Investment Management Roundup – Week Ending 3.6.15

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“Lionising star managers undermines value of advice”
Jon Cudby | Editor | Money Management | | 2.20.15

Jon Cudby“For as long as I can remember, and especially since the RDR, the investment world has been embroiled in an ongoing ‘active versus passive’ debate. To be honest, I don’t really have a problem with ‘active’ or ‘passive’; it’s the ‘versus’ that rankles.”

“Navigating the Winding Road — My Insight to Active Management”
Pamela Rosenau | Managing Director & Chief Equity Market Strategist, HighTower; Chief Investment Officer, Rosenau Group | | 2.26.15

Navigating the Winding Road“Since the 2008-2009 implosion, there has been a huge influx of funds into passive index strategies. In a recent interview with Welling on Wall St., Jack Bogle, who pioneered index funds at Vanguard in the mid-1970s, stated that ‘about $800 billion has gone out of actively managed funds, and about $1.2 trillion has gone into index funds’ over the past six or seven
years. ‘That is, roughly, a $2 trillion swing in investor preferences.’ I attribute part of this shift to a response by investors that were badly burned during the financial crisis.”

“Index-investing purists ignoring mounting downside risks”
Jeff Benjamin | Investment Insights: The Blog | | 2.26.15

Index-investing purists ignoring mounting downside risks“Few topics can whip the financial advice industry into a full-blown tizzy like a good debate over active versus passive portfolio management. For some reason, it’s right up there with politics and religion in terms of conversations best avoided around the dinner table, assuming your family is made up entirely of financial professionals.”


“The ‘New Power’ of Asset Owners”
Angelo Calvello, PhD | CEO | Impact Investment Partners | The Doctor is In: Blog | | 2.19.15

Angelo Calvello“… asset managers and consultants represent old power and, I would argue, a handful of asset owners embody new power. Moreover, unlike elsewhere, this shift is currently inchoate, existing sub rosa in the activities of a small but growing number of asset owners who are subtly moving away from the old power model of passive consumer to a new power model of active collaborative creator.”


“November-December 2014: FINRA’s New Consolidated Supervision Rules”
Amy Jones, CIPM; Arin Stancil, CFA, CIPM | Guardian Performance Solutions LLC | Practical Compliance and Risk Management: Volume 7, No. 6 | Wolters Kluwer Financial Services |

November-December 2014: FINRA’s New Consolidated Supervision Rules“… In May 2014, an administrative law judge (“ALJ”) issued an Initial Decision against ZPRIM which focused predominately on misrepresentations regarding compliance with the GIPS standards in magazine advertisements and investment newsletters. These misrepresentations were determined to be violations of the Investment Advisers Act of 1940 (“Advisers Act”) and, as a result, the firm was censured, issued a cease-and-desist order, and fined $250,000 in civil penalties. Additionally, Mr. Zavanelli was determined to be personally liable for these violations as an aider and abettor and, as a result, was individually fined $660,000 and permanently barred from the industry.”


“Friday the 13th: What’s the history behind the superstition?”
Rose Troup Buchannan| The Independent| | 2.13.15

Friday the 13th: What's the history behind the superstitionIt seems that cashing in on paraskevidekatriaphobia can generate killer returns.

“Then, in 1907, eccentric stockbroker Thomas Lawson published a book called ‘Friday the Thirteenth’. It detailed an evil business’s attempts to crash the stock market on the unluckiest day of the year. The book was a sell-out and in 1916 made into a feature-length film.”

Cartoon of the Week: Fifty shades of red
Randy Glasbergen |

Cartoon of the Week: Fifty shades of red

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