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Thompson Hine Update-Preparing for the Next Generation of Actively Managed ETFs
January 29, 2019--Key Notes:
Many expect the SEC to soon approve newer versions of exemptive relief for the next generation of actively managed ETFs, which differ in how they keep the ETF's strategy secret, how they support the arbitrage process and potential intellectual property (IP) protection.
Five applicants have received and responded to SEC comments.
Potential sponsors of this next generation of ETFs should understand these different models and related IP implications to decide what path they want to follow to be able to offer these ETFs.
Many believe the SEC is poised to allow for the first time the next generation of actively managed ETFs, which differ from traditional ETFs in how they keep the ETF's strategy secret, how they support the arbitrage process and potential intellectual property protection.
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Source: Thompson Hine
Tidal ETF Services LLC Partners with Aware Asset Management to Launch AWTM
January 29, 2019--Liquid, Actively Managed, Ultra-Short Duration Bond ETF
Today Tidal ETF Services LLC is proud to announce the launch of their first ETF in partnership with Aware Asset Management, a Minnesota-based asset manager focused on fixed-income portfolio management.
The Aware Ultra-Short Duration Enhanced Income ETF (NYSE: AWTM) is the first ETF of its kind, an actively-managed fixed income ETF designed specifically for the unique needs of investors looking for cash-plus solutions.
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Source: Tidal ETF Services
Equium Capital Management Inc. Announces Fund Termination
January 29, 2019--Equium Capital Management Inc. ("Equium Capital"), the manager of Equium Global Tactical Allocation Fund (the "Fund"), today announced its intention to terminate the Fund, including the Series A, Series F and ETF Series (TSX: ETAC) units (collectively, the "Units") on or about March 29, 2019 (the "Termination Date").
Effective today, the Series A and Series F Units of the Fund are no longer available for purchase, including any purchases made pursuant to existing pre-authorized payment plans. It is anticipated that the ETF Series Units of the Fund will cease trading and be voluntarily delisted from the Toronto Stock Exchange on or about March 28, 2019 at the close of business. Effective February 28, 2019, no further subscriptions for ETF Series Units of the Fund will be accepted.
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Source: Equium Capital Management Inc.
CBO-The Budget and Economic Outlook: 2019 to 2029
January 29, 2019--In CBO's projections, deficits remain large by historical standards, and federal debt grows to equal 93 percent of GDP by 2029. As the effects of fiscal stimulus wane, projected economic growth falls back below the historical average.
Deficits
In CBO's projections, the federal budget deficit is about $900 billion in 2019 and exceeds $1 trillion each year beginning in 2022. Over the coming decade, deficits (after adjustments to exclude shifts in the timing of certain payments) fluctuate between 4.1 percent and 4.7 percent of gross domestic product (GDP), well above the average over the past 50 years. CBO's projection of the deficit for 2019 is now $75 billion less-and its projection of the cumulative deficit over the 2019–2028 period, $1.2 trillion less-than it was in spring 2018. That reduction in projected deficits results primarily from legislative changes-most notably, a decrease in emergency spending.
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Source: Congressional Budget Office (CBO)
The Forum at ETF Research Center-Save with our Mutual Fund Replacement Tool
January 28, 2019--Change Isn't Always Easy
Millions of investors know that ETFs are often cheaper and more tax-efficient than traditional mutual funds, among other advantages.
This awareness has helped ETFs gain market share over the past decade and a half as investors gradually shifted assets out of mutual funds and into ETFs.
There is plenty of room for that trend to continue. According to the Investment Company Institute, assets invested in U.S. equity ETFs exceeded $2.1 trillion as of November 2018. Yet that is still less than one-third of the $7.5 trillion invested in U.S. equity-focused mutual funds.
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Source: AltaVista Research
CBO-The Effects of the Partial Shutdown Ending in January 2019
January 28, 2019--Summary
The Congressional Budget Office has estimated the effects of the five-week partial
shutdown of the government that started on December 22, 2018, and ended on
January 25, 2019. This report presents CBO's findings, which include the following
: CBO estimates that the five-week shutdown delayed approximately $18 billion
in federal discretionary spending for compensation and purchases of goods and
services and suspended some federal services.
As a result of reduced economic activity' CBO estimates' real (that is' inflation-
adjusted) gross domestic product (GDP) in the fourth quarter of 2018 was
reduced by $3 billion (in 2019 dollars) in relation to what it would have been
otherwise. (Such references are in calendar years or quarters unless this report
specifies otherwise.) In the first quarter of 2019' the level of real GDP is
estimated to be $8 billion lower than it would have been-an effect reflecting
both the five-week partial shutdown and the resumption in economic activity
once funding resumed.
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Source: Congressional Budget Office (CBO)
ETFS Capital Invests $4 Million in ETFLogic, the New York City-based Leading ETF Analytics and Data Technology Company
January 28, 2019--ETFS Capital has provided an initial $4 million of seed funding to ETFLogic, the exchange traded fund (ETF) analytics and data company.
The parties anticipate that any future funding will also come from ETFS Capital, enabling ETFLogic to focus solely on developing its business without the need to source outside capital.
The tools that ETFLogic provide are incredibly useful to ETF issuers, financial advisers and anyone wishing to select which ETFs might be best for their client or portfolio.
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Source: ETFLogic
2018 U.S. Fund Flows Trends in 5 Charts Investors shunned most of Wall Street last year
January 28, 2019--Many mutual fund and exchange-traded fund investors had much less use for what most of Wall Street was selling in 2018. Most had little interest in anything that wasn't passive (continuing a long-term trend), core-oriented, and/or low-risk.
As a result, money continues to gravitate to passive leaders, Vanguard and iShares, as the rest of the industry downsizes and consolidates. (See the layoffs recently announced by BlackRock, BNY Mellon, and JPMorgan Asset Management.) In part because of the growth of target-date funds and other portfolio-based solutions, many investors are more cost-conscious and less performance-driven than in the past. These are no doubt positive shifts for most investors, but they leave less of a role for Wall Street.
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Source: Morningstar
JPMorgan makes late push to become ETF heavyweight
January 27, 2019--New York lender raises fund sales tenfold, outpacing State Street and Invesco
JPMorgan's bid to join the top tier of exchange traded fund managers was boosted last year as the New York-listed group increased sales tenfold.
The bank, which had some of the best-selling newly launched funds in 2018, has increased its efforts to regain assets lost to BlackRock and Vanguard over the past decade.
view more Franklin Templeton and Invesco ranked worst-selling funds in 2018 view more
Source: FT.com
January 26, 2019--Active managers were hit hardest last year as investors reacted to jittery markets
Franklin Templeton and Invesco were ranked as the worst-selling mutual fund managers globally last year as turbulent markets prompted large redemptions from active investors.
A net $44.5bn was withdrawn from Franklin's mutual funds in 2018 while net outflows at Invesco were $27.1bn, said Morningstar, the data provider.
Source: FT.com
