearly all discussions and presentations at SIFT. Liquid alternatives, non-traditional strategies, unconstrained mandates and multi-strategy were the buzzwords heard everywhere. The current issue of Insight documents the evolution of the mutual fund shelf in the U.S. in recent years, with particular emphasis on the development of mandates and fund solutions in the non-traditional and target-date solution segments. The relevance for our Canadian readers lies in the fact that the $16 trillion U.S. fund industry remains the world’s largest fund “laboratory” in which new fund ideas are constantly being incubated and tested. While there are significant differences among the various fund jurisdictions around the world, the global asset management marketplace is increasingly…global! This means the Canadian playing field is likely to see several of the emerging product concepts make their way across the 49^th parallel—either in a format similar to that of the U.S., or one that would be adapted to Canadian market conditions. The Trendlines article at the end of the report measures the sales success of funds launched in Canada in the past year and a half.