funds Archives - The Industry Spread

Broadridge to Launch Investor Voting App

April 15, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: Broadridge, business, economy, funds, global market, individual investors, investor, market, Tim Gokey, Voting App

The Investor Voting App, which builds on the firm’s mobile voting feature launched in 2011, allows investors to vote directly and receive important regulatory and educational information relating to corporate direction.

Broadridge Financial Solutions has announced the imminent launch of a new app on Android and iPhone for individual investors that allows them to vote and equips them with new tools and educational resources designed to drive more meaningful engagement from social media to government elections.

The app’s single personalized dashboard creates an intuitive, streamlined experience designed to empower people to have their voices heard and exercise their rights.

According to ProxyPulse, individual investors participated in only 28 percent of the total voting opportunities available to them in 2018. Broadridge’s app targets this demographics specifically. This app is the next step in using technology to transform and increase individual investor engagement.

Tim Gokey, President and Chief Operating Officer at Broadridge

Tim Gokey, President and Chief Executive Officer at Broadridge, commented:
“Individual investors have an important voice in the future of the companies that they invest in, yet few realize the power they yield. Their votes not only impact their own financial well-being, but can have lasting effects on our economy and society. This app will empower investors of all kinds to exercise their right to vote and participate in the corporate governance process.”

Through thumbprint and facial recognition, individual investors can sign-in securely as well as sign up for mobile push notifications to alert them of meetings and elections. Banks’ and brokers’ branding will be prominently featured within the app. Investors will be able to review and change their votes, sign up for electronic delivery from their bank or broker and download materials, among other features.

This month, Broadridge launched a firm-specific fund-by-fund comparative securities lending assessment solution for mutual fund companies and the boards that oversee their funds.

The company has further expanded its global market intelligence business with the acquisition of MackayWilliams in mid-2018.

New SEC Campaign Educates Investors on Where and How to Get Answers

April 14, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: funds, investing topics, investors, PSA, public service announcement, SEC, SEC Camaign

Washington D.C., April 8, 2019 — The Securities and Exchange Commission today unveiled a public service campaign to empower Main Street investors to take control of their financial future. New SEC Campaign Educates Investors to use the free tools and unbiased information available on the SEC’s online resource for investor education−Investor.gov−to get answers to their questions about investing.

Jay Clayton, SEC Chairman
“Main Street investors around the country have consistently told me two things: one, that they wish they were better informed about investing, and two, they wish they had started investing earlier. Asking the right questions of yourself and of those who provide financial services is key to getting started and staying on the right track,” said SEC Chairman Jay Clayton. “Whether you’re an experienced investor or new to the market, Investor.gov can help you identify questions and find answers.”
“This campaign is another way to maximize our education efforts to make investors aware of the information they need to make smart saving and investing decisions,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Starting early and creating a financial plan is the best way to secure your financial future, and Investor.gov is a great place to start.”

The PSA highlights people from various walks of life asking questions about investing topics, such as planning for retirement, reading a 10-K, checking out the background of an investment professional, and understanding fees, IPOs, hedge funds, 529 plans, compound interest, and more. It concludes with asking the question, “Where do I start?” encouraging investors to go to Investor.gov to get answers to their most commonly asked questions.

New SEC Campaign Educates Investors on Where and How to Get Answers

Additional information on the PSA can be found here.

More than 12 million new users have accessed Investor.gov since it launched in October 2009. The SEC expanded its outreach program in 2016 to include PSAs to reach and educate more investors.

Marketing of Funds in Norway in Case of a No-Deal Brexit.

April 11, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: AIFMD, Brexit, EEA, EU, FINANSTILSYNET, funds, investment funds, investors, marketing, No-Deal Brexit, norway, professional investors, UK, UK UCITS funds

The UK will become a third country in relation to EU-rules if it withdraws from the EU without a deal (“hard Brexit” or ” no-deal Brexit “). Fund management companies based in third countries are not eligible for the notification regime (passporting) for marketing, as set out in the UCITS and AIFMD directives. Marketing of funds associated with third countries in Norway requires authorisation from Finanstilsynet.

Repeal of right to market funds in Norway

Foreign funds (UCITS and AIFs) may be marketed in Norway depending on the funds category and the location of both the fund and the fund manager. The following legal grounds to market funds in Norway will no longer apply in case of a no-deal Brexit.

The right to market UCITS established in the UK under the notification regime according to the UCITS-directive. UCITS established in the UK will be reclassified as third country AIFs.
The right to market UCITS established in another EEA-country where the fund manager is established in the UK, and the fund is notified for marketing in Norway.
The right to market AIFs established in the UK to professional investors according to the notification regime in the AIFMD. This applies regardless of whether the AIFM is established in the UK or in another EEA-country.
The right to market AIFs established in another EEA-country based on the notification regime as per the AIFMD where the AIFM is established in the UK.
The right to market AIFs established in a third country where the AIFM is established in the UK with authorisation according to the Norwegian AIFM Act section 6-4 (AIFMD article 36).

If a no deal Brexit occurs, Finanstilsynet will deregister funds in the above listed categories, in which case all marketing activities must cease.

Marketing of alternative investment funds in Norway where the fund or the manager is established in a third country

In accordance with Norwegian law (The Norwegian AIFM Act and the Norwegian Securities Funds Act), funds established in third countries may be marketed in Norway with authorisation from Finanstilsynet. Finanstilsynet may also permit the marketing of funds domiciled in the EEA where the fund manager is established in a third country.

Marketing of funds to non-professional investors:

Marketing of securities funds to non-professional investors may be permitted under the Norwegian Securities Funds Act section 9-4. This includes current UK UCITS funds reclassified as AIFs in case of a no deal Brexit, and where authorisation from Finanstilsynet will be required.

Marketing of funds to professional investors:

Alternative investment fund managers established in the EEA may apply for a marketing permission pursuant to the Norwegian AIF Act section 6-4 (AIFMD article 36), where the fund subject to marketing is established in a third country.
Alternative investment fund managers established in a third country may apply for a marketing permission pursuant to the Norwegian AIF Act section 6-5 (AIFMD article 42). This applies regardless of where the fund is established.

Special cases

Alternative investment fund managers that hold a marketing authorisation granted under the Norwegian AIF Act section 6-4 (AIFMD article 36) may apply for an authorisation according to the Norwegian AIF Act section 6-5 (AIFMD article 42) following a simplified procedure. Reclassification of the AIFMs marketing authorisation will require reporting to Finanstilsynet pursuant to AIFMD Annex IV.

UCITS established in the UK that currently market units in Norway based on the notification-regime may apply for a license to market units to non-professional investors pursuant to the Norwegian Securities Funds Act section 9-4 following a simplified procedure. In addition, if the units are to be marketed to professional investors, marketing permission following the Norwegian AIF Act section 6-5 (AIFMD article 42) must be applied for.

Regarding applications

Finanstilsynet will not process any applications as described above before it is certain that the UK becomes a third country (no deal Brexit).

Broadridge Launches Securities Lending Assessment Solution for Mutual Funds

April 6, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: benchmark, Broadridge, funds, global sales, ICS, Investment Company Act, Manuel Baptista, Mutual Funds, Securities Lending Assessment Solution, securities lending programs

The solution is currently being used by a number of clients including a tier-one global investment manager. Broadridge Financial Solutions has launched its firm-specific fund-by-fund comparative securities lending assessment solution for mutual fund companies and the boards that oversee their funds.

Going by the name of Broadridge Securities Lending Board Insights, the client-specific report lets companies monitor the relative cost, fee ‘splits’, and income obtained from their securities lending arrangements.

Additionally, it helps interested parties receive appropriate rewards for the risks they undergo in their lending programs and helps to reduce risk related to mal-distributed securities lending income.

Eric Bernstein, Head of Asset Management Solutions at Broadridge

Eric Bernstein, head of Asset Management Solutions at Broadridge, commented:
“Faced with mounting pressure on fees and the need for a clearer understanding of competitive financials, many funds are looking to securities lending programs to maximize yield on their long-term holdings. Based on Broadridge’s unique data set, coupled with rich subject-matter expertise, the reports help boards and fund companies get ahead of today’s challenges to capitalize on what’s next, uncovering opportunities to improve their returns.”

Designed specifically for those who oversee (rather than carry out) securities lending arrangements, the Securities Lending Board Insights reports may also provide useful insights for the agent lender community as they look to benchmark their offerings against other service providers and to discuss program parameters with clients.

The solution fulfils obligations under Section 15(c) of the Investment Company Act of 1940, as well as the SEC mandates and other regulatory requirements.

The global Fintech leader and part of the S&P 500 Index has recently appointed Manuel Baptista as Managing Director and Head of Sales. Based in Brussels, Belgium, he is leading a global sales team focusing on expanding Broadridge’s Investor Communication Solutions (ICS) suite of services.

“Funds in Focus”: Invest like Warren Buffet – Value Investing in 2019

February 26, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Bank Julius Baer, funds, investment themes, SIX Swiss Exchange, Stock Exchange, trading, trading fund units, Value Investing, Warren Buffet

“Funds in Focus”: Invest like Warren Buffet – Value Investing in 2019

A series of articles by Bank Julius Baer looks at topical investment themes in the Sponsored Funds trading segment of SIX Swiss Exchange.

Focus on the investment approach “value strategy” – this the latest guest contribution by Julius Baer[PDF]. Value investors do not want to achieve short-term profits, but instead make investments with long-term expectations. The current situation on the financial markets is not causing much concern among value investors, as they adhere to strict rules as to when to buy and resell a stock. They only buy a stock if the trading price is, for example, 40% lower than the intrinsic value that they have calculated. Benjamin Graham named this the safety margin. Value investors will only sell a stock once it has reached the calculated intrinsic value. A selection of traditional value investing investment funds that are traded at SIX in the Sponsored Funds segment are listed in this article.

Article series: “Funds in Focus”

Launched in March 2017, the series of articles “Funds in Focus” presents different topical investment themes, including a list of Sponsored Funds that relate to the given theme. The team of authors consists of the fund specialists at Bank Julius Baer that handle the market making of traditional investment funds.

The series of articles had started with a guest contribution about gold mine funds. The second issue in the series had looked at investment funds, that, when transacted in the traditional way on the primary market, attract commission paid to the fund by the investor – fees that can be avoided by trading fund units on the stock exchange. All the articles are available on our website.

SIX Swiss Exchange launched the trading segment for Sponsored Funds in March 2013 together with Julius Baer in November 2013. Currently the segment includes 436 products and close to 80 leading providers.

Broad information offering

We provide investors with extensive expertise and comprehensive information. You can view trading activity on SIX Swiss Exchange on our website at any time. Further information about the benefits of Sponsored Funds may be found in ourfactsheet[PDF].

Smart Investor Tool Launched to Help Kiwis Get Ahead Financially

February 24, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: business, Disclose Register, economy, Financial Markets Authority, financial service, FMA, funds, Get Ahead Financially, Innovation, investment, investor, KiwiSaver, Money, Smart Investor Tool

A new online tool called Smart Investor Tool enables Kiwis to search and compare New Zealand investments such as KiwiSaver, shares, bonds and other types of managed products for the first time.

Housed on the Sorted website, the portal offers the first opportunity for KiwiSaver members to explore their fund’s investments in detail, and compare their fund against other offerings.

Sorted’s Managing Editor, Tom Hartmann, says that members would be able to see, for example, the companies in which their KiwiSaver funds were invested, and decide whether their money was invested ethically. Fees would be broken down and compared against those of other providers, along with returns.

“The tool will encourage greater transparency in the financial sector by revealing everything to consumers about where their money is going, and how well their provider is performing,” says Hartmann.

When KiwiSaver members are ready to move on to other types of investing, they can compare other managed funds, managed investments and share and bond offers. The site also offers guides on investing and definitions of jargon.

“Our aim was to break down the barriers to investing so that all New Zealanders could benefit from this way of growing their money,” says Hartmann.

Smart Investor has been built by three government agencies – the Ministry for Business, Innovation and Employment (MBIE), the Financial Markets Authority (FMA) and the Commission for Financial Capability (CFFC), which runs Sorted. Its creation was part of the government fulfilling its role in enabling anyone to compare information about financial products.

Scott McMurray, FMA acting director of investor capability, welcomed Smart Investor as a major step in helping people make informed decisions about their investments.

“With all the relevant information in one place, investors can review a whole range of financial products, including KiwiSaver and managed funds, bonds and shares. You can check how similar products compare with each other for fees and returns, and also find out where and how your money is invested.”

The information the site provides is pulled from the Disclose Register run by the Companies Office. Financial Service Providers are required to provide this information as part of their legal disclosure requirements. Smart Investor is updated daily.

Consumers do not have to input any personal information to access the site’s services, which are independent and impartial.

“The tool simply serves up heaps of helpful facts so Kiwis can make savvy decisions,” says Hartmann. “It’s a safe environment to compare the many investment options out there to help New Zealanders get ahead financially.”

Federal Court Orders Husband and Wife Team and Their Company to Pay Defrauded Customers More Than $1 Million in Connection with a Futures Trading Scheme

February 11, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: CFTC, CFTC Complaint, Defrauded Customers, Federal Court, funds, Futures Trading Scheme, trading

The Commodity Futures Trading Commission (CFTC) announced today that on December 27, 2018 a Washington State federal court ordered Bellevue, Washington residents Sung Hong a/k/a Lawrence Hong or Laurence Hong, his wife, Hyun Joo Hong a/k/a/ Grace Hong, and their company Pishon Holding LLC to pay more than $1.25 million in restitution in connection with an enforcement action brought by the CFTC charging the defendants with fraudulent solicitation and misappropriation involving futures contracts. In addition to the restitution, the Court Order also imposes a permanent trading and registration ban on the Hongs and Pishon and prohibits them from violating provisions of the Commodity Exchange Act (CEA) as charged.

The Court’s Order stems from a CFTC Complaint filed on June 1, 2017 in the U.S. District Court for the Western District of Washington. [See CFTC Press Release 7569-17]. In the Order, Judge Marsha Pechman found that the Hongs and Pishon misappropriated $1,259,317.77 from their customers. Additionally, the court found that the Hongs and Pishon fraudulently solicited more than $11 million dollars from customers for the purpose of trading futures contacts. The court further found that the Hongs and Pishon lied about, about among other things how much money they had under management; Laurence Hong’s prior trading success; and how trading fees would be deducted from customer accounts. At the same time, the Court Order found, the Hongs and Pishon failed to tell customers that Laurence Hong had been imprisoned previously for 33 months in connection with wire fraud charges.

In a parallel criminal case filed in the United States District Court for the Western District of Washington, Laurence Hong and Grace Hong pleaded guilty on March 27, 2018 and March 30, 2018, respectively, to multiple criminal counts. See Case No. CR17-163TSZ. On October 11, 2018, Laurence Hong was sentenced to a 180-month prison term and Grace Hong was sentenced to a 72-month prison term. The court ordered that the defendants also pay restitution in the criminal matter. In recognition of the prior restitution award in the criminal matter, Judge Pechman ordered that the defendants may offset their civil restitution obligation with payments in the criminal matter on a one-to-one basis.

The CFTC cautions victims that restitution orders may not result in the recovery of money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

The Division of Enforcement thanks the United States Attorney for the Western District of Washington and the FBI for their invaluable assistance and cooperation.

The CFTC Division of Enforcement staff members responsible for this case are Kevin Samuel, Ilana Waxman, Kim Bruno, Alison Wilson, and Rick Glaser.

FCA Publishes Its Second Set of Rules Following Its Asset Management Market Study

February 8, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: asset management, asset management market, Asset Management Market Study, consumers, FCA, funds, investment, market, Rules, The Financial Conduct Authority

The Financial Conduct Authority (FCA) has published new rules and guidance to improve the quality of the information available to consumers about the funds they invest in.

The asset management industry plays an important role in the UK’s economy. Asset managers seek returns for investors by investing in a variety of assets. Over £1 trillion is managed for individual investors and £3 trillion on behalf of UK pension funds and other institutional investors. The FCA’s asset management market study presented evidence of weak price competition in many areas of the asset management industry. This means lower returns for savers, pensioners and other investors.

The FCA has acted to tackle the issues found. In April 2018, the FCA introduced new rules to ensure fund managers act as agents of investors in their funds. Today’s rules and guidance complement that work by helping consumers understand more about how their money is being managed, so that they can make better investment decisions.

The new rules and guidance:

set out how fund managers should describe fund objectives and investment policies to make them more useful to investors
require fund managers to explain why or how their funds use particular benchmarks or, if they do not use a benchmark, how investors should assess the performance of a fund
require fund managers who use benchmarks to reference them consistently across the fund’s documents
require fund managers who present a fund’s past performance to do so against each benchmark used as a constraint on portfolio construction or as a performance target, and
clarify that where a performance fee is specified in the prospectus, it must be calculated based on the scheme’s performance after the deduction of all other fees
Christopher Woolard, FCA Executive Director of Strategy and Competition

Christopher Woolard, the FCA’s Executive Director of Strategy and Competition, commented:
‘We’re working to make competition work better in the asset management market and protect those least able to actively engage with their investments. Today’s remedies build on those we’ve already introduced and will make it easier for investors to choose the best fund for them and help them achieve their investment objectives’.

There is other work ongoing as a result of the Asset Management Market Study. In late November 2018, the Cost Transparency Initiative(link is external) was launched as an independent group working to improve cost and charges transparency for institutional investors. This progressed the work already undertaken by the Institutional Disclosure Working Group. The FCA also continues to work with the Competition and Markets Authority(link is external) on their findings from their investigation into investment consultancy.

Former Adelaide Financial Adviser Pleads Guilty to theft of $4.88 Million

February 8, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Adelaide financial adviser, bank accounts, banking documents, Financial Planner, funds, James Gibbs, JGI, Madison Financial Group Ltd, member statements

Former Adelaide financial adviser, James Gibbs, has pleaded guilty to 28 dishonesty offences committed when he was a financial planner and director of James Gibbs Investments Pty Ltd (JGI). JGI operated in Franklin St, Adelaide.

ASIC alleged that between 20 August 2009 and 30 July 2016, Gibbs stole approximately $4.88 million of funds that he was managing for his clients. A number of clients had self-managed superannuation funds, which Gibbs was able to access via client bank accounts.

ASIC also alleged that between 25 June 2012 and 30 July 2016, Gibbs created and used false documents, including banking documents and member statements.

Gibbs appeared in the Adelaide Magistrates Court on 1 February 2019 and pleaded guilty to all offences. He was placed on bail and was remanded to appear in the committal court on 27 February 2019. He faces a maximum penalty of 10 years imprisonment for each offence committed prior to May 2012, or 15 years imprisonment for each offence committed after that time.

The Commonwealth Director of Public Prosecutions is prosecuting the matter.

Background

The alleged misconduct occurred while Mr Gibbs and JGI were authorised representatives of Madison Financial Group Ltd (AFSL 246679). ASIC became aware of the allegations as a result of a breach report by Madison.

ICE Benchmark Administration Introduces the U.S. Dollar ICE Bank Yield Index for Review and Comment by Market Participants

January 31, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: Administration, Bank, funds, IBA, ICE, ICE Bank, ICE Benchmark Administration, market participants, preliminary methodology, U.S. Dollar

Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Benchmark Administration (“IBA”) has published a paper introducing the U.S. Dollar ICE Bank Yield Index for review and comment by market participants.

The fully transaction-based U.S. Dollar ICE Bank Yield Index is designed to measure the yields at which investors are willing to invest U.S. dollar funds in large, internationally active banks on a wholesale, unsecured basis over one-month, three-month and six-month periods.

The index has been developed to meet the potential needs of lenders, borrowers and other users of non-derivative or “cash” products that have historically referenced short-term interest rate benchmarks, such as LIBOR, in their contracts.

IBA has conducted a period of testing on a preliminary methodology for the index over the course of the past year. The results are published in the paper and on IBA’s website.

IBA is now inviting market participants and stakeholders to review and provide feedback on the U.S. Dollar ICE Bank Yield Index and its proposed methodology via email at IBA@theice.com by March 31, 2019.

IBA intends to consider and take account of this feedback in finalising the construction of the index before conducting a production-standard test in the second half of 2019. If the market’s response is encouraging and future testing is successful, IBA anticipates that it will launch the U.S. Dollar ICE Bank Yield Index and commence publication during the first quarter of 2020.

There is no guarantee that IBA will continue to test the U.S. Dollar ICE Bank Yield Index, be able to source data to derive the index or publish the index in the future. Users of U.S. Dollar LIBOR should not rely on the potential publication of the U.S. Dollar ICE Bank Yield Index when developing and executing transition or fallback plans.

Broadridge to Launch Investor Voting App

New SEC Campaign Educates Investors on Where and How to Get Answers

Marketing of Funds in Norway in Case of a No-Deal Brexit.

Repeal of right to market funds in Norway

Marketing of alternative investment funds in Norway where the fund or the manager is established in a third country

Special cases

Regarding applications

Broadridge Launches Securities Lending Assessment Solution for Mutual Funds

“Funds in Focus”: Invest like Warren Buffet – Value Investing in 2019

Article series: “Funds in Focus”

Broad information offering

Smart Investor Tool Launched to Help Kiwis Get Ahead Financially

Federal Court Orders Husband and Wife Team and Their Company to Pay Defrauded Customers More Than $1 Million in Connection with a Futures Trading Scheme

FCA Publishes Its Second Set of Rules Following Its Asset Management Market Study

Former Adelaide Financial Adviser Pleads Guilty to theft of $4.88 Million

Background

ICE Benchmark Administration Introduces the U.S. Dollar ICE Bank Yield Index for Review and Comment by Market Participants

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