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CIBC Mellon Appointed to Provide Asset Servicing for TSX-listed PowerShares ETFs
July 13, 2011--CIBC Mellon has been selected to provide a suite of asset servicing solutions for Invesco's recently-launched TSX-listed PowerShares exchange-traded funds (ETFs).
CIBC Mellon will deliver custody and fund administration services for PowerShares ETFs, with BNY Mellon providing performance and risk analytics.
"CIBC Mellon's exceptional solution for ETF servicing in Canada, their strong custody and fund administration services, and their dedication to client service led us to appoint CIBC Mellon as the asset servicing provider for our TSX-listed PowerShares ETFs," said Peter Intraligi, president and chief operating officer of Invesco's operations in Canada.
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Source: CIBC MELLON
Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through June 2011
July 13, 2011--Morningstar, Inc., a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund asset flows through June 2011. Long-term mutual fund flows turned negative in June for the first time since December 2010, losing $4.5 billion after May inflows of $22.6 billion.
Risk-aversion reigned as investors pulled about $18.0 billion from U.S.-stock funds in June to mark the worst monthly outflow for the asset class since the peak of the credit crisis in October 2008. Investors lost their taste for credit risk, too, as they withdrew a net $6.3 billion from high-yield funds. U.S. ETFs saw inflows of $9.8 billion in June after outflows of $3.1 billion in May. Total U.S. ETF industry assets are up about 38 percent over the trailing 12 months.
Additional highlights from Morningstar's report on ETF flows:
U.S.-stock ETFs had inflows of $3.3 billion in June to top all ETF asset classes. U.S.-stock ETFs experienced the second-largest ETF asset class-level outflow of $2.7 billion last month, second only to commodities ETFs.
Investors added $2.4 billion to international-stock ETFs in June. Flows have changed direction almost monthly for this asset class, which saw outflows of $1.1 billion in May.
Commodities ETFs realized the largest monthly outflow of any ETF asset class for the second consecutive month. With redemptions of $892 million, commodities ETFs were also the only ETF asset class with outflows in June.
For the past four months, taxable-bond ETFs had contributed meaningfully to net U.S. ETF flows. The asset class saw inflows of $3.1 billion in June, its second-highest monthly inflow in the last 12 months.
view the July 2011
Morningstar DirectSM Fund Flows Update
OURCE Morningstar, Inc
IndexIQ Launches the First Exchange-Traded Fund Focused on Emerging Market Mid Cap Stocks (EMER)
IQ Emerging Markets Mid Cap ETF (nyse arca:EMER) allows ETF investors to isolate pure-play Emerging Market mid-cap exposure for the first time ever
July 13, 2011--IndexIQ, a leader in developing index-based commodity, international, and liquid alternative investment solutions, is launching the IQ Emerging Markets Mid Cap ETF (ticker:EMER) on the NYSE Arca platform this morning, it was announced today.
EMER is the first Exchange-Traded Fund (ETF) dedicated to providing access to mid-cap Emerging Market equities and will do so via a "pure play" approach, meaning that all of the equities included in the fund's underlying index will be listed on an exchange in a less developed market in the Americas, Europe, Asia, Africa and the Middle East.
The fund will be diversified across both Emerging Market countries and industry sectors. As of May 31, 2011, the fund's underlying index contained exposures to Consumer Discretionary (18.69 percent), Financials (18.10 percent), Industrials (15.88 percent), Materials (13.28 percent), Technology (9.15 percent) and more.
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Source: IndexIQ
Van Eck Global Introduces CEF Municipal Income ETF
First ETF of closed-end municipal bond funds will allow investors to access the largest corner of the closed-end fund universe in a liquid, transparent way
July 13, 2011--New York-based asset manager Van Eck Global announced today that it has launched Market Vectors CEF Municipal Income ETF (NYSE Arca: XMPT), the first exchange-traded fund (ETF) to specifically focus on closed-end municipal bond funds, which make up the largest component of the closed-end fund (CEF) universe.
XMPT is intended to track, before fees and expenses, the performance of the S-Network Municipal Bond Closed-End Fund Index℠ (CEFMX), an index composed of shares of municipal bond closed-end funds listed in the United States that are principally engaged in asset management processes designed to produce federally tax-exempt annual yield. The index had 88 constituents as of June 30, 2011, divided amongst four main sectors: leveraged municipal fixed-income CEFs (which made up 84.4 percent of the index’s constituents); unleveraged municipal fixed-income CEFs (8.85 percent); leveraged high-yield municipal fixed income CEFs (3.83 percent); and unleveraged high-yield municipal fixed-income CEFs (2.92 percent). The index methodology assigns a greater weight to closed-end funds trading at discounts, potentially enhancing yield and providing the opportunity for capital appreciation.
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Source: Van Eck
Precidian Intoduces the Maxis Nikkei 225 Index Fund
July 13, 2011--Precidian Funds is proud to offerthe first Nikkei 225 based ETF in the United States. Calculated continuously since 1950 the Nikkei 225 is the premier index representing every major sector of the Japanese economy.
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Source: Precidian Funds
BM&FBOVESPA Announces Market Makers For Options On The Stocks Of OGX And Itaú Unibanco
July 13, 2011--BM&FBOVESPA announced on Tuesday the winning institutions in the first selection process for market makers for options on stocks. The market maker obligation shall last twelve (12) months as of September 12, 2011.
Banco BTG Pactual S.A., Credit Suisse International and Timber Hill LLC shall be market makers for options on the stocks of OGX Petróleo e Gás Participações S.A. (OGXP3), complying with a maximum volatility spread of three percent (3%).
In the case of the options on the stocks of Itaú Unibanco Holding S.A. (ITUB4), the winning institutions were Citigroup Global Markets Limited, Credit Suisse International and Timber Hill LLC, which as market makers shall respect a maximum volatility spread of five percent (5%).
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Source: BM&FBOVESPA
SEC Issues Order Raising Performance Fee Rule Dollar Limit to Adjust for Inflation
July 13, 2011--The Securities and Exchange Commission today issued an order that raises, to adjust for inflation, two of the thresholds that determine whether an investment adviser can charge its clients performance fees. The order carries out a requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Rule 205-3 under the Investment Advisers Act allows an investment adviser to charge a client performance fees if the client meets certain criteria, including two tests that have dollar amount thresholds. Under today’s order, an investment adviser will be able to charge performance fees if the client has at least $1 million under the management of the adviser, or if the client has a net worth of more than $2 million. Either of these tests must be met at the time of entering into the advisory contract. The previous thresholds were $750,000 and $1.5 million respectively, and were last revised in 1998.
The Dodd-Frank Act requires that the Commission issue an order to adjust for inflation these dollar amount thresholds by July 21, 2011 and every five years thereafter. The Commission published a notice of its intent to issue the order on May 10, 2011. The Commission also proposed amendments to rule 205-3, which are currently under consideration.
The order will be effective on September 19, 2011, which will be approximately 60 days after its publication in the Federal Register.
view the Order Approving Adjustment for Inflation of the Dollar Amount Tests in Rule 205-3 under the Investment Advisers Act of 1940
Source: SEC.gov
ETSpreads, LLC files with the SEC
July 13, 2011--ETSpreads, LLC has filed an application for exemptive relief with the SEC.
view filing
Source: SEC.gov
Moody’s places US rating on review
July 13, 2011--The US may lose its triple A credit rating, after Moody’s warned that the political deadlock over raising the country’s debt ceiling could lead to a downgrade.
Moody’s on Wednesday placed the US rating on watch for a possible downgrade, pending a decision in Washington on raising the $14.300bn debt ceiling. Failure to do so by August 2 could result in the US Treasury missing a debt payment.
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Source: FT.com
CFTC to Hold Open Meeting to Consider Four Final Rule Proposals and One Proposed Rule under the Dodd-Frank Act
July 13, 2011--The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Tuesday, July 19, 2011, at 9:30 a.m. to consider four final rules and one proposed rule under the Dodd-Frank Wall Street Reform and Consumer Protection Act on the following topics:
Consideration of Proposed Rule on Customer Clearing Documentation, Timing of Acceptance for Clearing and Clearing Member Risk Management;
Consideration of Final Rule on Process for Review of Swaps for Mandatory Clearing;
Consideration of Final Rule on Part 40, Provisions Common to Registered Entities;
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Source: CFTC.gov
