NEWS SCAN
ETFs Can Now Be Placed in Retirement Plans
MidAtlantic Trust Company said it had resolved record-keeping problems that have kept exchange-traded funds from being part of holdings in 401(k) and other retirement plans.
The state-chartered trust company said it has resolved a problem with fractional shares that result from trading in ETFs that have kept such funds from being kept in retirement plans.
RIAs, Insurers Boost Fixed-Income ETFs
Assets flowing into ETFs are still most likely to go to domestic and international equity funds; however, insurance companies and registered advisors demonstrate strong commitment to domestic fixed-income ETFs, a Greenwich Associates study found.
"Decreased fixed-income bond liquidity has driven institutional investors to explore new ways to access fixed-income markets," said Matthew Tucker, Head of iShares Fixed-Income Investment Strategy at BlackRock. "Fixed-income ETFs are increasingly being used by investors to access liquidity and implement investment strategies."
2013 on Track for Record ETP Flows
Globally, exchange-traded products are scooping up assets on a faster pace than in 2012, according to BlackRock's April 2013 "ETP Landscape Report."
So far in 2013 ETPs have seen $79.9 billion of inflows globally, well ahead of the $66.3 billion in the same period in 2012. For the month of April, flows into fixed-income products and equities were almost identical, with $9.5 billion and $9.6 billion respectively. $8.7 billion flowed out of gold ETPs.
SEC Cracks Down on Fund Gatekeepers
The Securities and Exchange Commission has charged the trustees, chief compliance officer and fund administrator of a pair of mutual fund trusts with causing untrue or misleading disclosures about the factors they considered when approving or renewing investment advisory contracts on behalf of shareholders.
The investigation involved the Northern Lights Fund Trust and the Northern Lights Variable Trust.
American Century Drops LIVESTRONG
American Century is rebranding its target-date funds, dropping the LIVESTRONG name, which is associated with Lance Armstrong, and branding the funds as One Choice Portfolios. The funds were branded with the LIVESTRONG name in 2006, through American Century's Partnership with the cancer charity. Lance Armstrong, who earlier this year admitted using performance-enhancing drugs to win his seven Tour de France titles, founded the charity.
PRODUCTS
EGA Registers Actively Managed EM ETFs
Emerging Global Advisors (EGA) is in the process of registering several actively managed ETFs investing in emerging markets, under the umbrella of the EGA Emerging Global Shares Trust. The group includes emerging markets bond funds and emerging markets strategic sector allocation and tactical sector allocation ETFs.
Krane to Launch Three China ETFs
Krane Funds Advisors, a New York City firm that focuses on investing in China, is adding three new China ETFs to its line-up.
The KraneShares CSI China Internet ETF will track the CSI Overseas China Internet & Communication Index with a price tag of 63 bps. The KraneShares CSI China Consumer ETF will track the CSI Overseas China Consumer Index. No expense ratio was listed.
The KraneShares CSI China Government Bond ETF will track the CSI Offshore RMB China Government Bond 10 Index.
Columbia Targets Int'l Value
Columbia plans to offer the Columbia International Value Fund, which will invest at least 80% of its total asset in equity securities of foreign companies that have market capitalizations of more than $1 billion at the time of purchase, according to the registration filing. The master portfolio of the fund typically invests in foreign companies in at least three countries other than the United States at any one time, and may invest in emerging markets, according to the filing.
ARRIVALS
Morningstar Taps Needham
Daniel Needham has been appointed global chief investment officer for Morningstar Investment Management and managing director for Morningstar Investment Management Europe. Needham will also chair Morningstar Investment Management's Global Investment Policy Committee, which oversees all global investment capabilities, committees, and processes.
Needham previously served as managing director and chief investment officer for Morningstar Investment Management's Asia-Pacific operations, including Ibbotson Associates Australia, leading the firm's research, asset allocation, and portfolio management capabilities.
New Era for Driscoll
The T. Rowe Price New Era Fund is getting a new manager. Timothy Parker, the fund's current manager will leave to pursue other opportunities, the firm's spokeswoman told Money Management Executive.
Shawn Driscoll, an energy analyst with the fund, will succeed Parker by the time September ends. Parker has managed the fund since June 2010.
Heartland Values a New Hire
Robert Sharpe joined Heartland Advisors in the role of co-portfolio manager of the International Value Fund, which invests in smaller equity dividend-payers in developed and emerging markets.
Sharpe will co-manage the fund with Bill Nasgovitz, Heartland's founder and CIO. Previously, Sharpe managed the international equities portfolio at the State Teachers Retirement System of Ohio.
Vinik to Shut Hedge Fund
Jeff Vinik, in a move that echoes his departure 17 years ago from the Fidelity Magellan Fund, is shutting his hedge fund after making ill-timed bets on gold and the direction of stocks.
Vinik Asset Management LP, which oversees about $6 billion, will give clients all of their money back at the end of June, according to a client letter obtained by Bloomberg News. He founded the firm after stepping down in 1996 as head of Magellan, then the largest U.S. mutual fund.
While Vinik has beaten the market since starting the hedge fund, he stumbled 10 months ago after a restructuring at the firm.
He shifted from stock-picking to an oversight role that included analysis of macroeconomic trends and risk management, only to have his hedge fund trail stocks by a wide margin.
