By Yacov Arnopolin, Executive Vice President, Emerging Markets Portfolio Manager, PIMCO.
As 2017 progresses and the priorities of the Trump administration take shape, the outlook for emerging markets (EM) has evolved from uncertain to promising. What has changed so quickly? Several important concerns that weighed on the sector since late last year have subsided, allowing the relatively strong fundamentals in many EM countries to shine and driving an impressive recovery in EM bonds.[continue reading...]
- PIMCO: Emerging Markets – The Clouds Lift
- Nikko launches first ETF tracking Asia REITs
- IFAs expecting strong growth in ETFs, finds Source
- Morningstar reports healthy growth in ETF Managed Portfolios
- Cantor Fitzgerald acquires ETF strategist Efficient Market Advisors
- E*TRADE survey reveals top factors influencing ETF investment decisions
- NewGold fund launch marks arrival of Kenya’s first ETF
- Asian asset managers increase their passive capabilities, reports Cerulli
- Gold sees strong inflows on dovish Fed hopes, reports ETF Securities
- Copia launches decumulation retirement portfolios built with iShares ETFs
- ProShares launches inverse and leveraged crude oil ETFs
- VanEck sees value in gold mining stocks
- MSCI: Brexit and institutional portfolios
- Barron’s 400 ETF increases large cap exposure following semi-annual review
Nikko Asset Management has launched a new ETF on the Singapore Exchange that tracks the performance of Asian real estate investment trusts (REITs) – the Nikko AM-Straits Trading Asia ex-Japan REIT ETF (SGX: CFA). Phillip Yeo, International Head of Product Development at Nikko AM, said: “We are pleased to collaborate with FTSE Russell to launch the first Asian REIT ETF in the world. The index is of high quality because of the stringent index methodology and at the same time, high appeal because of the rich dividend content in the constituent REITs.”
A majority of IFAs (56%) expect assets under management in exchange-traded funds globally to rise further in 2017, according to research from Source. Only 3% of IFAs surveyed reported an expected decrease in global ETF assets during the year while just over a quarter (26%) expect it to stay the same. The findings follow record in-flows of $389 billion into ETFs in 2016.
Investment research firm Morningstar has published the latest instalment of its ETF Managed Portfolios Landscape Report. The report, which covers the fourth quarter of 2016 and tracks 881 strategies from 162 US-based firms, found that total assets in these strategies increased 2.2% over this period to $86.7 billion. The strong net gatherings of $1.9bn marks the fourth consecutive quarter of growth in the US ETF managed portfolios space.
Cantor Fitzgerald Investment Advisors has announced the acquisition of the asset management businesses of Efficient Market Advisors, a registered investment advisory firm and leading ETF strategist platform with approximately $1.1 billion in assets under advisement. Herb Morgan, Founder, CEO and CIO of Efficient Markets Advisors, commented: “We are thrilled to join forces with one of the world’s most storied and dynamic financial service brands and marry our sought-after investment approach with the depth and breadth of Cantor Fitzgerald’s financial services platform.”
The Barron’s 400 ETF (NYSE: BFOR) has increased its allocation to large-caps following the latest review of the Barron’s 400 Index. Co-created by US financial journal Barron’s, and equity indexing firm MarketGrader, the index tracks 400 US companies with strong financial statements and attractive share prices. Carlos Diez, CEO of MarketGrader said: “While the index still leans towards [mid caps], the increase in large-caps reflects the selective ‘growth at a reasonable price’ opportunities that have opened up in the large company segment.”
ProShares has launched two new ETFs providing triple leveraged and triple inverse leveraged access to West Texas Intermediate crude oil. The ProShares UltraPro 3x Crude Oil ETF (NYSE: OILU) and ProShares UltraPro 3x Short Crude Oil ETF (NYSE: OILD) track the daily performance of the Bloomberg WTI Crude Oil Subindex, providing 3x and -3x exposure respectively.
The Shenzhen Stock Exchange and the Luxembourg Stock Exchange have launched a green bond index series, including the first Chinese green bond index to provide synchronous quotes between China and Europe. The new index series will act as a market benchmark for the increasingly mainstream green bond market in China, and may serve to underlie future investment products including exchange-traded funds.
Active Alts has launched the Active Alts Contrarian ETF (Nasdaq: SQZZ), an actively managed ETF that pursues a contrarian ‘short squeeze’ strategy by investing in companies with solid fundamentals that have very large short positions. Brad Lamensdorf, Founder of Active Alts, commented: “Because of changing market conditions or smart management moves, highly shorted securities may have promising fundamentals, creating the potential for a profitable short squeeze.”
Copia Capital Management, the discretionary fund management division of Novia Financial, has launched a range of ETF managed portfolios purpose-built for decumulation of assets during retirement. The portfolios are designed to mitigate what is considered to be the key retirement concern – shortfall risk, the risk of running out of money. Henry Cobbe, Head of Copia Capital Management, said: “Decumulation is very different from accumulation. It has different objectives, different risks and requires a different investment approach. We don’t think it is right to recycle old thinking into this new world.”