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Institutions' Growing ETF Use Underscores Funds' Versatility and Value
May 23, 2011--Institutional investors report they are increasingly turning to Exchange Traded Funds (ETFs) to facilitate essential fund management practices, including liquidity management, transition management and the equitization of transactional cash for asset-allocation purposes, a study released by Greenwich Associates today shows.
The trends in institutional investors' use of ETFs are documented in year-over-year changes in the behaviors of pension funds, foundations and endowments as reported by the independent research firm Greenwich Associates. The study, in its second year and sponsored this year by iShares, reports that the number of institutional investors reporting use of ETFs for transition management, cash equitization, rebalancing and liquidity management increased significantly from 2010 to 2011.
Among investors participating in the study, 63% said they use ETFs for transition management purposes. That level is up from the 38% who reported using ETFs for transitions in the 2010 Greenwich Associates study. Institutions reporting ETF usage for cash equitization rose to 51% in 2011 from 31% in 2010. The reported use of ETFs by institutions for rebalancing purposes rose to 44% in 2011 from 24% in 2010. The use of ETFs in overlay liquidity strategies or liquidity sleeves increased to 10% in 2011 from 3% in 2010.
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Source: Marketwire
Fundamentals-Sector Weights: On Average Wrong, but Dynamically Right
May 23, 2011--In Marcel Duchamp’s famous
1912 painting, Nude Descending a
Staircase, No. 2, the French painter
captured the sense of motion by
illustrating a series of images—
all displayed in one frame.1 The
controversial painting was inspired
by Cubism’s breakdown of familiar
images into multiple perspectives.
But it went one better than the
Cubists—who typically used
static images—by adding motion,
reflecting the influence of the
nascent motion picture industry.2
The painting forced the observer to
rethink how he or she viewed art.
Similarly, the Fundamental Index® methodology forces investors to rethink how they view portfolio returns. Investors typically dissect returns, trying to understand how much of performance is attributable to sector bets and how much to stock selection. Like Cubists, they are deconstructing reality and then putting it back together. But what if we—like Duchamp—add motion to the picture?
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Source: Research Affiliates, LLC.
Semi-Annual Changes To The NASDAQ OMX CRD Global Sustainability Index
May 23, 2011--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and CRD Analytics announced today the results of the semi-annual re-ranking of the NASDAQ OMX CRD Global Sustainability Index (Nasdaq:QCRD), which will become effective prior to market open on Monday, May 23, 2011.
The following seven securities will be added to the Index: AngloGold Ashanti Limited (NYSE:AU), Campbell Soup Company (NYSE:CPB), Goldcorp Inc. (NYSE:GG), The Coca-Cola Company (NYSE:KO), Merck & Co., Inc. (NYSE:MRK), Syngenta AG (NYSE:SYT) and Wipro Limited (NYSE:WIT).
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Source: NASDAQ OMX
Van Eck files with the SEC-Market Vectors Business Development Company ETF
May 20, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Business Development Company ETF.
view filing
Source: SEC.gov
Van Eck files with the SEC
March 20, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors International High Yield Bond ETF.
view filing
Source: SEC.gov
Equity ETF outflows dominate, munis lose -Lipper
Bank loan funds extend inflow streak to 46 weeks.
Muni bond outflow streak, at 27 weeks, appears waning
Taxable bond funds pull in cash, steady pace maintained (Updates with link to ETF impact on equity sector)
May 20, 2011--Big outflows from equity exchange-traded funds overwhelmed actively managed stock mutual funds in the week ended May 18, while municipal bond funds extended their outflow streak, data from Thomson Reuters Lipper showed on Thursday.
Overall, U.S.-domiciled equity funds suffered nearly $6 billion in net outflows, with the vast majority bleeding out of domestic-focused equities.
Excluding ETFs, the traditional funds business pulled in a net $1.6 billion, with inflows for both domestic as well as non-domestic equity funds.
"Equity funds are being pushed around by short-term traders, whether they are institutional or not. We have had some disappointing economic news that people are focusing on as (corporate) earnings season wraps up," said Tom Roseen, senior analyst at Lipper.
"This could be a little bit of sell in May and go away. I see it as a buying opportunity rather than sitting off to the sidelines," he said.
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Source: Reuters
iShares Announces Launch of Two New Inflation-Linked Bond Funds
iShares Introduces the First Global Inflation-Linked ETF
May 20, 2011) - BlackRock, Inc. (NYSE: BLK) today announced that its iShares® Exchange Traded Funds (ETFs) business, the world's largest manager of ETFs, has launched two new inflation-linked funds on the NYSE Arca.
The new funds are the iShares Global Inflation-Linked Bond Fund (NYSE Arca: GTIP) and the iShares International Inflation-Linked Bond Fund (NYSE Arca: ITIP). GTIP and ITIP join the iShares Barclays TIPS Bond Fund (TIP) -- the first TIPS ETF to come to market -- and the more recently launched iShares Barclays 0-5 Year TIPS Bond Fund (STIP) on the iShares product line. In total, the four funds provide investors the ability to access inflation-linked bonds in the US as well as those from foreign countries.
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Source: iShares
Grail ETF Trust and Its ETFs Hold Special Meeting of Shareholders; Columbia Management Investment Advisers, LLC Approved as ETFs’ Investment Manager, Among Other Approved Proposals
May 20, 2011--Today, at a special meeting of shareholders of RP Growth ETF, RP Focused Large Cap Growth ETF, Columbia Concentrated Large Cap Value Strategy Fund (formerly known as Grail American Beacon Large Cap Value ETF), Grail McDonnell Intermediate Municipal Bond ETF, and Grail McDonnell Core Taxable Bond ETF (each, an "ETF” and collectively the "ETFs”), each a series of Grail Advisors ETF Trust (the "Trust”), shareholders, voting
separately (other than with respect to the election of Trustees where all shareholders voted together), approved the following proposals:
(1) a new Investment Management Services Agreement between each ETF and Columbia Management Investment Advisers, LLC ("Columbia”), a wholly owned subsidiary of Ameriprise Financial, Inc;
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Source: Finanzen.net
Component Changes Made To Dow Jones Germany Select Dividend 20 Index
May 20, 2011-- Dow Jones Indexes, a leading global index provider, today announced that Gagfah S.A. (Germany, Real Estate, GFJ.XE) will be removed from the Dow Jones Germany Select Dividend 20 Index.
Gagfah S.A. (Germany, Real Estate, GFJ.XE) will be replaced by EnBW Energie Baden Wuerttemberg AG (Germany, Utilities, EBK.XE) in the Dow Jones Germany Select Dividend 20 Index. Gagfah S.A. is being removed due to the cancellation of its dividend payment. All changes will be effective before the open of trading on Wednesday, May 25, 2011.
Further information on the Dow Jones Germany Select Dividend 20 Index can be found at www.djindexes.com.
Source: Dow Jones Indexes
Another Sad Country Song
May 19, 2011--Statement of Commissioner Bart Chilton Before the CFTC Agricultural Advisory Committee Meeting
May 19, 2011--Miranda Lambert has a great country song out right now—“Time to Get a Gun.” Like a lot of great country songs, it tells a story—this one is somewhat tongue-in-cheek, but there’s a bit of truth in it—when people get so fed up, so pushed to the limit, they can be moved to drastic measures. In our case, that means the threat of more prescriptive rules from Congress, mandating specific position limits, because we’ve been unable (or unwilling) to do it ourselves.
Consumers are hurting, at the gas pump and at the grocery store, and if we don’t use all the authorities we have to ensure 100% that the prices they are paying are fair and accurate, I will not be at all surprised if there is an attempt in Congress to take a line from Miranda Lambert, pull out the big guns and simply impose set speculative limits. And there sure would be a lot of people out there singing a sad song about that.
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Source: CFTC.gov
