8.94 -0.02 (-0.22%)
After hours: 7:45PM EDT
Commodity Channel Index
|Bid||8.99 x 800|
|Ask||8.94 x 1300|
|Day's Range||8.30 - 9.06|
|52 Week Range||7.38 - 22.18|
|Beta (5Y Monthly)||1.78|
|PE Ratio (TTM)||7.00|
|Earnings Date||Apr 22, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||1.24 (15.88%)|
|Ex-Dividend Date||Feb 11, 2020|
|1y Target Est||12.32|
Invesco’s Mark Barnett has been sacked as the manager of a £518m investment trust because of poor performance, the latest blow for the former protégé of disgraced stock picker Neil Woodford. The board of the trust, which is independent despite carrying the name of Invesco’s historic UK business, Perpetual, said on Monday it had started a search for a new manager in view of Mr Barnett’s “extended period of underperformance”.
A small positive amid the encompassing horror of coronavirus is that it stops Britons bickering over Brexit. Mr Barnett got the job running top Invesco UK funds after Neil Woodford quit to set up his own business. Unfortunately, Mr Barnett invested in a similar ragbag of stocks to his mentor: defensive blue-chips, domestic plays and a sprinkling of biotechs.
More pain seems to be in store for small-cap stocks than their large-cap peers, given that the pandemic has hurt the domestic economy. The latest bouts of data paint a gloomy picture of the economy for the near term.
(Bloomberg) -- A tumultuous start to 2020 saw exchange-traded funds shutter at the fastest pace in almost three years.A total of 72 ETFs with $1.4 billion in assets shut down and returned their money to investors in the first quarter as the coronavirus outbreak roiled markets, according to data compiled by Bloomberg. That’s the most since the third quarter of 2017, which saw 73 funds close.The liquidations came as the economic fallout from the virus unleashed volatility across asset classes, sending the S&P 500 Index into a bear market at the fastest pace on record. That degree of turbulence sparked a reckoning for the myriad niche funds populating the nearly $4 trillion ETF market, according to WallachBeth Capital.“With huge market movements, investors are going to flock to broad-based funds to hedge out risk, rather than smaller niche products,” said Mohit Bajaj, WallachBeth’s director of ETFs. “It was hard enough when the market was at its peak to get market share, even harder when the S&P is down over 20%.”Invesco Ltd. led the liquidations, shutting a total of 42 ETFs as part of plans to consolidate the firm’s offerings after it bought OppenheimerFunds Inc. in 2019. ProShares and Direxion closed several leveraged ETFs, which use derivatives to amplify returns of the securities they track.The still-elevated level of volatility has slowed the pace of ETF debuts as well. Just four funds started trading in March, the lowest monthly total since August and a steep drop from the 29 ETFs that came online in February.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.
Invesco’s Mark Barnett has suffered a significant mark down in the value of his unlisted investments, forcing the fund manager to pledge the problem assets will be ditched to avoid a Neil Woodford-style liquidity crunch. The US group has applied a 60 per cent writedown to the value of the unquoted companies held in the £3.4bn High Income and £1.5bn Income funds, triggering falls of around 5 per cent in the net asset values of the funds. Invesco sought to distance itself from the prospect of a liquidity crisis similar to the one that felled Mr Woodford, the former star UK stockpicker who had been Mr Barnett’s mentor, by vowing to sell the unlisted component of both funds and reinvest the proceeds in publicly traded large and mid-cap companies.
Plunging stock markets and the outbreak of the coronavirus have helped push holdings in gold-backed exchange traded funds to record highs in 2020. The buying is a clear indication of the prominent role of gold ETFs in investors’ portfolios, especially during periods of uncertainty and panic. Gold-backed ETFs saw $4.9bn of inflows in February, taking holdings to a record 3,000 tonnes of gold, according to the World Gold Council, worth $157bn at current gold prices.
The company, which focuses on investing in financing and managing residential and commercial mortgage-backed securities, said it “was not in a position to fund the margin calls it received on March 23, 2020, and that the Company did not expect to be in a position to fund the anticipated volume of future margin calls under its financing arrangements in the near term as a result of market disruptions created by the COVID-19 pandemic.” On Tuesday, Invesco Mortgage Capital’s stock dropped 50% on news it was unable to fund the margin calls received on March 23. The company said it has disputed several of the default claims.
A £4.6bn fund run by Invesco’s Mark Barnett, a former protégé of fallen star manager Neil Woodford, has been battered by the coronavirus rout, losing a third of its value. Mr Barnett’s High Income fund, which was once managed by Mr Woodford, is among a group of big income-focused products that have been badly hit as stock markets around the world plummeted in response to the pandemic. According to data from Morningstar, the fund, which is the fourth-largest equity fund domiciled in the UK and is popular with British savers and pension funds, has lost 32.9 per cent year to date.
Given the rebounding fundamentals, investors should take advantage of the beaten-down prices. For them, we have highlighted five solid ETF picks that were in red over the past month but have solid upside potential.
(Bloomberg) -- Large municipal-bond funds run by BlackRock Inc., Nuveen, Pacific Investment Management Co. and Invesco Ltd. are unwinding a leveraged investment strategy that backfired this month, contributing to the flood of debt that’s been unloaded during a record-setting sell-off.Last week, fund companies began liquidating about 75 so-called tender-option bond trusts holding $1.2 billion worth of state and local government debt, according to data compiled by Bloomberg. The trusts issue floating-rate notes to money-market funds and use the cash to buy higher-yielding long-term bonds. Mutual funds seek to pocket the difference in yield between the two.But the strategy is backfiring because yields on short-term debt have skyrocketed as investors pull cash out of money-market funds and banks struggle to resell the notes. A weekly index of tax-exempt debt with variable interest rates spiked to 5.2% on Wednesday, the most since 2008 and almost 2 percentage points more than yields on 30-year top-rated municipal debt.To pay off short-term notes, mutual funds are selling municipal bonds held in the trusts as collateral. That has been putting more pressure on the market, which this month has suffered its biggest losses in at least four decades amid concern about the economic and financial fallout from the coronavirus.“There comes a point where the rate gets too high and there’s no money left for the investor,” said Chad Farrington, a managing director at DWS Investment Management. “If funding costs get to certain level you must reduce the leverage.”On Monday, in an effort to relieve funding pressure in the muni market, the Federal Reserve agreed to purchase short-term securities from tax-exempt money market funds, including the variable rate demand obligations that make up almost 75% of short-term tax-exempt bonds, according to Citigroup Inc. While that appears to have eased some of the liquidity strains, with prices broadly unchanged Monday, short-term yields haven’t come down.The jump in short-term rates came as investors pulled $5.3 billion out of tax-exempt money-market funds the week ending March 18, according to the Investment Company Institute. That pullback caused dealer inventory of variable demand notes to swell to $5.7 billion on March 11, a 80% increase in two weeks, according to the Federal Reserve Bank of New York. The funds sold them back to banks that act as remarketing agents and liquidity facilities. When fresh data comes in this week, the inventory will likely be much higher.The leverage employed by mutual fund companies has amplified losses in the closed- and open-end funds as rates climbed during the sell-off.As of Friday, returns on 15 BlackRock closed-end muni funds that use tender-option bonds and preferred shares as leverage have dropped more than 20% this month and one, the BlackRock Maryland Municipal Bond Trust, has lost 30%, according to data compiled by Bloomberg. Five of Nuveen’s closed-end funds have lost more than 20% and one has lost 30.5%. Nuveen’s open-end High Yield Municipal Bond Fund, which also employs tender-option bonds, has dropped 21.7% this month.Invesco and Pimco’s muni closed-end fund share prices declined 15% to 25% this month.Those drops are far bigger than the overall municipal market’s. The Bloomberg Barclays index of investment grade munis has declined 10.3% this month, the biggest drop since at least 1980, and high-yield municipal bonds have fallen 19.1%.Spokespeople at BlackRock, Invesco and Pimco declined to comment. A spokesperson from Nuveen didn’t immediately return phone and email messages requesting comment.The tender-option bond market is about $50 billion, less than a quarter its size before the 2008-2009 financial crisis, when hedge funds that used the securities were forced into fire sales. At the time, investors shunned the debt because it was guaranteed by bonds insurers like MBIA Inc. and Ambac Financial Group Inc., which were stripped of their AAA ratings because of losses tied to toxic mortgages.The tender-option bond programs work like this: A fund deposits highly-rated bonds in a trust, which then issues two securities -- a floating-rate bond backed by a bank that is typically sold to a money market fund and another security, known as an “inverse floater,” retained by the mutual fund. The fund receives the “residual” income of the underlying bonds in the trust after paying interest on the floating-rate bonds and trust administration fees.As short-term interest rates rise, the inverse floater produces less income and in extreme cases may pay none. The mutual fund has the ability to unwind the trust by paying off the short-term bonds and turning over the residual. The long-term bonds that were placed in the trust may be used to pay-off the floating-rate notes, which could push market prices down further.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.
This list highlights the best municipal bond funds of 2020, based on each fund outperforming the Bloomberg Barclays U.S. Municipal Bond Index over the last one-, three-, five- and 10-year periods. Shaded cells indicate the best-of-the-best funds based on 10-year performance. Of 450 municipal bond funds at least 10 years old, 68 of them, or 15%, won awards. All returns...
This list highlights the best international stock funds of 2020, based on each fund outperforming the MSCI EAFE index over the last one-, three-, five- and 10-year periods. Shaded cells indicate the best-of-the-best funds based on 10-year performance. Of 574 international stock funds at least 10 years old, 203 of them, or 35%, won awards. All returns as of Dec....