Investment funds

Gold

A gold vault in London is key to a $62B ETF’s success

State Street’s stockpile takes up one corner of a vault in a system that stores bullion on behalf of central banks, sovereign wealth funds and others.

1h ago

Most gold ETFs are backed by the metal itself, instead of futures contracts, says Kanish Chugh, co-head of sales at ETF Securities.

Hedge funds

Hedge funds plan extreme lengths to protect stars after coronavirus lockdown

As big banks adopt off-the-rack approaches to reopening skyscrapers to armies of employees, the asset management industry’s solutions are much more bespoke.

2h ago

The checklist at Izzy Englander’s $42 billion Millennium, which has more than 1,300 staff in New York alone, also covers the details of commuting and vacation planning, according to a person with knowledge of its talks.

ETFs

Fed corporate-bond ETF purchases rise to $1.8B

Total assets held by the central bank rose to a record $7.04 trillion in the week through May 20.

May 22

Managers reduced their allocation to Treasuries ahead of the Fed’s latest meeting to 24.2%, the lowest since September.

Investment-grade bonds

BlackRock’s biggest credit ETF swells to record amid Fed pledge

Corporate-debt funds have led the intake since the central bank first announced its Secondary Market Corporate Credit Facility in March.

May 21

The Fed’s move spurred a rally in high-grade bond markets, where investors were shedding their holdings in an effort to raise cash amid dire economic data.

Active management

Actively managed funds with the biggest 10-year gains

“Just because someone’s charging 1% doesn’t mean you should take them off your list,” an expert says.

By Andrew Shilling

May 20

Active management

How this $50B Vanguard manager found winners in bond-market chaos

As liquidity disappeared amid the coronavirus-sparked mayhem, veteran fixed-income portfolio manager Gemma Wright-Casparius saw opportunities.

May 20

Vanguard’s downbeat view toward the U.S. growth trajectory is shared by several market veterans and Fed officials.

Fiduciary standard

Are dual registrant firms the ‘worst of both worlds?’

Many financial advisors aren’t aware of serious conflicts of interest affecting the majority of retail clients, Northeastern University Professor Nicole Boyson says in a Financial Planning Podcast.

By Tobias Salinger

May 19

ETFs

Fed buys $305M of ETFs at start of historic program

The central bank plans to make both outright purchases of corporate bonds as well as funds potentially invested in sub-investment grade debt.

May 14

FUND ACCOUNTING: Services

Sponsor content from Mutual Fund Service Guide

MiFID

U.S. asset managers outperform European peers. MiFID may be why

One French trade group reports that the country’s managers reduced research budgets by as much as 75% between 2017 and 2019.

May 14