Mutual Fund News Roundup: October 24

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Mutual Fund News Roundup: October 24

Shauna O'Brien Oct 24, 2014



Voya Financial Rewards Babies Born on October 20 with $500


This promotion was created as a marketing campaign to tell the public that Voya, which was originally a division of ING, is now its own separate publicly traded company.

This is also a part of the company’s Voya “Born to Save” program, which aims to remind people that it is never too early to start saving for retirement.


Many Mutual Fund Investors Will Pay More Taxes This April


Fund managers are required to realize capital gains when a stock in a portfolio is sold. However, with the bull run over the last few years, the amount of selling has been minimal. Now, many investors will be stuck with the capital gains taxes in April.

Investors impacted by these taxes will include those who sold PIMCO funds after the departure of Bill Gross.


M&A Activity Heats Up for Mutual Funds


Most recently, Janus Capital Group reported that it now plans to purchase the company that builds VelocityShares ETFs. This announcement came after TIAA-CREF closed a deal to purchase Nuveen Investments Inc. This deal was the largest mutual fund deal since 2009.

According to Martin L. Flanagan, the president and CEO of Invesco, these types of deals are triggered by higher customer demands.


Factors Mutual Fund Investors Should Watch


  • Changes to a fund’s manager
  • The fund’s performance is not consistent
  • When the fund changes its objectives
  • When the fund outperforms (it may be better to claim gains)
  • When the market is declining

These events should be followed closely by investors as they can have a large impact on a portfolio.


Will Mutual Funds Be Replaced by ETFs?


While the mutual funds industry is currently significantly larger than the ETF industry, this may not always be the case. What may be a big factor in the mutual fund growth is fees. If fees stabilize over time, more ETF investors may be inclined to choose mutual funds.


Joel Greenblatt’s Funds Get Wall Street’s Attention


However, the money has been pouring in recently for Greenblatt. Mutual funds that he started with his firm Gotham Asset Management are catching the attention of Wall Street. The funds have recently grown from just $1 billion in assets in January to $4.8 billion.

For more information on these funds, click here.

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