Fri, Sep. 16, 8:31 AM
- Just 9.5% of actively-managed large-cap domestic equity funds beat the S&P 500 in the five year ended August 31 - the worst 5-year record since 1999, according to Morningstar. By comparison, in the five years ended 2010, nearly 50% topped the S&P.
- The lame results haven't gone unnoticed, with investors yanking $422B from roughly 3K mutual funds in the past five years, and putting that money and more into passive vehicles (ETFs).
- In the year ended June 30, 85% of large-cap stock funds, 88% of mid-cap funds, and 89% of small-cap funds failed to match their bogeys. "Pretty appalling," says S&P's Aye Soe. "Given the choppiness in the markets we would have expected the active managers to come out looking better.”
- Interested parties include BlackRock (NYSE:BLK), WisdomTree (NASDAQ:WETF), Franklin Resources (NYSE:BEN), Legg Mason (NYSE:LM), Gamco (NYSE:GBL), Janus (NYSE:JNS), Calamos (NASDAQ:CLMS), 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)
Wed, Sep. 14, 4:17 PM
- WisdomTree's (NASDAQ:WETF) Jonathan Steinberg today purchased 100K shares of his company's stock at about $10.23 each, bringing his holdings up to nearly 7.5M shares.
- A former high-flyer, WisdomTree has lost more than half its value since the middle of 2015, and has spent most of this year bouncing along between $9 and $13 per share.
Wed, Sep. 7, 3:16 AM
- "We think the asset management industry, which was always very fragmented and highly profitable (with low capital intensity), will become much more concentrated over the next five years - especially in U.S. retail with BlackRock (NYSE:BLK) and Vanguard clear winners," Credit Suisse says in a note.
- Firm says it prefers stocks that will exceed net flow/earnings expectations and can maintain or expand valuation levels.
- Top long is AMG, which CS thinks will post much stronger flows in 3Q16, has low exposure to the DOL rule (only 16% of AuM is from U.S. retail and less in retirement), and is one of the cheapest asset managers on cash earnings.
- Also likes LM, which is mainly a valuation and improving earnings visibility play.
- Likes BLK, which is one of the few beneficiaries of the DOL rule (through iShares and Aladdin/Solutions).
- On a longer-term horizon, likes BX (high FE AuM growth + improving cash earnings) and WETF (improving net flows + LT M&A target).
- Says BEN and WDR could both see among the largest net flow impacts from the DOL rule.
Mon, Aug. 29, 4:05 PM
- Closures are a regular occurrence in the ETF industry, but not really for WisdomTree (NASDAQ:WETF), which last shuttered any of its funds back in 2010. Only 14 WisdomTree ETFs have been shut down during the firm's existence.
- The list: WisdomTree Global ex-U.S. Utilities Fund (NYSEARCA:DBU), WisdomTree Global Natural Resources Fund (NYSEARCA:GNAT), WisdomTree Commodity Currency Strategy Fund (NYSEARCA:CCX), WisdomTree Commodity Country Equity Fund (NYSEARCA:CCXE), WisdomTree Japan Interest Rate Strategy Fund (NASDAQ:JGBB), and the WisdomTree Coal Fund (NYSEARCA:TONS) - one of two ETFs acquired from Greenhaven last year.
Thu, Aug. 25, 3:02 PM
- LPL Financial (LPLA +0.3%) in December will launch its no Transaction Fee Mutual Fund initiative, with the costs to be borne by the asset managers. To date, nine providers have signed up, including AllianceBernstein (AB +0.4%), BlackRock (BLK -0.3%), Invesco (IVZ -0.2%), and Legg Mason (LM -0.5%).
- While it's an incremental negative for the asset managers thanks to higher distribution costs eating into margins, says Katz, it could pay off in stronger inflows as investors will be paying less - thus making the mutual funds closer in cost to ETFs.
- It will be interesting to see how ETF sponsors - notably WisdomTree (NASDAQ:WETF) - react as their margins potentially get squeezed, says Katz.
Fri, Jul. 29, 1:00 PM
Fri, Jul. 29, 7:02 AM
Thu, Jul. 28, 5:30 PM
Thu, Jul. 21, 12:19 PM
- The S&P China 500 Index launched in 2015, and is made up of the 500 largest, most liquid Chinese companies, while approximating the composition of the broader Chinese stock market. All share classes - including A-shares - are eligible.
- WisdomTree (NASDAQ:WETF) and Credit Suisse Asset Management have licensed the index and plan to jointly launch and distribute ETFs across the world which will track it.
Mon, Jul. 11, 12:50 PM
- WisdomTree (WETF +5.2%) gets a respite in what's been a very tough year after a landslide victory for Japan's LDP overnight guarantees another shot of Abenomics. The election result sent the Nikkei soaring by 4% and the yen tumbling by more than 2% vs. the dollar.
- A falling yen is good news for WisdomTree thanks to its Japan hedged equity fund (DXJ +5.1%).
Thu, Jul. 7, 9:26 AM
- With these ten, Japanese investors will have a total of 27 WisdomTree (NASDAQ:WETF) ETFs from which to choose.
- The new funds include the WisdomTree LargeCap Dividend Fund, the WisdomTree SmallCap Dividend Fund, the WisdomTree U.S. Quality Dividend Growth Fund, and the WisdomTree Dynamic Long/Short U.S. Equity Fund.
Wed, Jun. 29, 2:04 PM
- Roughly $365M has flowed into European stock ETFs since the Brexit vote, putting them on pace for their first week of inflows since mid-February, according to Markit. It's not a ton of money considering $130B in AUM across the 50 largest European stock ETFs, but an inflow's an inflow.
- Much of the new money is targeting Germany, with the iShares MSCI EMU ETF (BATS:EZU) pulling in $284M - six of the fund's top holdings are German companies. Another $153M has gone into the iShares MSCI Germany ETF (NYSEARCA:EWG).
- Meanwhile, $371M has exited the WisdomTree (NASDAQ:WETF) Europe Hedged Equity Fund (NYSEARCA:HEDJ) - this despite the euro's weakness vs. the dollar since the vote.
Tue, Jun. 28, 10:01 AM
Fri, Jun. 24, 11:58 AM
- The Too Big To Fail lenders are naturally among the day's big losers following the U.K. vote to leave the EU, but losses in the financial sector are wide and deep as - among other things - interest rates look to be a lot lower for a lot longer.
- Among asset managers, Invesco (IVZ -10.8%) - with a sizable U.K. exposure - is faring about the worst. WisdomTree (WETF -7.8%) takes a hit as the yen is the solo currency surging against the dollar, reducing demand for its popular hedged Japan ETF.
- It's wait till next year (or even 2018 if you believe short-term rate futures markets) for rate hikes, meaning regional lenders can't celebrate their passing of the Fed stress tests last night. Regions (RF -7.8%), KeyCorp (KEY -6.4%), PNC Financial (PNC -5.5%), U.S. Bancorp (USB -4.2%), BB&T (BBT -5.1%).
- Even lower rates put even more pressure on the business models of the life insurers: MetLife (MET -8.8%), Prudential (PRU -7.7%), Lincoln National (LNC -9.9%), Voya (VOYA -7%). Online brokers too: E*Trade (ETFC -9.4%), Schwab (SCHW -9.5%).
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, KRS, WDRW, DPST
Mon, Jun. 20, 5:05 PM
- While analyst William Katz kind of sees the reasoning behind the chatter on WisdomTree (NASDAQ:WETF) being an acquisition target, a closer look suggests a purchase would be very risky for the buyer. Further, the stock price at these levels is likely already discounting a change-of-control premium.
- Closer look? AUM are at 2016 lows, outflows are running at very high levels, the multiple (40x P/E) is rich, and now the company is burning through cash.
- A buyer, says Katz, would have to dramatically cut expenses or rapidly revitalize growth despite rising competition in the Smart Beta space.
- "We suspect firms under our coverage previously looked at WETF and came to similar conclusions around valuation.”
Thu, Jun. 16, 9:47 AM
- "We are not suggesting the buyout of WisdomTree (WETF -2.3%) is imminent or there are talks, but the possibilities are intriguing," says analyst Surinder Thind.
- Possible suitors? "Everyone," says Thind. Narrowing that down a bit, he thinks the company would be most valuable in the hands of Franklin Resources (NYSE:BEN) or T. Rowe Price (NASDAQ:TROW).
- Franklin's growth challenges are well known, he says, and putting WisdomTree products through its distribution network could produce strong synergies. For T. Rowe Price, it's in the early stages of developing an ETF strategy, and a purchase of WETF would quickly solve that issue.