Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says

The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said. “These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said. The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong. Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hon


The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said.
“These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said.
The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong.
Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hon
Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-17
Keywords: news, cnbc, companies, bank, billion, kong, saidthe, report, unrest, england, capital, kongs, gdp, banks, financial, led, hong, outflows


Hong Kong unrest has led to as much as $5 billion in capital outflows, Bank of England says

The unrest in Hong Kong has led to as much as $5 billion of capital outflow from investment funds in the Asian financial hub since April, the Bank of England said.

The flight of capital, which accounted for nearly 1.25% of the region’s GDP, began after the city’s government pushed for a bill that would allow extradition to Mainland China, according to the central bank’s Financial Stability Report released on Monday.

As protests against the bill intensified and led to violent clashes, retail sales plunged, pushing the city into its first recession in a decade.

“These political tensions pose risks, given Hong Kong’s position as a major financial center,” the report said.

The BoE monitors Hong Kong closely because UK banks such as HSBC and Standard Chartered are also the leading banks in Hong Kong.

The banks have passed the BoE’s stress test, which modeled a fall of almost 8% in Hong Kong’s GDP and a slump in property prices by more than half.

Analysts at Goldman Sachs said in October that about $4 billion of deposits might have left Hong Kong for Singapore between June and August.

However, the Hong Kong Monetary Authority, the central bank in the Chinese-ruled territory, has repeatedly said there are no apparent signs of significant capital outflows from the city.


Company: cnbc, Activity: cnbc, Date: 2019-12-17
Keywords: news, cnbc, companies, bank, billion, kong, saidthe, report, unrest, england, capital, kongs, gdp, banks, financial, led, hong, outflows


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UK property funds flash warning signals as Brexit uncertainty bites

Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week. Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone. M&G’s property fund is not the first to face difficulties. Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported. “U.K. property funds


Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week.
Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone.
M&G’s property fund is not the first to face difficulties.
Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported.
“U.K. property funds
UK property funds flash warning signals as Brexit uncertainty bites Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: silvia amaro
Keywords: news, cnbc, companies, market, uncertainty, outflows, signals, bites, warning, fund, property, retail, brexit, flash, commercial, funds


UK property funds flash warning signals as Brexit uncertainty bites

Norwich Royal Arcade that runs from the market place towards Norwich Castle and was designed by architect George Skipper in 1899. Norfolk, England, UK.

Weakness in the U.K. property market is set to continue into the foreseeable future, market experts have told CNBC, with investors recently pulling their cash from the sector and forcing some funds to stop trading.

Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week. The fund, one of the biggest of its kind in the country, had invested in 91 U.K. commercial properties, including shopping centers and other retail and office spaces. M&G’s decision came after investors started pulling their money on the back of concerns over Brexit and the future of the retail sector.

“Unusually high and sustained outflows from the M&G Property Portfolio have coincided with a period where continued Brexit-related political uncertainty and ongoing structural shifts in the U.K. retail sector have made it difficult for us to sell commercial property,” M&G investments said in a statement.

Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone. November was also the third worst month so far this year for U.K. real estate funds, with outflows reaching £251 million.

M&G’s property fund is not the first to face difficulties. Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported. Earlier this year, the suspension of Neil Woodford’s flagship fund also sparked fears over hard-to-sell assets.

“U.K. property funds are feeling the hit from political uncertainties, stemming from both Brexit and the potential fallout of upcoming high-stakes U.K. elections,” Francesco Filia, chief executive officer of asset management firm Fasanara Capital, told CNBC via email Friday.

“In markets such as these, the daily liquidity feature offered by funds is a weakness more than a strength,” Filia added.


Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: silvia amaro
Keywords: news, cnbc, companies, market, uncertainty, outflows, signals, bites, warning, fund, property, retail, brexit, flash, commercial, funds


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UK property funds flash warning signals as Brexit uncertainty bites

Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week. Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone. M&G’s property fund is not the first to face difficulties. Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported. “U.K. property funds


Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week.
Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone.
M&G’s property fund is not the first to face difficulties.
Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported.
“U.K. property funds
UK property funds flash warning signals as Brexit uncertainty bites Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: silvia amaro
Keywords: news, cnbc, companies, retail, brexit, outflows, signals, fund, flash, bites, property, funds, market, warning, uncertainty, commercial


UK property funds flash warning signals as Brexit uncertainty bites

Norwich Royal Arcade that runs from the market place towards Norwich Castle and was designed by architect George Skipper in 1899. Norfolk, England, UK.

Weakness in the U.K. property market is set to continue into the foreseeable future, market experts have told CNBC, with investors recently pulling their cash from the sector and forcing some funds to stop trading.

Investment manager M&G halted its £2.5 billion ($3.29 billion) commercial property fund on Wednesday last week. The fund, one of the biggest of its kind in the country, had invested in 91 U.K. commercial properties, including shopping centers and other retail and office spaces. M&G’s decision came after investors started pulling their money on the back of concerns over Brexit and the future of the retail sector.

“Unusually high and sustained outflows from the M&G Property Portfolio have coincided with a period where continued Brexit-related political uncertainty and ongoing structural shifts in the U.K. retail sector have made it difficult for us to sell commercial property,” M&G investments said in a statement.

Almost £57 million was pulled from U.K. property funds on Thursday last week — making it the worst day so far in 2019 for British real estate fund outflows, according to the funds transaction network Calastone. November was also the third worst month so far this year for U.K. real estate funds, with outflows reaching £251 million.

M&G’s property fund is not the first to face difficulties. Seven U.K. property funds have been suspended since the Brexit vote in 2016, the FT has reported. Earlier this year, the suspension of Neil Woodford’s flagship fund also sparked fears over hard-to-sell assets.

“U.K. property funds are feeling the hit from political uncertainties, stemming from both Brexit and the potential fallout of upcoming high-stakes U.K. elections,” Francesco Filia, chief executive officer of asset management firm Fasanara Capital, told CNBC via email Friday.

“In markets such as these, the daily liquidity feature offered by funds is a weakness more than a strength,” Filia added.


Company: cnbc, Activity: cnbc, Date: 2019-12-10  Authors: silvia amaro
Keywords: news, cnbc, companies, retail, brexit, outflows, signals, fund, flash, bites, property, funds, market, warning, uncertainty, commercial


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Here’s why recent bond ETF outflows aren’t as dire as investors think

Recent outflows in bond-based exchange-traded funds such as the iShares 20+ Year Treasury Bond ETF (TLT) and BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF (HYG) aren’t worth worrying about yet, ETF industry leaders say. The TLT, which trades inversely to bond yields, has seen huge outflows in November, with investors at one point pulling more than $1 billion in net assets out of the long-dated bond fund, according to Bloomberg. “What we’re … missing is that we have more money in bo


Recent outflows in bond-based exchange-traded funds such as the iShares 20+ Year Treasury Bond ETF (TLT) and BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF (HYG) aren’t worth worrying about yet, ETF industry leaders say.
The TLT, which trades inversely to bond yields, has seen huge outflows in November, with investors at one point pulling more than $1 billion in net assets out of the long-dated bond fund, according to Bloomberg.
“What we’re … missing is that we have more money in bo
Here’s why recent bond ETF outflows aren’t as dire as investors think Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-21  Authors: lizzy gurdus, silvia amaro, yun li
Keywords: news, cnbc, companies, yield, outflows, yields, heres, think, dire, etfs, tlt, recent, inflows, going, etf, arent, investors, bond


Here's why recent bond ETF outflows aren't as dire as investors think

Bond market bulls: Don’t panic yet.

Recent outflows in bond-based exchange-traded funds such as the iShares 20+ Year Treasury Bond ETF (TLT) and BlackRock’s iShares iBoxx $ High Yield Corporate Bond ETF (HYG) aren’t worth worrying about yet, ETF industry leaders say.

The TLT, which trades inversely to bond yields, has seen huge outflows in November, with investors at one point pulling more than $1 billion in net assets out of the long-dated bond fund, according to Bloomberg.

But those worried that bond investing has peaked are overlooking a key piece of the puzzle, says Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA.

“What we’re … missing is that we have more money in bond ETFs going in this year than in equity ETFs. It will be the first time in 10 years we’ve got more than 50% of the flows going into bond ETFs, [which are] just 20% of the overall pie,” he said Monday on CNBC’s “ETF Edge.”

In fact, 2019 is shaping up to be a banner year for fixed-income ETFs, which saw international and domestic net inflows of over $129 billion as of last week, according to FactSet.

And it’s not just short-term traders driving the action, Rosenbluth said.

“We think that you’ve got tactical investors that are playing the rate market, but you also have core and more target-maturity-oriented products like [in] the BulletShares suite that are continually seeing inflows this year,” he said, referring to Invesco’s suite of fixed-income ETFs that incorporate a bond ladder strategy, which involves investing in bonds that mature at different times and reinvesting the proceeds.

The chance to deploy that kind of strategy is “crucial” for investors, Invesco’s Dan Draper, the firm’s global head of ETFs, said Monday in the same “ETF Edge” interview.

“Most of these investors are long-term, buy-and-hold investors who want to be able to have the different cash flows maturing … in the laddered [portfolio],” Draper said. “High yield broadly in ETFs [has seen] big outflows. We’ve continued to see inflows into these asset allocators. And, more recently, we launched our new municipal bond BulletShares. Again, [we’re seeing] inflows coming in there, historically a less liquid asset class, and trying to bring more tools to investors around that.”

In part, the bond market’s resilience has been brought about by an accommodative Federal Reserve, which changed course at the start of this year to a rate-cutting cycle rather than what it had forecast as a series of hikes, Tom Lydon, editor and proprietor of ETFTrends.com, said in the same “ETF Edge” interview.

“They’ve gone 180, where lower interest rates all of a sudden gave investors permission to go out on maturity levels and also lower quality. But now, it’s uncertain as far as what’s going to go forward,” he said.

The TLT fell less than 1% in Thursday trading, as U.S. Treasury yields rose slightly.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-11-21  Authors: lizzy gurdus, silvia amaro, yun li
Keywords: news, cnbc, companies, yield, outflows, yields, heres, think, dire, etfs, tlt, recent, inflows, going, etf, arent, investors, bond


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Fisher Investments outflows surpass $2.5 billion as Los Angeles pension departs

The Los Angeles Fire and Police Pension System voted on Thursday to fire Fisher Investments, pulling about $522 million from the money manager. The Los Angeles pension has $24 billion in total assets. “The only explanation is that Mr. Fisher was unable to attend and had business in the office,” Ray Ciranna, general manager of the Los Angeles Fire and Police Pension System, wrote in an email to CNBC. Fisher had $94 billion in assets under management as of Dec. 31, 2018, according to their SEC fil


The Los Angeles Fire and Police Pension System voted on Thursday to fire Fisher Investments, pulling about $522 million from the money manager.
The Los Angeles pension has $24 billion in total assets.
“The only explanation is that Mr. Fisher was unable to attend and had business in the office,” Ray Ciranna, general manager of the Los Angeles Fire and Police Pension System, wrote in an email to CNBC.
Fisher had $94 billion in assets under management as of Dec. 31, 2018, according to their SEC fil
Fisher Investments outflows surpass $2.5 billion as Los Angeles pension departs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-24  Authors: darla mercado
Keywords: news, cnbc, companies, angeles, system, according, firm, surpass, voted, departs, fisher, pension, million, los, investments, outflows, billion


Fisher Investments outflows surpass $2.5 billion as Los Angeles pension departs

The Los Angeles Fire and Police Pension System voted on Thursday to fire Fisher Investments, pulling about $522 million from the money manager.

The nine-member board of commissioners voted in favor of terminating the relationship with the Camas, Washington-based firm, following lewd comments Ken Fisher had made at an investment conference on Oct. 8.

The Los Angeles pension has $24 billion in total assets.

The board of commissioners said they had invited Fisher himself to speak at the meeting, which was webcast live, but he did not attend.

“The only explanation is that Mr. Fisher was unable to attend and had business in the office,” Ray Ciranna, general manager of the Los Angeles Fire and Police Pension System, wrote in an email to CNBC.

In total, Fisher Investments has lost more than $2.5 billion in recent weeks as seven institutional clients — six of which were government pensions — parted ways with the firm. Fisher had $94 billion in assets under management as of Dec. 31, 2018, according to their SEC filing. That figure reached $112 billion as of Sept. 30, 2019, according to the firm.

On Monday, Fidelity said it would remove its money from Fisher. The firm managed $500 million for Fidelity’s Strategic Advisers Small-Mid Cap Fund.

Additionally, the New Hampshire Retirement System voted on Tuesday to terminate its $239 million relationship with the firm as well. That same day, the Public Employees Retirement System of Mississippi, which has $558 million invested with Fisher, said it would put the firm on a watch list due to “organizational concerns,” according to Ray Higgins, executive director of the plan.


Company: cnbc, Activity: cnbc, Date: 2019-10-24  Authors: darla mercado
Keywords: news, cnbc, companies, angeles, system, according, firm, surpass, voted, departs, fisher, pension, million, los, investments, outflows, billion


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China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China


Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China
China to scrap foreign investment quotas to attract more money into its stock, bond markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China.

China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital.

While underlining China’s thirst for overseas funding as its economy slows amid a debilitating trade war with the United States, the move also appears largely symbolic, as two-thirds of the existing quotas remain unused.

China’s State Administration of Foreign Exchange (SAFE) would remove quotas on the dollar-dominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, it said in a statement on its website.

It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China’s bond and stock markets more broadly accepted by international markets.”

The removal of quotas comes amid an escalating Sino-U.S. trade war that threatens growth in the world’s second-biggest economy.

Beijing hopes that foreign capital inflows could help to offset rising outflows and lend support to its yuan, which has dropped to its lowest levels against the U.S. dollar since the onset of the global financial crisis in 2008.

Inflows could also help bolster China’s balance of payments, as some analysts fear the country is slipping dangerously towards twin deficits in its fiscal and current accounts.

The removal “is a clear signal that policymakers want to encourage capital inflows,” wrote Win Thin, Global Head of Currency Strategy at Brown Brothers Harriman.

“The corollary is that they are still very worried about capital outflows and so will make sure to avoid any steps that might increase them,” he said.

China in January doubled the QFII quota to $300 billion, but only $111.4 billion of the limit had been used by foreign investors by the end of August.

China’s securities regulator also published draft rules earlier this year that would combine the QFII and RQFII programmes while also simplifying access for overseas investors.


Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


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Morgan Stanley’s rich clients withdrew a surprising amount from accounts to pay their taxes

Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York. Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year. Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. That has wid


Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York. Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year. Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. That has wid
Morgan Stanley’s rich clients withdrew a surprising amount from accounts to pay their taxes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: hugh son
Keywords: news, cnbc, companies, property, high, deposit, taxes, rich, morgan, outflows, withdrew, accounts, stanley, tax, clients, surprising, stanleys, higher, pay


Morgan Stanley's rich clients withdrew a surprising amount from accounts to pay their taxes

Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York.

Morgan Stanley’s rich clients may have gotten surprised by their tax bills this year.

The bank’s wealth management business was hit by an unexpectedly high outflow of deposits in the second quarter, which covers the April tax filing season, according to Chief Financial Officer Jonathan Pruzan.

Morgan Stanley had “greater-than-expected deposit outflows due in part to tax payments,” Pruzan told analysts during a Thursday call. “We saw about $10 billion of outflows in the bank deposit program, some from larger tax payments.”

Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. The likely culprit: Under the Trump administration’s 2017 tax reform, the deduction for state income, sales and property taxes was capped at $10,000. That has widely been perceived as causing higher taxes for people living in New York, New Jersey and California, states that happen to have high property taxes and a disproportionate share of wealthy Americans.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: hugh son
Keywords: news, cnbc, companies, property, high, deposit, taxes, rich, morgan, outflows, withdrew, accounts, stanley, tax, clients, surprising, stanleys, higher, pay


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Goldman Sachs: Investors need to get back to stock picking

With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists. “We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are


With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists. “We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are
Goldman Sachs: Investors need to get back to stock picking Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, shannon stapleton
Keywords: news, cnbc, companies, investors, wrote, sachs, stocks, market, need, dispersion, returns, strategists, goldman, high, outflows, picking, stock


Goldman Sachs: Investors need to get back to stock picking

With the S&P 500 now 17 percent off its low, investors should turn to picking individual stocks to capture the best stock market returns, according to Goldman Sachs stock strategists.

Stock-picking opportunities are most plentiful among stocks in the consumer discretionary, communications serivces and health care sectors. They highlight stocks like Monster Beverage, WellCare Health Plans, Incyte, Twitter and NVIDIA.

The stock market’s move higher since the December low has been a ‘macro’ trade, where the whole market rose, defensives lagged and cyclicals led the way. As a result, stocks have become extremely correlated to each other and the market. Now at the 94th percentile, the correlation is the fourth largest on record, and Goldman recommends a list of stocks that have a high “dispersion” or are bucking the trend.

“We forecast a stable macro environment in the near-term, characterized by steady US economic activity and a patient Fed, which we believe has been priced in the market,” the Goldman strategists wrote. They expected a limited move to 2,750 by midyear, but the strategists expect a move to 3,000 on the S&P 500 by year end.

So near term, gains should be capped, and the strategists expect the market to be flat for the next three to six months.That means stock pickers could fair better than those that buy the whole market or even sector ETFs.

“We have seen nascent signs of this rotation to ‘alpha’ with ETF outflows that have exceeded mutual fund outflows. Consistent with the ongoing transition from active to passive, ETFs saw inflows throughout much of 2018, while mutual funds experienced substantial outflows,” they wrote. But during the month of January, as stocks gained 8 percent, investors dumped ETFs, and outflows swelled to $32 billion, compared with just $8 billion leaving mutual funds.

Goldman strategists constructed a list of stocks that have those high ‘dispersion scores,’ meaning stocks that are driven more by micro factors than are associated with big macro moves.

“Stocks with high dispersion scores are more likely to have heightened responses to idiosyncratic news and present the best alpha generation opportunities,” the Goldman strategists wrote. “Importantly, high dispersion scores do not necessarily suggest outsized positive returns alone, but rather returns that deviate most from market returns in either direction.”

Included on Goldman’s list were Advanced Micro Devices, UnderArmour, United Continental, Newmont Mining, Best Buy, Activision Blizzard, Gap, Nordstrom, Newell Brands and Dish Network.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, shannon stapleton
Keywords: news, cnbc, companies, investors, wrote, sachs, stocks, market, need, dispersion, returns, strategists, goldman, high, outflows, picking, stock


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Investors pulled a record $143 billion out of active funds during December’s plunge

According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar. Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed. “This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quar


According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar. Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed. “This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quar
Investors pulled a record $143 billion out of active funds during December’s plunge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: yun li, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, worst, passive, active, pulled, trillion, investors, taxablebond, strategies, decembers, outflows, plunge, record, 143, index, funds, billion


Investors pulled a record $143 billion out of active funds during December's plunge

Last month was one for the Wall Street history books — not only was it stocks’ worst December since the Great Depression, but it now appears to be a pivotal moment when investors really gave up on active management.

According to data from Morningstar out Thursday, actively managed mutual funds experienced outflows of nearly $143 billion in December, their worst month ever. The record exodus brought the yearly outflows to $301 billion, just shy of 2016’s $320 billion.

“December outflows spanned asset classes, with taxable-bond funds faring worst. [Active] large-growth and large-value funds continue to get hit the hardest, likely losing assets to passively managed, core large-blend funds,” Morningstar senior analyst Kevin McDevitt said in a note on Thursday.

Investors, at the same time, fled to cheaper passive strategies amid the brutal sell-off, as the higher expense of active management put extra pressure on their returns. Passive funds reeled in nearly $60 billion in December alone, according to Morningstar.

Among active strategies, bond funds bled the most in December with $44.3 billion outflows, the data showed.

“This is notable because taxable-bond funds had been a rare bright spot for active managers. But as investors pulled money in 2018’s fourth quarter, it came almost entirely from active taxable-bond offerings … while they were essentially flat for passive vehicles,” McDevitt said.

Passive strategies continue to gain popularity as the market for index funds has reached $6 trillion, while the market for exchange-traded funds has ballooned to $3.6 trillion in assets.

The indexing industry on Wednesdaylost one of its most prominent figures. Jack Bogle, founder of Vanguard Group and creator of the world’s first index mutual fund, the First Index Investment Trust, died at age 89.


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: yun li, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, worst, passive, active, pulled, trillion, investors, taxablebond, strategies, decembers, outflows, plunge, record, 143, index, funds, billion


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Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P


Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P
Stocks could struggle after record outflows, history shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering.

Data compiled by the Lipper team at Refinitiv showed investors pulled $46.2 billion from U.S. equity mutual funds and exchange-traded funds between Dec. 5 and Dec. 12. This is the biggest one-week outflow on record, according to Lipper.

Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back.

CNBC looked at the 10 largest weekly outflow numbers over the past 10 years. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Returns a month after are not great either, with the median coming in at 0.3 percent.

Stocks start turning significantly higher after three months, the analysis shows. The S&P 500’s three-month median return after these outflows tops 3 percent. The index’s median gain six months after outflows hits 4 percent.

Investors are draining money from stocks as Wall Street grapples with uncertainty around the U.S.-China trade war and fears over a possible global economic slowdown.

The U.S. and China are working toward striking a permanent deal on trade after agreeing Dec. 1 to a 90-day truce on tariffs. However, experts fear the grace period will not be enough to put together a deal that addresses the issues concerning both China and the U.S.

Meanwhile, the Chinese government reported Friday November industrial output numbers that were the worst in four years alongside its worst retail sales growth data since 2003. This led to a sharp sell-off in U.S. stocks on Friday, with the Dow Jones Industrial Average falling more than 500 points at its session low.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


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