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AdvisorShares Lists Mars Hill Global Relative Value ETF on NYSE Arca
July 9, 2010--NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, began trading Mars Hill Global Relative Value ETF(Ticker: GRV). The ETF is sponsored by AdvisorShares, and sub-advised by Mars Hill Partners LLC.
The Fund’s investment objective is to generate average annual returns in excess of the total return of the MSCI World Index (the “Index”), with comparable volatility and little to no correlation with the Index. The Fund is considered a “fund-of-funds” that seeks to achieve its investment objective by primarily investing in both long and short positions in other exchange-traded funds that offer diversified exposure to global regions, countries, styles (market capitalization, value, growth, etc.) or sectors, and other exchange-traded products, including but not limited to exchange-traded notes, exchange-traded currency trusts and closed-end funds. In addition, the Fund may use liquid futures contracts, swaps and other derivatives tied to broad market indices when establishing net long or net short exposure on top of the core long/short portfolio.
Source: NYSE Euronext
AdvisorShares files with the SEC
July 9, 2010--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for
The Active Bear ETF
NYSE Ticker: HDGE
The fund will be managed by Ranger Alternative Management L.P>
PRINCIPAL INVESTMENT STRATEGIES
The Sub-Advisor seeks to achieve the Fund’s investment objective by selecting a portfolio, on a short basis only, of liquid U.S. exchange-traded equities, exchange-traded funds (ETFs) and exchange-traded products. The Sub-Advisor implements a bottom-up, fundamental, research driven security selection process that seeks to identify securities with low earnings quality or aggressive accounting that may be intended, on the part of company management, to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition to these issues, the Sub-Advisor seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance. On a day-to-day basis the Fund may hold U.S. Government securities, short term high quality fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and cash equivalents with maturities of one year or less for collateral purposes.
view filing
Source: SEC.com
AdvisorShares Set to Launch First Actively Managed Long/Short ETF- Mars Hill Global Relative Value ETF (GRV)
July 9, 2010--AdvisorShares Investments, LLC, an innovator of actively managed ETFs, today announced that it will begin trading in the industry's first actively managed long/short ETF, the Mars Hill Global Relative Value ETF (NYSE: GRV) tomorrow, July 9th. GRV is sub-advised by Mars Hill Partners, LLC, an SEC-registered Investment Adviser and an affiliate of private wealth manager Huntley Thatcher Ellsworth, Ltd.
GRV employs a "Relative Value" approach created and managed by Mars Hill Partners, which combines long positions in the most attractive country, sector and industry ETFs, with an equal dollar amount short in the least attractive country, sector and industry ETFs. This core long/short portfolio construction is designed to reduce downside volatility and drawdown risk caused by the directional influence of the global equity markets and instead strives to profit from the performance spread between its long and short positions. These relative value spreads are prevalent throughout both rising and falling market environments, enabling GRV to potentially generate more consistent returns over time than a conventional long-only approach.
"GRV has an institutional-caliber investment strategy that is designed to pursue consistent positive absolute returns regardless of the direction of the stock market or interest rates. We are excited to bring investors access to this compelling investment strategy through an actively managed ETF," said Noah Hamman, CEO and Founder of AdvisorShares.
Founder and Chief Investment Officer of Mars Hill Partners, Jason Huntley said, "We are very excited to partner with AdvisorShares to package and launch GRV given the underlying merits of our long/short investment strategy when combined with the daily liquidity, fully transparent and tax efficiency benefits of an NYSE-listed ETF. Historically, strategies like ours have been accessible primarily through separate accounts or private hedge funds, neither of which offers anywhere near the potential benefits of the ETF structure which includes transparency."
Source: AdvisorShares
CFTC.gov Commitments of Traders Reports Update
July 9, 2010--The Commitments of Traders Reports for the week of July 6, 2010 are now available.
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Source: CFTC.gov
NYSE Amex to Begin Trading Nasdaq-Listed Issues on July 13, Providing More Choice for Customers
July 9, 2010--NYSE Amex, a unit of NYSE Euronext (NYX), today announced that pending Securities and Exchange Commission approval, it will begin trading Nasdaq-listed issues on July 13, 2010 on an Unlisted Trading Privilege (UTP) basis, bringing a different market model to the trading of Nasdaq stocks.
“Trading Nasdaq-listed issues on the NYSE Amex platform will provide greater choice for our customers,” said Joseph Mecane, Executive Vice President and Co-Head of U.S. Listings and Cash Execution. “NYSE Euronext is now able to offer traders in Nasdaq stocks two distinctive models – NYSE Amex in addition to NYSE Arca – which appeals to different types of firms and to traders with diverse execution strategies.”
NYSE Amex will feature the following benefits for trading Nasdaq-listed issues:
• A designated market maker assigned to each issue, with an obligation to make fair, orderly markets and to quote at the best bid or offer a certain percentage of the time;
• One or more electronic, off-floor supplemental liquidity providers for most issues, with an economic incentive to add liquidity at the best price a certain percentage of the time;
An additional market center with a differentiated pricing structure; and
A parity-based system that enables the designated market maker, any floor broker and the first order in the exchange’s order book to have equal standing in terms of execution priority at a particular price level.
NYSE Amex will add Nasdaq-listed issues on a gradual basis starting with 10 issues on July 14, to be followed by additional issues to be announced soon.
Source: NYSE Euronext
AdvisorShares Announces Partnership With Ranger Alternatives to Develop an Active Short ETF
Partnership Will Create a Solution That May Be Used as a Tool to Hedge Equity Exposure
July 9, 2010--AdvisorShares Investments, LLC, an investment adviser to actively managed Exchange Traded Funds (ETFs), announced today a partnership with Ranger Alternative Management, L.P. (Ranger Alternative Management), a Dallas based investment manager, to develop an actively managed ETF which implements a Short only All-Cap Domestic Equity investment strategy. The proposed ETF would join AdvisorShares' growing stable of innovative actively managed ETFs which includes the Dent Tactical ETF and the Mars Hill Global Relative Value.
"Ranger Alternative Management has an excellent track record using their proprietary forensic accounting approach to identify domestic equity stocks that are expected to underperform," said Noah Hamman, CEO and Founder of AdvisorShares. "We believe investment advisors are seeking the ability to hedge their long domestic equity exposure without worrying about compounding, derivatives or commodities."
Scott Canon, President of Ranger Capital Group (Ranger Alternative Management's parent company), said, "Current options to provide a true equity hedge for investment advisors are difficult to implement and maintain. Products currently available to investment advisors do not provide a true "buy and hold" option in applying a hedge to equity exposure. The opportunity to bring our team's expertise, process and skill set to the investment advisor community is very exciting for us.
"At Ranger, we maintain an institutional quality platform to support our various asset management groups and affiliates. We believe that Ranger Alternative Management is poised to help market participants manage assets with transparency and liquidity in these difficult and volatile times."
Source: AdvisorShares
Standard & Poor's Announces S&P/TSX Preferred Share Index Methodology Changes
July 9, 2010--Standard & Poor's Canadian Index Services announces the following modifications to the methodology of the S&P/TSX Preferred Share Index, which will become effective after the close of trading on Friday, July 16, 2010, with the second semi-annual review of the index in 2010:
There will be no limit to the number of preferred share issues from any given issuer.
Previously, the number of issues per issuer was limited to a maximum of three.
There will be a maximum relative weight of 10% set per issuer. All eligible lines for an issuer will be included in the index and capped on a pro-rata basis to a maximum of 10% of the total index market capitalization.
Preferred shares that have a mandatory conversion or a scheduled maturity or redemption within 12 months of the review period will not be added to the index. Existing index constituents which have a redemption or conversion will be removed on the redemption or conversion date.
A buffer rule for existing index constituents will be applied for the dollar value traded liquidity requirement. Existing constituents must have a minimum average dollar value traded in the 3 months prior to the review date of C$100,000.
The liquidity requirement to get included in the index will increase from C$100,000 to C$200,000.
Effective January 2011 the rebalance scheduled will change from semi-annually to quarterly. Rebalancing will occur after the close on the third Friday of January, April, July and October.
In order to lessen the impact of these changes, the new methodology will be phased in beginning with the July 2010 rebalance. The index will rebalance 25% each month from July to October, effective after the close on the third Friday, where S&P will apply a weight factor to each issue in order to gradually bring each in to the index.
Company additions to and deletions from an S&P index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard& Poors
Global X Funds launches first Brazil Consumer ETF (BRAQ)
July 8, 2010--Global X Funds, the New York-based provider of Exchange Traded Funds, launched today the Global X Brazil Consumer ETF (ticker: BRAQ). This is the first ETF to offer targeted access to the rapidly growing Brazilian consumer sector.
The Global X Brazil Consumer ETF tracks the Solactive Brazil Consumer Index, which is designed to track the performance of the consumer sector in Brazil. As of June 16, 2010, the largest index components were beverage firm AmBev, food company JBS, and cosmetics firm Natura Cosmeticos.
The Brazilian consumer sector growth rate is expected to outpace the country's overall economic growth rate, according to IBGE and BMI forecasts for private consumption. Since 2004, the country has seen steady increases in private consumption, real wages, urban migration, and job creation, according to Itau Unibanco. The 2014 FIFA World Cup and the 2016 Rio de Janeiro Olympic Games are likely to further contribute to consumption growth in Brazil.
"Brazil is the largest Latin American country by GDP, area, and population. Projections for private spending are favorable, thanks to the trends over the past half decade of rising real wages and disposable income, and falling unemployment," says Bruno del Ama, CEO of Global X Funds. "The Global X Brazil Consumer ETF provides efficient access to these trends."
The Brazil Consumer ETF (BRAQ) is part of a family of Brazil ETFs which includes the Global X Brazil Mid Cap ETF (BRAZ) recently launched June 22, 2010. Other members of the fund family yet to launch include the Brazil Financials, Industrials, Materials, and Utilities ETFs.
Source: Global X
Global X Lists Global X Brazil Consumer ETF on NYSE Arca
July 8, 2010--–- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading theGlobal X Brazil Consumer ETF (Ticker: BRAQ). The ETF is sponsored by Global X Funds.
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Consumer Index, which is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure the performance of the consumer sector of the Brazilian economy, as defined by Structured Solutions AG.
Source: NYSE Euronext
BlackRock Enhances Gold Offerings in U.S. to Meet Growing Investor Demand
July 8, 2010--On June 30, 2010, BlackRock announced two new
initiatives to meet the growing demand for gold investing and make the gold market accessible to the broadest group of financial advisors, institutional and individual investors. These
initiatives, which leverage the Firm’s capabilities across the globe and build on BlackRock’s leadership in gold products outside of the U.S. market, involve two distinct investment
offerings for clients looking to invest in gold:
A New U.S. Mutual Fund Focused on Gold-Related Equities: The new BlackRock World Gold Fund in the U.S. invests in equity securities of gold-related companies from around the world
and seeks to maximize total return. The recently-launched Fund is managed by an experienced team of industry specialists — led by Evy Hambro and Catherine Raw — who are part of
BlackRock’s London based Natural Resources Team which manages more than $35 billion in
assets, as of March 31, 2010. Mr. Hambro and Mrs. Raw have extensive experience managing
gold-related products which have historically been marketed and sold outside the U.S.,
including one of the most successful gold funds in the world, and U.S.-based investors can now
access their expertise and insights through the World Gold Fund.
An Enhanced Physical Gold Exchange Traded Offering: The Firm is refining the iShares COMEX Gold Trust (NYSEArca: IAU), which holds physical gold. The enhancements to this product will provide investors with broader access to the gold market and more flexibility in adjusting the gold allocation of their portfolio through the potential for increased liquidity and lower total costs.
The Board of Directors of BlackRock Asset Management International Inc., the sponsor of the
iShares COMEX Gold Trust (NYSEArca: IAU), has approved several changes to the Gold Trust
which include: reducing the share price – and increasing the Trusts’s shares outstanding -
through a previously announced 10-for-1 share split, effective June 24, 2010; and leveraging
BlackRock’s broader platform to drive greater operating efficiencies for the Trust. BlackRock is
passing those cost savings along to investors by reducing the Trust’s sponsor fee from 0.40% to
0.25%, effective July 1, 2010.
Source: BlackRock
