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Invesco PowerShares Lists Industry’s First ETF Portfolio of Closed-End Funds on the NYSE Arca
ebruary 19, 2010 – Invesco PowerShares, a leading provider of exchange-traded funds (ETFs), announced the PowerShares CEF Income Composite Portfolio began trading today on the NYSE Arca under the ticker symbol PCEF. The PowerShares CEF Income Composite Portfolio is the first ETF designed to provide investors access to a portfolio of closed-end funds. The fund, which will issue monthly distributions, is expected to go ex-dividend on March 15, 2010.
“The addition of the PowerShares CEF Income Composite Portfolio (PCEF) broadens our innovative family of ETFs providing income-based investment solutions. Over the years, we have introduced the industry’s first insured municipal bond ETFs, first taxable municipal bond ETF, first laddered treasury ETF and the first ETF to invest solely in sovereign debt of emerging market countries,” said Ben Fulton, Invesco PowerShares managing director of ETFs. “We believe PCEF provides investors an attractive means to access a broad basket of yield-orientated closed-end funds through the benefit-rich ETF structure.”
The PowerShares CEF Income Composite Portfolio is based on the S-Network Composite Closed-End Fund IndexSM. The fund will normally invest at least 80% of its total assets in securities of funds included in the underlying index. The rules-based index is designed to track the overall performance of a global universe of U.S.-listed closed-end funds. The index currently includes 71 closed-end funds, of which 27 invest primarily in taxable investment-grade fixed-income securities, 15 invest primarily in high-yield fixed-income securities and 29 primarily use an equity option writing (selling) strategy. PCEF is a "fund of funds," as it invests its assets in the common shares of funds included in the underlying index.
Underlying index constituents are selected from a universe of approximately 350 closed-end funds and the index is rebalanced on a quarterly basis. To qualify for the index, a closed-end fund must have a stated investment objective of concentration in one of three sectors: taxable investment-grade fixed income, high-yield fixed income or option income; trade on a recognized U.S. stock exchange; have a minimum capitalization value greater than $100 million; have a total expense ratio of less than 2% per annum; and have an average daily turnover of more than $500,000 per day for the three months prior to the rebalancing date.
For more information on the PowerShares CEF Income Composite Portfolio, please visit www.invescopowershares.com/cef.
Source: Invesco PowerShares
Positive analyst note helps to boost large US banks
February 19, 2010--US equities continued the week's rally, shrugging off a sharp initial sell-off in reaction to the Fed's announcement after the market's close on Thursday that it had raised its dicount rate.
The S&P 500 ended higher on the week on a second consecutive occasion for only the first time since December. Investors were comforted by the lower-than-expected consumer price index figures . It was the first month-on-month decline in core CPI since 1982 and suggested that US inflation was under control.
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Source: FT.com
Old Mutual explores sale of US business
February 19, 2010--Old Mutual has engaged JPMorgan to explore a sale of the group’s US life assurance business and has already had a number of expressions of interest, according to people familiar with the situation.
The US business suffered huge swings in the value of its assets through the financial crisis and Old Mutual has had to pump in capital and overhaul its costs, products and investment portfolio.
Investors Attracted to Commission-Free ETFs Find Largest Selection at Folio Investing
Folio Investing clients can also trade individual stocks and mutual funds without paying per-trade commissions. Clients can get this unlimited, commission-free trading and more for a fixed fee of $29 per month, or $290 per year.
Founded in 2000, Folio Investing eliminated the traditional commission-based pricing structure by developing a patented system of window trading: Clients' buy and sell orders are bundled, matched internally, and then sent to the market during one of two daily trading windows. The savings in execution costs is passed on to customers.
"Offering a commission-free selection of only a couple of dozen ETFs potentially limits the investing and diversification options for investors," said Greg Vigrass, president and CEO of the Folio Institutional division. "Such a limited number may confine investors to choosing from funds whose management fees are high, whose investments are inappropriate, or where there may be conflicts of interest. Our platform offers hundreds of ETFs, from every issuer, and investors can make their best selection based on cost, asset class, diversification, and their own investment needs and strategies."
As exchange-traded funds increasingly become the core building blocks of the modern portfolio, Folio Investing's innovative platform has demonstrated that it best enables investors to fully leverage the ETFs' unique capabilities. A blended portfolio of ETFs, stocks and mutual funds — called a "Folio" — can be purchased in a single transaction. Over time, investors can realize the power of dollar cost averaging by making ongoing commission-free contributions to their brokerage account, spreading their investments across the underlying holdings as desired.
Folio Investing's low-cost ETF-based Target Date Folios are among the few Target Date products which combine the best aspects of both Life-Cycle and Life-Style funds. These and all other Folios can be further customized to suit the individual investor.
CME Group Announces New Leadership Roles Durkin has nearly 30 years of industry experience, including senior leadership positions at CME Group and The Chicago Board of Trade. Durkin will continue to report to CME Group President Phupinder Gill.
Rick Redding, who previously led Products & Services, has assumed a new planning role related to CME Group's pending ownership stake in a new index services venture with Dow Jones. Redding has an extensive background in equity markets, having previously run the company's equity product line for 10 years and forged strong relationships with all of its index licensors. Together with Scot Warren, Managing Director, Equity Products and Index Services, Redding will assist with the joint venture formation and strategic planning process. Redding also will work with Durkin for a transition period to ensure continuity in the company's efforts to develop its core business, OTC products and global sales force. Redding will assume the new role of Managing Director, Products & Services Initiatives, and he will report to Durkin.
read more Treasury Assistant Secretary, Tennessee Secretary of State Tout Benefits of Recovery Act School Construction Bonds
"The road to economic recovery runs right through our state and local communities," said Treasury Assistant Secretary Tangherlini. "Recovery Act qualified school construction bonds provide communities access to the funds they need to build and upgrade schools. And by helping build schools, we're creating jobs today and preparing our kids to compete in the global economy in the future." read more Soros More Than Doubled Gold ETF Stake in 4th Quarter First Trust files with the SEC DB Index Research -- Weekly ETF Market Review -- US - New Report-Revamped
In the equity asset class, US sector ETPs had the highest inflows of $1.5 billion followed by Small Cap ETPs, while Large Cap ETPs experienced the largest outflows of $914 million, followed by regional ETPs tracking Emerging Markets (Figures 12 and 15). Strategy ETPs (Short, Leveraged, and Leveraged Short) continued to attract signficant cash flows.
Sovereign and US Sub-sovereign contributed the most to the positive cash flows into Fixed Income ETPs.
Within Commodity ETPs, those tracking Natural Gas saw the largest outflows followed by those tracking the overall group of Industrial Metals. Meanwhile, broad commodity benchmark ETPs and Crude Oil ETPs experienced the largest inflows.
Turnover
Turnover has increased significantly in ETPs tracking the following benchmarks: Large Cap, Leveraged/Leveraged Short Strategy and Regional/Emerging Markets (Figures 30 and 33). For Fixed Income ETPs, turnover in the Sovereign space increased the most (Figures 31 and 34). Commodity ETP turnover decrease was mainly driven by Natural Gas, Gold, Silver, and Agriculture.
Assets Under Management (AUM) To request a copy of the report New SGX Fuel Oil Futures Contract Receives US Regulatory Go- Ahead The SGX Fuel Oil 380cst futures contract will start trading on Monday, 22 February 2010 in the afternoon at 2.30pm (Singapore time). for more info
Source: FT.com
Brokerage Provides Commission-Free Trading Option For Over 800 ETFs
February 19, 2010--As the popularity of exchange-traded funds continues to increase, investors are discovering that the industry's largest selection of commission-free ETFs is available through online brokerage Folio Investing, which charges a low, fixed membership fee in lieu of per-trade commissions.
While at least two other online brokerages recently announced that they are offering commission-free trading on limited groups of ETFs, Folio Investing's innovative platform allows commission-free trades in the shares of nearly all of the more than 800 U.S.-registered ETFs in its twice-daily trading windows. Additionally, Folio Investing makes it easy for investors to create a blended portfolio of multiple ETFs for even broader diversification — all at no additional cost.
Source: Folio Investmenting
February 19, 2010--CME Group, the world's leading and most diverse derivatives marketplace, today announced the following changes to its Management Team to further serve its global customer base:
Bryan T. Durkin, who has served as Chief Operating Officer since 2007, will now assume oversight of the company's Products & Services Division in addition to his current responsibilities.
In his new role as Chief Operating Officer and Managing Director, Products & Services, Durkin will lead both the operations and sales functions for CME Group to focus on increasing product line growth and meeting customer needs worldwide.
Source: CME Group
February 19, 2010--As part of an effort to mark the one year anniversary of the American Recovery and Reinvestment Act (Recovery Act) and highlight the local impact of Recovery Act programs, Treasury Assistant Secretary for Management and CFO Dan Tangherlini joined Tennessee Secretary of State Tre Hargett and other local and school officials today in Maryville, Tenn. to break ground on the construction of a new school funded with nearly $19 million in Qualified School Construction Bonds.
Created by the Recovery Act, these school bonds help state and local governments obtain low-cost financing for much needed public school improvements and construction. Tennessee was allocated more than $184 million in school construction bonds for 2009, and to date the Tennessee State School Bond Authority has approved $177 million in bond issuances for 25 projects across the state.
Source: U.S. Department of the Treasury
February 18, 2010--Billionaire George Soros’s Soros Fund Management LLC more than doubled its holding in the biggest gold exchange-traded fund in the fourth quarter after bullion advanced 8.9 percent to a record.
The $25 billion New York-based firm became the fourth- largest holder in the SPDR Gold Trust, adding 3.728 million shares valued at $421 million, according to a filing with the U.S. Securities and Exchange Commission yesterday. Its investment was worth about $663 million, the fund’s largest single investment, as of Dec. 31.
Source: Business Week
February 19, 2010-First Trust has filed post-effective amendment. registation statement with the SEC.
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Source: SEC.gov
February 18, 2010--Highlights:
New Listings and Delistings
There were 9 new listings in the last week . ProShares listed 8 Equity ETFs offering +3X and -3X exposure on US indices while the remaining product, issued by Old Mutual Global Shares Trust, was a regional ETF offering Global ex-US exposure. 7 of the 9 ETPs are listed in NYSE Arca and 2 are listed in Nasdaq.
Net Cashflows
This week, $1.44 billion flowed into ETPs. Equity and Fixed Income ETPs had inflows of $1.14 billion and $531 million, respectively, while Commodity and Currency ETPs had outflows of $90 million and $130 million, repectively.
ETP turnover rose by 7.1% during last week and totaled $81 billion. Equity ETP turnover experienced the largest increase.
US ETPs AUM rose by 1.6% totaling $744 bn at the end of last week. Equity ETPs had the lion’s share with $550 bn and 74% of market share, followed by Fixed Income funds with $115 bn and 15% of market share.
Source: Aram Flores and Shan Lan -DB Index Research
February 18, 2010--Singapore Exchange (SGX) is pleased to announce that institutions and market participants in the United States (U.S.) can readily trade the SGX Fuel Oil 380cst futures contract.
This follows the confirmation by the U.S. Commodity Futures Trading Commission (CFTC) that it has no objection to the contract being offered and sold in the U.S. The CFTC’s decision will significantly strengthen the appeal of the contract for traders and investors in the international marketplace, and as a hedging tool.
Source: Mondovisione