Follow Jeffrey Epstein’s money: Accused child sex trafficker has $56.4 million cash, even more in hedge funds, real estate, stocks

Jeffrey Epstein has a ton of cash on hand — but the accused child sex trafficker has even more more money tied up in hedge funds, private equity plays and real estate, a newly unsealed court document reveals. Judge Richard Berman on Monday said he would rule on whether to grant bail in the case on Thursday, and ordered Epstein’s assets disclosure unsealed. More than $179 million in stated assets comes from real estate, including Epstein’s private island in the U.S. Virgin Islands — Little St. Ja


Jeffrey Epstein has a ton of cash on hand — but the accused child sex trafficker has even more more money tied up in hedge funds, private equity plays and real estate, a newly unsealed court document reveals. Judge Richard Berman on Monday said he would rule on whether to grant bail in the case on Thursday, and ordered Epstein’s assets disclosure unsealed. More than $179 million in stated assets comes from real estate, including Epstein’s private island in the U.S. Virgin Islands — Little St. Ja
Follow Jeffrey Epstein’s money: Accused child sex trafficker has $56.4 million cash, even more in hedge funds, real estate, stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: dan mangan
Keywords: news, cnbc, companies, assets, disclosure, hedge, prosecutors, million, stocks, epstein, private, island, worth, follow, real, bail, jeffrey, funds, trafficker, sex, money, epsteins


Follow Jeffrey Epstein's money: Accused child sex trafficker has $56.4 million cash, even more in hedge funds, real estate, stocks

Jeffrey Epstein attends Launch of RADAR MAGAZINE at Hotel QT on May 18, 2005.

Jeffrey Epstein has a ton of cash on hand — but the accused child sex trafficker has even more more money tied up in hedge funds, private equity plays and real estate, a newly unsealed court document reveals.

The document, filed by Epstein’s criminal defense lawyers and unsealed Monday, shows that the financier and registered sex offender is worth an estimated $559,120,954.

The filing was made last week as Epstein, 66, seeks release on bail following charges that he trafficked underage girls so they could visit his Manhattan and Palm Beach, Florida, mansions, where he allegedly sexually abused them.

Some of the dozens of girls that Epstein is accused of exploiting from 2002 to 2005 were as young as 14 years old, according to prosecutors. Those prosecutors, who want to keep him locked up pending trial without bail, have slammed the financial disclosure by Epstein for lacking details.

“His token effort to account for his finances makes painfully clear the need for detention,” prosecutors wrote in a filing to the judge arguing that Epstein should be locked up pending trial.

Epstein, a former friend of presidents Donald Trump and Bill Clinton, has pleaded not guilty. He pleaded guilty in 2008 to a Florida state charge of procuring an underage girl for prostitution, and served a 13-month jail term.

Judge Richard Berman on Monday said he would rule on whether to grant bail in the case on Thursday, and ordered Epstein’s assets disclosure unsealed.

Epstein’s lawyer told Berman he was authorized to consent to a bail package with strict conditions in the amount of up to $100 million.

Read: Financial Disclosure Form filed by Jeffrey Epstein’s defense lawyers

A big chunk of Epstein’s assets, roughly $195 million worth, is in hedge fund investments and private equity, according to the financial disclosure in Manhattan federal court.

Another $112.7 million of assets comes in the form of equities. Epstein listed just $14.3 million from fixed income securities.

More than $179 million in stated assets comes from real estate, including Epstein’s private island in the U.S. Virgin Islands — Little St. James — which is valued at $63 million.

That island has been derisively nicknamed “Pedophile Island” by locals.

Another island owned by Epstein in the Virgin Islands, Great St. James, is valued at almost $22.5 million.

Epstein’s defense lawyers value his Upper East Side townhouse in Manhattan at $55.9 million, citing his Jan. 1 property tax bill. But they note that federal prosecutors have claimed that the residence is worth $77 million.

Rounding out the real estate portfolio is Epstein’s New Mexico ranch, his Palm Beach home and a residence in Paris, France.

Epstein was arrested July 6 at at New Jersey airport after flying there on a private plane from France.

WATCH: The public is entitled to know where Epstein’s assets are from, says NYT’s Jim Stewart


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: dan mangan
Keywords: news, cnbc, companies, assets, disclosure, hedge, prosecutors, million, stocks, epstein, private, island, worth, follow, real, bail, jeffrey, funds, trafficker, sex, money, epsteins


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Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.


After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down. At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year. That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.
Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, add, higher, stocks, jeremy, stock, yield, rally, funds, yearend, week, rate, record, siegel, fed, thanks, market, curve


Jeremy Siegel: Stocks could add another 5% onto record rally by year-end thanks to the Fed

The stock market has been hitting all kinds of records this week, and Wharton School professor Jeremy Siegel told CNBC on Friday that he does not see that stopping anytime soon.

“I think fair market value does give us another 5% or 6% this year” on the S&P 500 with the Federal Reserve signalling interest rate cuts ahead, the longtime stock bull said on “Fast Money Halftime Report.”

“But we may go up 10% or 12% before we sell off,” Siegel added, noting the Fed tends to overshoot on both the downside and the upside when adjusting rates.

Fed Chairman Jerome Powell — who dropped rate-cut hints over two days of congressional economic testimony this week — has been widely criticized by Wall Street and President Donald Trump for hiking too aggressively.

After four 0.25% hikes last year, the target range for the fed funds overnight bank lending rate stands at 2.25% to 2.5%. The final Fed increase in borrowing costs in 2018 came in December when the stock market was melting down.

Siegel said he hopes the Fed cuts rates by a half percentage point at its upcoming July 30-31 meeting, though he acknowledges that such a bold move would be unlikely.

Around midday Friday, the CME FedWatch tracker was putting only about a 25% probability on a 0.5% reduction in the fed funds and much larger 75% odds on a 0.25% cut.

The reason Siegel would like to see a deeper cut is because he’s concerned about the fed funds rate being higher than the 10-year Treasury yield, which was around 2.1% on Friday.

At the shorter end of the bond yield curve, the 3-month Treasury rate has actually been higher than the 10-year.

That so-called inverted yield curve, when shorter-term bonds deliver higher rates than longer-term ones, historically has signaled a recession on the horizon.

“The biggest factor here is we really did see an inversion in that yield curve,” Siegel said. “I’ve gone through history, it is one of the most single reliable indicators of a recession. And I worry about that.”


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, add, higher, stocks, jeremy, stock, yield, rally, funds, yearend, week, rate, record, siegel, fed, thanks, market, curve


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This charitable investing strategy was an early investor in Beyond Meat

The strategy comes at a time when donor-advised funds are growing. A donor-advised fund is a charitable investment account in which individuals making deposits immediately become eligible for tax deductions for those donations. More investors set up donor-advised funds at the end of 2017 in anticipation of changing tax rules, Curtis said. Of note, once an investor makes a contribution to a donor-advised fund, the sponsoring organization has legal control of that money. “It hasn’t historically be


The strategy comes at a time when donor-advised funds are growing. A donor-advised fund is a charitable investment account in which individuals making deposits immediately become eligible for tax deductions for those donations. More investors set up donor-advised funds at the end of 2017 in anticipation of changing tax rules, Curtis said. Of note, once an investor makes a contribution to a donor-advised fund, the sponsoring organization has legal control of that money. “It hasn’t historically be
This charitable investing strategy was an early investor in Beyond Meat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: lorie konish
Keywords: news, cnbc, companies, million, investment, giving, strategy, investor, meat, donoradvised, freundlich, fund, investments, funds, investing, early, impactassets, charitable


This charitable investing strategy was an early investor in Beyond Meat

The name Beyond Meat has been on investors’ lips since the company’s successful May initial public offering. But one investor in Beyond Meat, non-profit financial services firm ImpactAssets, bet on the company six years ago, long before the company became a household name. And that investment has helped boost the firm’s charitable assets. ImpactAssets’ initial philanthropic investments of $1.1 million in the company climbed to $16.9 million based on Beyond Meat’s opening day.

Ethan Brown, founder and CEO of Beyond Meat, center, rings the opening bell during the company’s IPO at the Nasdaq in New York on May 2, 2019. Michael Nagle | Bloomberg | Getty Images

Now, depending on the day, that investment can be worth $40 million to $50 million, according to ImpactAssets President Timothy Freundlich. “Everybody is surprised,” Freundlich said of the IPO’s pop. To date, ImpactAssets has about $1 billion in assets in its donor-advised fund that focuses on investments that aim to have a positive environmental and social impact. The strategy comes at a time when donor-advised funds are growing. A donor-advised fund is a charitable investment account in which individuals making deposits immediately become eligible for tax deductions for those donations. The donations, however, can be given to charity over time. It also comes as interest in environmental, social and governance — ESG — or impact investing is gaining popularity.

‘Democratization of philanthropy’

Contributions to donor advised funds climbed to $29.23 billion in the U.S. in 2017, or 10.2% of total giving, according to National Philanthropic Trust’s annual report for 2018. Meanwhile, charitable giving by individuals in America fell by 1.1% in 2018 to $292 billion, according to Giving USA, following the implementation of the Tax Cuts and Jobs Act. “What we are seeing is that donor-advised funds are continuing to be strong,” said Keith Curtis, a board member and immediate past chair of the Giving USA Foundation. More investors set up donor-advised funds at the end of 2017 in anticipation of changing tax rules, Curtis said. Changes instituted under the Tax Cuts and Jobs Act have made it more difficult to itemize deductions, including charitable contributions, because of a higher standard deduction. Donor-advised funds typically only require $5,000 to $10,000 to set up, unlike private foundations, which require higher levels of capital and professional management. “It’s sort of the democratization of philanthropy,” Curtis said.

Of note, once an investor makes a contribution to a donor-advised fund, the sponsoring organization has legal control of that money. However, the donor still acts as an advisor with respect to the distribution of funds. ImpactAssets works with clients with $5,000 to $50 million and “everything in between” to invest, according to Freundlich. “We’re open for business for the mass affluent and their advisors,” Freundlich said. ImpactAssets is working mostly with boutique multifamily offices and high-end registered investment advisors. Bigger contributions — $1 million and up — tend to drive most of its growth, according to Freundlich. More from Personal Finance:

Morgan Stanley to let clients use donor-advised funds focused on drug discovery

What you can learn from Sheryl Sandberg’s charitable giving plans

Two tax-friendly ways to donate money There’s currently no shortage of investment opportunities, he said. When ImpactAssets began doing direct investments around the time it invested in Beyond Meat, the firm was doing one or two deals a year. Now, it’s around three a week, Freundlich said. Its venture investments range from private debt to equity funds and also include for- and non-profit organizations. ImpactAssets has approximately 600 direct investments. Examples include other alternative food companies, such as BlueNalu, Inc. and Misfit Foods. “Are there other Beyond Meats in there?” Freundlich said. “Who knows? “You don’t know for years,” he added. “It happened to be one of the early ones that seasoned.”

Emerging opportunities

Donor-advised funds that focus on social or environmental impact, like other areas of investing, are still emerging. “It hasn’t historically been the easiest thing to do in a donor-advised fund because one of the nuances of a donor-advised fund is you want liquidity for grant making,” said Rene Paradis, chief operating officer at National Philanthropic Trust. ImpactAssets typically gives out about 12% to 15% of its asset base every year, which is more than foundations, Freundlich noted.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: lorie konish
Keywords: news, cnbc, companies, million, investment, giving, strategy, investor, meat, donoradvised, freundlich, fund, investments, funds, investing, early, impactassets, charitable


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How your money might be affected if the Fed cuts interest rates

A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold


A rate cut could hurt savers with high-yield accountsThe federal funds rate is used as the benchmark for many consumer interest rates. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.” If you hold
How your money might be affected if the Fed cuts interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


How your money might be affected if the Fed cuts interest rates

Jerome Powell, chairman of the U.S. Federal Reserve, said that downside risks to the economy remain with trade wars softening business investment and weak inflation.

Federal Reserve Chairman Jerome Powell said Wednesday that the U.S.’s uncertain economic outlook could lead the central bank to cut its benchmark short-term interest rate later this month. Experts say the cut would likely be a modest quarter of a percentage point. The rate cut would be a result of a confluence of factors, including uncertainty over a U.S-China trade war and a slowing economy. How would a rate cut — the first since 2008 — impact the average consumer? While it’s hard to predict, generally, a rate cut is “good for borrowers, bad for savers, and mixed for investors,” Sallie Krawcheck, co-founder and CEO of Ellevest and former Wall Street executive, tells CNBC Make It.

A rate cut could hurt savers with high-yield accounts

The federal funds rate is used as the benchmark for many consumer interest rates. Already, some banks — including Ally and Marcus by Goldman Sachs — have cut yields on some of their retail products, including savings accounts, in anticipation of the central bank’s actions. Experts say savers can also expect CD rates to fall ahead of the Fed’s decision. The exact impact is still unknown, says Mark Hamrick, Bankrate.com senior economic analyst. Although savings account APYs might decrease, he says, many traditional banks never increased them significantly anyway; the national average rate is still 0.10%.

A rate cut helps borrowers with credit card debt

An interest rate cut is bad news for savers, “but it is something of an unexpected gift for borrowers and investors,” says Hamrick. Variable credit card interest rates are tied to the prime rate, for example, which is closely related to the federal funds rate, Hamrick says. So, with the federal funds rate dropping, a card holder could see a drop in their APR within a billing cycle or two, which means smaller monthly payments. Credit card interest rates are currently at a record high, so any breathing room would be a boon to those carrying credit card debt. Still, a slight cut won’t save borrowers much when they are facing double-digit interest rates; it’s important to make a plan to pay off any balance as soon as possible.

Mortgages are more complicated

Mortgage rates are a bit trickier, says Hamrick. The Fed does not directly set mortgage rates, but cutting the benchmark rate could still impact your mortgage. Investors typically rush to the relative safety of bonds when the economy falters. As a result, recent lower bond yields have led to substantially lower mortgage rates since the end of 2018. Cutting rates could potentially reverse that, Hamrick says, as it signals an improving economy. On another front, Skylar Olsen, Zillow’s director of economic research, tells CNBC Make It that other economic factors have more influence on mortgage rates. “The typical 30-year mortgage rate is responding more to uncertainties on a global stage due to trade war concerns and early stage softening in the economy in general than in the fed funds rate,” says Olsen. “But a drop in the fed funds rate will contribute to mortgage rates remaining low into the future.”

Some other loans might be impacted

Consumers with home equity lines of credit would also benefit from lower interest rates, while auto loans should not be materially affected by the change. Federal student loan rates are set by the Department of Education each year, based on the 10-year Treasury note, and are expected to fall next year. Private loan rates might be variable, and therefore could be indirectly influenced by the Fed’s decision. If you hold private loans, it could be worth exploring refinancing options if the Fed drops interest rates.

Overall the effects are mixed


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, federal, funds, hamrick, affected, economy, money, credit, rates, cut, interest, rate, mortgage, cuts, fed


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For better or worse, a new website makes it easy to crowdfund your overdraft fees

Instead, he was attempting to recoup $300 that the bank charged him in overdraft fees. Banks typically charge overdraft fees when you overdraw your checking account. Last year, overdraft fees alone brought in $34.5 billion in revenue for financial companies, according to financial research company Moebs Services. “We at Current view this as an epidemic, and while we don’t take any overdraft fees, we know not everyone uses Current,” Current spokeswoman Natasha Williams says. Don’t miss: Americans


Instead, he was attempting to recoup $300 that the bank charged him in overdraft fees. Banks typically charge overdraft fees when you overdraw your checking account. Last year, overdraft fees alone brought in $34.5 billion in revenue for financial companies, according to financial research company Moebs Services. “We at Current view this as an epidemic, and while we don’t take any overdraft fees, we know not everyone uses Current,” Current spokeswoman Natasha Williams says. Don’t miss: Americans
For better or worse, a new website makes it easy to crowdfund your overdraft fees Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, bank, funds, current, worse, friends, dont, makes, instead, fees, easy, carlyle, better, crowdfund, money, website, overdraft


For better or worse, a new website makes it easy to crowdfund your overdraft fees

Last week, Lou Carlyle, asked friends to donate money to his cause. It was not for an outrageous medical bill or a charitable fundraising campaign. Instead, he was attempting to recoup $300 that the bank charged him in overdraft fees.

Carlyle, 21, used a new program that rolled out Tuesday from digital bank Current called GoFundMyOverdraft. Like GoFundMe, the platform allows users to plug in their information and create a fundraising page to share with friends and family asking for donations — except this is specifically for overdraft losses.

Banks typically charge overdraft fees when you overdraw your checking account. Instead of having your debit card declined or the purchase cancelled, your bank will cover the difference and charge you an overdraft fee, usually between $30 and $35.

“Overdrafts are definitely a big issue for me — I seem to always be getting them,” Carlyle tells CNBC Make It. “The idea of being able to recoup the money banks have screwed you out of was just genius.”

Of course, you’re not actually recovering the overdraft fees from the bank itself. Instead, friends and family are donating money. In this case, Carlyle says he estimated that his bank, JPMorgan Chase, has charged him roughly $300 over the years. “It’s probably more,” he adds ruefully.

The reactions from friends who received his request have been pretty positive, he says. “Some of my friends were quite stingy and laughed,” he says, but at the same time, they were interested in trying it out themselves. Others lent him money to cover any temporary shortfalls and one friend even sent him funds with no intention of getting it back. He didn’t raise $300, but he also wasn’t expecting much.

In the past, Carlyle has been forced to ask friends to send him funds so that he could quickly get his account balance up, promising to pay them back when the money hit his account. “It’s a pretty embarrassing thing to ask a friend, but sometimes you just have to do it,” he says. The GoFundMyOverdraft request, on the other hand, was a bit more tongue-in-cheek.

Last year, overdraft fees alone brought in $34.5 billion in revenue for financial companies, according to financial research company Moebs Services. And these charges, unsurprisingly, are one of the most complained about bank fees. Roughly 1,200 customers have lodged complaints about overdraft policies to the Consumer Financial Protection Bureau’s database during the first half of 2019.

“We at Current view this as an epidemic, and while we don’t take any overdraft fees, we know not everyone uses Current,” Current spokeswoman Natasha Williams says.

But you don’t have to be a Current customer to avoid overdrafts, something many don’t realize. Pew Charitable Trusts found as many as 70% of overdrafters (including Carlyle) don’t understand that you can decline your bank’s “overdraft protection” and you will not have to pay a fee. Instead your card will just be declined when you attempt to overdraw your account.

Of course, there are some restrictions. You can only opt out of overdrafts on one-time transactions made with your debit card. So if you use checks, or if you have recurring payments set up and you go over your current checking balance, you may still be charged an insufficient funds fee.

Don’t miss: Americans paid $34.3 billion in overdraft fees last year—here’s what to say to get them waived

Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: megan leonhardt
Keywords: news, cnbc, companies, bank, funds, current, worse, friends, dont, makes, instead, fees, easy, carlyle, better, crowdfund, money, website, overdraft


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Stashing cash still pays, but maybe not for long

Only recently have savers reaped the benefits of higher deposit rates — the annual percentage yield banks pay consumers on their money — after they hovered near rock bottom for years. Since the Federal Reserve raised the federal funds rate nine times in three years, the highest yielding rates are now paying as much as 2.5%, up from 0.1%, on average, before the Fed started increasing its benchmark rate in 2015. However, those gains could be lost if the Fed starts lowering its benchmark rate. “It’


Only recently have savers reaped the benefits of higher deposit rates — the annual percentage yield banks pay consumers on their money — after they hovered near rock bottom for years. Since the Federal Reserve raised the federal funds rate nine times in three years, the highest yielding rates are now paying as much as 2.5%, up from 0.1%, on average, before the Fed started increasing its benchmark rate in 2015. However, those gains could be lost if the Fed starts lowering its benchmark rate. “It’
Stashing cash still pays, but maybe not for long Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: jessica dickler
Keywords: news, cnbc, companies, benchmark, long, funds, yearssince, maybe, cash, deposit, stashing, rate, federal, fed, rates, pays, yield, yielding


Stashing cash still pays, but maybe not for long

It was fun while it lasted.

Only recently have savers reaped the benefits of higher deposit rates — the annual percentage yield banks pay consumers on their money — after they hovered near rock bottom for years.

Since the Federal Reserve raised the federal funds rate nine times in three years, the highest yielding rates are now paying as much as 2.5%, up from 0.1%, on average, before the Fed started increasing its benchmark rate in 2015.

However, those gains could be lost if the Fed starts lowering its benchmark rate.

“It’s the same way every car in the parking lot gets wet when it rains,” said Greg McBride, chief financial analyst for Bankrate.com.

Although the Fed has no direct influence on deposit rates, it tends to be correlated to changes in the target federal funds rate.

And despite cautious wording in its June statement, investors are still betting the Fed will cut interest rates, if not at the next meeting, then later in 2019.


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: jessica dickler
Keywords: news, cnbc, companies, benchmark, long, funds, yearssince, maybe, cash, deposit, stashing, rate, federal, fed, rates, pays, yield, yielding


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80% of the stock market is now on autopilot

This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe. DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. “I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the gl


This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe. DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. “I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the gl
80% of the stock market is now on autopilot Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: yun li
Keywords: news, cnbc, companies, trading, market, investing, according, 80, equity, street, autopilot, stock, jp, funds, passive


80% of the stock market is now on autopilot

Traders work on the floor at the New York Stock Exchange, May 23, 2019.

It’s no secret that machines are taking up a bigger and bigger share of investing, but the extent of their influence is approaching shocking proportions. It is as high as 80%, according to one major investing firm.

Passive investments such as index funds and exchange-traded funds control about 60% of the equity assets, while quantitative funds, those which rely on trend-following models instead of fundamental research from humans, now account for 20% of the market share, according to estimates from J.P. Morgan.

This means so much of stock trading is now in the hands of automated buyers and sellers that the market is increasingly sensitive to headlines and more prone to sharp price swings, many notable investors believe.

Omega Advisors founder Leon Cooperman previously said computer trading is creating a “Wild West” with the markets, calling for an investigation by the Securities and Exchange Commission.

DoubleLine Capital CEO Jeffrey Gundlach has taken a shot at passive investing, saying it is causing widespread problems in global stock markets. He called it a “herding behavior.”

“I’m not at all a fan of passive investing. In fact, I think passive investing … has reached mania status as we went into the peak of the global stock market,” Gundlach said in December.

While algorithmic models have gained popularity on Wall Street, low-cost passive vehicles keep raking in assets from Main Street. Passive funds have attracted $39 billion of inflows so far this year, whereas active funds lost a whopping $90 billion in 2019, according to J.P. Morgan.

“The pace of outflows from Active is at a cycle high while the pace of passive equity inflows has bottomed and [is] beginning to reaccelerate,” Dubravko Lakos-Bujas, J.P. Morgan’s chief U.S. equity strategist, said in a note on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: yun li
Keywords: news, cnbc, companies, trading, market, investing, according, 80, equity, street, autopilot, stock, jp, funds, passive


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Britain’s investment funds face scrutiny as Bank of England’s Carney blasts liquidity ‘lie’

The U.K. fund industry is facing calls for new regulation with Bank of England Governor Mark Carney telling lawmakers that some investment funds are “built on a lie.” Carney’s comments concerned the suspension of a flagship fund from Britain’s best known fund manager, Neil Woodford, due to a lengthy spell of poor performance and a slew of investor withdrawals. “These funds are built on a lie which is that you can have daily liquidity for assets that fundamentally aren’t liquid,” he said. The gat


The U.K. fund industry is facing calls for new regulation with Bank of England Governor Mark Carney telling lawmakers that some investment funds are “built on a lie.” Carney’s comments concerned the suspension of a flagship fund from Britain’s best known fund manager, Neil Woodford, due to a lengthy spell of poor performance and a slew of investor withdrawals. “These funds are built on a lie which is that you can have daily liquidity for assets that fundamentally aren’t liquid,” he said. The gat
Britain’s investment funds face scrutiny as Bank of England’s Carney blasts liquidity ‘lie’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-27  Authors: elliot smith
Keywords: news, cnbc, companies, liquidity, told, fund, blasts, assets, scrutiny, funds, investment, woodford, britains, underlying, englands, fca, face, carney, lie, uk, illiquid


Britain's investment funds face scrutiny as Bank of England's Carney blasts liquidity 'lie'

The U.K. fund industry is facing calls for new regulation with Bank of England Governor Mark Carney telling lawmakers that some investment funds are “built on a lie.”

Carney’s comments concerned the suspension of a flagship fund from Britain’s best known fund manager, Neil Woodford, due to a lengthy spell of poor performance and a slew of investor withdrawals.

The Woodford Equity Income Fund was revealed to have twice breached the 10% limit for illiquid holdings imposed by U.K. watchdog the Financial Conduct Authority (FCA), and listed a number of small and illiquid holdings in the nearby island of Guernsey to circumvent regulation.

Carney told the Treasury Committee (a cross-party group of U.K. lawmakers) on Wednesday that the rise of funds promising liquidity while holding illiquid underlying assets could create “a potential systemic issue,” and has led to investors viewing them as “not that different from having money in a bank.”

“These funds are built on a lie which is that you can have daily liquidity for assets that fundamentally aren’t liquid,” he said.

The gating of the Woodford Equity Income Fund meant investors could not access their cash following the recent surge in redemptions. While this type of “open-ended” fund can usually be traded easily, a number of funds hold significant proportions of illiquid assets which can be difficult to sell in the event of increased demand for withdrawals.

“Something that better aligns the redemption terms with the actual liquidity of the underlying investment is infinitely preferable to the situation that we have today,” said Carney.

Carney’s comments echo those of FCA Chief Executive Andrew Bailey, widely touted as his successor at the central bank, who told the committee that a move to a principles-based regulatory system rather than the rules-based framework stipulated by the European Union would make it easier for the FCA to intervene at an earlier stage.


Company: cnbc, Activity: cnbc, Date: 2019-06-27  Authors: elliot smith
Keywords: news, cnbc, companies, liquidity, told, fund, blasts, assets, scrutiny, funds, investment, woodford, britains, underlying, englands, fca, face, carney, lie, uk, illiquid


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Federal Reserve dot plot June 2019: No rate cut expected until 2020

The Federal Reserve on Wednesday said it does not expect any rate cuts this year, but did forecast one for 2020. The central bank’s median target for the federal funds rate is still 2.4% for 2019, unchanged from its March projection. But eight members of the Federal Open Market Committee indicated they were in favor of one rate cut this year, according to the panel’s projections. A narrow majority, or nine members, indicated it expects the federal funds rate to approach 2.1% by the end of 2020,


The Federal Reserve on Wednesday said it does not expect any rate cuts this year, but did forecast one for 2020. The central bank’s median target for the federal funds rate is still 2.4% for 2019, unchanged from its March projection. But eight members of the Federal Open Market Committee indicated they were in favor of one rate cut this year, according to the panel’s projections. A narrow majority, or nine members, indicated it expects the federal funds rate to approach 2.1% by the end of 2020,
Federal Reserve dot plot June 2019: No rate cut expected until 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: christine wang, jeff cox
Keywords: news, cnbc, companies, 2019, rates, rate, expected, funds, target, federal, dot, cut, members, reserve, plot, market, 2020, open, unchanged, indicated


Federal Reserve dot plot June 2019: No rate cut expected until 2020

The Federal Reserve on Wednesday said it does not expect any rate cuts this year, but did forecast one for 2020.

The central bank’s median target for the federal funds rate is still 2.4% for 2019, unchanged from its March projection. But eight members of the Federal Open Market Committee indicated they were in favor of one rate cut this year, according to the panel’s projections.

The Fed, however, ticked down its expectations for future years. A narrow majority, or nine members, indicated it expects the federal funds rate to approach 2.1% by the end of 2020, instead of its previous outlook for 2.6%.

As expected, the central bank also announced Wednesday that it is leaving the benchmark rate unchanged in a target range of 2.25% to 2.5%.

Four times a year, policymakers at the Federal Open Market Committee submit their projections about where short-term interest rates are headed. The results are the dot plot — a visual, yet anonymous, representation of where members think rates will go over the short, medium and longer run.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: christine wang, jeff cox
Keywords: news, cnbc, companies, 2019, rates, rate, expected, funds, target, federal, dot, cut, members, reserve, plot, market, 2020, open, unchanged, indicated


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The first confidential, actively managed ETF just got SEC approval. Here’s how it works

In the world of exchange-traded funds, that idea is now officially being put to the test, with the Securities and Exchange Commission granting approval for the first-ever non-transparent, actively managed ETF structure last week. Compared with actively managed mutual funds, which are similarly structured, this is more tax-efficient, according to Precidian’s website. Like a standard ETF, Precidian’s framework offers in-kind creations and redemptions, which allow for purchases and payouts to be ma


In the world of exchange-traded funds, that idea is now officially being put to the test, with the Securities and Exchange Commission granting approval for the first-ever non-transparent, actively managed ETF structure last week. Compared with actively managed mutual funds, which are similarly structured, this is more tax-efficient, according to Precidian’s website. Like a standard ETF, Precidian’s framework offers in-kind creations and redemptions, which allow for purchases and payouts to be ma
The first confidential, actively managed ETF just got SEC approval. Here’s how it works Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-15  Authors: lizzy gurdus
Keywords: news, cnbc, companies, think, etfs, holdings, precidians, approval, sec, thomas, heres, actively, structure, going, funds, etf, confidential, precidian, managed, works


The first confidential, actively managed ETF just got SEC approval. Here's how it works

Transparency is key… or is it?

In the world of exchange-traded funds, that idea is now officially being put to the test, with the Securities and Exchange Commission granting approval for the first-ever non-transparent, actively managed ETF structure last week.

Unlike most traditionally structured ETFs, which reveal their holdings every day, this structure — created by Precidian Investments in partnership with Activeshares — allows fund managers to keep their holdings confidential. Compared with actively managed mutual funds, which are similarly structured, this is more tax-efficient, according to Precidian’s website.

Stuart Thomas, a principal at Precidian Investments who had a direct role in building this framework, says this represents a world of new opportunities for investors.

“Precidian ActiveShares is the first and only SEC-approved ETF that seamlessly integrates the benefits of active management with all of the efficiencies of today’s ETFs,” Thomas said Monday on CNBC’s “ETF Edge.” “We think that’s incredibly important from both a market-making standpoint, [and] also from a tax efficiency standpoint.”

For Thomas, simplicity is key, which is why this structure “works just like SPDR does,” he said, referring to State Street’s popular ETFs. Like a standard ETF, Precidian’s framework offers in-kind creations and redemptions, which allow for purchases and payouts to be made with things other than cash.

“We think simple is the best solution. And I think that the elegance in this solution is the actual simplicity,” Thomas said. “From the standpoint of the broker or the end user, it looks like any other ETF on the exchange.”

And, according to Thomas, demand has been off the wall.

“I think we truly underestimated how big this was going to be. Our phones are ringing off the hook,” he said, adding that the callers ranged from active managers to custody banks to market makers to candidates for the role of authorized participant representative, one of the two roles in this structure that are privy to the ETF’s holdings.

“We have no time for outgoing calls,” Thomas said.

Investment firms are also getting in on the action. American Century and Gabelli Funds have already filed for their own versions of this ETF, and BlackRock, Nuveen and Nationwide are among the growing list of Precidian’s licensees, Thomas said.

Christian Magoon, founder and CEO of Amplify ETFs, said this move will serve to “expand the ETF tent” and double down on the benefits of active management.

“The challenge is advisors who use ETFs today tend to be index- or passive-centric, not active-centric, so I see this as more of an expansion of the ETF tent for issuers as well as users. That’s going to be interesting to watch,” he said in the same “ETF Edge” interview.

But for market watchers like ETFTrends.com editor and proprietor Tom Lydon, who acknowledged the inherent benefits of not revealing an ETF’s holdings every day, one question remains.

“Those of us in the business question the plumbing, because is it still going to work?” he said on “ETF Edge.”

As of Monday, about a month after the SEC approval, Precidian had licensed this framework out to 20 firms, Thomas said. For a recurring fee, the firm licenses its technology out to other organizations and offers to act as a sponsor for the products.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-06-15  Authors: lizzy gurdus
Keywords: news, cnbc, companies, think, etfs, holdings, precidians, approval, sec, thomas, heres, actively, structure, going, funds, etf, confidential, precidian, managed, works


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