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Legal & General's First US Investment Management Acquisition-Global Index Advisors, Inc.
February 20, 2014--Legal & General Group Plc ("Legal & General" or the "Group") has today agreed to acquire the business of Global Index Advisors, Inc ("GIA"), an Atlanta based investment advisor focused on target date funds ("TDF").
GIA is in the top 51 of target date providers in the US. The acquisition, by the Group's subsidiary Legal & General Investment Management America, Inc ("LGIMA"), for a maximum consideration of $50.4m, is expected to complete mid 2014, subject to Fund shareholder approval.
Legal & General has identified international expansion of asset management as one of its five key themes for growth, and with this acquisition LGIMA now has proforma assets which exceed $50bn. The acquisition provides Legal & General with scale and distribution in the $6 trillion US defined contribution ("DC") market, where TDF assets are forecast to double by 2017.2 This acquisition underlines the significant potential for Legal & General Investment Management ("LGIM") to grow assets in the DC market in the UK and in the US and further position itself as a market leader in delivering innovative investment solutions.
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Source: Legal & General Group Plc
ETFs Gain Ground on Index Mutual Funds
Deutsche Bank: ETFs comprised almost 12% of the $13.9 trillion U.S. mutual fund and ETF market
February 20, 2014--Ron Vinder used to buy funds run by star managers who seemed to have the Midas touch in picking stocks. After 2008's global financial crisis, the New York-based financial adviser decided to make a change.
Now, he uses exchange-traded funds. Like cousin index mutual funds, ETFs are built to mimic a benchmark, making them much less expensive to own in most cases than actively managed funds.
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Source: Wall Street Journal
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX Venture Composite And Venture Select Indices
February 20, 2014--S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The Toronto Stock Exchange announced today in the Daily Bulletin that the shares of SilverCrest Mines Inc. (TSXVN:SVL) will graduate to trade on TSX at the open of trading on Monday, February 24, 2014. The ticker symbol will remain "SVL" and the CUSIP number will remain 828364 10 6.
The company will be removed from the S&P/TSX Venture Composite Index after the close of trading on Friday, February 21, 2014.
SilverCrest Mines is also a constituent of the S&P/TSX Venture Select Index. The company will be removed from this index effective after the close of Thursday, February 27, 2014, at which time it will be listed on TSX.
Source: S&P Dow Jones Canadian Index Services
ISE and ISE GeminiTM Enhance Risk Management with Market-Wide Speed Bump
February 20, 2014--The International Securities Exchange Holdings, Inc. today announced that its exchanges ISE and ISE GeminiTM have enhanced their risk management capabilities for market makers by implementing a Market Wide Speed Bump. The Market Wide Speed Bump improves risk management by limiting a market maker's total exposure across a market.
As part of the exchanges' existing portfolio of risk management offerings, market makers are required to set risk thresholds for each options class they are quoting. The Market Wide Speed Bump is activated automatically if these thresholds are breached for multiple products within a specified time period, and all quotes for that market maker are then inactivated.
"The implementation of the Market Wide Speed Bump provides our members with an across-the-market safeguard over their quoting activity," said Boris Ilyevsky, Managing Director. "This enhancement demonstrates our ongoing commitment to providing our market makers with sophisticated risk management tools and to protecting market integrity and resilience for all exchange members."
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Sourse: ISE (International Securities Exchange Holdings, Inc.)
SEC Announces Initiative Directed at Never-Before Examined Registered Investment Advisers
February 20, 2014-The Securities and Exchange Commission today announced that its Office of Compliance Inspections and Examinations (OCIE) is launching an initiative directed at investment advisers that have never been examined, focusing on those that have been registered with the SEC for three or more years. OCIE previously announced that examining these advisers is a priority in 2014.
As part of the initiative, OCIE will conduct examinations of a significant percentage of advisers that have not been examined since they registered with the SEC. These examinations will concentrate on the advisers, compliance programs, filings and disclosure, marketing, portfolio management, and safekeeping of client assets.
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Source: SEC.gov
Treasury International Capital Data for December
February 20, 2014-- The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for December 2013. The next release, which will report on data for January 2014, is scheduled for March 17, 2014.
The sum total in December of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $119.6 billion. Of this, net foreign private outflows were $119.9 billion, and net foreign official inflows were $0.3 billion.
Foreign residents decreased their holdings of long-term U.S. securities in December; net sales were $18.6 billion. Net sales by private foreign investors were $1.6 billion, while net sales by foreign official institutions were $17.0 billion.
U.S. residents increased their holdings of long-term foreign securities, with net purchases of $27.3 billion.
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Source: US Department of the Treasury
PowerShares Canada to adjust NAV on three ETFs
February 20, 2014--PowerShares Canada announced today that it will adjust the net asset value (NAV) of three TSX-listed PowerShares exchange-traded funds (the "ETFs") effective Friday, February 21, 2014.
PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF [TSX: PFH] and PowerShares Senior Loan (CAD Hedged) Index ETF [TSX: BKL] invest in one or more U.S. Regulated Investment Companies (RICs) that earn and distribute qualified interest-related dividends.
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Source:Invesco Canada Ltd.
JP Morgan prepares for ETF roll out
February 20, 2014--JP Morgan is paving the way for a roll out of a suite of active exchange-traded funds this year
as it plans the launch of a so-called "smart beta" offering for its US investors.
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Source: Financial News
iBillionaire To Launch New Billionaire-Tracking Guru ETF
February 20, 2014--Back in November, I wrote about the newest addition to stable of guru-following strategies-the iBillionaire Index-and I compared it to the two existing guru ETFs currently trading-the Global X Top Guru Holdings Index ETF (GURU) and the AlphaClone Alternative Alpha ETF (ALFA ).
iBillionaire produces an index, but there is no investment product designed to track it-yet. That is changing, however, and iBillionaire expects to launch an ETF later this year.
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Source: Forbes
Minutes Of The Federal Open Market Committee, January 28-29, 2014
February 19, 2014--The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on January 28-29, 2014.
view the Minutes Of The Federal Open Market Committee, January 28-29, 2014
Source: Federal Reserve