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Gross Returns to Form as Flagship ETF Doubles
July 18, 2012--Pimco has doubled the size of its flagship exchange traded fund in less than two months, hitting $2 billion in assets as performance of the Total Return Fund ETF outpaces the far larger mutual fund on which it is based.
Rapid growth for the ETF, which was launched on March 1 – a widely watched experiment in active management in a market built on passive index following – reflects continued investor preference for bond funds over equities.
iShares launches CPD webinar course for financial advisers
July 18, 2012-- iShares, the Exchange Traded Funds (ETF) platform of BlackRock, Inc. (NYSE: BLK) has launched an accredited continuous professional development (CPD) webinar course, to help advisers increase and formalise their knowledge of ETFs ahead of the implementation of the Retail Distribution Review (RDR).
iShares' CPD course will support advisers in filling qualification gaps and consists of three 30 minute modules, available within the Adviser ETF resources microsite at uk.ishares.com. The first module provides an overview about ETFs and their relevance for financial advisers. Subsequent modules provide information on the different types of ETF structures on the market, how to select the right ETF and incorporating them within a portfolio. They have been accredited by both the Institute of Financial Planning and the Chartered Insurance Institute, with advisers earning 0.5 CPD hours and 20 CPD credits for undertaking each module.
ETRACS Adds Alerian MLP Index ETN to Its Suite of MLP-Related ETNs
July 18, 2012--UBS announced that today is the first day of trading on the NYSE Arca for the ETRACS Alerian MLP Index ETN (NYSE: AMU) linked to the Alerian MLP Index (the "Index").
The ETRACS Alerian MLP Index ETN (the"ETN") offers investors:
Access to the popular Alerian MLP Index (NYSE: AMZ).
Exposure to a portfolio of 50 energy Master Limited Partnerships (“MLPs”) through a single, exchange-traded security.
Income potential in the form of a variable quarterly coupon linked to the cash distributions, if any, on the MLPs in the Index, less investor fees.1
Straightforward tax administration, as the coupons associated with the ETN are reported as ordinary income on Form 1099, therefore eliminating the administrative burden associated with K-1 tax forms.2
BlackRock plans to counter ETF competition
July 18, 2012--BlackRock plans to step up its response to the aggressive price competition of Vanguard in the US exchange traded funds market.
Speaking at the second quarter results presentation on Wednesday, Larry Fink, chief executive of the world’s largest fund manager, acknowledged that Vanguard had won market share in some “core” US listed equity ETFs due to its aggressive price competition.
Beige Book -Summary of Commentary on Current Economic Conditions by Federal Reserve District
July 18, 2012--Prepared at the Federal Reserve Bank of Atlanta and based on information collected before July 9, 2012. This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.
Reports from most of the twelve Federal Reserve Districts indicated that overall economic activity continued to expand at a modest to moderate pace in June and early July. The Atlanta, St. Louis, and San Francisco Districts reported modest growth, while Boston, Chicago, Minneapolis, Kansas City, and Dallas described economic activity as advancing moderately. The New York, Philadelphia, and Cleveland Districts noted that activity continued to expand, but at a slower pace since the last report, while Richmond cited mixed activity.
CFTC's Division of Market Oversight Issues Temporary No-Action Relief to Non-Clearing Swap Dealers to Comply with Large Trader Reporting Requirements for Physical Commodity Swaps and Swaptions
July 18, 2012--Swap Dealers that are Not Clearing Members Must be Fully Compliant with the Commission's Reporting Requirements no later than 60 Days after the Commission's Deadline for Entities to Apply to be Registered as Swap Dealers
July 18, 2012--The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight (DMO) today announced the issuance of temporary no-action relief for reporting by non-clearing member swap dealers under the CFTC's large trader reporting requirements for physical commodity swaps and swaptions.
This temporary relief is intended to provide sufficient time for non-clearing member swap dealers to transition to fully compliant reporting by 60 days after the Commission’s deadline for entities to apply to register as swap dealers. Any party relying on this relief must state that it is doing so in an e-mail to DMO: submissions@cftc.gov or SwapsLTR@cftc.gov, no later than the swap dealer registration application date.
GENCAP Ventures, LLC Purchases Factor Advisors, LLC
July 17, 2012--GENCAP Ventures, LLC has purchased Factor Advisors, LLC, a provider of SEC 1933 act listed Exchange-traded funds. There are currently five spread trade commodity funds listed on the NYSE under the tickers FSA, FSG, FSE, FSU and FOL. Further, the firm is a registered Commodity Pool Operator (CPO), which gives it the ability to offer a broad range of futures based products.
GENCAP will offer white label exchange-traded products for clients interested in entering this large and important segment of the asset management market. Recently hired CEO, Sam Masucci said: "We are excited about the acquisition of Factor's 1933 act ETF funds. GENCAP will lead the marketplace by offering a comprehensive ETF development and management platform for its clients. We have already received significant interest from clients wishing to bring SEC 1933 act and 1940 act ETF funds to market on our platform. Ultimately GENCAP will offer the broadest range of ETF products and services in the asset management and indexing marketplace."
State Street to Acquire Goldman Sachs Administration Services
Acquisition Expected to Make State Street Leading Hedge Fund Administrator Globally
July 17, 2012--State Street Corporation, one of the world's leading providers of financial services to institutional investors, announced today that it has agreed to acquire Goldman Sachs Administration Services (GSAS), a leading hedge fund administrator, from The Goldman Sachs Group, Inc. in a cash transaction with a total purchase price of $550 million, subject to certain adjustments.
Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalized early in the fourth quarter of 2012. State Street expects the transaction to be accretive in the first full year of operation on a cash basis. Through dedicated teams globally, State Street provides a comprehensive suite of middle office, fund administration, risk analytics and credit services to hedge funds, private equity funds, real estate funds and institutional investors. State Street's Alternative Investment Solutions (AIS) team has more than 3,000 employees in multiple offices around the world.
Market Vectors Launches Preferred Securities ex Financials ETF (PFXF)
50th ETF in Market Vectors family; seeks to offer income potential of preferred securities without the volatility of financials
July 17, 2012--Market Vectors ETF Trust announced today that it has launched Market Vectors Preferred Securities ex Financials ETF (NYSE Arca: PFXF), which is designed to offer investors access to the income potential of preferred securities without the volatility of financials.
Among preferred securities-focused ETFs listed in the U.S., PFXF has the lowest published net expense ratio at the time of launch1.
PFXF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Wells Fargo® Hybrid and Preferred Securities ex Financials Index (Ticker: WHPSL), a rules-based index intended to track the overall performance of publicly traded non-financial preferred securities, including securities that, in Wells Fargo Securities LLC’s judgment, are functionally equivalent to preferred securities such as convertible securities, depository preferred securities and perpetual subordinated debt. Top industries in the index as of June 30, 2012 included REITs, electric, auto manufacturers and telecommunications. The index excludes financials, such as broker-dealers, banks, futures commission merchants, investment advisers and insurance companies.
BNY Mellon ADR Index Monthly Performance Review is Now Available-
July 17, 2012--The BNY Mellon ADR Index Monthly Performance Review June 2012 is now available.
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Global X Funds Launches SuperIncome Preferred ETF (SPFF)
Firm adds to suite of income-generating funds
July 17, 2012--Global X Funds, the New York-based provider of exchange- traded funds (ETFs), today launched the Global X SuperIncome Preferred ETF (Ticker: SPFF).
SPFF is designed to track 50 of the highest yielding preferred securities in North America.
For investors seeking income, preferred shares are an asset class worth considering due to their unique combination of bond and equity characteristics. Like bonds, preferred shares generally pay stable dividends with more frequent distributions than common shares. Like equity, preferred shares trade on an exchange and have the potential to appreciate in value, offering additional income growth potential for investors. In addition, preferred shareholders have priority over common shareholders with regard to claims on company earnings and assets - this may provide downside protection if a company is forced to liquidate its assets. By screening for the highest yielding preferred securities and paying monthly dividends, SPFF allows investors to diversify their income streams and potentially increase the yield of their overall portfolio.
State Street Buys Goldman Sachs Unit as Revenue
July 17, 2012--State Street Corp. (STT), the third- largest custody bank, agreed to buy the hedge-fund administration unit of Goldman Sachs Group Inc. (GS) to boost growth as second-quarter revenue
fell amid declining global markets and record-low interest rates.
State Street agreed to pay $550 million in cash for the Goldman Sachs unit to become the world’s largest servicer of alternative assets such as hedge funds, the Boston-based company said today.
State Street fell as much as 5.6 percent in New York, the most in seven months, as declining assets and fees spurred a 1.9 percent drop in revenue to $2.43 billion.
Treasury International Capital Data for May
July 17, 2012--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for May 2012. The next release, which will report on data for June 2012, is scheduled for August 15, 2012.
The sum total in May of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $101.7 billion.
Of this, net foreign private inflows were $60.3 billion, and net foreign official inflows were $41.4 billion.
Foreign residents increased their holdings of long-term U.S. securities in May – net purchases were $50.1 billion. Net purchases by private foreign investors were $19.9 billion, and net purchases by foreign official institutions were $30.2 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $4.9 billion.
Chairman Ben S. Bernanke Semiannual Monetary Policy Report to the Congress
U.S. Senate, Washington, D.C.
July 17, 2012-Chairman Bernanke presented identical remarks before the Committee on Financial Services, U.S. House of Representatives on July 18, 2012
Chairman Johnson, Ranking Member Shelby, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress. I will begin with a discussion of current economic conditions and the outlook before turning to monetary policy.
The Economic Outlook
The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 percent in the second half of 2011, real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2012, and available indicators point to a still-smaller gain in the second quarter.
view the Semiannual Monetary Policy Report to the Congress
Vanguard strikes back against ..Bogle?
A new study refutes founder's concerns that exchange-traded funds encourage excessive trading
July 17, 2012--The Vanguard Group Inc. released a study today that refutes the concerns of founder John Bogle and others that exchange-traded funds encourage excessive trading, which is bad for long-term investors.
Vanguard looked at more than 36,000 ETF positions and more than 500,000 mutual fund positions in its Vanguard Total Stock Market Index Fund (VTI), Vanguard Total Bond Market Index Fund (BND), Vanguard Emerging Markets Index Fund (VWO) and Vanguard REIT Index Fund (VNQ) from 2007 through 2011. Vanguard's ETFs are share classes of its mutual funds, which is unique.
