I decided to take a look at valuations in the asset management space to get a feel for how the rumored purchase price of Rydex stacks up.
Matt - you had some interesting comments on valuations, but from what I heard about the Rydex sale, the levels you're talking about seem to be holding. How does $1 billion sound to you? In cash.
You mention that seed money is drying up in the ETF space, Jim, and that’s true: we’ve seen funds like the HealthShares launch with as little as $2.5 million in seed money. A few years ago, that would have been $25 million, easy.
I received a note last night from a panelist mentioning that in our FRA conference today in New York, we might want to talk about the issue discussed in Diya Gullapalli's recent WJS article - no seed money for new ETFs - and how that has shifted the industry.
The more money that has flowed into indexed portfolios, the more of a science index investing has become. But is it enough? "Best practices" are certainly not a fixed target.
It’s good to see Russell adopting emerging best practices in the index industry. Both of the major changes they’ve adopted this year make a lot of sense.
I'm back in New York. And what a pleasurable first day to see Burton Malkiel at an (urp) ISHARES event. There he was espousing the benefits of ETFs to a significant gathering of the New York financial media.