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Study Shows 60% of High-Net-Worth Investors Believe Advisors Can Help Them Navigate Difficult Markets, but Advisors May Still Not Be Addressing All of Their Needs and Concerns
May 27, 2010---- BlackRock, Inc. (NYSE: BLK) recently released a study conducted by its iShares exchange traded fund business in Canada that showed the majority of high-net-worth (HNW)(1) investors rely on their investment advisors to help manage risk and provide counsel on investment products they have not considered. However, the results show that advisors can do a better job of keeping clients informed of their financial situation and make recommendations of suitable investment products. The survey offers a rare insight into a niche audience of wealthy Canadian investors, one that normally represents only a small subgroup in surveys of the general population.
iShares Canada's recent High-Net-Worth Investor survey found:
-- 75 per cent of HNW investors agree this is a time of great opportunity in the markets. Yet 56 per cent are still unsure of where to place their money and nearly 64 per cent are re-evaluating their portfolio mix-even though the vast majority of respondents use the services of an investment advisor in at least some capacity. Seventy-six per cent of HNW investors said they turned to advisors for at least some advice or decision-making, while another 11 per cent retain advisors or brokers to effect transactions.
-- More than 80 per cent of respondents felt it was important that advisors or financial planners give consideration to their clients' financial well-being and put their interests first.
-- While 66 per cent of HNW investors are very confident when it comes to decisions around investing for retirement, only 53 per cent were as confident picking between stocks and funds.
Familiarity with ETFs
More than half-or 58 per cent-of HNW investors believe it would be very important to get advice on exchange traded funds (ETFs) from advisors. The survey also showed:
-- The majority of HNW investors who are familiar with ETFs are very positive about them relative to mutual funds in a number of areas, including transparency, rate of return, preservation of capital and lower management fees: 71 per cent of this group believe they offer an advantage over mutual funds at preserving capital and 70 per cent say that ETFs provide a significantly better rate of return than mutual funds.
-- However, only 27 per cent of respondents say their advisor, broker or financial planner has recommended they buy an ETF and 71 per cent of respondents aged 65+ were unfamiliar with ETFs. Only 12 per cent of respondents have ETFs in their portfolios; 75 per cent of respondents said mutual funds make up a large part of their portfolio, and 71 per cent say stocks also make up a large share of their investments.
-- Nearly half of respondents (48 per cent) who said they own mutual funds believed that their mutual funds did not charge fees in the form of management expense ratios, while 9 per cent were unsure.
"The track record speaks for itself: investors are enthusiastic about ETFs and consider them a good investment. Yet it's unfortunate that such a small number of advisors recommend these products given the positive feedback we received from investors," said Heather Pelant, Managing Director, head of iShares at BlackRock Asset Management Canada Limited.
"Investors look to their advisor to serve as the level-headed counsellor who provides information on investing trends and unique solutions. Advisors have the opportunity to engage in these discussions to maximize client satisfaction."
The younger you are, the more concerned you are about value
While nearly 80 per cent of respondents were satisfied with their advisor, that satisfaction wasn't shared by younger respondents: 63 per cent of HNW investors under age 35 felt it was not worth paying advisors for advice, compared to 26 per cent of those over 35 years old. Conflict of interest is a real concern for all respondents, with 63 per cent believing advisors had a conflict of interest depending on who they worked for.
The survey also found that 61 per cent of HNW investors under 35 years of age felt that advisors provide no better information or advice than can be found on the Internet for free. This statistic drops to almost one-third for respondents 35 and over.
"We're seeing a direct correlation with younger investors and their likelihood of making independent investment decisions and adopting new ways of investing that offer greater returns, such as ETFs, which have been proven to show better performance than actively managed funds," said Heather Pelant.
"As these investors age and increase their assets, it will become more important for advisors to make in-roads with this demographic. Advisors can elevate the conversation by coupling one-on-one counsel with sound recommendations of suitable products and solutions such as ETFs, to give them an edge that self-directed online accounts cannot offer. The better an advisor can convince his clients that he has their best interests at heart, the more likely he is able to demonstrate value."
About the 2010 iShares High-Net-Worth Investors survey
The 2010 HNW investors study was based on an online survey conducted between March 16 and March 29, 2010 by The Gandalf Group, of 500 Canadians across the country who qualified as high-net-worth investors. Canadians who qualified as high-net-worth investors were those who said they owned at least $500,000 in investments not including their homes or workplace or employer-sponsored pensions. The Gandalf Group surveyed a representative sample of the Canadian adult population online, proportionate to age, region and gender in order to identify this sample of high-net-worth investors.
For more information about the new iShares funds, please visit www.iShares.ca. All other inquiries: 1-866-iShares (1-866-474-2737) or email iSharesCanada@blackrock.com.
Source: BlackRock, iShares
Invesco PowerShares to list International Corporate Bond Portfolio on the NYSE Arca on June 3rd-Media Advisory
What: PowerShares International Corporate Bond Portfolio (PICB)
Who: Executive interviews
• Benjamin Fulton, Managing Director of ETFs, Invesco PowerShares
• Ed McRedmond, Senior Vice President Institutional and Portfolio Strategies, Invesco PowerShares
Where: Telephone Interviews
When: May 27 - June 3, 2010
Topics:
1. PowerShares International Corporate Bond Portfolio (PICB)
· PICB offers broad exposure to investment-grade corporate bonds issued solely in developed markets outside of the U.S. in a single trade
2. Why foreign bonds?
· Low Correlation to major asset classes
·Foreign currency exposure
3. What’s next for ETFs in 2010?
For media interviews please contact Bill Conboy or Dustin Weeden at 303-415-2290, bill@bccapitalpartners.com or dustin@bccapitalpartners.com.
The PowerShares International Corporate Bond Portfolio (PICB) seeks results that correspond (before fees and expenses) generally to the price and yield performance of the S&P International Corporate Bond Index. The index measures the performance of investment grade corporate bonds issued by non-U.S. issuers in the following G-10 currencies: Australian dollar, Euro, New Zealand dollar, Norwegian krone, Canadian dollar, British pound, Japanese yen, Danish krone, Swiss franc, and Swedish krona. For inclusion in the index, each bond must be rated investment grade by Standard & Poor’s or Moody’s Investors Service, Inc. The lowest of the two ratings is used to determine eligibility. Each bond must also have a minimum amount outstanding, respective to the currency in which it is issued.
The index uses a modified market capitalization weighted methodology. The weight of each bond in the index is based on its outstanding market value, but the aggregate weight of the bonds in a single currency may not exceed 50%. The index is reconstituted and rebalanced monthly. For additional information please visit http://www.invescopowershares.com/icb/.
To arrange media interviews please contact Bill Conboy or Dustin Weeden at 303-415-2290, bill@bccapitalpartners.com, or dustin@bccapitalpartners.com.
Source: Invesco PowerShares Capital Management LLC
Jeff Heslop Named SEC Chief Operating Officer
May 27, 2010--The Securities and Exchange Commission today announced that Jeff Heslop has been named the agency's first-ever Chief Operating Officer (COO) for information technology, financial reporting, and records management.
Mr. Heslop comes to the SEC from Capital One Financial Corporation, where he was responsible for the company's information and resiliency risk management. As Managing Vice President for Information Risk Management, Mr. Heslop developed and implemented risk policies, standards and practices, and internal controls.
"The creation of the Chief Operating Officer position will enhance our ongoing effort to refocus our resources and make this agency more efficient and effective," said SEC Chairman Mary L. Schapiro. "Jeff brings a great depth of private sector experience with technology development and management assessment, and he has developed the expertise necessary to ensure seamless oversight of our wide-ranging technology improvements and other operational functions of the agency."
Mr. Heslop added, "I'm honored to be selected for the position by Chairman Schapiro. She has crafted a compelling vision to revitalize the agency, and I am very excited about the opportunity to work with her and my colleagues on the SEC staff to help realize that goal." May 2010 “Market’s Measure” Preliminary Report - A Monthly Report From Dow Jones Indexes On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
MAY 2010 Sector Winners and Losers
* In the U.S., the Dow Jones U.S. Telecommunications Index posted the narrowest loss in May, down 6.28% loss. The Dow Jones U.S Oil and Gas Index posted the biggest loss, dropping 13.93%.
read more Goldman Seeks to Settle With Lesser Charge
Negotiating a lesser charge in fraud cases is not an unusual procedure — it would reduce the risk of Goldman’s being involved in a lawsuit with its investors and avoid the further damage that settling a fraud charge would do to the reputation of the bank, The FT said.
read more CBOE To Launch New Volatility-related Options on Friday, May 28
VIX options are listed on CBOE and VIX futures are listed on the CBOE Futures Exchange (CFE).
For more information go to www.cboe.com/Volatility or www.cboe.com/VXX. CBOE S&P 500 Annual Dividend Options (DIVD) Launched
The S&P 500 Annual Dividend Index represents the ordinary cash dividends paid by corporations included in the S&P 500 Index, accumulated over an annual accrual period. Options on the index allow investors to hedge or gain exposures to the dividend risk of the S&P 500 Index and to implement trading strategies based on fundamental earnings forecasts.
For contract specifications, historical values and more, see www.cboe.com/DIVD U.S. Department of the Treasury Economic Statistics - Quarterly Data Update ETF Securities USA LLC files with the SEC Each “Long” Fund will seek daily investment results, before fees and expenses, which correspond to 100% of the daily performance, whether positive or negative, of its specified Commodity Index. Each “Short” Fund will seek daily investment results, before fees and expenses, which correspond to the inverse (negative 100%) of the daily performance, whether positive or negative, of its specified Commodity Index. Each “Leveraged” Fund will seek daily investment results, before fees and expenses, which correspond to 200% of the daily performance, whether positive or negative, of its specified Commodity Index. view filing ETF Securities USA LLC files with the SEC view filing
Source: SEC.gov
May 27, 2010-- * Dow Jones Industrial Average Posts 9.39% Loss in May, European Stocks Lose 16.06%, Asia Falls 13.23% and World Equities Fall by 12.38%
Utilities Sector Posts Narrowest Loss for May in Asia
Financials Sector Takes the Hardest Hit for May in Europe
As of May 26 the Dow Jones Industrial Average fell 9.39% in May, closing at 9,974.45. Stock market indexes in Europe, Asia and globally, were down in May, according to preliminary monthly figures from global index providers, Dow Jones Indexes.
The Dow Jones Industrial Average fell 9.39% in May, closing at 9,974.45. Year-to-date, the index is down 4.35%.
* The Dow Jones Europe Index fell 16.06% in May to 211.33. So far this year, the index is down 20.03%
* The Dow Jones Asian Titans 50 Index fell 13.23% in May to 119.95. So far this year, the index is down 10.66%
* The Dow Jones Global Titans 50 Index fell 12.38% in May, closing at 150.14. Year-to-date, the index is down 13.54%.
* In Europe, the Dow Jones Europe Consumer Goods Index posted the narrowest loss in May, down 12.24%. The Dow Jones Europe Financials Index had the sharpest decline, dropping 18.45%.
* In Asia, the Dow Jones Asia/Pacific Utilities Index posted the narrowest loss in May, down 4.55%. The Dow Jones Asia/Pacific Basic Materials Index posted the biggest loss, down 15.87%.
* Globally, the Dow Jones World Travel and Leisure Titans Index had the narrowest loss in May, down 8.31% loss. The Dow Jones World Construction and Materials Titans Index posted the biggest loss, dropping 17.76%.
Source: Mondovisione
May 27, 2010--Goldman Sachs is looking to avoid a charge of fraud from the Securities and Exchange Commission by coming to a settlement over a lesser offense, The Financial Times reported, citing people familiar with the bank’s negotiating position
The move would mean Goldman accepting a fine of hundreds of millions of dollars, but would aim to cap the furor that has dogged the bank since the Abacus scandal broke.
Source: NY Times
May 27, 2010--CBOE to Add VXX and VXZ Options to Its Suite of Volatility Products On Friday, May 28 CBOE will launch options on two Exchange Traded Notes (“ETNs”).
Ø Options on the iPath® S&P 500® VIX® Short-Term Futures Index™ ETN (ticker: VXX)
Ø Options on the iPath® S&P 500® VIX® Mid-Term Futures Index™ ETN (ticker: VXZ)
Barclays Capital is the off-floor DPM and Group One Trading, L.P. is the on-floor Lead Market Maker for the options at CBOE.
Options on the VXX and VXZ ETNs offer investors and traders
Ø Increased flexibility for hedging the volatility risk of a portfolio
Ø Alternative ways to trade based on their view of market volatility
Ø Exposure to additional points on the volatility curve
Source: CBOE Group
May 27, 2010--On Tuesday, May 25 CBOE Launched S&P 500® Annual Dividend Index Options
* Ticker symbol: DIVD
* Settles to the S&P 500 Annual Dividend Index
* Dec 2010 and Dec 2011 initial expirations
* DIVD options can be traded up to 15 years out as FLEX® options
Source: CBOE Group
May 27, 2010--The U.S. Department of the Treasury Economic Statistics - Quarterly Data has been updated.
view update
Source: U.S. Department of the Treasury
MAY 27, 2010--The ETFS Collateralized Commodities Trust (sponsored by ETF Securities USA LLC) has filed a Form S-1Registration Statement with the SEC for the following funds
ETFS ex-U.S. Oil
ETFS Natural Gas
ETFS Copper
ETFS Wheat
ETFS Composite Agriculture
ETFS Composite Industrial Metals
ETFS Composite Energy
ETFS All Commodities
ETFS Short ex-U.S. Oil
ETFS Short Natural Gas
ETFS Short Copper
ETFS Short Wheat
ETFS Short Gold
ETFS Leveraged ex-U.S. Oil
ETFS Leveraged Natural Gas
ETFS Leveraged Copper
ETFS Leveraged Wheat
ETFS Leveraged Gold
Source: SEC.gov
May 27, 2010-- ETF Securities USA LLC has filed a FORM S-1 Registration Statement with the SEC for
ETFS White Metals Basket Trust
The investment objective of the Trust is for the Shares to reflect the performance of the prices of physical silver, platinum and palladium in the proportions held by the Trust, less the Trust’s expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to a proportional investment in silver, platinum and palladium. An investment in physical Bullion requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal. Although the Shares will not be the exact equivalent of an investment in Bullion, they provide investors with an alternative that allows a level of participation in the silver, platinum and palladium markets through the securities market.
Source: SEC.gov
