NEWS SCAN
Dow Jones Industrials to Add Goldman Sachs, Nike Shares
Goldman Sachs will replace Bank of America Corp., Visa will replace Hewlett-Packard and Nike will replace Alcoa in the Dow Jones Industrial Average (DJIA) after the close of trading on Friday, September 20.
The changes will be effective with the opening of trading on Monday, September 23. The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee's desire to diversify the sector and industry group representation of the Index.
Goldman Sachs, headquartered in New York, provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide.
Visa, headquartered in San Francisco, is a payments technology company that engages in the operation of retail electronic payments network worldwide.
Nike, headquartered in Beaverton, OR, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories.
The changes won't cause any disruption in the level of the Index. The divisor used to calculate the DJIA from its components' prices on their respective home exchanges will be changed prior to the opening on September 23. This procedure prevents any distortion in the DJIA's reflection of the U.S. stock market.
RESEARCH
S&P Capital IQ Opens First Mexico City Office
S&P Capital IQ, a business line of McGraw Hill Financial and a provider of multi-asset class data, research and analytics, opened a new office in Mexico City from which it will provide investment and credit in-depth information analysis tools and research for local financial professionals as well as increase data coverage of Mexican and Latin American securities.
"A robust investment climate, sophisticated, demanding and independent investors, and rapid globalization are driving the need for a new tier one financial data and research provider in Mexico," said Lou Eccleston, President, S&P Capital IQ in a statement.
The Recession's Silver Lining: A Financially Savvy Youth
One year closer to financial independence, Gen Z is growing more concerned about the job market, among other economic and financial issues, according to the 2nd Annual Generation Z Survey, released by TD Ameritrade Holding Corporation. This year, 34% of respondents say their top economic concern is jobs and unemployment, up from 26% in TD Ameritrade's 2012 Generation Z Survey.
"When it comes to establishing good financial habits, starting at a young age is key," said Carrie Braxdale, managing director of investor services for TD Ameritrade in a statement. "We encourage parents to talk to kids about money, and the survey suggests Gen Z will listen--six out of 10 say their parents are the most influential source of financial education."
Estimated Long-Term Mutual Fund Flows Down
Total estimated outflows from long-term mutual funds were $5.60 billion for the week ending Wednesday, September 4, 2013, the Investment Company Institute reported today.
Equity funds had estimated inflows of $904 million for the week, compared to estimated outflows of $212 million in the previous week. Domestic equity funds had estimated outflows of $694 million, while estimated inflows to world equity funds were $1.60 billion.
Hybrid funds, which can invest in stocks and fixed income securities, had estimated inflows of $263 million for the week, compared to estimated inflows of $1.15 billion in the previous week.
Bond funds had estimated outflows of $6.77 billion, compared to estimated outflows of $9.30 billion during the previous week. Taxable bond funds saw estimated outflows of $4.72 billion, while municipal bond funds had estimated outflows of $2.05 billion.
PRODUCTS
Morgan Stanley Investment Launches Global Quality Fund
Morgan Stanley Investment Management has announced the launch of the Morgan Stanley Institutional Fund, Inc. - Global Quality Portfolio (Global Quality). Global Quality seeks to generate attractive long-term returns by investing primarily in companies the portfolio management team characterizes as high quality due to an ability to compound their intrinsic value, a strong and sustainable competitive advantage, robust intangible assets including strong brands and distribution networks, high return on operating capital and an experienced management team.
"Our primary goal is to compound our investors' assets over time. By investing in high quality companies with an inherent economic robustness, we aim to deliver returns to investors at a time when they need them most, during difficult and challenging market environments. Investing over the long term allows us to realize value through the steady growth which characterizes our quality companies," Christian Derold, Managing Director and Portfolio Manager for Global Quality said in a statement.
BMO Investments Inc. Expands Choice in Mutual Fund Lineup
To serve the needs of investors better, BMO Investments Inc. announced additions to the BMO Mutual Funds lineup.
Effective September 18, 2013, investors of BMO U.S. Dollar Dividend Fund, BMO U.S. Dollar Balanced Fund and BMO U.S. Dollar Monthly Income Fund will have the option to purchase units of these funds in Canadian dollars in addition to the currently offered U.S. dollar purchase option. This additional purchase option provides investors with more opportunities to access the U.S. portfolios.
Effective November 4, 2013, each of the BMO ETF Portfolio trusts and BMO SelectTrust Portfolios will offer Series T6 securities. The new Series T6 option for these funds are designed to provide tax efficiencies through the deferral of taxes and also offer a predictable cash flow stream with the distribution rate set at the beginning of each year.
Calamos Reopens Flagship Convertible Fund to New Investors
Calamos Investments announced that its flagship Calamos Convertible Fund (A Shares: CCVIX; C Shares: CCVCX; I Shares: CICVX) was reopened to new accounts and new investments as of September 6, 2013.
"We're pleased to reopen our convertible mutual fund to new investors at what we consider to be an opportune time to invest in these unique hybrid securities," said John P. Calamos, Sr., Chief Executive Officer and Global Co-Chief Investment Officer of Calamos in a statement. "An improving global economy and widening spreads have boosted interest in the asset class by issuers, resulting in an improving and diversified convertible market that we expect will become more robust. Moreover, during periods of rising rates and economic expansion, convertibles have historically outperformed their more traditional fixed-income counterparts."
ARRIVALS
Prudential Investments Adds Three to its Mutual Fund Board
Ellen S. Alberding, Keith F. Hartstein and James Quinn have been named independent directors for Prudential Investments' open-end mutual fund board of directors. Prudential Investments is the mutual fund business of Prudential Financial, Inc. offering mutual funds across a range of asset classes and sectors.
"We look forward to the insight and expertise Ms. Alberding, and Messrs. Hartstein and Quinn will offer as we grow our business, strengthen our fund family and deliver quality solutions that help address the needs of our shareholders," said Stuart Parker, president of Prudential Investments in a statement.
JPMorgan Chase to Add Two to Its Board of Directors
JPMorgan Chase & Co. announced that its Board of Directors intends to elect Linda B. Bammann and Michael A. Neal as directors of the company. Bammann is expected to be elected on September 16, while Neal is expected to join the Board in January 2014.
"We are extremely fortunate that Linda Bammann and Mike Neal will be joining JPMorgan Chase's Board of Directors," said Lee R. Raymond, the Board's Lead Independent Director in a statement.
"Linda and Mike are proven leaders and will bring outstanding risk, finance and management experience to our Board and to our firm," said Jamie Dimon, Chairman and CEO in a statement.
