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NYSE Euronext Upgrades Intellidex Series Of Indexes
April 15, 2011--NYSE Euronext today announced the release date for its updated Intellidex series of indexes that will be effective at the open of trading on June 2, 2011.
The Intellidex indexes were developed by NYSE Euronext and leverages the company’s operational and listed product expertise to implement a uniquely focused, quantitatively-based methodology. Designed to offer investors a series of indexes with a comprehensive range of fundamental and quantitative characteristics, the Intellidex products have been enhanced to offer an even greater depth and refinement of various key weights and factors that enable investors to choose among and execute a wide range of sophisticated strategies,
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Source: NYSE Euronext
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
April 15, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, April 15, 2011:
Kria Resources Ltd. (TSXVN:KIA) will be removed from the index.
The shares of the company have been acquired by Trevali Resources Corp. (TSX:TV) through a Plan of Arrangement.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poors
Canadian Securities Regulators Update Registration Regime for Registrants
April 15, 2011-- The Canadian Securities Administrators (CSA) announced today that they have updated the regulatory framework for firms and individuals who deal in securities, provide investment advice or manage investment funds.
The revised framework adds timely amendments to the CSA’s comprehensive 2009 registration reform initiative, which modernized the existing registration rules into a harmonized regime for the CSA and Self Regulatory Organizations.
“These amendments are the result of our continuing dialogue with market participants and regulators to address questions and concerns that have arisen in the course of working with the National Registration Rules,” said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission. “We believe these amendments will improve the day-to-day operation of the Instrument for both industry and regulators.”
Columbia Management To Enter Active ETF Market
April 15, 2011--Columbia Management Investment Advisers, LLC, today announced an agreement to acquire Grail Advisors, LLC, a registered investment adviser that offers actively managed exchange-traded funds (ETFs). The deal will provide Columbia Management with active ETF capabilities, adding to its broad product line-up. Active ETFs combine the potential benefits of traditional ETF investing with active portfolio management.
The transaction is expected to close in May. Terms are not disclosed.
“This jump starts our entrance into active ETFs,” said Colin Moore, chief investment officer of Columbia Management. “It will enhance our already deep product line-up and allow us to reach even more investors with our broad investment management capabilities. We intend to utilize this acquisition to build an extensive offering of actively managed ETFs over time.”
“As a leading asset manager, we work with a broad array of valued distribution partners, and we look forward to working with these firms to grow the actively managed ETF market, which can benefit them and their clients,” said Mike Jones, president of Columbia Management. “We offer a wide range of product solutions that is strengthened by the addition of active ETFs.”
Source: Columbia Management:
ProShares Launches First ETFs Providing Magnified Exposure to the High Yield and Investment Grade Corporate Bond Markets
April 14, 2011--ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first ETFs that provide magnified exposure to the high yield and investment grade corporate bond markets.
ProShares Ultra High Yield (NYSE: UJB) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid High Yield Index, before fees and expenses. ProShares Ultra Investment Grade Corporate (NYSE: IGU) seeks to provide 2x the daily performance of the Markit iBoxx® $ Liquid Investment Grade Index, before fees and expenses. Both ETFs list on NYSE Arca today.
“On the heels of launching the first inverse ETFs on the high yield and investment grade corporate bond markets, we are pleased to offer the first leveraged ETFs on these segments of the fixed income landscape,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. “With today’s launch, knowledgeable investors now have an even larger suite of geared ETFs to help manage their exposures to high yield and investment grade corporate bonds.”
ProShares launched the first inverse high yield bond ETF, ProShares Short High Yield (NYSE: SJB), and the first inverse investment grade corporate bond ETF in the United States, ProShares Short Investment Grade Corporate (NYSE: IGS), in the past month.
| ProShares | Ticker Symbol | Index | Daily Objective* | ||||||||
| New Leveraged High Yield and Investment Grade Corporate Bond ETFs | |||||||||||
| Ultra High Yield | UJB |
Markit iBoxx® $ |
2x | ||||||||
|
Ultra Investment |
IGU |
Markit iBoxx® $ |
2x | ||||||||
|
Existing Inverse High Yield and Investment Grade Corporate Bond ETFs |
|||||||||||
| Short High Yield | SJB |
Markit iBoxx® $ |
-1x | ||||||||
|
Short Investment |
IGS |
Markit iBoxx® $ |
-1x | ||||||||
|
* Before fees and expenses |
|||||||||||
Source: ProShares
State Street Global Advisors Introduces High Yield Municipal Bond SPDR® Exchange Traded Fund
April 14, 2011--State Street Global Advisors (SSgA), the asset management business of State Street Corporation (NYSE: STT), today announced that the SPDR Nuveen S&P High Yield Municipal Bond Exchange Traded Fund (ETF) (Symbol: HYMB) began trading on the NYSE Arca on April 14, 2011. Its annual expense ratio is 0.45 percent.
Developed by State Street Global Advisors and Nuveen Asset Management, a recognized leader in the municipal bond market, the SPDR Nuveen S&P High Yield Municipal Bond ETF is designed to provide investors with cost effective access to high yield municipal bonds, an asset class offering attractive after tax yields.
“In combining the advantages of federal tax free income with competitive, risk-adjusted returns, the potential benefits of high yield municipal bonds are attracting a growing number of sophisticated financial advisors and investors,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “The addition of the SPDR Nuveen S&P High Yield Municipal Bond ETF strengthens our family of municipal bond ETFs, which now features seven SPDR Nuveen ETFs with more than $2.2** billion in assets.”
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Source: The Street
Van Eck Launches Russia Small-Cap ETF (RSXJ)
First U.S.-based ETF to offer access to Russia’s small-cap sector;
Complements firm’s large-cap offering, Market Vectors Russia ETF
April 14, 2011--New York-based asset manager Van Eck Global has launched Market Vectors Russia Small-Cap ETF (NYSE Arca: RSXJ), the first U.S.-based exchange-traded fund (ETF) designed to give investors pure-play exposure to the developing local Russian economy as measured by the country’s small-capitalization companies.
Russia is currently among the least expensive of the major emerging markets from a valuation perspective. Russia’s stock market price/earnings ratio is just 6.6 times†, which represents a significant discount versus emerging markets stocks in general‡. Recently, its economy has been boosted by strong commodity prices, with Gross Domestic Product (GDP) expected to expand by 4.3 percent in 2011. Before today’s launch of RSXJ, U.S.-listed Russia ETFs had focused primarily on large-cap companies; companies in the underlying index for the Market Vectors Russia ETF (NYSE Arca: RSX), for example, have an average market capitalization of $20.3 billion. Companies included in these large-cap focused indexes are generally global enterprises with significant exposure to sectors of the economy deemed strategic by the Russian government, particularly energy. This may make large-cap Russia exposure appealing as a commodity or energy component of a portfolio, but leaves the domestic Russian consumer story largely untouched.
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Source: Van Eck
Schwab files with the SEC
April 14, 2011--Schwab has filed a post-effective amendment, registration statement with the SEC for Schwab U.S. Aggregate Bond ETF (SCHZ).
view filing
Source: SEC.gov
Russell, U.S. One Trust files with the SEC
April 14, 2011-Russell, U.S. One Trust has filed a fifth amended and restated application for exemptive relief with the SEC.
view filing
Source: SEC.gov
U.S. Mortgage Markets: What If Rates Rise?-Fitch Ratings Report,
April 14, 2011--Summary
U.S. residential mortgages are experiencing a transformation in risk profile. Although credit
problems continue to impair outstanding mortgages originated from 2005 to 2008, Fitch Ratings believes that strengthening underwriting standards (e.g. lower loan-to-value [LTV] ratios, higher quality borrowers, and simpler features) will mitigate credit risk on new originations.
However, a potentially significant risk on the horizon is the prospect of rising interest rates. Indeed, prior
to the financial crisis, interest rate risk was traditionally perceived as the dominant form of risk facing mortgage market participants.
With U.S. government debt at record levels and 10-year Treasury yields already starting to increase from their generational lows, interest rates may rise over the next several years. Rising rates pose risks to both mortgage lenders and investors in mortgage-backed securities (MBS), who over the past 20 years have benefited from a falling rate environment.
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Source: Fitch Ratings
