NEWS SCAN
Altegris Macro Fund Adds Sub-Advisor
300 North Capital has added its global macro strategy to the Altegris Macro Strategy Fund (MCRAX). The Pasadena, CA-based firm will join Denali Asset Management, Brevan Howard, P/E Investments, Ortus Capital Management and Krom River Investment Management on the roster of sub-advisers.
Pimco, SSgA Junk Bond ETFs on Diverging Course
Pimco's 0-5 Year High Yield Corporate Bond ETF reported $204.1 million of inflows on April 8, the same day the SPDR Barclays High Yield Bond ETF recorded its second-biggest daily redemption since its inception more than five years ago, equal to about $378 million worth of shares, Bloomberg reports.
FINRA Targets Complex ETFs
The suitability of leveraged and inverse exchange-traded funds climbed on FINRA's Enforcement hit list in 2012, according to Partners Deborah Heilizer and Brian Rubin and Associate Andrew McCormick of law firm Sutherland Asbill & Brennan's, in their annual review of the regulatory agency's disciplinary actions.
In 2011, FINRA had only four cases involving ETFs, resulting in $123,000 in fines. The numbers of those cases jumped to 9 in 2012, resulting in $7.6 million in fines, an increase of 125% in cases and 6,200% in fines.
PRODUCTS
Chi-town Firm Offers Maiden Mutual Fund
Chicago-based Dearborn Partners has launched its first mutual fund, dubbed the Dearborn Partners Rising Dividend Fund (DRDAX, DRDCX and DRDIX).
The new fund bets on companies that historically paid dividends and offer investors the potential to increase their dividend with "regularity," according to portfolio manager Carol Lippman, who joined Dearborn Partners in 2011 and along with her co-portfolio manager, Michael Andelman, manages the firm's separately managed account assets in two similar strategies.
Ex-Alpine PM Heads L/S Active ETF
New York-based ETF Issuer Solutions is the latest firm to file paperwork for actively managed exchange-traded funds.
The firm's initial effort includes the Manna Core Equity Enhanced Dividend Stream Fund (MANA), a fund of funds that will that will bet on other ETFs. The fund will also put on short positions of securities to hedge against country, currency, and sector risks. Its annual operating expense is 85 basis points
Manna ETFs Management is the fund's sub-advisor. Kevin Shacknofsky founded the sub-advisor in February 2013 and will serve as the portfolio manager of the fund. From 2003 through 2013, Shacknofsky worked at Alpine Capital Wood Investors as co-portfolio manager of the Dynamic Divided Series of Funds.
Direxion's Bull ETFs Target Brazil, South Korea
Direxion has added two new leveraged exchange-traded funds: the Direxion Daily Brazil Bull 3x Shares (BRZU) and Direxion Daily South Korea Bull 3x Shares (KORU), to its portfolio.
"Brazil and South Korea are emerging markets with many successful commodity, technology and automobile companies," stated Eric Falkeis, newly-minted president of Direxion.
Three VelocityShares ETFs Emerge
VelocityShares has launched three exchange-traded funds that invest in emerging market depositary receipt. The VelocityShares Emerging Market DR ETF (EMDR), VelocityShares Emerging Asia DR ETF (ASDR), and VelocityShares Russia Select DR ETF (RUDR) all track BNY Mellon indexes.
RESEARCH
Asset Managers Bullish On U.S. Economy
A quarterly Northern Trust survey of investment managers reveals that they were optimistic about the U.S. economy in the first quarter of 2013, buoyed by their positive expectations for housing, jobs and corporate profits in the face of across-the-board federal budget cuts went into effect on March 1.
For example, 91% see corporate earnings either remaining the same or increasing over the next three months, while only 9% expect profits to decline -down from 32% who had a negative view in the fourth quarter of 2012.
ETFs Top $17 Billion in March
Exchange-traded fund flows topped $17.3 billion in March with the fixed income category leading the way to the tune of $5 billion, increasing its year-to-date net flows to $7.1 billion, according to State Street Global Advisor's latest ETF Snapshot.
Emerging market ETFs had the most significant outflows last month, losing $5.7 billion.
ARRIVALS
Chairman White Becomes 31st SEC Chair
Mary Jo White was sworn in last week as the 31st Chair of the Securities and Exchange Commission.
Chairman White was nominated to be SEC Chair by President Barack Obama on Feb. 7 and confirmed by the U.S. Senate on April 8.
Janus Snags Ex-American Century CIO
Janus Capital Group has appointed Enrique Chang chief investment officer of equities and asset allocation. In this new role for the firm, Chang will oversee Janus' equity, risk management and alternatives teams and will help develop multi-strategy portfolio products.
Russell Boosts DCIO Sales Unit
Russell Investments has appointed Andrew Scherer as director of defined contribution, intermediary distribution for the firm's U.S. advisor-sold business, which sells mutual funds and other multi-asset products to DC recordkeeping platforms, retirement plan sponsors and retirement plan advisors.
Scherer joined Russell on March 18 and is based in Russell's Chicago office. He reports to Michael Winnick, managing director of U.S. sales and partnerships for Russell's advisor-sold business.
Putnam Adds Three DCIO Wholesalers
Putnam Investments has added three new DCIO Investment Specialists to bolster its sales effort in the 401(k) market. In the last two weeks, Michael Foy, Daniel Noschese, and Kelly Reey have all joined the firm, reporting directly to Peter Whitman, Director of DCIO, Putnam Investments.
Foy will cover the West Coast region, Reey will be responsible for the Northeast and Noschese will oversee the Upper Midwest region.
OppFunds Hires Ex-AllianceBernstein Exec
OppenheimerFunds has named Mark Hamilton chief investment officer, Asset Allocation, effective April 8. Hamilton will lead the design and implementation multi-asset products and solutions. This is a newly created leadership role reporting directly to Art Steinmetz, chief investment officer.
Hamilton joins the firm from AllianceBernstein where he most recently served as Investment Director on the Dynamic Asset Allocation portfolio management team.
STATISTICS
56% of investment managers think sequestration will remain in effect.
The earliest end date, in their opinion: June 2013.
Source: Northern Trust
1,234 exchange-traded funds are run by a total of 38 managers.
Assets have reached $1.5 trillion, as of March 31, 2013.
Source: State Street Global Advisors
