Retail Mutual Funds Expose Investors to Hidden Risks, Report Finds

Jan 28, 2016, 13:36 ET from Gurtin Fixed Income Management, LLC

SAN DIEGO, Jan. 28, 2016 /PRNewswire/ -- Retail mutual funds, which continue to be widely used by Registered Investment Advisors (RIAs), are susceptible to hidden risks that make them more costly than they first appear, according to a white paper released by Gurtin Fixed Income Management, LLC, an SEC-registered investment advisor managing $9.9 billion in assets as of December 2015.

Key findings of Gurtin's white paper, "The Hidden Risks of Retail Mutual Funds for RIA Clients," include: 

  • Retail investors' poor market timing leads to fund flows that negatively impact performance
  • Transaction costs associated with fund flows unfairly impact buy-and-hold investors
  • Risks and costs are amplified for municipal mutual funds

"Mutual fund investors would benefit from separately managed accounts and mutual funds accessible exclusively through RIAs, which protect investments from retail fund flows," said Bill Gurtin, CEO and CIO at Gurtin Fixed Income. "These alternatives offer protection through access to professional management without compromising managerial discretion to accommodate fund flows, as well as through carefully chosen co-investors whose investment behaviors more closely mirror patient institutional capital."

Gurtin's white paper, "The Hidden Risks of Retail Mutual Funds for RIA Clients," is available free of charge at: bit.ly/HiddenRisks.  

About Gurtin Fixed Income Management:

Based in San Diego and Chicago, Gurtin Fixed Income Management, LLC specializes in separately managed high grade municipal bond portfolios. Working with high and ultra-high net worth individuals and families, as well as many independent investment consulting firms and multi-family offices, Gurtin strives to build fixed income-related financial solutions that meet clients' unique needs.

For more information, visit www.gurtin.com or contact us at research@gurtin.com.

 

SOURCE Gurtin Fixed Income Management, LLC



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