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SEC-What's in a Name? Aligning Fund Names with Investor Expectations
May 25, 2022--Today, the Commission draws on more than two decades of experience analyzing fund names and considering how certain names may mislead investors about a fund’s investment focus, potentially resulting in misallocations of capital.
Today's proposal would modernize the existing "Names Rule" in light of current fund practices, enhance consistency of the rule's application across funds, and provide key safeguards for investors.[1] Fund names, as with any type of branding, provide a critical means by which sponsors market their funds and convey information to investors, and today's proposal recognizes that investors may often rely on fund names in deciding where to invest their savings.
I’m pleased to support today's proposal which would bring meaningful improvements in aligning investor expectations and understanding with a fund's actual focus and the strategies it pursues.
view the Amendments to the Fund "Names Rule"
Source: sec.gov
Horizons Expands Engagement with Solactive with ETF Tracking Solactive North American Listed Copper Producers Index, First of Its Kind in Canada
May 25, 2022--May 25, 2022--Recent years have seen a surge in the popularity of thematic investments. These strategies allocate assets into stocks or other investments based on specific business sectors or themes, intending to benefit from the materialization of trends, technological innovation, and advancements. Copper, for instance, is being increasingly used in a wide range of industries that are tied to economic expansion, like infrastructure, technology, electronics, electric cars, and renewable energy.
Envisaging this potential, ETF issuer Horizons ETFs expanded its engagement with Solactive and launched the Horizons Copper Producers Index ETF, which aims to replicate the Solactive North American Listed Copper Producers Index. It is the first ETF in Canada to provide investors with exposure exclusively to companies involved in copper mining.
The Solactive North American Listed Copper Producers Index is designed to provide exposure to the performance of securities that are active in the copper ore mining industry and includes small, mid, and large-capitalization companies, listed in North America
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Source: Solactive AG
SEC Proposes to Enhance Disclosures by Certain Investment Advisers and Investment Companies About ESG Investment Practices
May 25, 2022--The Securities and Exchange Commission today proposed amendments to rules and reporting forms to promote consistent, comparable, and reliable information for investors concerning funds' and advisers' incorporation of environmental, social, and governance (ESG) factors.
The proposed changes would apply to certain registered investment advisers, advisers exempt from registration, registered investment companies, and business development companies.
"I am pleased to support this proposal because, if adopted, it would establish disclosure requirements for funds and advisers that market themselves as having an ESG focus," said SEC Chair Gary Gensler. "ESG encompasses a wide variety of investments and strategies. I think investors should be able to drill down to see what's under the hood of these strategies. This gets to the heart of the SEC's mission to protect investors, allowing them to allocate their capital efficiently and meet their needs."
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Source: SEC.gov
CBO-The Budget and Economic Outlook: 2022 to 2032
May 25, 2022--In CBO's projections, assuming that current laws generally remain unchanged, the federal deficit totals $1.0 trillion in fiscal year 2022 and averages $1.6 trillion per year from 2023 to 2032. Real GDP grows by 3.1 percent this year.
The Budget
CBO projects that the federal budget deficit will shrink to $1.0 trillion in 2022 (it was $2.8 trillion last year) and that the annual shortfall would average $1.6 trillion from 2023 to 2032. The deficit continues to decrease as a percentage of gross domestic product (GDP) next year as spending related to the coronavirus pandemic wanes, but then deficits increase, reaching 6.1 percent of GDP in 2032. The deficit has been greater than that only six times since 1946.
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Source: CBO (Congressional Budget Office)
PGIM Investments Launches Floating Rate ETF
May 24, 2022--PGIM Investments continues to build out its actively managed fixed income ETF lineup with the launch of the PGIM Floating Rate Income ETF (NYSE Arca: PFRL). The new ETF, which seeks to maximize current income by investing primarily in senior floating rate loans, is managed by PGIM Fixed Income,1 one of the largest and most experienced leveraged finance managers with $38 billion in floating rate loan assets under management as of March 31, 2022.
PGIM is the $1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
The PGIM Floating Rate Income ETF’s investment strategy mirrors the $4.6 billion PGIM Floating Rate Income Fund which ranks in Morningstar’s top decile for total returns over the 3-, 5- and 10-year periods ending March 31, 2022.
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Source: PGIM Investments LLC
Minutes of the Federal Open Market Committee, May 3-4, 2022
May 24, 2022--Developments in Financial Markets and Open Market Operations
The manager turned first to a discussion of monetary policy expectations in the United States. Federal Reserve communications since the March FOMC meeting were perceived as signaling a more rapid removal of policy accommodation than had been expected, resulting in significant shifts in expectations regarding the path of the federal funds rate.
For the current meeting, federal funds futures implied around 50 basis points of policy rate tightening, and Open Market Desk survey respondents assigned an average probability of 80 percent to that outcome.
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Source: federalreserve.gov
Harbor Capital Advisors Launches Dividend Growth Leaders ETF
May 23, 2022--Harbor Capital Advisors, Inc. ("Harbor"), today launched the Harbor Dividend Growth Leaders ETF (GDIV), adding to its lineup of active, fully transparent ETFs. The Westfield Capital Dividend Growth Fund assets have been acquired by Harbor and merged into the newly established active ETF.
The management of the fund and its investment strategy will remain the same. Along with ETFs, Harbor offers a curated experience of mutual funds and collective investment trusts (CITs).
"We are thrilled to extend our long-term strategic partnership with Westfield Capital Management, providing advisors and investors with another high conviction investment solution.
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Source: Harbor
High-value bond ETF trades rise sharply from last year
May 23, 2022--Market participants say evidence points to increasing participation by large institutional investors.
Large institutions are increasingly using bond exchange traded funds to manage their portfolios according to market participants, who expect this trend to increase liquidity and reduce fixed income ETF trading costs for all investors.
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Source: ft.com
Meme-themed, social media-driven ETFs plummet in value
May 20, 2022--The narrowly focused funds that rely on the wisdom of crowds are failing to deliver this year
Reddit's Wall Street Bets crowd may once have vowed to take meme stocks "to the moon", instead they and the exchange traded funds that focus on them have been eclipsed by steady, boring earthbound investments.
The particularly poor performance of social media-driven, meme-themed ETFs is partly due to favoured constituent stocks such as computer game retailer GameStop, cinema operator AMC Entertainment and electric vehicle maker Rivian badly undershooting.
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Source: ft.com
Indxx US Top 10 Tech-Monthly Rebalancing Index Licensed by KSM Mutual Funds Ltd for an Index Tracking Fund
May 19, 2022--Indxxis pleased to announce the licensing of their Indxx US Top 10 Tech-Monthly Rebalancing Indexto Israel-based KSM Mutual Funds Ltd. The index will serve as the underlying benchmark for the KSM KTF (4A) Indxx US Top 10 Tech -Monthly Rebalancing Currency Hedged (Ticker: 5134986).
The Index (ITOPTENT) is designed to track the performance of the top 10 largest tech-oriented companies that are listed on the NASDAQ Stock Exchange.
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Source: Indxx
