It was also clear some fund companies are being left behind. I started at Fidelity in 1983 and enjoyed seeing the growth of the business. However, it was a bit sad to see some small, unattended, nondescript booths of mutual fund companies of the past sprinkled throughout the exhibit hall. Times are changing in the fund business. If mutual fund companies grow too complacent, even in their efforts at showcasing their name brands, ETF providers may continue to chip away at mutual funds.
Morningstar, the hands-down leader in fund research, had a spaceship-like layout in the middle of the exhibit hall. They made it inviting so attendees could talk, sit and relax. It was clear Morningstar intends to continue to “protect” advisors by increasing the quality and the research they provide. Joe Mansueto, founder of Morningstar, also mentioned that they may look at providing a service that would rate advisors, but the news was met with mixed emotions.
Morningstar’s effort in the ETF arena is increasing. Scott Burns, who heads ETF research for Morningstar, leads a smart, energetic team. This ETF group has respectfully built their own following during the ETF expansion while pulling away from the fund “mother ship.” However, with conventional mutual fund assets still at around ten to one over ETF assets, mutual funds still pay the bills at Morningstar. But guys like Mansueto and Burns have a good record of seeing changes before they actually occur.
The content was excellent. Bill Gross stole the show with his continued call for U.S. investors to “get out of Dodge.” This link will give you a great sense of what you missed: Morningstar Conference Highlights.