The Markets October 12, 2011

Asia Funds See $12B in Inflows in August

Long-term funds in Asia (ex-India and China, which report assets on a quarterly basis) collected $12 billion in net flows, according to Strategic Insight, an Asset International company. 
Reported by

Strategic Insight says the positive Asia flows are due in part to the U.S. credit downgrade and an intensifying European sovereign debt crisis.

Japan contributed $9.2 billion or three-fourths of the net new money. Equity Asia Pacific ($4.8 billion), Bond Asia Pacific ($2.2 billion), and Real Estate funds ($2.2 billion) topped the fund flow chart for Japan in August.  

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Korea ($5.2 billion), Hong Kong ($983 million), and Thailand ($194 million) also saw significant inflows for the regions.   

In Korea, Money Market funds ($3.9 billion) and Equity Asia Pacific funds ($2.2 billion) were the clear leaders in August. In Hong Kong, Bond Asia Pacific ($343 million), Equity Asia Pacific ($277 million), and Mixed Flexible funds ($226 million) were favored, while in Thailand, investors preferred Guaranteed/Protected funds ($509 million), followed by Commodities ($382 million).  

Nomura’s Nikkei 255 Index Linked Listed Investment topped the best-selling list in the region with $1.1 billion in flows in August. Moreover, ICBCCS Tianyi Bond in China, launched by a JV fund firm between ICBC and Credit Suisse, was the top new fund attracting $0.8 billion in net flows for the month.
Products October 12, 2011

MATC Lowering Price of Investment Management Platform

Mid Atlantic Trust Company (MATC) is offering reduced pricing for its ModelxChange service.   
Reported by

The lower pricing is due to the increased number of 401(k) accounts being placed on ModelxChange, according to MATC.  Previously priced at 15 basis points, the new price is a flat fee of 3.5 basis points. This includes unlimited trading, portfolio rebalancing, and fund or ETF swaps.

ModelxChange was launched by MATC in December 2010 (see “New Investment Management Platform for 401(k)s”).  The platform allows 401(k) professionals to incorporate mutual fund and/or ETF investment models into a retirement plan through a single, Web-based interface that allows for the creation, execution, and on-going management of investment models for a 401(k) plan.  Managers can set-up and manage their investment models on ModelxChange and then deliver those models and the investment changes to each individual plan.   

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MATC says ModelxChange can deliver numerous benefits to the 401(k) investment adviser, including access to a stable of third-party money managers who can provide models comprised of ETF’s and/or mutual funds.  To aid in the due diligence screening process, Mid Atlantic provides manager profiles, descriptions, performance data, and other details of each model, reducing the amount time required to review the myriad of data in order to make an effective choice for a client.   

ModelxChange is an outgrowth of its predecessor ETFxChange, which also has a reduced price. For those still using ETFxChange where ETFs are a stand-alone investment vehicle in a 401(k) plan, Mid Atlantic Trust will be extending a new price schedule starting this month.

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