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03 October 2012
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  Top Stories 
 
 Morningstar Direct White Paper in CFA Institute Selections Newsletter
We are very pleased to have been included on this "recommended reading" list. The paper discusses ways to quantify the results from portfolio-level decisions such as asset allocations, manager selections, timing decisions, and more.
Click here to read our white paper.
 

  Market Activity 
 
  • Stock-trading revenue is projected to be the lowest since 2006
    Though the market is rallying, equities-trading divisions of banks are not reaping huge profit from it because of smaller margins and reduced volume. Third-quarter revenue from stock trading likely dipped 14% from a year earlier, making it the fifth consecutive decline of more than 8% and the lowest since 2006, said JPMorgan Chase analyst Kian Abouhossein. Bloomberg (03 Oct.) LinkedInFacebookTwitterEmail this Story
Sector SPDRs carve the S&P 500 into nine sector exchange-traded funds (ETFs) that conveniently, efficiently, and affordably provide sector exposure while giving investors the unique ability to customize the S&P 500 to meet specific investment objectives.
See sectorspdrs.com for complete details.
  Economics 
 
  • Growth slows in China's services sector, index shows
    China's services sector, which until recently has been a strong performer, is following manufacturers into a slowdown, according to the official purchasing managers' index for the non-manufacturing sector. Between August and September, the index fell from 56.3 to 53.7 on scale in which anything above 50 points to growth. Reuters (03 Oct.) LinkedInFacebookTwitterEmail this Story
  • Economic slowdown brings China closer to housing-market collapse
    China's real estate bubble is becoming more vulnerable to collapse, which could affect the national economy and have negative consequences worldwide. The government has warned that the property market is overheating, but its effort to bring prices under control has had limited success. Last year, real estate accounted for 13% of gross domestic product. The Washington Post (02 Oct.) LinkedInFacebookTwitterEmail this Story
  • Consulting expands faster than auditing at accounting's Big Four
    Revenue from consulting is increasing more quickly than that from auditing at the Big Four accounting firms, raising concern about the credibility of their auditing, according to The Economist. "Some lawmakers already fret that consulting and tax advisory (when the Big Four are explicitly helping companies make money) can be in conflict with auditing (where the firms should take a wary, outside view of the books, in the service of investors not management)," the magazine notes. The Economist (29 Sep.) LinkedInFacebookTwitterEmail this Story
  • Advisers focus on individual brands amid big-bank skepticism
    As scandals involving major banks erode investor trust, financial advisers and brokers increasingly are developing individual brands to attract and hold clients. High-income investors rely more on individual advisers, rather than the reputation of companies that employ them. Reuters (02 Oct.) LinkedInFacebookTwitterEmail this Story
What is the largest city in the U.S. that is not the headquarters of a Federal Reserve System district?
Bring your answer to booths 2 and 3 at the CFA Institute Fixed-Income Management Conference, 10-11 October 2012, for a chance to win a new iPadĀ®.
BondEdge provides institutional and wealth fixed-income managers an analytical platform to support the investment process.
  Geopolitical/Regulatory 
  • FSA advises looser rules for free float
    If sufficient liquidity is on tap, the minimum free float of 25% should be removed, the U.K. Financial Services Authority said. The regulator also suggested putting more emphasis on liquidity, instead of free float, and modifying the 25% requirement for premium listings. Financial News Online (U.K.) (subscription required) (02 Oct.) LinkedInFacebookTwitterEmail this Story
  • Experts voice concerns about market complexity at SEC round table
    Wall Street executives, regulators and other experts met to discuss recent technology glitches that roiled the market. A common concern is the complexity of the market, which includes stock exchanges and private trading venues. However, any additional change comes with risk. "The more change you introduce into the environment, the more opportunity there is for something to go wrong," said Lou Pastina, executive vice president of NYSE Euronext. "At some point, there has to be a deep breath in terms of how much change is introduced." Reuters (02 Oct.), Financial Times (tiered subscription model) (02 Oct.), The Wall Street Journal (02 Oct.) LinkedInFacebookTwitterEmail this Story
  • Housing agency reportedly blocks Freddie's foreclosure-loan plan
    Freddie Mac's plan to loan to investors who buy foreclosed homes and turn them into rental properties was put on hold by the Federal Housing Finance Agency, sources said. The regulator reportedly is worried that inexpensive loans from Freddie would make it difficult for banks to compete for loan business from buyers who want to acquire foreclosed properties. The Wall Street Journal (03 Oct.) LinkedInFacebookTwitterEmail this Story
  • CFTC won't roll over after position-limit ruling, Gensler says
    Commodity Futures Trading Commission Chairman Gary Gensler said that despite a court ruling, the agency will continue to pursue position limits to rein in commodity speculation. Position limits "help protect the markets and help promote market integrity, and I look forward to working with my fellow commissioners to do just that," said Gensler, who added that the CFTC and its attorneys are consulting on the next move. Reuters (02 Oct.) LinkedInFacebookTwitterEmail this Story
The Gold Standard: A Fifty-Year History of the CFA Charter
An exclusive book offer from CFA Institute
Order yours now
  Financial Products 
Asset Allocation in a Non-Normal World
Peng Chen, CFA Chief Executive Officer, Asia (ex-Japan) Dimensional Fund Advisors

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