In the first installment of Nasdaq Fund Networks TradeTalks series, Nasdaq Global Markets Reporter Jill Malandrino delves into the nuances of Nasdaq Fund Network (NFN), while speaking with product and industry experts. In this four part series, Jill captures how Nasdaq has provided the general public with real-time performance and valuation data for the past 30+ years for mutual funds and money market funds through its Mutual Fund Quotation Service (MFQS). As the volume of investing products available to the general public has increased exponentially, Nasdaq has introduced the next generation of MFQS, the Nasdaq Fund Network, to meet the demands for greater transparency and price discovery for those investable products.
NFN distributes performance and valuation data for 35,000+ U.S. and international investable products to over one million investors in real-time for investment products like collective investment trusts, managed accounts (SMAs/UMAs), hedge funds, non-traded reits, and many other alternative investment products. When becoming a member of the network each product is registered with a unique symbol. The performance and valuation data for each product is then disseminated to one of the largest distribution channels, which pipes into online brokerages and ISPs, as well as major market data vendors. This enables asset managers and issuers greater visibility for the products and alterative investment choices they manage, while also helping the investment community make informed investment decisions, as they are easily able to search for the products with the unique ticker.
Dive into the 4 part series below to see how Nasdaq Fund Network increases product transparency for a wide cross section of investment products and helps the investment community make informed decisions.
Nasdaq Global Markets Reporter Jill Malandrino speaks with Garrick Stavrovich, Product Manager at Nasdaq, and Ben Jones, Senior Analyst at Nasdaq Dorsey Wright. Both describe the inception of NFN, stemming from the formally known Mutual Fund Quotation Service (MFQS). They also discuss the metrics that customers typically report on NFN, ranging from net asset value (NAV) to yield. Overall, they highlight how NFN provides investment products with unique ticker symbols for transparency and price discovery, disseminating data to over 1 million investors. Interested in learning more about the future outlook of NFN? Tune into the #TradeTalks hit here:
Malandrino and Jones explore the opportunities within NFN further by discussing the differences between Separately Managed Accounts (SMAs) and Unified Managed Accounts (UMAs). While both are investment portfolios, the model makeup differs. Jones also touches on the current problems with SMA performance, citing reporting and investor access as the two largest issues. He describes that although there are fantastic third-party research providers that give reporting and investor access to institutions, individual investors are not given the same opportunities. NFN will solve this problem by providing performance data clarity to individual investors as well as Wall Street. NFN will impact the Nasdaq Dorsey Wright strategy by providing transparency, clarity in investor performance, and an industry standard for classification. Jones ends by defining 8 strategies for identifying strength in the markets across U.S. equities, international investments, global macro, and fixed income. To discover more about these strategies, view the #TradeTalks segment here:
Malandrino then features Bailey McCann, Wall Street Journal Contributor, to discuss the world of Collective Investment Trusts, or CITs. While CITs are similar to mutual funds, they are regulated differently and are typically lower cost. CITs have had a tremendous influx of capital over the past few years, recently reaching $1 trillion. This influx of capital can be attributed to fee transparency, lower overhead, product innovation, and more CIT investment strategies. Malandrino and McCann discuss the potential for CITs to displace other products in investor portfolios, as well as the drawbacks of CITs due to their lack of trading symbols. Get the full scoop on McCann’s CIT research on #TradeTalks here:
Speaking again with Stavrovich, Malandrino continues the conversation regarding CITs through an explanation of how NFN is resolving the issue with the lack of trading symbols, leading to greater transparency. The two also discuss the timeline it takes for a CIT to register to be a member of the network (5 days maximum) and to what happens after they are a member. Stavrovich gives insight into how Nasdaq’s acquisition of eVestment will impact our CIT innovation in the future, focusing on how NFN will improve price discovery for global data products based off of the give-get model. To understand more regarding CITs and the various models Nasdaq is using to better the product, tune in to #TradeTalks: