Super cool letter from one of the founding fathers of the science of finance, Harry Markowitz. Harry’s article called Portfolio Selection in 1952 began the shift from something called economics to a new thing called finance.
Category: Investing
New ETF Offers Exposure to Emerging Markets Excluding China
NEW YORK, Sept. 2, 2015, Emerging Global Advisors (EGA) today launched its EGShares EM Core ex-China exchange-traded fund (ETF). The new fund (TICKER: XCEM) provides broad exposure to emerging markets excluding China and Hong Kong, allowing investors to preserve or supplement emerging market portfolios without increasing their exposure to China.
“In today’s market environment, some investors have noted that China comprises a significant portion of broad-based emerging market benchmarks. That portion is growing as index funds in the category plan to increase their allocations to China through A-shares,” said EGA President and Founder Robert C. Holderith. “We launched XCEM to deliver core emerging market exposure independently of China, giving investors an option to refine their portfolios in light of other China holdings or market developments.”
XCEM tracks the EGAI Emerging Markets ex-China Index. The index is free-floating, market cap-weighted and ranked in line with broad-based, market cap-weighted conventional indices. It provides exposure to 20 countries, including South Korea, Taiwan, Brazil, India and South Africa.
“The XCEM fund is a strong fit for investors who are looking to be more conservative in their approach to China without sacrificing opportunities in other emerging markets,” said EGA Managing Director Jay McAndrew. “It also addresses the needs of investors who have a point of view on China and are looking for greater control over the size and style of their exposure to this market.”
About Emerging Global Advisors
Emerging Global Advisors (EGA) is a leading provider of strategic beta portfolios in emerging markets and we employ a disciplined, rules-based investment process rooted in research and portfolio strategy. Our investment strategies, including our EGShares suite of ETFs, are designed to help investors generate alpha within their emerging and frontier market allocations. We offer core equity, thematic and equity income emerging and frontier market exposures.
EGA Indices (EGAI), a separate group within EGA, develops strategic beta indices for emerging market exposure.
Disclosures
Carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be obtained by calling + 1 888 800 4347 or by visiting the Fund’s website egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an index.
ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.
Robert Holderith and Jay McAndrew are registered representatives of ALPS Distributors, Inc.
EGA and EGShares Funds are distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the Fund. ALPS and Emerging Global Advisors are unaffiliated entities.
© 2015 Emerging Global Advisors, LLC. All rights reserved. EGA®, EGShares℠ and EGAI℠ are service marks of Emerging Global Advisors, LLC. All other trademarks, service marks or registered trademarks are the property of their respective owners.
CONTACT:
Steven Bodakowski
JCPR
(646) 922-7773
sbodakowski@jcprinc.com
SOURCE:
Emerging Global Advisors
Survey Finds Banking Experience is Improving, But Consumers Are Missing Easy Savings Opportunities
Despite having a checking account, 22 percent of Americans report using alternative banking products like cash checking services
CHERRY HILL, N.J., Sept. 25, 2014, TD Bank, America’s Most Convenient Bank®, today released its second annual TD Bank Checking Experience Index, which found that the banking experience of Americans has improved year over year. According to the Index, 86 percent of consumers rate their day-to-day experience with their checking account as excellent or very good (compared to 83 percent in 2013) and 85 percent of consumers say their bank is excellent or very good when it comes to accessibility (compared to 83 percent in 2013). The TD Bank Checking Experience Index is a nationwide survey of more than 1,500 consumers with checking accounts at various financial institutions.
Although consumers are generally happy with the services provided by their banks, 22 percent of survey respondents with a bank account say that over the last three months they have used alternative banking products such as check cashing services (12 percent), money transfer agents (11 percent) and payday loans (4 percent). When bank customers were asked why they used alternative banking products, 16 percent said they did not have a particular reason for using non-bank financial services.
“One in five consumers with a bank account are using alternative banking products, which could add needless cost to their monthly budget,” said Ryan Bailey, Executive Vice President, Head of Retail Deposit and Payment Products, TD Bank. “Consumers who are using these types of services should have a conversation with a banker to learn about less expensive financial products that can meet their everyday financial needs.”
Banking Behaviors Continue to Evolve Debit cards and online banking play central roles in the banking behaviors of today’s consumers. A large percentage of those surveyed reported that their experiences with debit cards and online banking are excellent or very good (92 percent and 91 percent, respectively). Of the 23 banking transactions that checking account holders report making each month, on average, 10 are debit card purchases and six are conducted through online banking.
Across all survey respondents, 60 percent of checking account owners said their debit card is an essential service. An even larger number of Millennials (74 percent) can’t imagine not having a debit card. When it comes to online baking, 51 percent of consumers cite it as their preferred channel to conduct checking account transactions.
While services like debit cards and online banking are both vital, the Index found that a personal connection remains important to consumers. When asked about the last time they had a question or concern regarding their checking account, the majority of respondents still rely on a telephone call or a visit to a bank location to have questions answered. However, behaviors are evolving. Telephone outreach for issue resolution grew almost 9 percent over the past year (34 percent in 2013 vs. 37 percent in 2014) and in-person resolution at a bank location declined by 15 percent (40 percent in 2013 vs. 34 percent in 2014).
Triggers for Switching Banks Include Life Events and Fees The TD Index data also reveals that fees and life events remain major triggers for changing banks. More than one third (38 percent) say they would close their primary checking account or consider leaving their bank because of fees. However, only eight percent of respondents had closed or switched their primary checking account in the past two years, down from 12 percent in the 2013. Of the eight percent of respondents who reported closing or switching checking accounts in the past two years, the main reason for doing so was a life event such as moving (29 percent), followed by bank fees (27 percent).
Advice for Consumers Based on the results of the Index, Bailey offered advice to help consumers improve their banking experience while getting the most out of their checking accounts:
- With 60 percent of Americans saying they can’t imagine not having a debit card, consumers should have a plan of action if their card is misplaced or stolen. They should check to see if their bank offers on-the-spot debit card replacement and access to 24/7 customer service.
- Only 13 percent of Americans are using reloadable prepaid cards. This relatively new product category offers many of the benefits of a checking account, such as the ability to receive a paycheck through direct deposit and to make purchases online, and can serve as an introduction to banking for the population that currently depends on alternative financial service providers.
- Nearly two thirds (62 percent) of Americans say their bank is offering products and services that take advantage of new technologies like mobile apps and mobile deposit. That means that 38 percent of account holders may not be enjoying the conveniences that modern banks are providing. Consumers who want access to the latest banking technologies may want to consider trying a bank that offers their customers the ability to manage their finances in more ways.
Survey Methodology The study was conducted among a nationally representative group of consumers from August 25 through September 1, 2014. The sample size of 1,510 consumers has a margin of error of +/- 2.5 percent. The survey was hosted by global research company Angus Reid Public Opinion.
About Angus Reid Public Opinion Angus Reid Public Opinion is the Public Affairs practice of Vision Critical—a global research company. Vision Critical is a leader in the use of the Internet and rich media technology to collect high-quality, in-depth insights for a wide array of clients.
About TD Bank, America’s Most Convenient Bank TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol “TD”. To learn more, visit www.td.com.
SOURCE:
Zillow Ranks Top Places Where Mom-and-Pop Landlords Make the Most Money
Homeowners turned landlords are most profitable in Oklahoma City, Okla. in short-term profit; San Jose, Calif., in the long-term profit, according to a Zillow Rentals Analysis
SEATTLE, Aug. 15, 2014, Zillow today named the Oklahoma City area the top place where mom-and-pop landlords stand to make the most money on their rental property on a month-to-month basis. A Zillow Rentals analysisi looked at the top 50 U.S metros to determine which areas provide the best short-term return on investment for landlords. Rental property owners in the Oklahoma City metro area can expect to profit $536 per month on the median home when comparing anticipated rental income versus their assumed monthly mortgage payment.
Mom-and-pop landlords are homeowners who have turned their personal home into a rental rather than selling it when they move.
Zillow has also named the best places for landlords interested in long-term profitsii. When looking at rental income, tax benefits and accumulated home equity (thanks to rapid home value appreciation), landlords in San Jose, California, make the most money: $8,927 per month, or $107,122 per year. The majority of this “profit” is derived from earned but unrealized equity distributed evenly each month over the next six years. Most, if not all, of this profit will not be realized until the landlord sells the property.
“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Dr. Stan Humphries. “However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in.”
Nationally, the Zillow Rent Index has increased 2.5 percent since June 2013 and 9.1 percent since June 2011. On a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (+6.3 percent) and San Francisco (+11 percent).
The full list of best places to own a rental property can be found by visiting Zillow Real Estate Research.
Top 10 Markets for Short-term Financial Gain (difference between rent and mortgage payment on the median home, accounting for property and income taxes, maintenance and vacancy)
Release contains wide tables. View fullscreen.
| Rank | Metro Area | Short-term profit (monthly) | Short-term profit (annually) |
| 1. | Oklahoma City | $536 | $6,431 |
| 2. | Miami-Fort Lauderdale, Fla. | $515 | $6,184 |
| 3. | Tulsa, Okla. | $396 | $4,753 |
| 4. | Cincinnati | $385 | $4,621 |
| 5. | Denver | $355 | $4,258 |
| 6. | Rochester, N.Y. | $349 | $4,182 |
| 7. | Tampa, Fla. | $287 | $3,448 |
| 8. | Dallas-Fort Worth, Tex. | $264 | $3,166 |
| 9. | Indianapolis | $251 | $3,014 |
| 10. | Memphis, Tenn. | $242 | $2,901 |
| 11-50 | Can be found by visiting: http://www.zillow.com/research/landlord-profit-7357/ | ||
Top 10 Markets for Long-term Financial Gain (includes home equity gains, tax benefits, and the difference between monthly rental income and mortgage payments after holding onto the property for six years on the median home. Also accounting for property/income taxes, maintenance and vacancy)
Release contains wide tables. View fullscreen.
| Rank | Metro Area | Long-term profit (monthly) | Long-term profit (annually) |
| 1. | San Jose, Calif. | $8,927 | $107,122 |
| 2. | San Francisco | $6,078 | $72,939 |
| 3. | Los Angeles | $4,328 | $51,938 |
| 4. | San Diego | $4,165 | $49,983 |
| 5. | Riverside, Calif. | $3,659 | $43,907 |
| 6. | New York | $3,179 | $38,147 |
| 7. | Boston | $3,009 | $36,109 |
| 8. | Seattle | $2,861 | $34,335 |
| 9. | Sacramento, Calif. | $2,694 | $32,328 |
| 10. | Honolulu | $2,512 | $30,144 |
| 11-50 | Can be found by visiting: http://www.zillow.com/research/landlord-profit-7357/ | ||
About Zillow, Inc.
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage , Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™, StreetEasy® and Retsly™. The company is headquartered in Seattle.
Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, StreetEasy, Agentfolio and Digs are registered trademarks of Zillow, Inc. HotPads and Retsly are trademarks of Zillow, Inc.
i For short-term financial gain, Zillow identified the top places where landlords make the most money on their rental property based on several assumptions including that the median valued property was purchased five years ago in May 2009, with a 30-year fixed rate mortgage, a 20 percent down payment, and an interest rate of 4.5 percent, roughly the rate that prevailed at the time. For tax purposes we assume that the homeowner is married with a gross annual income equal to the metro-area median and that the property is vacant at a rate equal to the metro-area average vacancy rate. Finally, we assess the net profit excluding equity earned if the homeowner rents out the property for an additional seven years during which home values and rents increase at their historic rates.
ii For long-term financial gain Zillow identified the top places where landlords make the most money on their rental property based on several assumptions including that the median valued property was purchased five years ago in May 2009, with a 30-year fixed rate mortgage, a 20 percent down payment, and an interest rate of 4.5 percent, roughly the rate that prevailed at the time. For tax purposes we assume that the homeowner is married with a gross annual income equal to the metro-area median and that the property is vacant at a rate equal to the metro-area average vacancy rate. Finally, we assess the net profit and accumulated home equity if the homeowner rents out the property for an additional seven years during which home values and rents increase at their historic rates.
SOURCE:
Zillow, Inc. http://www.zillow.com
Example of Investors Striving to Improve Worldwide Education:
Safanad and Ron Packard, Founder of K12 Inc., Launch Pansophic Learning and Acquire Assets from K12 to Pursue Global Education Opportunities
MCLEAN, Va., June 13, 2014, Safanad Limited, a global principal investment firm, and Ron Packard, K12 Inc. founder and former CEO, today announced the launch of Pansophic Learning, a new company whose mission will be to provide access to a high quality education for every student worldwide.
Pansophic Learning immediately acquired from K12 Inc. several assets including an international brick and mortar private school, a higher education platform business and the K12 business in the Middle East. Additionally, Pansophic Learning acquired licenses to curriculum and technology. The management and staff of these acquired companies, operating out of three continents, will join Pansophic Learning upon the closing of this transaction. Pansophic Learning will expand and integrate these businesses with other targeted investments in educational products, services and schools from pre-K to college.
Pansophic Learning and its holding company, Safanad Education, a subsidiary of Safanad Limited, plan to make additional strategic and substantial education investments both in the United States and globally. Pansophic Learning will consider investments not only in the K-12 market, but also in post-secondary and early childhood education.
Packard will lead the company, based in Mclean, Virginia, as Chief Executive Officer and will be joined by Maria Szalay, as COO, and a select management team with a strong track record of building a large education company. Pansophic Learning intends to achieve the same success by investing capital as well as providing strategic and operating expertise to education related enterprises.
Kamal Bahamdan, CEO of Safanad, said, “Pansophic Learning exemplifies Safanad’s commitment to visionary and high-value investments in education that help improve the lives of children and students globally. We feel fortunate to be able to back Ron and his team who have proven entrepreneurial and leadership skills in the sector to embark on such an important mission.”
Packard stated, “Pansophic Learning is inspired by the promise that everyone should have access to a high-quality individualized education regardless of location or economic circumstances, both here in the United States and globally. We believe there are tremendous opportunities in both technology-based education and also in businesses that aren’t currently based around technology.”
Packard commented further, “We are fortunate to partner with Safanad, who shares our vision, and I am excited to return to my entrepreneurial roots with this new venture. Safanad’s extensive resources will allow us to pursue opportunities of all sizes.”
About Safanad Limited:
Safanad is a global principal investment firm that invests in real estate, private equity and public markets. As principal investors, Safanad preserves and grows wealth through carefully selected investments with aligned industry partners. With offices in New York, Dubai, London and Geneva, the firm seeks to identify global investment opportunities poised to deliver consistently attractive returns, where the firm’s capital and investment expertise support value creation. Safanad’s investment focus is primarily within the healthcare, education, financial services and retail sectors. The firm’s investment expertise is enhanced by its relationship with the Bahamdan Group, Safanad’s founding shareholder, which has over 60 years of experience in global principal investing and building strategic partnerships.
For more information visit www.safanad.com & PansophicLearning.com
Press Contacts:
Pansophic Learning: Regina Lewis, 703-728 -0327 rlewis@pansophiclearning.com
Safanad: Annette Bronkesh, 973-778-8648 abronkesh@safanad.com
Source:
Pansophic Learning