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Horizons AlphaPro launches actively managed global dividend ETF
July 21, 2010--The Horizons AlphaPro Global Dividend ETF is set to begin trading Wednesday on the Toronto Stock Exchange under the symbol HAZ, AlphaPro Management Inc., the manager of the Horizons AlphaPro Exchange Traded Funds says.
The sub-advisor to the Global Dividend ETF is Guardian Capital LP, which has been managing private client and institutional money for more than 40 years and currently oversees more than $13.4 billion in assets under management.
The investment objective of the Global Dividend ETF is to seek long-term returns consisting of regular dividend income and modest long-term capital growth. The new ETF invests primarily in equity and equity-related securities of companies with operations located anywhere in the world.
Stirred, Not Shaken: Senior Fixed Income Investors Steady on U.S. Credit Recovery
July 21, 2010--Summary
Despite disappointing employment gains and a renewed bout of risk aversion following the sovereign debt crisis in Europe, the most recent Fitch Ratings/Fixed Income Forum
Survey of Senior Investors, conducted in June, finds some surprising resiliency in investor sentiment on U.S. growth prospects and the pace of the credit recovery. Most
investors still expect moderate growth for the U.S. in 2010, predict stability or credit improvement across multiple investment areas, and believe lending standards will loosen in the next 12 months.
Similar to the Fitch/ Fixed Income Forum January survey, investors remain constructive on the U.S. corporate sector, although opinions
surrounding corporate fundamentals, spread movement, and issuance are tamer than six months ago. Of special note, for the first time in several years, a majority of investors said they expected some improvement across prime mortgage-backed bonds, while the share of investors expecting significant credit deterioration across
commercial mortgage-backed issues fell to the lowest level in two years.
June 2010 Survey Highlights
Already the area with the weakest growth expectations early in the year, Europe sank further in the recent survey, with 59% of respondents placing growth at 1% or less over the coming year. In the January survey one-quarter of investors shared this grim view. However, in the June survey 63% of investors placed U.S. growth at a level of at least 2% or higher over the coming year (up from 59% in January) while 67% continued to believe Emerging Market growth would equal or top 3% (also up from January’s 65%).
SEC Approves Disclosure Form Changes to Provide Investors Greater Information About Their Investment Advisers
July 21, 2010--Securities and Exchange Commission today voted unanimously to adopt changes to the principal disclosure document that SEC-registered investment advisers must provide to their clients and prospective clients.
Form ADV, Part 2 — commonly referred to as the “brochure” — explains to the investor an investment adviser’s qualifications, investment strategies, and business practices.
The brochure in its current format requires advisers to respond to a series of multiple-choice and fill-in-the-blank questions organized in a “check-the-box” format that frequently does not correspond well to an adviser’s business. In some cases, the required disclosure may not describe the adviser’s business or conflicts in a way that is truly accessible to the investor.
Derivatives reform hits non-financials
July 21, 2010--BP, Royal Dutch Shell, Cargill and other large energy and commodity companies face new costs in their derivatives trading activities following Wednesday’s signing of the US financial reform law.
The US reforms authorise regulators to label commercial enterprises that actively sell or make markets in derivatives as “swap dealers”, a title customarily reserved for Wall Street banks.
BNY Mellon Depositary Receipts Plays Integral Role in Launch of First Actively Managed International Exchange-Traded Fund
New “AADR” ETF offers U.S. investors unique opportunity to diversify portfolio
July 21, 2010-- BNY Mellon’s Classic ADR Indexsm has been selected as the referenced index for a new actively managed international exchange-traded fund (ETF) to be listed in the United States. The Fund’s investment objective, as stated in its prospectus (see: http://aadr.advisorshares.com) is long-term capital appreciation greater than international benchmarks, such as the BNY Mellon Classic ADR Index, which is the Fund’s primary benchmark.
The WCM/BNY Mellon Focused Growth ADR ETF is sponsored by AdvisorShares Investments, LLC. The new ETF will trade on the New York Stock Exchange under the symbol “AADR.”
“In bringing AADR to market, we believe investors who are looking to diversify their portfolios have a more efficient mechanism to invest globally,” said Michael Cole-Fontayn, chief executive officer of BNY Mellon’s Depositary Receipts business. “As a company, BNY Mellon continues to place a high level of importance on devoting resources to developing creative and unique products, as evidenced by the 18 ETFs benchmarked to the family of BNY Mellon DR Indices that trade in the U.S., Canada and Korea.”
“We’re pleased to be working with WCM and AdvisorShares in providing innovative and timely solutions that benefit foreign private issuers as well as the U.S. investment community,” said Julio Lugo, global head of BNY Mellon’s Depositary Receipts Structured Products business.
WCM helps clients achieve their financial goals by utilizing a variety of disciplined techniques for security selection and portfolio construction. As of December 31, 2009, WCM had approximately $1.4 billion in assets under management. For more information, visit www.wcminvest.com.
AdvisorShares is a turnkey platform for investment managers seeking to offer their investment strategy in an actively managed ETF. AdvisorShares works with money managers to combine their money management expertise with the benefits the ETF structure provides. For more information, visit www.advisorshares.com.
BNY Mellon acts as depositary for more than 2,100 American and global depositary receipt programs, acting in partnership with leading companies from 67 countries. With an unrivaled commitment to helping securities issuers succeed in the world’s rapidly evolving financial markets, the company delivers the industry’s most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Learn more at www.bnymellon.com/dr.
SEC Proposes Measures to Improve Regulation of Fund Distribution Fees and Provide Better Disclosure for Investors
July 21, 2010-- The Securities and Exchange Commission today voted unanimously to propose measures aimed to improve the regulation of mutual fund distribution fees and provide better disclosure for investors.
The marketing and selling costs involved with running a mutual fund are commonly referred to as a fund's distribution costs. To cover these costs, the companies that run mutual funds are permitted to charge fees known as 12b-1 fees. These fees are deducted from a mutual fund to compensate securities professionals for sales efforts and services provided to the fund's investors.
12b-1 fees were developed in the late 1970s when funds were losing investor assets faster than they were attracting new assets, and self-distributed funds were emerging in search of ways to pay for necessary marketing expenses. These fees amounted to an aggregate of just a few million dollars in 1980 when they were first permitted, but that total has ballooned as the use of 12b-1 fees has evolved. These fees amounted to $9.5 billion in 2009.
"Despite paying billions of dollars, many investors do not understand what 12b-1 fees are, and it's likely that some don't even know that these fees are being deducted from their funds or who they are ultimately compensating," said SEC Chairman Mary L. Schapiro. "Our proposals would replace rule 12b-1 with new rules designed to enhance clarity, fairness and competition when investors buy mutual funds."
The SEC's proposal would:
Protect investors by limiting fund sales charges. Improve transparency of fees for investors. Encourage retail price competition. Revise fund director oversight duties. There will be a 90-day public comment period after the SEC's proposal is published in the Federal Register.
CFTC Releases List of Areas of Rulemaking for Over-the-Counter Derivatives
July 21, 2010-- The Commodity Futures Trading Commission (CFTC) today released the list of 30 areas of rulemaking to implement the Wall Street Reform and Consumer Protection Act. Some of these areas will require only one rule, while others may require more. The CFTC is required to complete these rules generally in 360 days, though some are required to be completed within 90, 180 or 270 days.
“The CFTC, working along with the SEC and other regulators, will have a full and busy rule-writing agenda over the coming year,” CFTC Chairman Gary Gensler said. “The financial reform bill presents new responsibilities and authorities for the agency. The Commission looks forward to taking on these new responsibilities to lower risk, promote transparency and protect the American public.
“We have begun preparing for the task of writing rules for the swaps marketplace by identifying 30 topic areas where we have determined rule-writing to be necessary. Teams of staff within the agency have been assigned to each rule-writing area and will see the process through, from analyzing the statute’s requirements, to broad consultation, to recommending proposed rulemakings to publishing final rules.”
CFTC Chairman Gensler Comments on Enactment of Wall Street Reform and Consumer Protection Act
July 21, 2010- Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler today commented on the President’s signing of the Wall Street Reform and Consumer Protection Act.
Chairman Gensler said:
“The Wall Street reform bill will – for the first time – bring comprehensive regulation to the over-the-counter derivatives marketplace.
Derivatives dealers will be subject to robust oversight. Standardized derivatives will be required to trade on open platforms and be submitted for clearing to central counterparties. The Commission looks forward to implementing the Dodd-Frank bill to lower risk, promote transparency and protect the American public.”
Barclays Capital Launches First Exchange Traded Note Linked Inversely to a Volatility Index
July 20, 2010--Barclays Capital today announced the listing of the Barclays ETN+ Inverse S&P 500® VIX Short-Term FuturesTM ETN on the NYSE Arca stock exchange under the ticker symbol XXV. The ETN is designed to provide investors with a cost-effective way to implement a ‘short’ view on volatility in the U.S. equities markets.
“Investors are increasingly looking for diversified ways to access equity market volatility,” said Philippe El-Asmar, Head of Investor Solutions at Barclays Capital. “We are pleased to provide them with the first exchange traded product that allows them to express a bearish view on volatility.”
This new ETN is linked to the inverse performance of the S&P 500® VIX Short-Term FuturesTM Index Excess Return (the “Index”). The Index is designed to reflect the returns that are potentially available through an unleveraged investment in short-term futures contracts on the CBOE Volatility Index® (the “VIX Futures”). VIX Futures reflect the implied volatility of the S&P 500® Index, which provides an indication of the pattern of stock price movement in the US equities market. This new ETN is an uncollateralized debt obligation of Barclays Bank PLC with a 10-year maturity.
The prospectus can be found by visiting EDGAR on the U.S. Securities and Exchange Commission (SEC) website at: http://www.sec.gov/Archives/edgar/data/312070/000119312510160327/d424b2.htm
U.S. International Reserve Position
July 20, 2010--The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $128,602 million as of the end of that week, compared to $126,723 million as of the end of the prior week.
I. Official reserve assets and other foreign currency assets (approximate market value, in US millions)
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July 16, 2010 |
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A. Official reserve assets (in US millions unless otherwise specified) 1 |
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128,602 |
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(1) Foreign currency reserves (in convertible foreign currencies) |
Euro |
Yen |
Total |
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(a) Securities |
9,148 |
15,050 |
24,198 |
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of which: issuer headquartered in reporting country but located abroad |
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0 |
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(b) total currency and deposits with: |
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(i) other national central banks, BIS and IMF |
13,531 |
7,375 |
20,907 |
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ii) banks headquartered in the reporting country |
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0 |
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of which: located abroad |
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0 |
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(iii) banks headquartered outside the reporting country |
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0 |
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of which: located in the reporting country |
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0 |
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(2) IMF reserve position 2 |
11,898 |
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(3) SDRs 2 |
55,806 |
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(4) gold (including gold deposits and, if appropriate, gold swapped) 3 |
11,041 |
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--volume in millions of fine troy ounces |
261.499 |
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(5) other reserve assets (specify) |
4,752 |
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--financial derivatives |
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--loans to nonbank nonresidents |
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--other (foreign currency assets invested through reverse repurchase agreements) |
4,752 |
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B. Other foreign currency assets (specify) |
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--securities not included in official reserve assets |
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--deposits not included in official reserve assets |
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--loans not included in official reserve assets |
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--financial derivatives not included in official reserve assets |
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--gold not included in official reserve assets |
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--other |
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87% Increase In Fund Launches That Permit Use Of Derivatives
July 20, 2010--Analysis of new fund launches from independent financial research company Defaqto reveals an 87%
increase in the number of funds launched that permit the use of derivatives.
Fraser Donaldson, Insight Analyst for Funds at Defaqto said: “The use of derivatives as an investment
tool are growing in prominence which is not overly surprising given the uncertainty in the economic
and financial climate.
The decline in the launch of UK only investment funds is clearly linked to declining demand for the sector with many advisers seeking potentially better returns elsewhere.”
AdvisorShares Set to Launch First Actively Managed International ETF-WCM/BNY Mellon Focused Growth ADR ETF (AADR)
July 20, 2010--AdvisorShares Investments, LLC, an investment adviser to actively managed exchange traded funds (ETFs), announced that it will begin trading in the industry's first actively managed international ETF, the WCM/BNY Mellon Focused Growth ADR ETF (NYSE:AADR - News) tomorrow, July 21st. AADR is sub-advised by institutional money manager WCM Investment Management (WCM). BNY Mellon is the world's largest depositary for American Depositary Receipts (ADRs) and will provide the primary benchmark to the Fund as well as expertise within the ADR industry to the portfolio management team.
WCM will implement its investment strategy through the use of ADRs which may be attractive to U.S. investors for accessing international markets, but also provide convenience from a trading and settlement perspective.
"WCM Investment Management has experience with this strategy within other investment vehicles which follow this very thoughtful fundamental investment process to construct their portfolios. We are excited to bring investors special access to this unique, first of its kind strategy as well as to this institutional quality investment advisory firm," said Noah Hamman, CEO and Founder of AdvisorShares.
The investment objective of AADR is long-term capital appreciation above international benchmarks such as the BNY Mellon Classic ADR Index and the MSCI EAFE Index. AADR strives to provide a high-quality, large-cap growth portfolio for the non-U.S. universe. The portfolio, which includes developed and emerging markets, is purposely very different from international benchmarks and other international funds. WCM achieves this differentiation by concentration (20-30 holdings) and an emphasis on traditional growth sectors such as technology, healthcare and consumer staples/discretionary. The AADR portfolio management team seeks to invest in businesses that appear likely to benefit from long-lasting global trends (tailwinds), growing competitive advantages (a widening economic moat) and a superior corporate culture (great people). Finally, WCM recognizes the role valuation plays in investment returns and therefore seeks to pay a reasonable price for companies.
WCM Investment Management President and Co-CEO Paul R. Black said, "At WCM, our investment strategy is driven by timeless principles that we believe are poised to outperform extremely inefficient international benchmarks." Black added, "In bringing AADR to market with AdvisorShares, we can now offer our investment philosophy via an exchange traded vehicle which will be available to those institutional as well as retail investors who ordinarily would not have access to our firm."
Direxion files Form S-1 with the SEC
July 20, 2010--Direxion has filed a Form S-1 with the SEC for the following
Direxion Daily Gold Bull 3X Shares
Direxion Daily Gold Bear 3X Shares
Direxion Daily Silver Bull 3X Shares
Direxion Daily Silver Bear 3X Shares
Direxion Daily Japanese Yen Bull 3X Shares
Direxion Daily Japanese Yen Bear 3X Shares
Direxion Daily Dollar Bull 3X Shares
Direxion Daily Dollar Bear 3X Shares
Direxion Daily Euro Bull 3X Shares
Direxion Daily Euro Bear 3X Shares
Direxion S&P 500® Dynamic VEQTOR Shares
Dreyfus files with the SEC
July 20, 2010--Dreyfus has filed an application for exemptive relief with the SEC.
view filing
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
July 19, 2010--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Monday, July 19, 2010:
Brazauro Resources Corporation (TSXVN:BZO) will be removed from the index.
Pursuant to a Plan of Arrangement, the shares of the company will be exchanged for shares of Eldorado Gold Corporation (TSX:ELD).
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.
