Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 19 Mar 2015, 10:57 AM Agree 0
New numbers are quantifying the kind of chop to mutual fund sales advisors may experience post-CRM2 implementation.
  • Howard Kitchen | 19 Mar 2015, 01:28 PM Agree 0
    I have been in the industry since the 80's when Canadian Mutual fund assets were under 20 billion. I have heard for my entire career how the end of Mutual funds is just around the corner. I believe assets are now close to 1.1 trillion and the growth has been 15 % a year for 20 years. Hmmmm I like that kind of industry. I am not sure how ETFs will grow in the future and it does not matter to me. The ongoing debates on fees will continue regardless of the products. Mutual funds still have a place in a portfolio and somehow I believe we will all survive. As for ETFs remember the quote from English author John Ruskin on the "common laws of business" I will leave it at that.
  • Wealth Advisor | 20 Mar 2015, 12:06 PM Agree 0
    It appears that the MFDA will be offering ETFs to their Dealing Representatives before too long and to me it just means another arrow for the quiver. You are correct, there will be more competition and the marketplace will adjust.

    The Australian experience to ETFs is dwarfed by the U.S. retail investor crush into indexes and ETFs.

    Remember, the Great Rotation back to stocks by the retail investor only started about a year ago. Hopefully it won't be at the tippy-top of the market.

    That aside -although superficially it may look like it, I doubt that the rush by Australians to ETF's is a direct result of regulatory change because there was no equivalent change in the regulatory environment in the U.S. In the U.S. the numbers are much, much higher.

    No, I think the true reason why everyone is running to just one side of the boat. - is good old fashioned greed.

    I am currently actively discouraging panic buying of any sort. Could be a contrarian indicator, but one of the important things I do is to be the role of a circuit breaker and a real live person at that!

    It is hard to determine who is buying up all of those lofty market valuations - but one thing I know for sure, is that hot money will be exiting out a lot faster than it came in.
Post a reply