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Feb 3, 2006 2:37 pm

The Wall Street Journal reported today that Merrill Lynch & Co. will abandon the Merrill Lynch brand name for its mutual funds, replacing it with "Princeton Portfolio Research & Management." Merrill Lynch Investment Management is based in Princeton, New Jersey.


The following was posted on DFA's web site.


Considering the academic rigor associated with the new name, we were surprised to discover that among 308 Merrill Lynch mutual funds appearing in the Morningstar database, not one was categorized as Small Value—the sector characterized by the highest returns and highest risk. Unsurprisingly, despite "performance improvement" over the past five years cited by the article, no Merrill Lynch diversified US equity fund for the five-year period ending December 31, 2005 managed to outperform some asset class strategies seeking small cap value market rates of return.


End of quote.



Wire house's need to sell there proprietary funds because of the huge profit margin envolved. So I can see why they would want to take there name of of it. Investors are learning to stay away from the likes of any wire house product!  


Plus it is a great way to unload the crappy stock or bonds  they underwrite. After all would you want to hold some of that crap, and if they cannot get there rookie reps to push it. It has to go some where!        

Feb 3, 2006 7:08 pm
Greenbacks:

Wire house's need to sell there proprietary funds because of the huge profit margin envolved. So I can see why they would want to take there name of of it. Investors are learning to stay away from the likes of any wire house product!  


Once again you prove you don't know much about wirehouse products. The reps don't get a penny more to sell them, the firm collects the management fee that any mutual fund would charge.


I assumed ML changed the name so that they could sell their fund through other outlets as MS sells Van Kampen. BoA just did the same thing to their funds.

Feb 3, 2006 9:55 pm

"I assumed ML changed the name so that they could sell their fund through other outlets as MS sells Van Kampen. BoA just did the same thing to their funds."


BINGO....  As for ML , I was actually surprised that there hasnt been more pressure or 'encouragement' to sell MLIM funds... I cam from a firm where everything was expected to be prop, so I guess I was prepared for an all out blitz by Merrill wholesalers.... Happily, I can say that I have NEVER been encouraged to sell anything at ML over another..... All in all, thats a postivie...

Feb 4, 2006 12:47 am

Mike, just out of curiousity....do you now work for a wirehouse or have you in the past, and if so, for how long?

Feb 4, 2006 8:51 am
Philo Kvetch:

Mike, just out of curiousity....do you now work for a wirehouse or have you in the past, and if so, for how long?


I can't wait to hear the answer to this one...

Feb 4, 2006 9:11 am

Greenbacks,


I have several arguments to make:


1.   Why is small cap value the riskiest asset class?  I disagree, I would say amongst the nine traditional assset classes small ap growth would be the riskiest and if you want I can give data to support that opinion.  Small cap value has outperformed, but value has outperformed growth across the board in the last 5 years.


2.  Who cares if the funds outperformed or did not outperform.  On a risk adjusted basis are the funds even designed to outperform.  Maybe, maybe not look at American funds there funds are designed to underperform the market and their consistency has proved to be a succesful marketing blitz.


3. DFA is a cult shop. I'm not impressed.

Feb 6, 2006 12:10 am
Philo Kvetch:

Mike, just out of curiousity....do you now work for a wirehouse or have you in the past, and if so, for how long?


Yes I have, and for a while.


Now, will you be reverting to your habit of making baseless assertions and then going silent when challenged on them?



BTW, I haven't decided which screen name I like better on you, this one, or the one you use to talk to yourself. Perhaps we could have a poll on the subject....