Americas ETP News
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US active managers disappoint in 2012
January 22, 2013--Performance issues continued to dog active fund managers trying to deliver superior returns to the US stock market in 2012, according to analysts at Bank of America Merrill Lynch.
Active fund managers of large US stocks registered their best year since 2009 but two-thirds still underperformed the US stock market in 2012 with the average fund lagging the benchmark by 1.3 percentage points.
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Source: FT.com
Alt ETF shop QuantShares looking to tie up
January 22, 2013--The investment adviser to alternative exchange traded fund manager QuantShares has launched a search for a "strategic partner."
FFCM said it hired Berkshire Capital Securities to help in the search, which is focusing on potential partners with expertise in distribution and marketing.
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Source: FT.com
Deutsche Bank-Synthetic Equity & Index Strategy-North America-ETF & Markets- ETF Liquidity & Stock Impact
January 22, 2013--ETF liquidity: more than meets the eye
ETF liquidity goes beyond the listed ETF share volume. Total ETF liquidity considers the ETF shares and the underlying stock liquidity. Investors that learn how to access the underlying liquidity of the ETF can highly benefit from it.
Index-related flow impact tends to be short-lived and concentrated
Index related flows need to be sizeable and stock liquidity needs to be limited in order to generate market impact. Even then, market impact tends to be short-lived and concentrated on just a few names.
Index membership can have significant impact on the behavior of stocks
Index membership has a significant impact in the liquidity and correlation profile of stocks. Addition to a domestic (US) index translates in higher and more stable stock liquidity, at the cost of a higher index correlation; the contrary is true for deletions. It is not clear, however, whether this is due to passive money linked to the index or active money benchmarked to it.
ETF impact on the underlying stocks is limited
Higher ETF ownership on small cap names tends to increase their liquidity. ETF ownership and Market Cap are both positively related to stock return pairwise correlations, but the impact from Size seems to be much more relevant. Consistent market impact from ETF primary market activity is very unlikely; and even among those less liquid benchmarks where the chance is higher, the impact should be limited to just a few names and few occasions.
reuest report
Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
First Asset launches Canadian provincial bond ETF
January 21, 2013--Canadian money manager First Asset said on Monday it had launched the first exchange-traded fund designed to track the country's provincial government debt market.
The ETF, which will aim to replicate the Canadian DEX Universe Provincial Bond Index less expenses, will hold investment-grade provincial debt, which offers higher yields than top AAA-rated federal government bonds.
The First Asset DEX Provincial Bond ETF started trading on the Toronto Stock Exchange on Monday and stood at C$10.00 per unit by midday.
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Source: Reuters
ETFs open doors to other institutional accounts
January 21, 2013--On the eve of the 20th anniversary of the first U.S. listed exchange-traded fund -the SPDR S&P 500 ETF-both institutional investors and money managers are still hashing out their views on exchange-traded products.
As assets continue to flow into ETPs — $1.4 trillion in the U.S. at the end 2012 and $188 billion in net new flows, the structure has become too difficult to ignore, but the investment decision is still a challenge for large investors comparing ETFs to institutional funds, commingled trusts and separately managed accounts.
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Source: Pensions & Investments
Institutional investors looming larger over US ETF marke
January 21, 2013--Invesco PowerShares has launched a web portal for market makers and institutional buyers in expectation of increased interest in its enhanced beta lineup from buy-side managers.
The exchange traded fund provider launched its institutional web portal this month in an effort to give the client segment a place where it could find information specific to its needs, says John Hoffman, director of institutional sales and capital markets at PowerShar
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Source: FT.com
HIMI assumes management responsibilities for Horizons Active Balanced ETF
January 21, 2013--Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are announcing that, effective immediately, the day-to-day portfolio management responsibilities for the Horizons Active Balanced ETF (the "ETF" or "HAA") currently provided by Hillsdale Investment Management Inc. will be assumed by Horizons Investment Management Inc.
("HIMI"), the investment manager to the ETF and an affiliate of Horizons ETFs and AlphaPro.
"We have enjoyed working with Hillsdale and thank them for the support they have provided HAA since its launch in 2010," said Howard Atkinson , CEO of Horizons ETFs.
In addition, the ETF will change its name on or about January 30, 2013 to the Horizons Active Diversified Income ETF. The ETF's Class E units and Advisory Class units will continue to trade on the Toronto Stock Exchange ("TSX") under the ticker symbols HAA and HAA.A, respectively.
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Source: Horizons Exchange Traded Funds
In two ,State Street blamed for investors' huge losses
January 20, 2013--State Street Corp. is under fire in Boston federal court for huge losses suffered by clients of a Virgin Islands investment firm.
In two separate lawsuits this month, plaintiffs claim State Street failed in its duty as a custodian of their funds. State Street should have acted, the lawsuits say, after TAG Virgin Islands Inc. dramatically shifted its focus from stable to risky investments and after TAG obtained the plaintiffs’ funds after submitting numerous fake subordinated notes.
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Source: Patriot Ledger
Wall St records third straight week of gains
January 19, 2013--US equity markets recorded the third consecutive weekly gain this year,
as investors reacted to a barrage of earnings results from large banks and industrial bellwethers.
Source: FT.com
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices-A Deletion From The S&P/TSX Venture Composite Index
January 18, 2013--S&P Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shares of GoGold Resources Inc. will be removed from the S&P/TSX Venture Composite Index after the close of Monday, January 21, 2013.
The company will graduate to trade on TSX under the same ticker symbol.
Source: S&P Canadian Index Services
