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Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
September 17, 2010--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, September 17, 2010:
Asia Bio-Chem Group Corp. (TSXVN:ABC) will be removed from the index.
The company will graduate to trade on TSX under the same ticker symbol.
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
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
September 17, 2010--Standard & Poor's Canadian Index Operations announces the following index changes:
The shareholders of Red Back Mining Inc. (TSX:RBI) and Kinross Gold Corporation (TSX:K) have approved the Plan of Arrangement whereby the companies will merge. Shareholders of Red Back Mining will receive 1.778 common shares of Kinross Gold and 0.11 of a Kinross warrant for each common share held.
Red Back Mining will be removed from the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX Completion and Equity Completion, the S&P/TSX Global Gold and Global Mining and the S&P/TSX Capped Materials Indices. The relative weight of Kinross Gold 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 and the S&P/TSX Capped Materials indices. There will be no change to Kinross 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 Tuesday, September 21, 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
Standard & Poor's Announces Changes In The S&P/TSX Canadian Indices
September 16, 2010--The unitholders of Boralex Power Income Fund (TSX:BPT.UN) have accepted the takeover offer from Boralex Inc. (TSX:BLX).
Boralex Power Income Fund will be removed from the S&P/TSX Clean Technology Index effective after the close on Friday, September 24, 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
Concerned by Changes to the Tax Rules on Income Trusts? BlackRock Canada has a Solution: The New iShares(R) Diversified Monthly Income Fund
September 16, 2010--BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc., today announced that the iShares Exchange-Traded Funds (ETFs) business, the world's largest provider of ETFs, can now provide investors looking for a consistent monthly income stream, along with full liquidity and the potential for modest long-term capital growth with an appealing-and tax-friendlier-option: the iShares Diversified Monthly Income Fund, trading on the TSX under the symbol XTR.
Managed by BlackRock Canada, XTR offers all the benefits that investors have come to expect from iShares ETFs, including reasonable management fees, full intra-day tradability, and the power of the iShares ETFs' unique and trusted product engineering.
XTR replaces the former iShares S&P®/TSX® Income Trust Fund, which traded under the same symbol. The conversion, approved by a special meeting of unitholders on August 23, 2010, is designed to provide maximum investor benefit in advance of changes to the federal tax regulations governing income trusts that will come into effect in January 2011.
"The goal here is to ensure investors continue to receive a reliable monthly income stream while still enjoying the benefits they've come to associate with iShares ETFs," said Oliver McMahon, director of product management for iShares ETFs at BlackRock Canada. "The new XTR is an income product that has the ETF's inherent advantages, including diversification, transparency, low costs, tax efficiency and the ability to use value-adding trading strategies, such as limit and stop orders."
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Source: BlackRock
US. Treasury International Capital Data for Juy
September 16, 2010--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for July 2010. The next release, which will report on data for August 2010, is scheduled for October 18, 2010.
Net foreign purchases of long-term securities were $61.2 billion.
Net foreign purchases of long-term U.S. securities were $73.8 billion. Of this, net purchases by private foreign investors were $69.0 billion, and net purchases by foreign official institutions were $4.8 billion.
U.S. residents purchased a net $12.6 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $44.0 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $40.1 billion. Foreign holdings of Treasury bills increased $26.6 billion.
Banks' own net dollar-denominated liabilities to foreign residents decreased $20.4 billion.
Monthly net TIC flows were $63.7 billion. Of this, net foreign private flows were $43.1 billion, and net foreign official flows were $20.6 billion.
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Source: U.S. Department of the Treasury
Javelin to Shutter Islamic Fund
New ETF Manager Finding More Success in Contrarian Strategy
September 16, 2010--Javelin Investment Management has announced that its JETS Dow Jones Islamic Market International Index Fund (NYSEArca:JVS - News) will cease trading on October 19, 2010. Launched on July 1, 2009, the fund failed to attract the level of investor interest that had been anticipated.
"With over seven million Muslims in the United States, we believe that Shariah-based investing has a promising future," says Javelin president and founder Brint Frith, "but we found it difficult to reach target investors through the marketing channels typically used by ETFs."
Marketing efforts for Javelin's second offering, JETS Contrarian Opportunities Index Fund, have proved more successful since its launch in April of this year. Trading under the symbol JCO, the fund consists of stocks that have been identified by Dow Jones as having underperformed in recent years while maintaining relatively strong fundamentals.
"The contrarian fund is gaining traction," says Frith, "and we are now developing similar funds that provide strategic solutions to challenging market conditions."
An investment in the JETS Dow Jones Islamic Market International Index Fund or in JETS Contrarian Opportunities Index Fund is subject to investment risk, including the possible loss of principal amount invested. The risks associated with these funds include stock market risk, index risk, tracking error risk, replication management risk, small and mid cap company risk, market price risk and trading halt risk.
JETS Dow Jones Islamic Market International Index Fund invests in companies whose principal activities are outside the United States. This creates the risk that currency fluctuations will impact the company's results. Trading on foreign markets often carries the risk that regulatory "circuit breakers" will interrupt trading. Trading practices vary around the world, as do sovereign risk and the possibility of war or civil disturbance. These risks can be more serious in the emerging markets.
Source: Javelin Investment Management
ETF Securities USA LLC Files with the SEC-18 Funds
September 16, 2010--ETF Securities USA LLC has filed a pre-effective amendment to Form S-1 with the SEC for
ETFS ex-U.S. Oil
ETFS Natural Gas
ETFS Copper
ETFS Wheat
ETFS Composite Agriculture
ETFS Composite Industrial Metals
ETFS Composite Energy
ETFS All Commodities
ETFS Short ex-U.S. Oil
ETFS Short Natural Gas
ETFS Short Copper
ETFS Short Wheat
ETFS Short Gold
ETFS Leveraged ex-U.S. Oil
ETFS Leveraged Natural Gas
ETFS Leveraged Copper
ETFS Leveraged Wheat
ETFS Leveraged Gold
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Source: SEC.gov
iShares files with the SEC
September 16, 2010--iShares has filed a post-effective amendment, registration statement with the SEC for
iShares Barclays 0-5 Year TIPS Bond Fund.
view filing
Source: SEC.gov
China's Currency Policies and the U.S.-China Economic Relationship-Testimony of Treasury Secretary Timothy F. Geithner
Before the Senate Banking, Housing, and Urban Affairs and House Ways and Means Committees
September 16, 2010--Chairman Dodd, Ranking Member Shelby, Members of the Committee, thank you for the opportunity to testify on Treasury's semiannual Report to Congress on International Economic and Exchange Rate Policies, and in particular on China.
I want to focus today on the importance of the U.S.-China economic relationship and the challenges that we must overcome in order to secure the full benefit of this relationship for the American people.
We have very significant economic interests in our relationship with China. With over 1.3 billion people and an economy continuing to grow at or near double-digit rates, China is our fastest-growing major overseas market. China's record of bringing hundreds of millions out of poverty, building a rapidly growing middle class, and now its efforts to encourage growth led by domestic demand, ultimately mean more demand for American goods and services. Increasing opportunities for U.S. firms and workers through expanded trade and investment with China will be an important part of the success of the President's National Export Initiative and our efforts to support job growth more broadly.
U.S. exports to China have grown much faster than our exports to the rest of the world, and they have recovered much more quickly following the global crisis.
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Source: U.S. Department of the Treasury
DB Global Equity Index & ETF Research : US ETP Market Weekly Review
September 15, 2010-New Listings and Delistings
There were nine products listed over the previous week in NYSE Arca. Vanguard entered the battle for S&P-linked assets by launching 9 ETFs tracking the S&P 500, 400 and 600 indices in their blended and pure-style forms.
These products which offer the lowest TERs in each of their respective segments will compete directly with well established SPDRs and iShares funds, such as the SPY and IVV. However Vanguard is not new to this business (they manage the oldest index fund on the S&P 500 Index), therefore it will be interesting to watch the trends in flows, liquidity and assets among these funds as competition increases.
Net Cashflows
Total ETP inflows in the US added up to $2.6 bn during the previous week. Equity, Fixed Income, Commodity and Currency ETPs had inflows of $2.1 bn, $308 mm, $156 mm and $7 mm, respectively. No asset class experienced outflows.
Within Equity ETPs, Large Cap ETPs received the largest inflows ($2.5 bn) followed by Emerging Markets Regional ETPs, while Small Cap ETPs saw the largest outflows ($1.3 bn).
The Fixed Income ETPs inflows were led by Corporates ETPs ($449 mm), while Sovereign ETPs experienced the largest outflows ($256 mm).
Commodity ETPs’ flows were relatively insignificant with Natural Gas ETPs leading the inflows with $85 mm.
Turnover
Driven mainly by a decrease in Equity ETPs turnover, Avg. Daily Turnover decreased by 2.4% and totaled $59 bn at the end of the week.
Assets Under Management (AUM)
US ETPs AUM remained almost flat, recording a shy 0.6% increase almost mirroring the market performance as measured by the S&P 500 index (0.46%), totaling $842 bn at the end of the week.
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Source: Deutsche Bank Global Equity Index & ETF Research
