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Morgan Stanley 2011 Year-End ETF and CEF Tax Strategies
October 31, 2011--Exchange-Traded Fund (ETF) and Closed-End Fund
(CEF) prices have been volatile over the past couple of years and there are still a number of funds trading
below multi-year highs, creating opportunities to implement tax swap strategies. We see opportunities
for tax swaps within the ETF and CEF markets and believe investors with unrealized losses in their portfolios
could benefit from tax-management strategies.
Tax swaps can be structured to comply with the wash sale rule. A tax swap involving the sale of one
fund and the simultaneous purchase of another with similar objectives may create losses while maintaining
market exposure and may not be subject to wash sale rules. These losses can be used to offset realized or
future gains from other holdings.
MS’ Global Cross Asset Strategists, led by Greg Peters, recommend reducing risk (3-6 month view). Although the bear market rally could continue and the tactical outlook today is more balanced than compared to a few weeks ago, the case for near-term upside is less compelling.
Investors should consider rebalancing their portfolios. Over the past few years, significant volatility within equity, fixed income, currency, and commodity markets, may have resulted in many investors’ allocations deviating from their targeted positions.
ETFs and CEFs have risks, including the general risks associated with investing in securities. ETF
risks include tracking error and the possibility that an index may lag other market segments or active
managers. CEFs have risks related to active management, liquidity, widening discounts, and, in many
cases, the use of leverage. ETFs and CEFs may also have foreign currency risks. >request report
Source: Morgan Stanley
Invesco PowerShares and Key Partners to Waive Fees for Four New Financial Sector ETFs Based on KBW Indexes
ETFs Will Have No Unitary Fee through February 1, 2012
October 31, 2011– Invesco PowerShares Capital Management LLC, a
leading global provider of exchange-traded funds (ETFs), announced today that it will waive its unitary fee
for the four new ETFs based on Keefe, Bruyette & Woods, Inc. (KBW) indexes that are expected to begin
trading November 1st on the NYSE Arca.
The portfolios provide investors with targeted access to the
bank, capital markets and insurance sectors. The ticker symbols, names and underlying indexes are as
follows:
read more
Source: Invesco PowerShares:
Van Eck files with the SEC
October 31, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Nigeria-Focused Western Africa ETF.
view filing
Source: SEC.gov
TMX Enters Support Agreement With Maple
October 30, 2011--TMX Group Board unanimously supports Maple proposal
Current offer price and structure preserved
$39 million reverse termination fee
Maple offer extended to January 31, 2012
Transaction remains subject to regulatory approvals
TMX Group and Maple to host media conference call at 10:00 am ET on Monday, October 31, 2011
TMX Group Inc. and Maple Group Acquisition Corporation (Maple), today announced that they have entered into a support agreement in respect of Maple’s proposed acquisition of all of the outstanding TMX Group shares pursuant to an integrated two-step transaction valued at approximately $3.8 billion.
read more
Source: TMX
First Trust files with the SEC
October 28, 2011--First Trust has filed a post-effective amendment No. 54, registration statemwnt with the SEC for the First Trust CBOE VIX Tail Hedge Index Fund.
view filing
Source: SEC.gov
U.S. Department of the Treasury Economic Statistics - Monitoring the Economy Update
October 28. 2011-The Economic Statistics - Monitoring the Economy for U.S. Department of the Treasury. This information has recently been updated, and is now available.
view US Economic Data - Monthly (Oct 25, 2011)
US Economic Data - Quarterly (Oct 27, 2011)
Source: US Department of Treasury
Wisdom Tree files with the SEC
October 28, 2011--Wisdom Tree has filed a post-effective amendment No.70, registration statement with the SEC for the WisdomTree Dreyfus Chinese Yuan Fund (CYB)
WisdomTree Australia & New Zealand Debt Fund (AUNZ)
(Formerly, WisdomTree Dreyfus New Zealand Dollar Fund (BNZ))
WisdomTree Euro Debt Fund (EU)
(Formerly, WisdomTree Dreyfus Euro Fund)
view filing
Source: SEC.gov
RevenueShares files with the SEC
October 28, 2011--RevenueShares has filed a post-effective amendment, registration statement with the SEC for the RevenueShares Large Cap Fund
RevenueShares Mid Cap
RevenueShares Small Cap Fund
RevenueShares Financials Sector Fund
RevenueShares ADR Fund
RevenueShares Navellier Overall A-100 Fund
read more
Source: SEC.gov
S&P Indices & TMX Group Launch S&P/TSX Composite Equal Weight Index for the Canadian Market
October 28, 2011--S&P Indices and TMX announced today the launch of an Equal Weight version of the S&P/TSX Composite Index providing Canadian investors with a new and innovative approach to tracking the performance of the principal broad-based index for the Canadian market.
"The S&P/TSX Composite Equal Weight Index is designed to meet clients' needs for benchmarking strategies that require a size-neutral index compatible with the S&P/TSX Composite Index. An equally weighted index provides investors with a tool that will enable size, style, and sector comparison," says Abigail Etches, Director at S&P Indices.
The S&P/TSX Composite Equal Weight Index is the headline index in the S&P/TSX Equal Weight Index Family. In 2009, S&P Indices introduced the S&P/TSX Equal Weight Indices, which are made up of a series of equal weighted headline and industry indices. The index calculations are determined according to the divisor-based methodology applied to the S&P/TSX Indices.
As a result of equal weighting, the S&P/TSX Composite Equal Weight Index tends to have a higher exposure to sectors with small companies than the S&P/TSX Composite Index. Relative performance of the two indices will also differ due to different sector exposure and risk and return profiles in different market cycles.
For more information about the S&P/TSX Composite Equal Weight Index, please visit:
www.standardandpoors.com/indices.
Source: S&P Indices
BM&FBOVESPA Begins Trading In Sustainability And Corporate Governance ETFs On Monday - The Two New ETFs Will Have Itaú As Manager
October 28, 2011--BM&FBOVESPA starts trading on Monday (October 31) in two new ETFs: the IT Now ISE Index Fund that tracks the BM&FBOVESPA Corporate Sustainability Index (ISE), and the IT Now IGCT Index Fund that tracks the BM&FBOVESPA Corporate Governance Trade Index (IGCT). They will have Itaú as their manager.
The IT Now ISE Index Fund tracks the Corporate Sustainability Index (ISE) and seeks to reflect the return on a portfolio composed of shares in companies with a recognized commitment to social responsibility and corporate sustainability.
The IT Now IGCT Index Fund tracks the BM&FBOVESPA Corporate Governance Trade Index (IGCT) and assesses the performance of shares in companies that voluntarily adopt differentiated corporate governance standards (listed at Level 1, Level 2 and the Novo Mercado) and which meet the inclusion criteria established in the index methodology.
Exchange traded funds (ETFs) are offered on the Brazilian Exchange in units. Generally speaking, round lots are made up of 10 units and require an initial minimum investment that ranges from BRL 200 to BRL 1,000 (depending on the ETF that the investor selects), plus brokerage and custody fees. An investor that buys a unit in an ETF is making a simultaneous investment in a share portfolio composed of firms in discrete sectors of the Brazilian economy, without having the buy the separate shares for each of the respective companies. In September, the eight ETFs that are traded on BM&FBOVESPA totaled 75,740 transactions and a financial volume of BRL 1.42 billion.
With the launch of the sustainability and corporate governance ETFs there are now 10 (ten) of these types of funds: three for broad indexes (BOVA11 which tracks the Ibovespa; BRAX11 which tracks the IBRx-100; and PIBB11 which tracks the IBrX-50); three for sector indexes (CSMO11 which tracks the consumer index; MOBI11 which tracks the real estate index; and FIND11 which tracks the financial index), as well as two market capitalization indexes (SMAL11 which tracks the performance of the index comprised of listed small caps; and MILA11 which tracks the performance of listed mid and large caps).
Itaú also won an exclusive one-year license to use the Dividend Index (IDIV) and the Basic Materials Index (IMAT), while BlackRock Brasil won an exclusive one-year license for the Public Utilities Index (UTIL).
Source: BM&FBOVESPA
