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Vanguard's Sauter to retire at year-end
Tim Buckley, head of retail investor group, is replacement
Sauter directs groups overseeing $1.6 trillion in assets
Departs after 25 years at the company
June 22, 2012--Gus Sauter, the long-time chief investment officer at Vanguard Group, the largest U.S. mutual fund company, will retire at the end of the year, the company said on Friday.
Sauter, 57, will be replaced by Tim Buckley, 43, a managing director at Vanguard, based in Valley Forge, Pennsylvania. Sauter currently directs Vanguard's global investment management groups, which oversee $1.6 trillion in aggregate assets.
"Vanguard has become a much deeper organization and had grown quite a bit so I do not think his departure will represent the same kind of challenge as it would have 10 years ago," said Russel Kinnel, director of mutual fund research at Morningstar Inc.
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Source: Reuters
Options Trading: Dangers of Rolling Covered Calls
June 22, 2012--Most covered call writers know how to roll a covered call to avoid or defer exercise. But this can create unintended losses or even have serious tax consequences.
In rolling a covered call that's approaching the money or has gone in the money, the strategy is straightforward:
1. Close the current call with a "buy to close" order.
2. Open a new covered call expiring later with a "sell to open order. This will produce additional net income due to the later expiration, thus higher time value.
Ideally, if you can close the current position and open another at a later-expiring higher strike, you have two benefits. First, you escape exercise of the original short position while generating extra income. Second, if you can up the strike, you create more potential profits if that call is eventually exercised.
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Source: FT Press
CFTC.gov Commitments of Traders Reports Update
June 22, 2012--The current reports for the week of June 19, 2012 are now available.
view updates
Source: CFTC.gov
iShares files with the SEC
June 22, 2012--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares 10+ Year Credit Bond Fund (CLY).
view filing
Source: SEC.gov
Exchange Traded Concepts files with the SEC
June 21, 2012--Exchange Traded Concepts has filed a post-effective amendment, registration statement with the SEC. This Post-Effective Amendment No. 23 relates solely to the Sustainable North American Oil Sands ETF.
view filing
Source: SEC.gov
SEC chief backs money market fund reforms
June 21, 2012--Mary Schapiro, Securities and Exchange Commission chairman, has defended proposed reforms to the $2.6tn money market fund industry at a Senate banking committee, saying the very structure of the funds presented "systemic risk".
The top US securities regulator has championed proposals that would force the industry to either switch to a floating price for its funds, currently fixed at $1 per share, or that funds accrue capital for a rainy day and penalise investor withdrawals during times of stress. The funds’ fixed $1 share price was a “fiction” and “a little bit misleading”, Ms Schapiro said.
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Source: FT.com
Founder of $125 Billion Gold ETPs Stymied on Copper: Commodities
June 21, 2012--Graham Tuckwell, who created a $125 billion market in exchange-traded gold in less than a decade, is struggling to convince regulators and investors he can do the same for industrial metals.
More than a year after he sought permission to start an exchange-traded product backed by copper held in warehouses, the U.S. Securities and Exchange Commission has yet to approve the plan. Investors in a similar London-listed fund from Tuckwell’s ETF Securities Ltd. accumulated just $13.2 million of copper since December 2010, equal to about 46 minutes of global demand, data compiled by Bloomberg show.
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Source: SF Gate
IMF Working paper-Leverage? What Leverage? A Deep Dive into the U.S. Flow of Funds in Search of Clues to the Global Crisis
June 21, 2012--Summary: This paper questions the view that leverage should have forewarned us of the global financial crisis of 2007-09, pointing to several gearing indicators that were neither useful portents of the onset of the crisis nor of its ferocity.
Instead it shows, first, that the use of ill-suited collateral in the secured funding operations of U.S.-based investment banks was the fatal link between the collapse of structured finance and the global malfunction of funding markets that turbocharged the downdraft; and, second, that this insight (and others) can be decrypted from the Flow of Funds Accounts of the United States.
Global X Funds Announces Changes to Its S&P/TSX Venture 30 Canada ETF
ETF Provider changes the index, name, ticker, expense ratio and investment objective
June 21, 2012--Global X Funds, the New York based provider of exchange traded funds, today announced it is changing the index, name, ticker, expense ratio and investment objective of the Global X S&P/TSX Venture 30 Canada ETF (Ticker: TSXV).
Currently the fund is mostly comprised of small-capitalization companies based in Canada that operate within the mining and energy sectors. Upon implementation of the change, the fund's new objective will be to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Junior Miners Index. The Solactive Junior Miners Index is designed to track the market performance of small-capitalization mining companies globally, and therefore the geographic scope of the fund will expand accordingly.
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Source: Global X Funds
Market Vectors ETFs Offers Five Additional Exchange-Traded Funds to Qualified Investors in Mexico
June 21, 2012--Market Vectors ETFs, the fifth largest provider of exchange-traded products in the U.S. and the eighth largest provider of ETPs globally, announced today that it has added five NYSE Arca-traded ETFs to the growing list of Market Vectors ETFs currently available to Qualified Investors in Mexico. Deutsche Securities Casa de Bolsa in Mexico will act as local sponsor and filing agent for the following ETFs:
Market Vectors Oil Services ETF (Ticker: OIH)
Assets under management1: US$1,074 million
30-day average daily trading volume1,2: 4.6 million shares
Market Vectors Semiconductor ETF (Ticker: SMH)
Assets under management1: US$362 million
30-day average daily trading volume1,2: 2.0 million shares
Market Vectors Pharmaceutical ETF (Ticker: PPH)
Assets under management1: US$226 million
30-day average daily trading volume1,2: 170 thousand shares
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Source: Van Eck
