Wed, Nov. 30, 4:37 PM
Sun, Nov. 20, 7:42 AM
- On Friday, WisdomTree Investments (NASDAQ:WETF) announced a $20M purchase of a 36% equity stake in digital wealth-management platform, AdvisorEngine (formerly Vanare). WisdomTree's asset-allocation models will be made available as defaults on AdvisorEngine's open architecture platform.
- There is a trend here: ETF providers are joining up with digital-advice platforms, thereby finding a shelf to distribute their products and strategies.
- Mind you, Friday's deal doesn't go as far as BlackRock's (NYSE:BLK) acquisition of FutureAdvisor last year or Invesco's (NYSE:IVZ) acquisition of Jemstep this year, Alois Pirker, research director for Aite Group's wealth-management practice notes.
Fri, Nov. 18, 12:52 PM
- Insurers are late converts to the ETF craze, and JPMorgan's Mark Snyder, noting the insurance industry's $200B in cash and $80B in equities, figures a modest reallocation could send $25B-$50B into exchange-traded products.
- The head of BlackRock's (NYSE:BLK) iShares fixed-income and insurance sales, Josh Penzner says insurers are slow to change, but are "really looking" at their investment processes and how to evolve.
- The move could be yet another blow to the asset management industry which already is losing sizable market share to ETFs.
- Also of interest to: Och-Ziff (NYSE:OZM), Invesco (IVZ -0.5%), AllianceBernstein (NYSE:AB)
Fri, Nov. 18, 10:18 AM
- The flood of money pouring into stocks since the election isn't helping mutual funds, which somehow saw $3B of outflows in the last week. Equity ETFs, meanwhile, had $27B of inflows, according to Goldman Sachs - the largest weekly amount on record.
- Equity mutual funds had outflows of $4.4B, making YTD outflows of roughly $120B.
- via Bryan Mortenson
- Interested parties: BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resource (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Invesco (NYSE:IVZ), T. Rowe Price (NASDAQ:TROW), AllianceBernstein (NYSE:AB), Affiliated Managers (NYSE:AMG), Federated Investors (NYSE:FII), Waddell & Reed (NYSE:WDR)
- Previously: Financial ETF sees fastest-ever inflows (Nov. 16)
Mon, Nov. 14, 11:33 AM
- The major averages are stuck in the red, but the XLF is up 2.2% and the KBE +3% as financial sector investors mull a world of higher interest rates and lowered regulation.
- REITs continue to fall, but thanks to this fall's sector reclassification, those names are no longer in the financial indexes.
- Regional banks: Regions Financial (RF +6.9%), New York Community (NYCB +2.9%), KeyCorp (KEY +3.1%), PNC Financial (PNC +2.4%), Fifth Third (FITB +4%), SunTrust (STI +3%), M&T (MTB +3.1%)
- Insurers: MetLife (MET +2.2%), Lincoln (LNC +3.2%), AIG (AIG +2.1%), Hartford (HIG +2.3%), Travelers (TRV +1.4%)
- Online brokerage: Schwab (SCHW +3.6%), Ameritrade (AMTD +2.5%)
- Asset management: Franklin Resources (BEN +3.2%), Och-Ziff (OZM +4.5%), Invesco (IVZ +2.2%), T. Rowe Price (TROW +2.8%), BlackRock (BLK +0.4%)
Thu, Nov. 10, 3:28 PM
- "We've got to get rid of this," says hedge fund honcho and Trump advisor Anthony Scaramucci, speaking about the DOL's fiduciary rule.
- Set to take effect in April, the Department of Labor's new rule would hold retirement professionals to a "fiduciary" standard in which they must put client interests ahead of their own, rather than the current requirement that they recommend "suitable" products.
- The Obama administration argues the move would save investors $17B a year in fees and lost returns. Asset managers, however, will probably spend a lot more setting up systems to try and figure out how to comply with the new standard. In Scaramucci's vision, a Trump administration would instead impose a "self-auditing process" for registered financial advisors.
- Former assistant secretary of labor under Bush, Bradford Campbell has no doubt Trump isn't a fan of the rule, but isn't sure it can be fixed on day one with the stroke of a pen. A Trump administration, however, would have plenty of available tools to modify or eventually remove it, he says.
- Source: FT
- The asset managers continue on their post-election tear: BlackRock (BLK +2.7%), Och-ZIff (OZM +3.8%), Legg Mason (LM +4.4%), Gamco (GBL +1.9%), Janus (JNS +3.6%), Invesco (IVZ +3.3%), T. Rowe Price (TROW +3.6%), AllianceBernstein (AB +5.1%), Affiliated Managers (AMG +7.5%), Federated Investors (FII +6.6%), Waddell & Reed (WDR +4.4%).
Wed, Nov. 2, 2:32 PM
- With $250.6B of inflows through this year's first 10 months, Vanguard has already broken through the record level of inflows set during the entirety of 2015 (last year's total inflow was $236.1B). More than $200B of that amount has gone into low-fee index funds.
- Vanguard's gains are generally at the expense of active fund managers like Fidelity, Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), and AllianceBernstein (NYSE:AB), to name a few.
- Assets at rival BlackRock (NYSE:BLK) - a major player in both active and passive investing - recently topped $5T for the first time ever.
- Passive investing top? Strictly a suburban outfit, Vanguard is nearing a deal for about 20K square feet of office space near Penn's campus in Philadelphia for a research and development hub.
Tue, Oct. 18, 3:18 PM
- Another $23.6B exited active U.S. equity funds in September, according to Morningstar. That's down from $25.4B which left the previous month.
- Meanwhile, passive funds saw net inflows of $19.3B in September vs. $16.4B in August.
- Vanguard topped the passive provider list with nearly $21B in inflows, with iShares (NYSE:BLK) and Fidelity next in line, and State Street (NYSE:STT) falling to fourth place with $1.5B of inflows. Alongside those passive inflows, Fidelity experienced $3.4B in outflows from its active funds.
- Earlier today, BlackRock reported a Q3 earnings beat, with its iShares unit providing the vast majority of quarterly inflows.
Tue, Oct. 18, 2:57 PM
- BlackRock (NYSE:BLK) topped earnings expectations this morning and the stock is ahead 0.9%, but CFRA's Erik Oja is taking the opportunity to downgrade to Hold from Buy. He also cuts the price target to $360 from $390 (current is $357.46).
- He notes the stock trades at a fancy 17.3x forward four-quarter EPS.
- This morning's $0.16 earnings beat, he says, is thanks to a lower-than-expected tax rate (27.5% vs. 31%), which added $0.25 to the bottom line.
Tue, Oct. 18, 7:59 AM
- Q3 adjusted net income of $854M or $5.14 per share vs. $844M and $5.00 one year ago. Operating margin of 44.8% up 90 basis points.
- AUM of $5.12T up 14% Y/Y.
- Retail AUM of $554.8B, with net outflows in Q3 of $2.3B; iShares AUM of $1.25T with inflows of $51.3B. Institutional active inflows of $7.5B, with AUM of $1.04T; Index outflows of $1.38B, with AUM of $1.9T. Total long-term inflows during quarter of $55.2B.
- Conference call at 8:30 ET
- Previously: BlackRock beats by $0.16, misses on revenue (Oct. 18)
- BLK no trades premarket
Tue, Oct. 18, 6:31 AM
Mon, Oct. 17, 5:30 PM
Mon, Oct. 17, 2:00 PM
- It's the kind of headline that makes one wonder if the bottom might already be in for traditional asset managers.
- The numbers won't surprise anyone who's been following along for any length of time: Over the three years ended Aug. 31, investors added nearly $1.3T to passive mutual funds and ETFs, while pulling more than $250M from active mutual funds.
- "Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins," write Anne Tergesen and Jason Zweig. "The pressure has gotten so great that passive has become the default,” says former Fidelity CIO Philip Bullen.
- And by the way, there's still plenty of room for the trend to continue - 66% of mutual and exchange-traded fund assets are still actively invested (down from 84% ten years ago).
- Active fund firms that don't “position themselves for the sea change” will be “relegated to the dustbin of history," said Cohen & Steers (NYSE:CNS) in shareholder letter earlier this year.
- Notable industry names: BLK, OZM, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, MN, EV, AMP
Fri, Oct. 7, 12:44 PM
- Responding to BlackRock's (BLK -0.4%) move to cut fees on 15 of its popular ETFs, Schwab (SCHW -0.7%) announces trimmed costs on five of its widely-used funds. The cuts affect abut $18B in AUM, or 35% of the total in Schwab ETFs.
- The fee for the Schwab U.S. Aggregate Bond ETF is falling to 0.04% from 0.05% BlackRock this week cut the fee on its AGG to 0.05% from 0.08%.
- The Schwab U.S. Small-Cap ETF (NYSEARCA:SCHA) is cut one basis point to 0.06%. BlackRock cut the fee on its iShares S&P SmallCap 600 Index ETF (NYSEARCA:IJR) to 0.07% from 0.12%.
- The Schwab U.S. Mid-Cap ETF (NYSEARCA:SCHM) is cut one bp to 0.06%. The Schwab International Equity ETF (NYSEARCA:SCHF) is cut one bp to 0.07%. The Schwab Emerging Markets ETF (NYSEARCA:SCHE) is cut one bp to 0.13%.
- Lee Kranefuss - one of the founders of iShares - says not to be surprised to see someone make headlines with a zero fee fund, but don't look for that for whole fund families.
Thu, Oct. 6, 8:51 AM
- In one of the highest quarterly amounts ever, investors moved $92B into ETFs in Q3, according to UBS, bringing AUM for U.S.-listed ETFs to about $2.4T.
- For the year, $150B has flowed into ETFs, putting the vehicles on track for their third straight year of inflows north of $200B. The inflows stand in major contrast to either outright net exits or minimal inflows for mutual funds.
- Still, even after doubling AUM since 2011, ETFs account for just 17% of mutual fund assets.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM, EV
Wed, Oct. 5, 7:43 AM
- The cuts affect 15 ETFs and cover $216B in assets, and will lower expenses on those funds to at or below those from Vanguard and State Street (NYSE:STT).
- Among the now cheaper funds are the iShares Core S&P 50 ETF (NYSEARCA:IVV), which now costs 0.04% from 0.07%, and the iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG), which now costs 0.05% from 0.08%.
- Among the reasons for the reductions is BlackRock's (NYSE:BLK) belief that the new DOL fiduciary rule will push even more money into passive investing. "We believe the rule will have as big an impact for the wealth-management industry as Dodd-Frank had on banks,” says CEO Larry Fink.
- Global iShares head Mark Weidman says BlackRock wants the IVV to top similar products from Vanguard (the VOO) and State Street (the SPY). SPY (with a fee of 0.0945%) currently has nearly $200B in AUM vs. VOO at $79B.