Americas ETP News
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GENCAP Ventures, LLC Purchases Factor Advisors, LLC
July 17, 2012--GENCAP Ventures, LLC has purchased Factor Advisors, LLC, a provider of SEC 1933 act listed Exchange-traded funds. There are currently five spread trade commodity funds listed on the NYSE under the tickers FSA, FSG, FSE, FSU and FOL. Further, the firm is a registered Commodity Pool Operator (CPO), which gives it the ability to offer a broad range of futures based products.
GENCAP will offer white label exchange-traded products for clients interested in entering this large and important segment of the asset management market. Recently hired CEO, Sam Masucci said: "We are excited about the acquisition of Factor's 1933 act ETF funds. GENCAP will lead the marketplace by offering a comprehensive ETF development and management platform for its clients. We have already received significant interest from clients wishing to bring SEC 1933 act and 1940 act ETF funds to market on our platform. Ultimately GENCAP will offer the broadest range of ETF products and services in the asset management and indexing marketplace."
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Source: GENCAP
State Street to Acquire Goldman Sachs Administration Services
Acquisition Expected to Make State Street Leading Hedge Fund Administrator Globally
July 17, 2012--State Street Corporation, one of the world's leading providers of financial services to institutional investors, announced today that it has agreed to acquire Goldman Sachs Administration Services (GSAS), a leading hedge fund administrator, from The Goldman Sachs Group, Inc. in a cash transaction with a total purchase price of $550 million, subject to certain adjustments.
Pending regulatory approvals and other customary closing conditions, the transaction is expected to be finalized early in the fourth quarter of 2012. State Street expects the transaction to be accretive in the first full year of operation on a cash basis. Through dedicated teams globally, State Street provides a comprehensive suite of middle office, fund administration, risk analytics and credit services to hedge funds, private equity funds, real estate funds and institutional investors. State Street's Alternative Investment Solutions (AIS) team has more than 3,000 employees in multiple offices around the world.
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Source: State Street Corporation
Market Vectors Launches Preferred Securities ex Financials ETF (PFXF)
50th ETF in Market Vectors family; seeks to offer income potential of preferred securities without the volatility of financials
July 17, 2012--Market Vectors ETF Trust announced today that it has launched Market Vectors Preferred Securities ex Financials ETF (NYSE Arca: PFXF), which is designed to offer investors access to the income potential of preferred securities without the volatility of financials.
Among preferred securities-focused ETFs listed in the U.S., PFXF has the lowest published net expense ratio at the time of launch1.
PFXF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Wells Fargo® Hybrid and Preferred Securities ex Financials Index (Ticker: WHPSL), a rules-based index intended to track the overall performance of publicly traded non-financial preferred securities, including securities that, in Wells Fargo Securities LLC’s judgment, are functionally equivalent to preferred securities such as convertible securities, depository preferred securities and perpetual subordinated debt. Top industries in the index as of June 30, 2012 included REITs, electric, auto manufacturers and telecommunications. The index excludes financials, such as broker-dealers, banks, futures commission merchants, investment advisers and insurance companies.
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Source: Van Eck Global
BNY Mellon ADR Index Monthly Performance Review is Now Available-
July 17, 2012--The BNY Mellon ADR Index Monthly Performance Review June 2012 is now available.
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Source: BNY Mellon
Global X Funds Launches SuperIncome Preferred ETF (SPFF)
Firm adds to suite of income-generating funds
July 17, 2012--Global X Funds, the New York-based provider of exchange- traded funds (ETFs), today launched the Global X SuperIncome Preferred ETF (Ticker: SPFF).
SPFF is designed to track 50 of the highest yielding preferred securities in North America.
For investors seeking income, preferred shares are an asset class worth considering due to their unique combination of bond and equity characteristics. Like bonds, preferred shares generally pay stable dividends with more frequent distributions than common shares. Like equity, preferred shares trade on an exchange and have the potential to appreciate in value, offering additional income growth potential for investors. In addition, preferred shareholders have priority over common shareholders with regard to claims on company earnings and assets - this may provide downside protection if a company is forced to liquidate its assets. By screening for the highest yielding preferred securities and paying monthly dividends, SPFF allows investors to diversify their income streams and potentially increase the yield of their overall portfolio.
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Source: Global X
State Street Buys Goldman Sachs Unit as Revenue
July 17, 2012--State Street Corp. (STT), the third- largest custody bank, agreed to buy the hedge-fund administration unit of Goldman Sachs Group Inc. (GS) to boost growth as second-quarter revenue
fell amid declining global markets and record-low interest rates.
State Street agreed to pay $550 million in cash for the Goldman Sachs unit to become the world’s largest servicer of alternative assets such as hedge funds, the Boston-based company said today.
State Street fell as much as 5.6 percent in New York, the most in seven months, as declining assets and fees spurred a 1.9 percent drop in revenue to $2.43 billion.
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Source: Bloomberg
Treasury International Capital Data for May
July 17, 2012--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for May 2012. The next release, which will report on data for June 2012, is scheduled for August 15, 2012.
The sum total in May of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $101.7 billion.
Of this, net foreign private inflows were $60.3 billion, and net foreign official inflows were $41.4 billion.
Foreign residents increased their holdings of long-term U.S. securities in May – net purchases were $50.1 billion. Net purchases by private foreign investors were $19.9 billion, and net purchases by foreign official institutions were $30.2 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $4.9 billion.
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Source: US Department of the Treasury
Chairman Ben S. Bernanke Semiannual Monetary Policy Report to the Congress
U.S. Senate, Washington, D.C.
July 17, 2012-Chairman Bernanke presented identical remarks before the Committee on Financial Services, U.S. House of Representatives on July 18, 2012
Chairman Johnson, Ranking Member Shelby, and other members of the Committee, I am pleased to present the Federal Reserve's semiannual Monetary Policy Report to the Congress. I will begin with a discussion of current economic conditions and the outlook before turning to monetary policy.
The Economic Outlook
The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 percent in the second half of 2011, real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2012, and available indicators point to a still-smaller gain in the second quarter.
view the Semiannual Monetary Policy Report to the Congress
Source: Federal Reserve
Vanguard strikes back against ..Bogle?
A new study refutes founder's concerns that exchange-traded funds encourage excessive trading
July 17, 2012--The Vanguard Group Inc. released a study today that refutes the concerns of founder John Bogle and others that exchange-traded funds encourage excessive trading, which is bad for long-term investors.
Vanguard looked at more than 36,000 ETF positions and more than 500,000 mutual fund positions in its Vanguard Total Stock Market Index Fund (VTI), Vanguard Total Bond Market Index Fund (BND), Vanguard Emerging Markets Index Fund (VWO) and Vanguard REIT Index Fund (VNQ) from 2007 through 2011. Vanguard's ETFs are share classes of its mutual funds, which is unique.
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Source: Investment News
US senator opposes JPM's copper ETF plan
July 17, 2012--U.S. regulators should block JPMorgan Chase & Co's plan for an exchange-traded fund (ETF) physically backed by copper because it would create a boom and bust cycle in the market, according to U.S. Senator Carl Levin.
Levin outlined his opposition in a letter to the Securities and Exchange Commission, arguing the proposed product would disrupt supply and inflate prices by removing a significant chunk of material from the market.
"There is ample evidence that if the ETF shares are listed and traded on the NYSE exchange, the trust will disrupt the global supply of copper," the Democrat from Michigan said in his letter dated July 16.
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Source: Bloomberg
