(Bloomberg) -- One of Wall Street’s hottest innovations is being hailed as the potential key to luring trillions of actively managed dollars to the booming market for exchange-traded funds. Yet two of the industry’s biggest players want no part of it for now.Vanguard Group and State Street Corp. say they’re in wait-and-see mode as active, non-transparent funds take their crucial first steps in the $4.3 trillion U.S. arena for ETFs.These products come with many of the benefits of traditional ETFs but drastically reduced disclosure requirements. That makes so-called ANTs a likely conduit to bring stock-picking strategies to the exchange-traded universe.The market’s largest player, BlackRock Inc., has already filed to use the structure after the funds debuted in April. JPMorgan Chase & Co. -- which also plans its own ANTs -- estimates non-transparent ETFs could ultimately command more than $7 trillion in assets.Vanguard, No. 2 in ETFs, is in no rush to wade into untested waters, according to its head of ETF product management.“This is an opportunity for us to learn from what others are doing,” Rich Powers said in an interview. “Investors make their way to great active strategies, regardless of whether it’s first to market.”Slow StartSo far, it seems they have yet to flock to ANTs.After being in the making for almost a decade, six non-transparent ETFs have launched to date from three issuers: American Century Investments, Legg Mason Inc. and Fidelity Investments. Five follow large-cap equities and one tracks mid-cap stocks.Collectively, they have attracted more than $240 million in assets, with the $136 million American Century Focused Dynamic Growth ETF leading the pack. Performance is mixed: Half of the new products are handily beating their benchmarks, two are lagging, and one is neck and neck.In the eyes of State Street’s Rory Tobin, there are two big hurdles to attracting investors to this new type of fund. First, the sheer dominance of passive strategies, which account for more than 95% of all U.S. ETF assets. Second, the relative cost of the ANTs.“You’ve got your investment proposition, you’ve got your ETF mechanics, and then there’s the economics,” said Tobin, global head of State Street’s SPDR ETF business. “How do investors feel about the price point at which these are being positioned?”The average expense ratio for the new non-transparent funds is 0.52%. By comparison, the world’s largest ETF -- State Street’s SPDR S&P 500 ETF Trust, ticker SPY-- has a fee of just under 0.1%.First MoversFor some market watchers, the question of demand runs even deeper than cost. Ben Johnson at Morningstar Inc. reckons all the hype around the non-transparent structure has been driven by issuers rather than investors.“What has been absent is any clear indication of demand,” said the director of global ETF research. “This is a solution in search of a problem, and the problem that ANTs solve is chiefly in my mind an asset management problem.”Nonetheless, issuers remain optimistic. Greg Friedman, head of ETF management and strategy at Fidelity, said the firm expects growth for its products over time, with large institutional investors coming on board once the funds have a track record.American Century said it had interest from “a lot of different parties,” and pointed out that it successfully launched almost at the height of this year’s market stress.“Almost no one was launching ETFs, and almost everyone was pulling theirs back,” said Edward Rosenberg, head of ETFs at American Century.Read more: No In-Person Meetings, Volatility Behind 86% Drop in ETF DebutsThat kind of perseverance may well pay off in the long run, since the ETF ecosystem has a track-record of delivering a first-mover advantage.SPY, for instance, has accumulated $273 billion in assets since its launch in 1993. BlackRock’s iShares Core S&P 500 ETF, ticker IVV, is far cheaper with a fee of 0.03%. But it remains a distant second, having gathered $195 billion since its launch in 2000.“The products in market have proven not only that the structure works, but that they operate effectively in volatile markets,” according to Rick Genoni, the head of ETF business for Legg Mason. “It is not unusual for any new strategy, regardless of the wrapper or structure, to experience modest sales until they have a track record and are available across platforms and we believe that the ActiveShares ETF structure will prove to be attractive.”Mutual BenefitsThe new funds reveal their holdings just once a quarter, as opposed to the daily disclosures done by a regular ETF.That’s an alluring prospect for mutual fund managers confronting the ongoing march of cheaper, easier to access passive products. They can adopt similar structures while shielding their secret sauce from front-running or replication by rivals.But lingering questions about how the structure will hold up during times of market stress are keeping asset allocators such as E*Trade Financial’s Mike Loewengart at bay.The share price of a traditional ETF normally stays in lockstep with the value of their underlying holdings thanks to specialized traders known as authorized participants, who step in to capitalize on any price discrepancies and keep the two moving in tandem. With an ETF that conceals its holdings, that process looks a bit different.Most ANTs launched so far use the so-called ActiveShares model from Precidian Investments. The structure publishes an indicative value every second to help traders make a price and enlists an agency broker -- known as an authorized participant representative -- to confidentially buy and sell securities for the APs.Alternative methodologies from Fidelity, T. Rowe Price Group Inc., Natixis SA and Blue Tractor Group LLC have also been approved.“It hasn’t really been tested yet,” said Loewengart, the managing director of investment strategy at E*Trade. “They need to become more seasoned.”(Updates assets under management. An earlier version of this story corrected a ticker in the table.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
2 July 2020: Borregaard ASA (”Borregaard”, OSE ticker: BRG) Presentation of Q2 2020 results Borregaard will report second quarter 2020 results on Thursday 16 July 2020 at.
New York, July 02, 2020 -- Reportlinker.com announces the release of the report "Global Fluid Handling Systems Industry" -.
Virbac, today announced the successful completion of its divestment of the U.S. rights to its parasiticides for dogs: SENTINEL® FLAVOR TABS® and SENTINEL® SPECTRUM® to MSD Animal Health, a division of Merck & Co., Inc., Kenilworth, N.J., USA (MRK). Under the terms of the agreement, Virbac has divested a combination of rights and titles for the United States on SENTINEL® FLAVOR TABS® and SENTINEL® SPECTRUM® and will continue to manufacture SENTINEL® SPECTRUM® at the Bridgeton, Missouri site for the next ten years.
The annual general meeting of IDEX Biometrics ASA on 15 May 2020 resolved that the board could offer to employees to take a part of their salary in shares instead of cash..
Company announcement No. 16/2020 Growth momentum and EBIT margin improved in Q3; exploring strategic options for natural colors Organic revenue growth of 7% in Q3,.
Verkkokauppa.com Oyj announced on 24 April 2020 that it will commence acquiring Verkkokauppa.com's own shares on the basis of the authorization granted by the Annual General Meeting held on 31 March 2020. The acquisitions of the shares began on 14 May 2020 and ended on 2 July 2020. The shares acquired will be used for the payment of the share portion of the annual fees of the members of the Board of Directors and for fulfilling the obligations related to the company's performance matching share plan.
Alibaba Cloud and Unilever pioneer a strategic initiative that will enable Unilever to action on next-generation digital marketing campaigns
The Global Frozen Snack Food Market will grow by USD 11.30 bn during 2020-2024
Jebsen Motors has taken top honours in the 2019 Porsche China's Dealer of the Year for the fifth consecutive year, marking a half-decade of continuous success in the Greater China market.
A relatively painless cell therapy for male urethral stricture with autologous cells & scaffolds; Bees-Haus hybrid technique, granted Japanese patent.
Virtual AGM - joining instructions Following the government guidelines and as previously advised, the Oxford Technology VCTs will not be holding an AGM this year where a.
Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) (NA:PSH) today released the following regular monthly Net Asset Value (NAV) and Performance Report for the month of June 2020. Monthly net asset value and performance are calculated at the close of business on the last business day of the month.
ENGIE announces the signing of an agreement to sell 49% equity interest in a 2.3 GW US renewables portfolio to Hannon Armstrong (NYSE:HASI), a leading investor in climate change solutions. ENGIE will retain a controlling share in the portfolio and continue to manage the assets. On commissioning, this 2.3 gigawatts (GW) portfolio that comprises 1.8 GW of onshore wind and 0.5GW of solar photovoltaic (PV) projects, will represent a major milestone in achieving ENGIE's goal of commissioning 9 GW additional renewable capacity by 2021.
Merck Animal Health Completes Acquisition of U.S. Rights to SENTINEL® Brand of Combination Parasiticides for Companion Animals
Luxembourg – 2 July 2020 - Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award of a sizeable(1) contract for work in the Gulf of Mexico. The contract will be.
Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, said today it has supported 38 percent of the Fortune 500 companies over the past fiscal year.
The Board of Alliance Trust PLC ("the Company") announces that on 1 July 2020 the Company purchased for cancellation 75,000 ordinary shares of 2.5p each at a price of 784.3403p per share. The above figure (326,723,733) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong") (NYSE: HASI), a leading investor in climate change solutions, today announced a newly-formed partnership with a subsidiary of ENGIE S.A., the largest independent power producer (IPP) and energy efficiency services provider in the world, that will own a 2.3 gigawatt (GW) portfolio of wind and utility-scale solar assets.
Hansa Biopharma ("Hansa"), the leader in immunomodulatory enzyme technology for rare IgG mediated diseases, announced today that it has entered into an agreement with Sarepta Therapeutics Inc. ("Sarepta"), the leader in precision genetic medicine for rare diseases, through which Sarepta is granted an exclusive, worldwide license to develop and promote imlifidase as a pre-treatment to enable Sarepta gene therapy treatment in Duchenne muscular dystrophy (DMD) and Limb-girdle muscular dystrophy (LGMD). The pre-treatment is intended for patients with pre-existing neutralizing antibodies (NAb-positive patients) to adeno-associated virus (AAV), the technology that is the basis for Sarepta's gene therapy products.
Recent global events pertaining to COVID-19 have impacted LiteLink. The anticipated default in meeting its continuous disclosure requirements is due, in part, to business and administrative disruption experienced by LiteLink which has prevented its directors and employees from preparing LiteLink's regulatory filings in a timely fashion. Litelink will be relying on BC Instrument 51-517 Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period from June 2 to August 31, 2020 ("BCI 51-517"), which provides a 45-day extension for certain regulatory filings.
India's gold imports plunged 86% year-on-year in June due to record high prices and as international air travel was banned and many jewellery shops were closed amid a nationwide lockdown to curb the spread of coronavirus, a government source said.
The architect of sweeping reforms to the UK audit profession has called on the government to accelerate an overhaul of the sector in the wake of the Wirecard scandal, in which a Big Four accounting firm failed to uncover a €1.9bn fraud for several years. “We must not wait until there is a market failure, there has to be a whole mindset change on what is the purpose of an audit,” said Donald Brydon, former chair of the London Stock Exchange, who was commissioned by the government to review the audit market last year. “Another couple of big scandals and suddenly you have a global audit profession that is entirely in disarray because choices become more limited or there are knee-jerk reactions.”