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iShares Launches Short-Term TIPS Exchange Traded Fund
Builds on iShares' Strong Fixed Income Offerings, Which Have Received the Most Net Flows of Any ETF Family Year-to-Date
December 3, 2010-- BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, is launching the iShares Barclays 0-5 Year TIPS Bond Fund (NYSE Arca: STIP) on the NYSE Arca. The fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security (TIPS) curve through TIPS with less than five years to maturity. The new fund is the only ETF that offers access to the very shortest end of the curve (zero to one year), and is intended to help investors seek protection against realized inflation, achieve additional portfolio diversification, or express a view on yields.
The new iShares Barclays 0-5 Year TIPS Bond Fund expands the iShares fixed income offering to 33 ETFs, which have seen a high level of interest in 2010 as investors seek income, a hedge against inflation and more precise fixed income exposure in the U.S. and internationally. According to FactSet, Bloomberg and BlackRock, iShares has the most fixed income ETFs and has received double the net flows into its fixed income offerings versus other ETF providers in 2010. iShares fixed income ETFs have brought in $14 billion this year, as of November 30th, and currently have a total of $93 billion under management.
"iShares has long been the fixed income ETF leader, and we have continued to see strong interest in our fixed income products this year, as investors look for protection from inflation and further diversification in their portfolios," said Matt Tucker, Head of Fixed Income Investment Strategy for iShares at BlackRock. "The new iShares Barclays 0-5 Year TIPS Bond Fund offers investors these same attributes along with a low sensitivity to interest rates. For example, a STIP investor would receive higher distributions if inflation increases over time, but would see less impact if interest rates rise than would an investor in a longer maturity TIPS fund."
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Source: BlackRock
Fee Rate Advisory #3 for Fiscal Year 2011
December 3, 2010--The President and Congress are expected to extend the continuing resolution funding the Securities and Exchange Commission through Dec. 18, 2010. During this period, fees paid under Section 6(b) of the Securities Act of 1933 and Sections 13(e), 14(g) and 31 of the Securities Exchange Act of 1934 will remain at their current rates.
As previously announced, 30 days after the date of enactment of the Commission’s regular fiscal year 2011 appropriation, the Section 31 fee rate applicable to securities transactions on the exchanges and in the over-the-counter markets will increase from their current rate of $16.90 per million dollars to a new rate of $19.20 per million dollars. The assessment on security futures transactions under Section 31(d) will remain unchanged at $0.0042 for each round turn transaction.
In addition, five days after the date of enactment of the Commission’s regular appropriation, the Section 6(b) fee rate applicable to the registration of securities, the Section 13(e) fee rate applicable to the repurchase of securities, and the Section 14(g) fee rate applicable to proxy solicitations and statements in corporate control transactions will increase from their current rate of $71.30 per million dollars to a new rate of $116.10 per million dollars.
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Source: SEC.gov
Standard & Poor’s Announces Changes in the S&P/TSX Canadian Indices
December 3, 2010--Standard & Poor’s Canadian Index Operations announces the following index changes:
The shareholders of Andean Resources Limited (TSX:AND) have approved the Merger Implementation Agreement whereby the company will merge with Goldcorp Inc. (TSX:G).
Assuming receipt of Australian court approval, expected on December 8, 2010, Andean Resources will be removed from the S&P/TSX Global Gold and Global Mining Indices. The relative weight of Goldcorp will increase in the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX 60, 60 Capped and Equity 60, the S&P/TSX Global Gold and Global Mining the S&P/TSX Capped Materials and the S&P/TSX MegaCap indices. There will be no change to Goldcorp in the S&P/TSX 60 Equal Weight or the S&P/TSX 60 130/30 indices. These changes will all be effective after the close of trading on Thursday, December 9, 2010.
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
Invesco PowerShares Lists Four Financial Sector ETFs Based on KBW Indexes on NYSE Arca
December 2, 2010--Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $50 billion in franchise assets, announced that four new ETF portfolios, based on Keefe, Bruyette & Woods, Inc. (KBW) indexes, began trading today on the NYSE Arca. The portfolios provide investors with access to the real estate investment trust (REIT), financial services, and property & casualty insurance market sectors. The portfolio names and ticker symbols are listed below.
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)
PowerShares KBW International Financial Portfolio (KBWX)
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)
“KBW is highly regarded for producing industry-leading research on the financial services sector," said Ben Fulton, Invesco PowerShares managing director of global ETFs. “We believe the breadth and depth of their global research provides a unique perspective and ability to deliver institutional-caliber indexing strategies for investors looking to access specific sub-sectors. We are very excited to partner with KBW to provide investors four compelling ETFs based on the KBW family of financial sector indexes.”
“KBW Indexes are designed to replicate specific industry and market segments, offering retail and institutional investors access to hard-to-reach financial sub-sectors both domestically and abroad,” said John Howard, co-head of research at KBW. “The launch of these new PowerShares KBW ETFs allows investors to access a broad array of financial sectors, while providing an effective hedge against risk associated with market volatility.”
The PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY) is based on the KBW Premium Yield Equity REIT Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States.
The PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) is based on the KBW Financial Sector Dividend Yield Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 publicly listed financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The Index may also include securities of business development companies (BDCs) and equity and mortgage REITs.
The PowerShares KBW International Financial Portfolio (KBWX) is based on the KBW Global ex-U.S. Financial Sector Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is currently comprised primarily of American Depository Receipts (ADRs). The Underlying Index is a modified market capitalization weighted index that seeks to reflect the performance of approximately 60 non-U.S. financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services.
The PowerShares KBW Property & Casualty Insurance Portfolio (KBWP) is based on the KBW Property & Casualty Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is a modified market capitalization weighted index that seeks to reflect the performance of approximately 24 property and casualty insurance companies.
KBW operates in the U.S., Europe and Asia through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and Keefe, Bruyette & Woods Asia Limited. It also offers asset management services through KBW Asset Management, Inc. Founded in 1962, the firm is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading for financial services companies.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $50 billion as of Sept. 30, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
Source: Invesco PowerShares
BNY Mellon ADR Index Monthly Performance Review is Now Available
December 2, 2010--The BNY Mellon ADR Index Monthly Performance Review is now available.
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Source: BNY Mellon
BM&FBOVESPA and BNDES launch the Carbon Efficient Index
Index presented today in São Paulo seeks to develop environmental management practices that emphasize climate change
December 2, 2010--BM&FBOVESPA and the BNDES launched on Thursday the Carbon Efficient Index (ICO2), which measures the return on a theoretical portfolio made up of those companies in the IBrX-50 index (constituted by the 50 most liquid shares on the Exchange) that adhered to the new initiative. The ICO2 index is calculated according to companies’ free float and their greenhouse gas (GHG) emissions coefficient.
In addition to the companies that are currently listed on IBr-X 50 and which joined ICO2, there were other firms considered that have highly liquid shares on the Exchange and the potential to join IBrX-50 at a later date. Of the 58 companies approached in all, 51 opted for voluntary adherence to the ICO2. The first portfolio, which comes into effect Thursday (December 2), will be made up of 42 companies.
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Source: BM&FBOVESPA
CME Group Volume Averaged 14.2 Million Contracts per Day in November 2010, Up 31 Percent, and Up 24 Percent Sequentially
December 2, 2010--Highest monthly average daily volume since September 2008, excluding May 2010
Record agricultural commodities average daily volume of 1.3 million contracts, up 47 percent
Record metals average daily volume of 500,000 contracts, up 34 percent
CME Group, the world's leading and most diverse derivatives marketplace, today announced that November volume averaged 14.2 million contracts per day, up 31 percent from November 2009, and up 24 percent compared with October 2010. November represents the highest monthly average daily volume since September 2008, outside of the 16.8 million contracts averaged in May 2010.
Total volume for November was 297 million contracts, of which 83 percent was traded electronically.
In November 2010, CME Group interest rate volume averaged 7.0 million contracts per day, up 46 percent compared with the prior November, and up 48 percent sequentially. Treasury futures volume averaged 3.0 million contracts per day, up 37 percent compared with the same period in 2009, and Treasury options volume averaged 444,000 contracts per day, up 106 percent. Eurodollar futures volume averaged 2.6 million contracts per day, up 61 percent versus November 2009, and Eurodollar options volume averaged 838,000 contracts per day, up 24 percent.
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Source: CME Group
Direxion files with the SEC
December 2, 2010--Direxion has filed a post effective amendment, registraion statement with the SEC.
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Source: SEC.gov
Crisis-Hit Banks Flooded Fed with Junk
December 2, 2010--Banks flooded the Federal Reserve with billions of dollars in “junk bonds” and other low-grade collateral in exchange for much-needed liquidity during the crisis, as the financial sector struggled under a crippling credit crunch, new data show.
More than 36 percent of the cumulative collateral pledged to the US central bank in return for overnight funding under the Primary Dealer Credit Facility was equities or bonds ranked below investment grade. A further 17 percent was unrated credit or loans, according to a Financial Times analysis of Fed data released this week.
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Source: CNBC.com
Lessons in a $3,300bn surprise from the Fed
December 2, 2010--When the US Congress passed the monstrously large Dodd-Frank financial reform bill last summer, it was clear that surprises were lurking in those 2,300 pages. This week one has cropped up.
Federal Reserve released the details of the liquidity measures and loans it extended during the financial crisis, totalling an eye-popping $3,300bn. Previously, the Fed fiercely resisted publishing this. And it is easy to see why: this release names individual institutions in a potentially embarrassing way – and shows that the Fed has supported foreign banks, ranging from Barclays Capital to Dexia, to a striking degree.
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Source: FT.com
