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Thu, Jan. 28, 7:30 AM
Wed, Jan. 27, 5:30 PM
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Wed, Jan. 27, 9:23 AM
- Executives at Goldman Sachs gasped at a meeting last fall when the bank's asset management unit presented to them a new ETF with annual fees of just 0.09%.
- Story from the WSJ's Jason Zweig and Sarah Krouse
- It's not just the booming ETF industry where price wars abound, but mutual funds are getting less costly as well. The average fund tracked by Morningstar charges 1.07%, down from 1.22% in 2005.
- It's not all bad for mutual fund providers, who say they offer bargain prices on some products as "loss leaders" to get investors in the door where they can then be pitched more expensive funds and strategies. Still fund industry profit margins are slipping - 22% in Q3 from 25% a year earlier, according to DST Kasina.
- Industry comments: "We’re not surprised at all to see passive managers compete on fees because that’s their only differentiator,” says AlianceBernstein's (NYSE:AB) Chris Thompson, whose company has boosted marketing efforts for its actively-managed strategies.
- "We are in the business of increasing earnings,” says BlackRock's (NYSE:BLK) Mark Wiedman, whose firm's total stock market ETF now charges a barely-visible 0.03%. “Over time, the revenue growth from volume will outstrip the price cuts in these products.”
- Other interested parties: BEN, LM, GBL, JNS, IVZ, TROW, AMG, FII
Wed, Jan. 13, 11:53 AM
- Investors pulled $207.3B from active funds in 2015, according to Morningstar. It was the first net outflow since 2008. Interestingly, actively managed mutual funds in 2015 outperformed passive funds for the first time since 2012 (though both were in the red).
- At the same time investors pulled those billions from active funds, $413.8B poured into passively-managed funds, including Vanguard which pulled in a record $236B.
- The action will come as little surprise to those who have been following the shift toward passive funds and ETFs.
- Interested parties include AllianceBernstein (AB -2.8%), Franklin Resource (BEN -0.3%), Legg Mason (LM -3.7%), Janus Capital (JNS -3.5%), Invesco (IVZ -1.3%), Affiliated Managers (AMG -1.8%), Federated Investors (FII -1.5%)
Tue, Jan. 12, 4:43 PM
- IVZ Dec. 31 total AUM of $775.6B slips from $791.1B a month earlier.
- Equity AUM of $370.9B falls from $380B. Active equity AUM of $279.9B vs. $287.8B. Passive equity AUM of $91B vs. $92.2B.
- Fixed-income AUM of $187.9B vs. $189.6B. Fixed-income active AUM of $149.3B vs. $149.8B. Fixed-income passive AUM of $38.6B vs. $39.8B.
- Source: Press release
Wed, Jan. 6, 11:58 AM
- in the latest sign of the move out of active investing, a record $236B poured into indexing-pioneer Vanguard last year, exceeding the $215.5B of inflows in 2014.
- AUM at Vanguard rose to more than $3.1T. Investors pay under $0.18 per $100 invested in Vanguard products versus $1.23 for the average actively managed one (and $0.89 for average passive fund).
- In the first 11 months of 2015 according to Morningstar, passively managed stock and bond funds saw $361.8B of inflows, and actively managed ones $139.5B of outflows.
- Interested parties: BLK, WETF, BEN, LM, GBL, CLMS, JNS, IVZ, TROW, AB, AMG, FII, WDR, APAM.
Dec. 20, 2015, 8:30 AM
- The bear case - the ongoing shift to passive investing via ETFs and Vanguard - is well known, but investors are overlooking favorable industry characteristics like modest capital requirements, high profit margins, and strong cash returns to shareholders, writes Andrew Bary. Compensation levels remains generous as well, meaning there's plenty of room to cut expenses.
- Stocks of the biggest players like BlackRock (NYSE:BLK), Invesco (NYSE:IVZ), Franklin Resources (NYSE:BEN), and T. Rowe Price (NASDAQ:TROW) trade at a below-market 11-15x projected EPS and sport sizable dividend yields.
- The sell-side generally isn't very bullish on the industry, but JPMorgan's Ken Worthington thinks a value approach - a focus on capital returns and efficiencies - could trump analysis of sales growth. His favorite is BlackRock (which also has a sizable ETF business) - it's seen the best inflows outside of Vanguard.
- Others to consider include Affiliated Managers Group (NYSE:AMG) which has the distinctive approach of buying stakes in private investment firms, and giving the firms' managers autonomy. Particularly stung by the Third Avenue debacle, Affiliated trades for less than 12x estimated 2016 earnings which could be about to get a lift from three accretive acquisitions made last month. Eaton Vance (NYSE:EV) and Janus Capital (NYSE:JNS) make the list as well.
Dec. 16, 2015, 12:18 PM
- Actively-managed U.S. equity funds saw their sixth-worst monthly outflow in November since Morningstar began tracking the data in 1993. In total, $19.7B was pulled from equity mutual funds last month, bringing the year's total to $163B. ETFs saw inflows of $13B, meaning net equity outflows of $6.7B.
- Still a hot sector is international equity, which saw net inflows of $4.9B - active fund outflows of $4.2B and passive inflows of $9.2B. For the year, international equity has seen inflows of $208B, while U.S. equity outflows are $56B.
- Among the mutual fund companies continuing to see outflows are Pimco (OTCQX:AZSEY +0.6%), Franklin (BEN -0.3%), Fidelity, and JPMorgan (JPM +0.4%). On the ETF side, BlackRock (BLK -1.2%) and Vanguard took in $27.2B between them.
- Other interested parties: WisdomTree (WETF -0.4%), Invesco (IVZ), Legg Mason (LM +1.1%), Janus (JNS -0.6%), T. Rowe Price (TROW +0.1%), AllinaceBernstein (AB +1.4%), Affiliated Managers (AMG +1.2%), Federated Investors (FII +0.7%), Waddell & Reed (WDR -0.3%).
- Full report
Dec. 14, 2015, 2:44 PM
- Equal-weighted organic growth slid to negative 11% in November from negative 4% a month earlier, according to Wells Fargo, noting only three of 11 asset management firms in its coverage universe saw positive flows.
- Mutual fund equity outflows "worsened substantially" last month, while fixed-income flows again turned negative. In no surprise, ETF inflows were a bright spot - $25B, or 14% organic growth.
- Turning to individual names, BlackRock (NYSE:BLK) - thanks to strong inflows at its ETF unit - was a relative outperformer. Invesco (NYSE:IVZ) was as well, though mutual fund flows remained negative.
- Underperformers: Franklin Resources (NYSE:BEN) and Janus Capital (NYSE:JNS). Net outflows have now been negative for the past 14 months at BEN and for the last seven months at Janus.
Dec. 2, 2015, 12:05 PM
- So far this year, Vanguard is leading the way as a record $365B flows into low-cost, passively-managed index funds and ETFs, while actively-managed mutual funds have lost $147B, reports Bloomberg. That roughly $500B swing at roughly 50 basis points (the difference between active and passive fees) means $25B less going to the financial services industry.
- That $25B compares to about $200B per year globally in trading and asset management revenue, but there's also the "hidden fees" active managers rack up from continuously buying and selling - on average active mutual fund managers turn over portfolios at 10x the pace of a Vanguard index fund.
- But that's not all ... It took Vanguard 32 years to reach $1T in assets, eight to get to $2T, and just three to get to $3T. Vanguard alone could be removing $40B in revenue from the financial industry by 2020. There's also the "Vanguard Effect" in which other funds lower fees to try and compete with the giant's Wal-Mart-like "everyday low prices."
- The good news for active managers: As ETFs (passive-investing) proliferate (they now account for 30% of total assets), it should give sharp managers a little more room to actually create some alpha.
- Interested parties: BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (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), Artisan Partners (NYSE:APAM), Cohen & Steers (NYSE:CNS), Manning and Napier (NYSE:MN), Virtus Investment (NASDAQ:VRTS), Eaton Vance (NYSE:EV)
Nov. 10, 2015, 4:44 PM
- IVZ Oct. 31 total AUM of $791.3B rises from $755.8B one month earlier. Equity AUM of $378.8B up from $352.4B.
- Active AUM of $650.5B up from $624.1B. Passive AUM of $140.8B vs. $131.7B.
Nov. 9, 2015, 10:57 AM
- U.S.-listed ETFs and ETPs have brought in a record $174.8B in net new assets this year as of the end of October (beating the previous record in 2013 by 12.4%), according to ETFGI. October's net inflows of $28.4B marked the ninth consecutive month of gains.
- For ETFs and ETPs listed globally, net inflows through the end of October of $287.3B are up 22.3% over the same period in 2014.
- Year-to-date, BlackRock's (NYSE:BLK) iShares had the most net inflows with $72.3B, followed by Vanguard at $60B, and WisdomTree (NASDAQ:WETF) at $19.4B. Schwab (NYSE:SCHW) ETFs brought in $11B.
- In October, iShares also led the way, with Vanguard second. In third place were SPDR (NYSE:STT) ETFs, and in fourth Invesco's (NYSE:IVZ) PowerShares.
Oct. 29, 2015, 2:47 PM
- Q3 adjusted operating income of $373.4M or $0.61 per share vs. $381.9M and $0.64 one year ago.
- Ending AUM of $755.8B down 5.9% Q/Q, down 4.3% Y/Y.
- Active net outflows of $1.6B vs. $5.4B inflow in Q2, $6B inflow a year ago. Passive net outflows of $2.3B vs. $500M inflow in Q2. The $42B PowerShares QQQ saw $900M in net outflows vs. $300M of outflows in Q2. Total net outflows for the quarter were $6.3B vs. $3B of net inflows in Q2, and $2M inflows a year ago.
- Previously: Invesco misses by $0.01, misses on revenue (Oct. 29)
- IVZ -4.25%
Oct. 29, 2015, 7:21 AM
- Invesco (NYSE:IVZ): Q3 EPS of $0.61 misses by $0.01.
- Revenue of $903M (-3.6% Y/Y) misses by $3.85M.
Oct. 28, 2015, 5:30 PM
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Oct. 22, 2015, 10:18 AM
- Perhaps the bad news is priced in as sluggish earnings from Franklin Resources (up 4.6%), Janus Capital (JNS +4.3%), and T. Rowe Price (TROW +4.8%) are bought.
- BlackRock (BLK +2.5%), Legg Mason (LM +3.7%), Calamos (CLMS +2.8%), Invesco (IVZ +3.7%), Affiliated Managers (AMG +3.2%), Federated Investors (FII +2.2%), Waddell & Reed (WDR +2.3%), Artisan Partners (APAM +2.9%), Eaton Vance (EV +3.3%). The biggest mover of all today is ETF provider WisdomTree (WETF +7.8%).
- Previously: So bad it's good - Franklin Resources jumps after lame results (Oct. 22)
- Previously: AUM and earnings down at T. Rowe Price (Oct. 22)
- Previously: Assets and earnings slip at Janus (Oct. 22)
Invesco Ltd is an investment management company operating in more than 20 countries. It provides retail and institutional clients with an array of investment management capabilities. It has presence in the institutional and retail markets.
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