Archive for March 2016

Nutmeg offers fractional shares in ETFs

Mar 31st, 2016 | By
Shaun Port, CIO at Nutmeg

Online investment manager Nutmeg has become the first provider to launch fractional shares in exchange traded funds. The move will allow Nutmeg to buy and sell as little as one pence in any ETF as opposed to whole shares, which can be costly. By offering fractional shares it means that client money can be invested more precisely. Shaun Port, chief investment officer at Nutmeg, said: “With fractional shares we can now allocate with even greater precision. This gives us an incredibly powerful tool to buy into a wide range of ETFs and to fully invest even small contributions, and re-invest dividends.”

John Hancock expands suite of smart beta US sector ETFs

Mar 31st, 2016 | By
John Hancock unveils multi-factor small cap ETF

John Hancock Investments, a Boston-based asset manager who launched its first raft of exchange-traded funds in September last year, has expanded its product line-up with five new sector multifactor ETFs. The new additions build upon the firm’s existing partnership with Dimensional Fund Advisors, a smart beta pioneer. The two began their collaboration in 2006, offering strategies as both individual John Hancock mutual funds and through John Hancock asset allocation portfolios. Andrew G. Arnott, president and CEO of John Hancock Investments, said: “Investors are increasingly looking for a better way to achieve equity market beta than relying solely on traditional capitalization-weighted indices.”

Victory Capital unveils smart beta emerging markets ETF

Mar 31st, 2016 | By
Stephen Hammers Victory Compass

A new exchange-traded fund offering smart beta exposure to emerging market companies has launched on Nasdaq exchange. The Victory CEMP Emerging Market Volatility Wtd Index ETF (CEZ), screens stocks across factors such as size (large cap) and fundamentals (profitability) and weights eligible constituents according to their historical volatility. Stephen Hammers, Chief Investment Officer for Victory’s CEMP franchise, commented: “We are very excited to expand our existing ETF line-up to include a fund that may offer a risk conscious and tax efficient solution for investors seeking to diversify their portfolios through exposure to emerging markets.”

Deutsche launches FTSE China A-H 50 Index ETF

Mar 30th, 2016 | By
New db x-tracker ETF seeks to capture price differential between China A- and H-shares.

Deutsche Asset Management in partnership with Harvest Global Investments has launched a new exchange-traded fund – the db x-trackers Harvest FTSE China A-H 50 Index UCITS ETF (DR) – designed to track the performance of the 50 largest China A-share companies while capturing any price differentials between dual-listed constituents’ A-Shares and H-shares. Dual-listed mainland China companies’ shares often trade at different prices despite identical voting rights and dividend payments. According to data from Deutsche Asset Management, as of 31 January 2016, H-Shares on dual-listed stocks were trading at an average 27% discount to their A-Share equivalent. The fund is linked to the newly launched FTSE China A-H 50 index and has been listed on the LSE and Deutsche Börse.

FTSE Russell unveils index combining China A-Shares and H-Shares

Mar 30th, 2016 | By
FTSE Russell launches emerging markets and Latin America sustainability indices

FTSE Russell has unveiled an innovative new index: the FTSE China A-H 50 Index. The index, which has been licensed to Deutsche Bank for an ETF launch, has the same constituents at the company level as FTSE China A50 A-share index but, where applicable, is able to switch into a constituent’s Hong Kong-listed H-Shares if they offer better value. Mark Makepeace, CEO of FTSE Russell, said: “As the Chinese domestic market opens, we continue to develop products that provide investors with a variety of tools to capture different aspects of the market. The FTSE China A-H 50 Index reflects our desire to create new index solutions for the region, as we look to support the diverse range of investment needs.”

More institutional investors to adopt smart beta strategies, finds ETF issuer Source

Mar 30th, 2016 | By
Source highlights benefits of commodity ETFs with flexible trading strategies

Over 30% of institutional investors who do not currently use smart beta expect to adopt such strategies within two years, according to a recent survey conducted by Source, a European provider of exchange-traded funds. Dividend-weighted strategies are predicted to be a major driver of this growth with 28% of respondents believing investors will increasingly focus on smart beta strategies to enhance the dividends they receive. Dr Chris Mellor, Executive Director, Equity Product Management at Source, commented: “Smart beta is going to play a growing role in helping investors find quality stocks that pay an attractive dividend.”

EDHEC’s Scientific Beta refutes smart beta “monkey” claims

Mar 29th, 2016 | By
Smart Beta ETFs effective at capturing risk premiums, finds Scientific Beta

Smart beta strategies are effective at isolating and capturing risk premia, according to Scientific Beta, a commercial venture of EDHEC Risk Institute. The firm’s latest research paper, “Smart Beta is not Monkey Business”, confirms that investors are able to use smart beta investment products, such as certain exchange-traded funds, to achieve specific factor exposures. The paper refuted claims that all smart beta strategies gain exposure to the size factor and that any out-performance is solely attributable to this exposure, and that similar results may be obtained by a random, so-called “monkey” weighting strategy.

Japan-listed ETFs gather record $9.24bn in Jan and Feb, finds ETFGI

Mar 29th, 2016 | By
Nikko: Japan’s inflation and monetary policy outlook

Japan-listed exchange-traded funds and exchange traded products gathered $2.48bn in net new assets last month, bringing total inflows for the first two months of the year to a record $9.24bn, according to data from London-based consultancy ETFGI. Equity ETFs/ETPs gathered $2.51bn in February, the largest net inflows from any asset class, followed by commodity ETFs/ETPs with $108m, and fixed income ETFs/ETPs at $5m. Nomura AM was the most successful gatherer of new assets during February with $1.47bn, followed by Nikko AM with $693m and Daiwa with $391m net inflows.

Solactive launches global family-owned companies index

Mar 29th, 2016 | By

Germany based index provider Solactive has launched a new index offering access to the performance of companies that are mainly owned by families. The Solactive Global Family Owned Companies Index specifically looks at the positive effects of certain ownership structures on the long-term development of a company. The index is based on global research by the University of St. Gallen, which lists the 500 biggest companies by revenue, where families hold at least 32% of the voting rights. Out of this universe all listed companies at a regulated and approved stock exchange are further considered as components for the index. Steffen Scheuble, CEO, Solactive, said that investors can now participate in the positive influence of family.

Fubon lists three NIFTY ETFs on Taiwan bourse

Mar 29th, 2016 | By
First yuan-denominated ETF begins trading on Taiwan Stock Exchange

Taipei-headquartered Fubon Asset Management has listed three exchange-traded funds linked to the Nifty 50 index on the Taiwan Stock Exchange (TWSE). The launch marks the first time Taiwan-based investors have been able to access the popular Indian equity index via ETF format. The Fubon NIFTY ETF (00652), Fubon NIFTY 2x Leveraged index ETF (00653L), and the Fubon NIFTY -1 Inverse ETF (00654R) track the Nifty 50 Index, the Nifty PR 2X Leverage Index and the Nifty PR 1X Inverse Index, respectively.