Americas ETP News
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DOL Fiduciary Rule FAQ Clarifies Transition Period Requirements
August 7, 2017--The DOL has published additional fiduciary rule transition period compliance guidance in the form of frequently asked questions; some aspects of the FAQ will clearly be welcomed by providers and advisers skeptical of the rulemaking.
Matters addressed in this latest FAQ include information "on (1) fiduciary status disclosure issues under the Department of Labor's ERISA section 408(b)(2) service provider disclosure regulation that applies to ERISA pension plans; (2) whether recommendations to plan participants and individual retirement account (IRA) owners to contribute to or increase contributions to a plan or IRA constitute fiduciary investment advice under the fiduciary rule; and (3) whether recommendations to employers..
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Source: planadviser.com
AdvisorShares Weekly Market Review-Still No Volatility
August 7, 2017--Highlights of the Week Ending 8/4/2017
Macro
The nonfarms payroll report of course came out on Friday and was well received as being a "good report" but very much like the last few reports. There were 209,000 jobs created which was well ahead of expectations, the headline unemployment rate printed at 4.3% and the labor force participation rate moved up a tick to 62.9%.
The broader U6 was steady at 8.6% and revisions only changed the previous two months by 2000 jobs. Wages continue to slog along, sticking at 2.5% year over year. Retail jobs increased by 900, which seems like an awfully small change for an economy of our size but there was chatter that it would have been negative if not for the increased hiring at one of the larger online retailers.
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Source: AdvisorShares
BlackRock, Vanguard Say Bond Market's Got This Trade All Wrong
August 6, 2017--Inflation in the U.S. bound to accelerate in matter of months
Bond traders are too complacent and TIPS 'incredibly cheap'.
Two titans of the bond market are still clinging to the idea that inflation is going to make a comeback.
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Source: Bloomberg
Vanguard welcomes fee wars with rivals Fidelity and BlackRock
August 4, 2017--Vanguard's incoming chief executive officer said the company will keep lowering fund expenses as it grows.
Vanguard Group has a message for competitors trying to undercut its prices: Game on.
In recent years, rival asset managers such as Fidelity Investments and BlackRock Inc. have cut their fund fees to match or beat Vanguard, the low-cost investing pioneer with $4.4 trillion in assets.
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Source: investmentnews.com
ETF Securities-Precious Metals Monitor--July 2017
August 4, 2017--Key Highlights
Gold and silver boosted by weaker dollar and rising inflation expectations
A weaker dollar is inherently inflationary by reducing consumer spending power, while also boosting US exports and demand for relatively cheaper US manufactured goods.
So far in 2017 the dollar has remained weak, falling 9% year to date, which has supported precious metals which historically have a negative correlation to the US dollar. The start of the year also saw elevated expectations of inflation following the boost from the US election in November 2016. Since then those expectations have normalized, but this doesn't mean inflation has fallen. Inflation measures for consumer and producer inflation still remain significantly elevated from over the past 12 months and recent years.
Additionally US inflation expectations have normalized and begun to rise again over the past month.
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Source: etfsecurities.com
Nikko Asset Management takes 15% stake in ETF boutique ARK Investment Management
August 4, 2017--Nikko Asset Management is taking a roughly 15% stake in ARK Investment Management, the disruptive innovation-focused, New York-based exchange-traded fund boutique the Japanese firm partnered with late last year to launch a fintech equity fund.
A spokesman for Nikko said terms of the deal aren't being disclosed. ARK CEO Catherine D. Wood couldn't immediately be reached for comment.
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Source: Pensions & Investments
IMF Working paper-Back to the Future: The Nature of Regulatory Capital Requirements
August 4, 2017--Summary
This paper compares the current regulatory capital requirements under the Dodd-Frank Act (DFA) and the 10-percent leverage ratio, as proposed by the U.S. Treasury and the U.S. House of Representatives' Financial CHOICE Act (FCA).
We find that the majority of U.S. banks would not qualify for an "off-ramp"option—where regulatory relief is offered to FCA qualifying banks (QBOs)-unless considerable amounts of capital are added, and that large banks are much closer to the proposed leverage threshold and, therefore, are more likely to stand to gain from regulatory relief.
The paper identifies an important moral hazard problem that arises due to the QBO optionality, where banks are likely to increase the riskiness of their asset portfolio and qualify for the FCA “off-ramp” relief with unintended effects on financial stability.
view the IMF Working paper-Back to the Future: The Nature of Regulatory Capital Requirements
Source: IMF
Industry Veterans Launch THE ETF: BILD PROJECT to Stimulate Discussion About the Future of Exchange Traded Fund Business
August 3, 2017--Four exchange traded fund and financial services veterans announced today the formation of the ETF BILD Project (Business Insights & Leadership Discussion Project) and release of the project's first position paper, Launching a Successful ETF, The Importance of Post Launch Activities.
The ETF BILD Project aims to be a catalyst for discussions on the most pressing issues faced by the professionals engaged in the ETF business from obstacles to innovation and barriers to growth as well as all regulatory, distribution, operational and marketing challenges.
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Source: ETF BILD Project
Invesco in talks to acquire Guggenheim ETF business: source
August 3, 2017--Invesco Ltd (IVZ.N) is in discussions to acquire part of the investment management business of Guggenheim Partners LLC, including its exchange-traded funds (ETF) business, according to a person familiar with the matter.
The discussions are fluid and a deal is not close to being finalized, according to the person, who was not authorized to discuss the matter publicly.
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Source: Reuters
WisdomTree Cross-Lists 3 Additional UCITS ETFs in Mexico
August 3, 2017--10 Total UCITS ETFs Now Listed in Latin America
WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, today announced that three WisdomTree UCITS ETFs have been listed on The Mexican Stock Exchange, Bolsa Mexicana de Valores (BMV), S.A.B. de C.V.
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Source: WisdomTree
