|Bid||62.17 x 800|
|Ask||63.68 x 1300|
|Day's range||62.76 - 65.18|
|52-week range||42.10 - 85.89|
|Beta (5Y monthly)||1.54|
|PE ratio (TTM)||10.85|
|Earnings date||17 Jul 2020|
|Forward dividend & yield||2.08 (3.29%)|
|Ex-dividend date||30 Jun 2020|
|1y target est||70.33|
(Bloomberg) -- One of Wall Street’s hottest innovations is being hailed as the potential key to luring trillions of actively managed dollars to the booming market for exchange-traded funds. Yet two of the industry’s biggest players want no part of it for now.Vanguard Group and State Street Corp. say they’re in wait-and-see mode as active, non-transparent funds take their crucial first steps in the $4.3 trillion U.S. arena for ETFs.These products come with many of the benefits of traditional ETFs but drastically reduced disclosure requirements. That makes so-called ANTs a likely conduit to bring stock-picking strategies to the exchange-traded universe.The market’s largest player, BlackRock Inc., has already filed to use the structure after the funds debuted in April. JPMorgan Chase & Co. -- which also plans its own ANTs -- estimates non-transparent ETFs could ultimately command more than $7 trillion in assets.Vanguard, No. 2 in ETFs, is in no rush to wade into untested waters, according to its head of ETF product management.“This is an opportunity for us to learn from what others are doing,” Rich Powers said in an interview. “Investors make their way to great active strategies, regardless of whether it’s first to market.”Slow StartSo far, it seems they have yet to flock to ANTs.After being in the making for almost a decade, six non-transparent ETFs have launched to date from three issuers: American Century Investments, Legg Mason Inc. and Fidelity Investments. Five follow large-cap equities and one tracks mid-cap stocks.Collectively, they have attracted more than $240 million in assets, with the $136 million American Century Focused Dynamic Growth ETF leading the pack. Performance is mixed: Half of the new products are handily beating their benchmarks, two are lagging, and one is neck and neck.In the eyes of State Street’s Rory Tobin, there are two big hurdles to attracting investors to this new type of fund. First, the sheer dominance of passive strategies, which account for more than 95% of all U.S. ETF assets. Second, the relative cost of the ANTs.“You’ve got your investment proposition, you’ve got your ETF mechanics, and then there’s the economics,” said Tobin, global head of State Street’s SPDR ETF business. “How do investors feel about the price point at which these are being positioned?”The average expense ratio for the new non-transparent funds is 0.52%. By comparison, the world’s largest ETF -- State Street’s SPDR S&P 500 ETF Trust, ticker SPY-- has a fee of just under 0.1%.First MoversFor some market watchers, the question of demand runs even deeper than cost. Ben Johnson at Morningstar Inc. reckons all the hype around the non-transparent structure has been driven by issuers rather than investors.“What has been absent is any clear indication of demand,” said the director of global ETF research. “This is a solution in search of a problem, and the problem that ANTs solve is chiefly in my mind an asset management problem.”Nonetheless, issuers remain optimistic. Greg Friedman, head of ETF management and strategy at Fidelity, said the firm expects growth for its products over time, with large institutional investors coming on board once the funds have a track record.American Century said it had interest from “a lot of different parties,” and pointed out that it successfully launched almost at the height of this year’s market stress.“Almost no one was launching ETFs, and almost everyone was pulling theirs back,” said Edward Rosenberg, head of ETFs at American Century.Read more: No In-Person Meetings, Volatility Behind 86% Drop in ETF DebutsThat kind of perseverance may well pay off in the long run, since the ETF ecosystem has a track-record of delivering a first-mover advantage.SPY, for instance, has accumulated $273 billion in assets since its launch in 1993. BlackRock’s iShares Core S&P 500 ETF, ticker IVV, is far cheaper with a fee of 0.03%. But it remains a distant second, having gathered $195 billion since its launch in 2000.“The products in market have proven not only that the structure works, but that they operate effectively in volatile markets,” according to Rick Genoni, the head of ETF business for Legg Mason. “It is not unusual for any new strategy, regardless of the wrapper or structure, to experience modest sales until they have a track record and are available across platforms and we believe that the ActiveShares ETF structure will prove to be attractive.”Mutual BenefitsThe new funds reveal their holdings just once a quarter, as opposed to the daily disclosures done by a regular ETF.That’s an alluring prospect for mutual fund managers confronting the ongoing march of cheaper, easier to access passive products. They can adopt similar structures while shielding their secret sauce from front-running or replication by rivals.But lingering questions about how the structure will hold up during times of market stress are keeping asset allocators such as E*Trade Financial’s Mike Loewengart at bay.The share price of a traditional ETF normally stays in lockstep with the value of their underlying holdings thanks to specialized traders known as authorized participants, who step in to capitalize on any price discrepancies and keep the two moving in tandem. With an ETF that conceals its holdings, that process looks a bit different.Most ANTs launched so far use the so-called ActiveShares model from Precidian Investments. The structure publishes an indicative value every second to help traders make a price and enlists an agency broker -- known as an authorized participant representative -- to confidentially buy and sell securities for the APs.Alternative methodologies from Fidelity, T. Rowe Price Group Inc., Natixis SA and Blue Tractor Group LLC have also been approved.“It hasn’t really been tested yet,” said Loewengart, the managing director of investment strategy at E*Trade. “They need to become more seasoned.”(Updates assets under management. An earlier version of this story corrected a ticker in the table.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
State Street Corporation (NYSE: STT) plans to announce its second-quarter 2020 financial results on Friday, July 17, 2020 at approximately 7:30 a.m. EDT. The results will be reviewed via webcast and teleconference at 10:00 a.m. EDT.
State Street Corporation (NYSE: STT) today announced new research which reveals that 78 percent of insurers are confident their asset managers can navigate the current financial crisis caused by COVID-19. State Street surveyed insurance companies around the world on the impact of the COVID-19 pandemic and their views on how asset managers have handled the crisis.
State Street Corporation (NYSE: STT) today announced its preliminary inaugural stress capital buffer (SCB) requirement of 2.5% beginning in the fourth quarter of 2020 and the intention to continue its quarterly common stock dividend of $0.52 per share in the third quarter subject to consideration and approval by its Board of Directors.
(Bloomberg Opinion) -- It’s growing more likely by the day that we’ve reached peak “bored retail trader” in the financial markets.Bloomberg News, The Wall Street Journal and seemingly every financial news publication has now profiled Dave Portnoy, founder of the website Barstool Sports, who has turned to day-trading stocks with sports on hold because of the coronavirus pandemic. Robinhood Financial’s trading app is all the rage, being credited with the shocking rally in shares of bankrupt Hertz Global Holdings Inc. that almost prompted an unthinkable offering of potentially worthless stock. My Bloomberg Opinion colleague Matt Levine has called this entire phenomenon the “boredom markets hypothesis.” If this trend is close to running its course, more traditional investors might want to consider what happens when the music stops and Portnoy’s No. 1 rule — “stocks only go up” — doesn’t work so flawlessly. The S&P 500 Index’s sharp rally from its March lows is already starting to fizzle, with the index down more than 3% during the past two weeks. While hardly backbreaking, it’s the largest loss over such a sustained period since the worst of the selloff three months ago. Even sideways trading for the summer would violate the day trader’s mantra.Fortunately for sophisticated investors who might side with Warren Buffett and Leon Cooperman over the Robinhood crowd, there’s an intriguing asset class for this crossroads: convertible bonds.The securities, which can be swapped for shares at specified prices, have already been having something of a moment. The Bloomberg Barclays U.S. Convertibles Composite Total Return index jumped to a record on June 8 and remains close to that lofty level. Convertible bonds have gained 7.8% so far in 2020, better than the 5% return on investment-grade corporate bonds and the roughly 3% loss for the S&P 500. I’ve written before about how it seems as if there’s something inherently “cheap” about convertibles that boosts returns above and beyond a mix of stocks and bonds. Part of it might be the types of companies that offer such securities. Within the Bloomberg Barclays index, some of the biggest names include Tesla Inc., Carnival Corp., Southwest Airlines Co., Microchip Technology Inc. and Workday Inc. In other words, a combination of technology companies that have powered the U.S. stock market rally and brand-name businesses particularly harmed by the coronavirus but part of the “recovery trade” strategy. American Airlines Group Inc. is in the market selling convertible notes, too.Some of these individual companies are favorites of the new day-trading crowd. But for those who want to bet on convertible bonds, and specifically to keep trading relatively small sums with zero commission, the $4 trillion exchange-traded fund market is probably their best bet. Yet even the asset class’s sharp rally hasn’t been enough to lure individuals from the thrill of wagering on the trendy stock pick of the day. Consider the $717 million iShares Convertible Bond exchange-traded fund (ticker ICVT), which has soared since March and is up more than 6% this month alone. A few weeks ago, it looked as if it might have been discovered — on June 3, its assets increased by 21% as investors poured a net $108.3 million into the fund, the most since its inception roughly five years ago, according to data compiled by Bloomberg. It gained an additional $69 million on June 9, good for the second-biggest inflow ever. On the flip side, State Street’s $4.47 billion SPDR Bloomberg Barclays Convertible Securities ETF (ticker CWB) suffered an outflow of $107.6 million on June 10, the largest daily withdrawal on record, followed by a $75 million exodus on June 11. That’s a stark contrast to the tens of billions of dollars flowing into credit ETFs.That seeming lack of interest is just fine for investors like Eli Pars, co-chief investment officer and head of alternative strategies at Calamos Advisors. The Naperville, Illinois-based firm is the largest public holder of convertible bonds issued in April by Carnival and Southwest Airlines, according to data compiled by Bloomberg.“It’s a great way to play the stock market in a less volatile way,” he said in a phone interview. While this is the common elevator pitch for investing in convertibles, the securities backed up that claim during March’s turbulence by tumbling less than benchmark equity indexes. That’s because investors can always fall back on interest payments if equity prices fall while capitalizing on a rally because the value of the option to convert to shares increases as well.Pars says convertibles are compelling for those with significant equity holdings who want to dial back their risk a bit after the sharp rebound in the past three months, or for those who sat out the entire rally and want some protection from a reversal. It’s a safer bet than simply taking short positions on the S&P 500; Bloomberg News’s Cameron Crise calculated that speculators have ratcheted up their bets against the index to the most extreme level since 2011.In some ways, the new band of Robinhood traders plays right into the hands of investors like Pars. He manages the $9 billion Calamos Market Neutral Income Fund, which partly employs a strategy known as convertible arbitrage. The trade involves buying and holding the convertible bond while hedging with a short position in the common stock, in theory generating a nearly riskless profit from price discrepancies between the two assets. That’s more likely to happen when there’s added volatility — and especially when the fluctuations seemingly come out of nowhere. “It’s one thing when you have volatility driven by real fundamentals,” Pars says. “When you have more noise volatility, that’s perfect for an arb.”With so much uncertainty surrounding how quickly states can emerge from lockdowns, and just how quickly Americans will travel the way they used to, even modest downside protection, like the 1.25% interest rate on Southwest Airlines’s convertible securities, can be a comfort for investors. That could wind up being a better yield than similar maturity Treasuries over the next five years, given that it’s anyone’s guess whether the Federal Reserve will have raised short-term interest rates from near-zero by then.These are the prudent — albeit less entertaining — calculations that professional investors are paid to think about. There’s still a large divide between the newbie traders who fly in and out of stock and ETF positions on a whim thanks to no-fee trading, and Wall Street denizens who scrutinize market segments mostly out of reach of Robinhood. The former are best thought of like shares of Hertz, surging 682% in the span of days but now sputtering toward zero again.Convertible bonds, by contrast, have delivered average annual returns of 9% or higher over three-, five-, 10- and 15-year horizons. It stands to reason they’ll keep doing so long after the legions of bored traders find a new hobby.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
As Director of the Charles River Wealth Hub, Steve Pike will lead asset manager on-boarding, service bureau relationships, and strategic direction.
The State Street ℠ Private Equity Index (SSPEI) posted its second highest quarterly return in the past two years at 4.35 percent return in the fourth quarter of 2019, up from the 0.82 percent return in Q3 2019. Venture Capital funds rallied 5.68 percent after last quarter’s decline of -0.05 percent return, followed by 4.24 percent return from Buyout funds and 2.43 percent return from Private Debt funds.
State Street Corporation (NYSE:STT) today announced that it has been appointed ETF servicing agent for Fidelity Investments new range of semi-transparent, actively managed ETFs. Fidelity is the first asset manager to receive regulatory approval for three investment strategies, Fidelity Blue Chip Growth ETF (FBCG), Fidelity Blue Chip Value ETF (FBCV) and Fidelity New Millennium ETF (FMIL), which will be available through Fidelity’s proprietary proxy basket methodology. The structure will allow Fidelity to deliver its actively-managed investment strategies in these ETF vehicles without the daily holdings disclosure requirement of fully transparent ETFs.
State Street Corporation (NYSE: STT) today unveiled new research which shows that institutional investors still retain high levels of confidence in their asset managers amid the COVID-19 crisis. Globally, 76% of institutional investors stated that they have faith in their asset managers’ ability to navigate the crisis, while a similar percentage of respondents (74%) rated the communication and support from their asset managers as either ‘strong’ or ‘very strong.’
The action dates back to 2015 when the Federal Reserve found deficiencies in State Street's anti-money-laundering and Bank Security Act systems.
State Street Corporation (NYSE:STT) announced today that its Chief Financial Officer, Eric Aboaf, and Head of Global Clients Division, Donna Milrod, will participate in the Morgan Stanley Virtual US Financials Conference on Tuesday, June 9th, 2020 at 2:30 pm EDT.
Considering how hard the financial sector has been hit this year by the one-two punch of the COVID-19 pandemic and the Fed lowering prime interest rates to near 0%, State Street (NYSE: STT) has fared relatively well in the first quarter. Is State Street stock worth owning? What makes State Street unique is its market-leading position in two areas of financial services -- custody and asset management.
Charles River IMS combines a multi-asset order management system (OMS) with trade execution capabilities in a single, fully integrated OEMS.
As an investor its worth striving to ensure your overall portfolio beats the market average. But its virtually certain...
State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced plans to close and liquidate the SPDR S&P ® Technology Hardware ETF (XTH) and the SPDR S&P 500 Buyback ETF (SPYB) based on an ongoing review of the SPDR ETF offering.
State Street Corporation (NYSE:STT) today announced a quarterly cash dividend of $0.52 per share of common stock, payable on July 16, 2020 to common shareholders of record at the close of business on July 1, 2020.
State Street Corporation (NYSE:STT) today announced the release of its Stakeholder Report for 2019, entitled "Stronger Together," which reviews the firm’s performance, growth and strategy over the last year. The report also describes State Street’s commitment to innovation, and overall resiliency as well as its emphasis on corporate responsibility, and how these factors have helped the company to support its clients during the COVID-19 crisis.
Bank stocks have taken a hit since the coronavirus pandemic struck the economy, but most experts say the banks are not the main concern in this crisis, like they were during the Great Recession. The banks are believed to be well capitalized, and Warren Buffett even said himself that he does not see any special problems with the banks. Here are three top bank stocks to buy right now that should perform well through the pandemic.
AGNC Investment Corp. (NASDAQ: AGNC) is a mortgage real estate investment trust (mREIT) that specializes in mortgage-backed securities guaranteed by the U.S. government. Like every other mortgage REIT over the past couple months, AGNC has taken its lumps as margin calls have forced it to deleverage.
State Street Corporation (NYSE:STT) today announced that it has been appointed as the ETF servicing agent for Water Island Capital’s first ETF. Water Island Capital (WIC) received regulatory approval for the AltShares Merger Arbitrage ETF (NYSE: ARB), tracking the Water Island Merger Arbitrage USD Hedged Index, which seeded on May 6 and listed for trading on May 7, 2020.
State Street Corporation (NYSE: STT) today announced it has entered into an alliance with Virtus from FIS to provide Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) technology management solutions to clients in the United States and Europe.
State Street Corporation (NYSE: STT) reported its first-quarter 2020 financial results today. The news release, presentation, and additional financial information can be accessed on State Street’s Investor Relations website at http://investors.statestreet.com. A conference call to discuss the firm’s financial results, outlook and related matters will be held at 10:00 a.m. EDT, Friday, April 17, 2020. The call will be open to the public.
Investing.com - State Street (NYSE:STT) reported on Friday first quarter earnings that beat analysts' forecasts and revenue that topped expectations.
State Street Corporation (NYSE:STT) today announced that it will offer its State Street PriceStats Series, a comprehensive suite of indicators to monitor trends in retailer pricing and consumer demand in 22 countries, to central banks around the world at no cost. The announcement comes following an influx of inquiries from central banks as they seek to mitigate the negative economic effects of the pandemic.
Charles River has initiated the migration of new and existing SaaS (Software as a Service) clients onto the new Azure infrastructure.