Exchange-traded managed funds (ETMFs) have the potential to dislocate higher fee actively managed mutual funds and put traditional asset managers in a dilemma, says a new report from Morgan Stanley. Several weeks ago, Eaton Vance Corp (NYSE:EV), a well known alternative asset product distributor, was granted exemptive relief to offer ETMFs, a move being closely watched in the asset management industry. The Morgan Stanley report, written by Thomas Whitehead, Betsy Gaseck and Elizabeth Elliott, said that while it may take time for the ETMF product to gain acceptance, ultimately “ETFs have gained a meaningful ally and will benefit as the…
Exchange-Traded Managed Funds Prepare To Challenge High Fee Mutual Funds
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.