WASHINGTON — The U.S. share of global capital markets activity has been declining for much of the decade, according to new research by the Commission on the Regulation of U.S. Capital Markets in the 21st Century. Since 1996, the U.S. participation rate in the 25 largest global IPOs each year has declined, along with U.S. market share of total worldwide listings of public companies, a commission statement about the survey said.
"The strength and competitiveness of our capital markets have a tremendous influence on our economy and affect the opportunities and well-being of millions of workers and investors," A.B. Culvahouse, commission co-chair and chairman of law firm O'Melveny & Myers, said in the statement. "We must take steps to ensure that the U.S. capital markets continue to fuel our economy and entrepreneurial spirit."
The bipartisan commission was formed by the U.S. Chamber of Commerce "to consider the impact of recent regulatory changes on the capital markets and the appropriate overall legal and regulatory framework to ensure efficient capital flows throughout our economy," the statement said.
Mercer: Average plan returned 3.9% for 3rd quarter
BOSTON — The median corporate and public pension plan earned 3.9% on its investments for the quarter ended Sept. 30, and the median foundation/endowment fund earned 3.5%, according to a new survey from Mercer Investment Consultants. Corporate and public plans gained an average of 9.7% and 10.4%, respectively, in assets under management, while foundations and endowments gained 10%. Mercer surveyed 236 corporate pension plans, 53 public pension plans and 123 foundations and endowments.
Oklahoma fund finds out about fixed-income futures
OKLAHOMA CITY — Oklahoma Public Employees Retirement System heard a presentation from domestic fixed-income manager BlackRock last week on the use of futures in fixed-income portfolios, confirmed Tom Spencer, executive director of the $6 billion fund. BlackRock manages roughly $1.4 billion of the plan's $2 billion in fixed-income investments, Mr. Spencer said. The Nov. 16 presentation was educational and the fund has no immediate plans to change its investments, he added.
John Hancock launches target-date funds
BOSTON — John Hancock Retirement Plan Services launched nine new target-date asset allocation funds, from 2010 to 2045, available to its 401(k) plan sponsor clients, said spokeswoman Laurie Lupton.
It's the firm's first offering of target-date funds; its risk-based lifestyle funds hold $40 billion in assets.
Deutsche Boerse out of running in battle for Euronext
FRANKFURT — Deutsche Boerse on ended its pursuit of a merger with Euronext, clearing an obstacle in the way of the NYSE Group's plan to create the first trans-Atlantic stock exchange.
"This decision was based on the assessment that a transaction supported by both sides will not be achievable and — in the light of recent share price developments — a transaction would no longer create value for Deutsche Boerse shareholders," a Deutsche Boerse statement said.
NYSE, parent of the New York Stock Exchange, and Euronext agreed June 1 to merge, creating a combined company called NYSE Euronext. The deal was valued at $17 billion, consisting mostly of NYSE stock and including $3.06 billion in cash, according a September filing with the SEC. NYSE and Euronext shareholders could vote on the deal in December, although neither company has set a date.
"We are convinced that, in our industry, mergers can only be successful with the support of both management teams and the industry," Reto Francioni, Deutsche Boerse CEO, said in the release. "We have invested time and commitment, but it is part of our responsibility to recognize when further effort doesn't make sense."
BGI introduces iShares fund tracking Domini 400 Social index
SAN FRANCISCO — Barclays Global Investors introduced an exchange-traded fund that tracks the Domini 400 Social stock index, according to a news release. The ETF, called the iShares KLD 400 Social Index Fund, seeks "to maximize exposure to companies that have positive environmental, social and governance characteristics," the release said.
The index, created and maintained by KLD Research & Analytics, also completely avoids companies "that derive a substantial portion of their revenues from certain industries," namely alcohol, tobacco, firearms, nuclear power, military weapons and gambling, Lee Kranefuss, CEO of BGI's intermediary and ETF business, said in the release.
The fund has an expense ratio of 0.50% and is listed on the American Stock Exchange.
Vanguard introduces dividend yield index fund
VALLEY FORGE, Pa. — Vanguard Group launched a new dividend-yield focused index fund aimed at individual investors, institutions and financial advisers. The Vanguard High Dividend Yield Index Fund will offer both traditional investor shares, with an expected expense ratio of 0.40%, and ETF shares, with an expected expense ratio of 0.25%, according to a news release. The fund will track the performance of the FTSE High Dividend Yield index, "a new custom benchmark of U.S. stocks that have had higher-than-average yields," the news release said. The investor shares will require a minimum initial investment of $3,000.
Tremont Group sells Bermuda insurance unit
RYE, N.Y. — Tremont Group Holdings will sell its Bermuda-based insurance affiliate, Tremont International Insurance, to Bermuda Life Insurance. Terms were not disclosed, said Montieth Illingworth, a Tremont spokesman. The deal is expected to close Nov. 30, pending regulatory approval, according to a news release from Tremont.
Tremont's insurance subsidiary provides variable annuities and life insurance policies with underlying investments focused on hedge funds managed by Tremont Capital, the asset management subsidiary that manages hedge funds of funds. Tremont Capital will remain investment manager and portfolio services provider for the portfolios that Bermuda Life is acquiring, according to the release. The size of the portfolio was not provided.
The sale is part of the Tremont Group's plan to concentrate its business around its discretionary hedge fund-of-funds investment business and multimanager hedge fund platform, according to the news release. "This year, Tremont Group has seen its discretionary asset base grow as it manages the shift to a wholly discretionary investment model," the release said. Mr. Ellingworth declined to provide the amount of Tremont's assets under management.
SSgA introduces 2 Japan-focused ETFs
BOSTON — State Street Global Advisors launched two international exchange-traded funds that trade on the American Stock Exchange, according to an SSgA news release. The ETFs are Japan-focused funds based on indexes created by Russell Investment Group and Nomura Securities. The streetTRACKS Russell/Nomura Prime Japan fund focuses on the broad Japanese stock market and measures the performance of the country's 1,000 largest stocks. The streetTRACKS Russell/Nomura Small Cap Japan fund tracks the smallest 15% of companies in the Japanese stock market. SSgA had about $110 billion in ETF assets under management worldwide as of Oct. 31.
EDGAR database now has full-text search tool
WASHINGTON — The SEC added a full-text search tool to its EDGAR database, making it easier to research company registration statements, annual and quarterly reports and other information filed by public companies and mutual funds within the past four years, according to a news release.
"When investors and analysts are looking for information about a company or fund, they'll no longer be required to laboriously wade through each individual filing separately to get what they want. Instead, they can now access millions of pages in dozens or even hundreds of company filings all at once," SEC Chairman Christopher Cox said in the news release.
Texas Pacific Group shutters 5th fund at $15 billion
FORT WORTH, Texas — Texas Pacific Group closed its latest buyout fund, TPG Partners V, at more than $15 billion, a spokesman confirmed.
Investors in the fund include the $224.2 billion California Public Employees Retirement System, Sacramento, and the $30 billion Pennsylvania State Employees' Retirement System, Harrisburg.
Blackstone Alternative names Berger to new role
LONDON — Gideon Berger, managing director at Blackstone Alternative Asset Management, was named head of the firm's hedge fund-of-funds business in Europe, the Middle East and the Pacific Rim, said J. Tomilson Hill, Blackstone Alternative president and CEO. The position is new, Mr. Berger will be based in the firm's London office.
