April 2016


April 29, 2016 | Permalink
U.S. funds recommended a reduction in equity allocations in April to their lowest level since the financial crisis, and a boost to alternative investments to the highest, according to a Reuters poll of fund managers. Derivatives, commodities and other non-traditional investments are increasingly popular with asset managers this year, as market instability caused many to look beyond stocks and bonds for positive returns. Fund managers increased their alternative investments for a third month in a row, which reached 6.8% from 6.2% the previous month.
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April 27, 2016 | Permalink
The SEC is seeking public comment on a proposed national market system (NMS) plan to create a single, comprehensive database enabling regulators to efficiently track all trading activity in the U.S. equity and options market. The plan for the consolidated audit trail (CAT) database was submitted jointly by the self-regulatory organizations (SROs), as required by Rule 613 of Regulation NMS. The proposal details the methods by which SROs and broker-dealers would record and report information, including the identity of the customer, resulting in a range of data elements that together provide the complete lifecycle of all orders and transactions in the U.S. equity and options markets. The proposed NMS plan also details how the data in the CAT would be maintained to ensure its accuracy, integrity and security.
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April 26, 2016 | Permalink
FDIC chairman Martin Gruenberg released a proposal for establishing a net stable funding ratio (NSFR), part of the effort to strengthen banks' liquidity in the event of market instability. FDIC says the proposal is consistent with the Basel standard set in 2015, although it differs by providing a narrower definition of a "high-quality liquid asset" and a way to address "trapped liquidity." Bank holding companies and depository institutions with $250 billion or more in total consolidated assets or $10 billion or more in foreign exposure will be subject to the NSFR. The Federal Reserve Board will release a less-stringent version for holding companies with at least $50 billion, FDIC said.
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April 21, 2016 | Permalink
Fund Name: NexPoint Merger Arbitrage Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: April 19, 2016
Effective Date: Pending
   
Fund Name: NexPoint Latin American Opportunities Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: NexPoint Distressed Strategies Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: First Trust Strategic Mortgage REIT ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): None
Fees: 0.85% Management Fee
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
   
Fund Name: First Trust Long/Short Currency Strategy ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): First Trust Global Portfolios Ltd.
Fees: Not specified
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
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April 18, 2016 | Permalink
In a public meeting, the Financial Stability Oversight Council (FSOC) updated its two-year review of potential risks to the U.S. financial system from hedge funds, mutual funds and other funds' liquidity, leverage and redemptions. It declined to designate any asset managers as "systematically important," however the regulatory body did raise concerns about a concentration of leverage in large hedge funds and created a working group to study data on firms in a report on asset management. The group will be composed of member agency staff and will report by year-end on issues such as counterparty exposure, margin investing, trading strategies and possible standards for measuring leverage.
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April 18, 2016 | Permalink
The SEC's Office of Financial Management released its Registration Fee Estimator, an online tool that calculates registration fees for certain form submissions to the agency's EDGAR database. The new tool is designed to improve fee calculation accuracy and reduce the number of corrections. It covers common filings used to register initial public offerings, debt offerings, asset-backed securities, closed-end mutual funds, limited partnerships and small business investment companies.
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April 13, 2016 | Permalink
In an interview with Bloomberg Television, Larry Restieri, head of alternative sales at Goldman Sachs, discussed liquid alternative investments. Due to the funds' increase in popularity in recent years, he says they're still relatively unfamiliar territory for the average retail investor, even though they've existed for decades. He says that since most mutual fund investors typically only own stocks and bonds, educating potential liquid alternative clients about the additional asset classes that would be included in their holdings is essential. He added that the liquid alternative space will likely see more ETFs in the future as it continues to mature and welcome new participants.
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April 11, 2016 | Permalink
Marshall Sprung, co-chief of the SEC Division of Enforcement's Asset Management Unit, will leave the agency later this month. He has served as co-head of the unit for the past two-and-a-half years, during which time he supervised a nationwide staff investigating violations of federal securities laws by investment advisers, registered funds and private funds. Co-chief Anthony Kelly will continue to lead the unit following Sprung's departure.
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April 7, 2016 | Permalink
AXA Investment Managers hired Pierre-Emmanuel Juillard from Goldman Sachs to serve as head of a Hong Kong-based investment team developing liquid absolute return strategies. Juillard was previously the head of structured finance for AXA IM before leaving to become a partner at Goldman Sachs. He originally joined AXA IM in 1999 as head of financial engineering and asset and liability management studies.
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April 7, 2016 | Permalink
Blackstone announced it will no longer accept new investment in the Blackstone Alternative Multi-Manager Fund and it will liquidate the liquid alternative mutual fund by May 31. The decision came after a large redemption by Fidelity Investments, the strategy's main backer, which invested almost $1 billion in 2013. The fund had fallen to $629.8 million in assets from $1.2 billion at the end of February. However, Blackstone said it has allocated "significant resources to facilitate the continued growth" of its global registered fund platform that offers liquid investment solutions.
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April 7, 2016 | Permalink
Fund Name: NexPoint Latin American Opportunities Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: NexPoint Distressed Strategies Fund
Adviser: NexPoint Advisors LP
Sub-Adviser(s): None
Fees: 1.25% Management Fee (on daily gross assets)
Open- or Closed-End: Closed-End (Quarterly repurchase)
Investor Restrictions: $500 minimum initial investment for regular accounts, $50 for retirement accounts, $50 minimum subsequent investment (Class A and C); $100,000 minimum initial investment (Class Z)
Filing Date: March 24, 2016
Effective Date: Pending
   
Fund Name: First Trust Strategic Mortgage REIT ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): None
Fees: 0.85% Management Fee
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
   
Fund Name: First Trust Long/Short Currency Strategy ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): First Trust Global Portfolios Ltd.
Fees: Not specified
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
   
Fund Name: First Trust Equity Market Neutral ETF
Adviser: First Trust Advisors LP
Sub-Adviser(s): Perella Weinberg Partners Capital Management LP
Fees: Not specified
Open- or Closed-End: Open-End (Exchange traded)
Investor Restrictions: Not specified
Filing Date: March 14, 2016
Effective Date: Pending
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