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"It would be fair to characterize Charles Schwab as a financial services supermarket," Michael Wong, director of North American equity research and financial services at Morningstar, told CNBC. "Anything that you want, you can find in Charles Schwab's platform." Charles Schwab was among the firms that benefited from the growth of retail investing during the coronavirus pandemic, and it’s now facing the consequences of Federal Reserve’s aggressive interest rate hikes. Charles Schwab told CNBC it was unable to participate in this documentary. Watch the video above to learn more about how Charles Schwab battled the ever-evolving financial services market – from fees to fintech – and how the reward doesn’t come without the risk.

Persons: Charles Schwab, Michael Wong, Charles Schwab's, ” Alex Fitch, Edward Jones, Morgan Stanley, Charles Schwab’s, fintech – Organizations: Charles Schwab Corp, North, Morningstar, CNBC, Oakmark Equity, Income, Fidelity, Interactive, Stifel, JPMorgan, UBS, Robinhood Locations: United States

☆ SEC says PIMCO to pay $9 million to settle alleged disclosure and procedure violations
▼ + stars: | 2023-06-16 | by ( Yuheng Zhan | ) www.cnbc.com time to read: +1 min

The U.S. Securities and Exchange Commission said investment adviser Pacific Investment Management Company will pay $9 million to settle two enforcement actions related to disclosure and procedure violations. "We are pleased to resolve these matters relating to issues which occurred in two funds more than five years ago, and which PIMCO had fully addressed prior to the SEC's investigations," a PIMCO spokesperson said. The SEC alleged in a statement Friday that PIMCO failed to give investors essential information about PIMCO Global StocksPLUS & Income Fund's (PGP) use of interest rate swaps and the material effect of the swaps on PGP's dividend between September 2014 and August 2016. Additionally, the SEC claims the company failed to waive about $27 million of advisory fees, as required by its agreement with the PIMCO All Asset All Authority Fund, between April 2011 and November 2017. The SEC also alleged PIMCO did not have adequate written policies and procedures concerning its oversight of advisory fee calculations and related fee waivers until at least 2018.

Persons: PIMCO Organizations: U.S . Securities, Exchange Commission, Pacific Investment Management Company, SEC, PIMCO Global, Authority

☆ U.S. equity funds register biggest weekly inflow in 28 months
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +2 min

According to Refinitiv Lipper data, U.S. equity funds drew a net $18.85 billion worth of inflows in their biggest weekly net buying since mid-February 2021. Reuters Graphics Reuters GraphicsU.S. large-, small-, and multi-cap equity funds attracted $7.76 billion, $3.33 billion and $1.93 billion worth of capital, respectively but investors exited mid-cap funds of about $1.36 billion. Investors also racked up financials, consumer discretionary and industrial sector finds of $581 million, $517 million and $460 million, respectively. U.S. government, and short/intermediate investment-grade funds received about $1.22 billion each in inflows, while general domestic taxable fixed income funds saw $1.1 billion worth of net buying. Meanwhile, investors exited $374 million worth of inflation-protected bond funds in a ninth straight week of net selling.

Persons: Gaurav Dogra, Patturaja, Toby Chopra Organizations: Reuters Graphics Reuters Graphics, Investors, Reuters Graphics Reuters, Thomson Locations: Bengaluru

☆ Fed's pause on interest rates is a blow to affordable housing in California
▼ + stars: | 2023-06-15 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: 1 min

Mortgage rates are likely to remain high despite the Federal Reserve's pause on interest rate hikes. While that may be good sign for fixed-income funds in California, the pause is a blow to affordable housing in the state, said Fiona Ma, California state treasurer, during the CNBC Financial Advisor Summit.

Persons: Fiona Ma Organizations: CNBC, Summit Locations: California

LONDON, June 15 (Reuters) - Hawkish central banks have sent a resounding "no" to markets betting recession would force rate cuts soon, leaving money managers scrambling for direction as the second half of the year approaches. "Markets have been wrong not only in their interpretation of the data but of the central bank reaction," he added. "Even though inflation is coming down, you are still getting that phase were the central banks think they need to talk hawkishly about this." Canada last week restarted rate hikes, Australia has come off a pause and Norway may have to accelerate hikes next week. BofA now expects two 25 bps interest rate hikes from the Fed this year, JPMorgan sees only one more and Morgan Stanley sees none.

Persons: Jason Simpson, Shorter, BofA, Morgan Stanley, Mark Nash, Nash, Kaspar Hense, Michael Michaelides, Shamik, BoE, they're, Dhar, Naomi Rovnick, Dhara Ranasinghe, Conor Humphries Organizations: U.S . Federal Reserve, European Central Bank, Bank of England, State, Bank of Japan, Treasury, JPMorgan, BlueBay Asset Management, BNY Mellon Investment Management, Thomson Locations: U.S, Canada, Australia, Norway, Shamik Dhar

☆ Debt ceiling deal done? Here's what's next for bond ETF investors
▼ + stars: | 2023-06-10 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

With an agreement on the debt ceiling easing concerns on the macro level, the aftereffects of avoiding default could pose new challenges for bond exchange-traded fund investors. "Now [The Fed] is going to hit it with trillion dollars of sales that will make short-term Treasury rates rise," he said. Additionally, the trillion dollars taken out of the regional banking system and placed into money market funds added pressure on big and systemic banks, he said, increasing the Fed's constraint. As money market yields continue to rise, Lutnick said he sees capital continuing to flow out of equities and into money market funds and Treasury bond ETFs. "You're going to see the stock market go sideways, but the bond market is going to continue to draw in money and get a lot of power," Lutnick said.

Persons: Howard Lutnick, CNBC's Bob Pisani, Lutnick, Billy Hult, Hult, That's Organizations: Treasury Locations: Treasurys

☆ How Citadel, Millennium, D.E. Shaw, and Other Hedge Funds Fared in May
▼ + stars: | 2023-06-07 | by ( Michelle Abrego | ) www.businessinsider.com time to read: +2 min

This year, it remains the top-performing multistrategy fund, just ahead of Steve Cohen's Point72. Here's how multistrategy hedge fund giants fared in May, from Citadel to Millennium. Billionaire Ken Griffin's Citadel continues to lead the competitive multistrategy hedge fund performance race this year, despite being bested for the month of May by Izzy Englander's hedge fund. Returns are still rolling out, but the major hedge fund players did not see major movements within their flagship funds. In other hedge fund news: London-based hedge fund Marshall Wace's Eureka flagship fund, an equity fund managed by founder Paul Marshall, climbed 1.74% in May and is up 1.70% year to date.

Persons: Ken Griffin's, Steve Cohen's Point72, Ken Griffin's Citadel, Izzy Englander's, Marshall, Paul Marshall Organizations: Millennium, Point72, Wellington, Nvidia, Tactical Trading Locations: Citadel, Wellington, Miami, London

☆ A portfolio manager who runs 3 of the 10 best large-cap funds in the past year shares his surprisingly simple investing strategy — and the 4 places he's putting his money now
▼ + stars: | 2023-05-24 | by ( James Faris | ) www.businessinsider.com time to read: +7 min

Leading fund manager Matt Fruhan found success this year by continuing to prioritize valuations. Two of those standout funds, the Fidelity Mega Cap Stock Fund (FGRTX) and the Fidelity Advisor Mega Cap Stock Fund (FGTAX), are virtually identical, except for their class and ticker. The fund manager told Insider that he applies the same investing process and principles across all of his funds. "Some investors are kind of reactive to the market and let the market tell them what to think," Fruhan said. And that's how you get separation from the stock market over time."

☆ Playing market defense with high-quality ETFs
▼ + stars: | 2023-05-17 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

Amid rolling banking stress and ongoing inflation and recession concerns, the flight to high-quality funds has become more appealing for exchange-traded fund investors. "Our clients are really worried about what they see in the marketplace -- high interest rates, high inflation," Paglia said. "So, it's not a coincidence that you see high quality and low volatility being in the driver's seat." While Ladner explained the benefits of junk-seeking strategies, he affirmed that quality is still the standout factor in a slow-growth market environment. "That behavioral modification aspect to investing in a quality portfolio in a time of economic uncertainty can be just as powerful as the economic implications of doing that."

☆ The manager of an award-winning credit fund that's tripled its benchmark since 2014 told us how he's staying ahead of a recession and credit crunch
▼ + stars: | 2023-05-13 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

The River Canyon Total Return Bond Fund has out-returned 99% of similar credit funds for five years. When Sam Reid says his River Canyon Total Return Bond Fund "has no competition," it sounds like a boast. But what he's actually saying is he's able to invest in a much wider range of assets than managers of other credit funds. He added that his fund "sits in between the hedge fund world and the vanilla mutual fund world." Reid also said he's been working to reduce the duration in his portfolios ahead of a recession.

☆ Saturna Capital's 3 stock funds are all out-earning their competitors while sticking to Islamic investing rules. Its managers told us how the combination works.
▼ + stars: | 2023-05-05 | by ( Marley Jay | ) www.businessinsider.com time to read: +5 min

Saturna follows Islamic rules, which also prohibit speculation and profiting from interest. The firm's Amana Income fund is the fourth-best US large company stock fund over the 12 months that ended March 31, according to Kiplinger. The firm's Developing World Fund has out-returned 92% of competing funds over the last five years. Scott Klimo is the chief investment officer and co-manages three stock funds for Saturna Capital. Buying an unprofitable or high-priced growth stock and hoping it goes on a rocket ride is not.

☆ US equity funds record biggest weekly outflow in five weeks
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +1 min

Investors exited a net $15.61 billion worth of U.S. equity funds during the reported period, their biggest weekly net selling since March 29, Refinitiv Lipper data showed. Reuters Graphics Reuters GraphicsU.S. large-cap funds lost $7.27 billion in net selling, the most since March 29, while small- and mid-cap funds saw outflows of $1.84 billion and $1.29 billion, respectively. U.S. general domestic taxable fixed income funds witnessed outflows of $1.49 billion. U.S. high yield funds lost $1.77 billion in their first weekly net selling in five weeks. Meanwhile, U.S. short/intermediate investment-grade funds obtained a net $1.92 billion in their biggest weekly inflow in 10 weeks.

☆ US money market funds see biggest weekly inflow in four weeks
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +1 min

Refinitiv Lipper data showed investors purchased a net $47.72 billion worth of U.S. money market funds in their biggest weekly net buying since March 29. Meanwhile, U.S. equity funds faced a fifth straight week of outflows, with investors exiting a net $3.75 billion worth of funds. Reuters Graphics Reuters GraphicsInvestors also pulled out $1.62 billion from U.S. bond funds in a second straight week of net selling. U.S. general domestic taxable fixed income funds, inflation protected funds and loan participation funds had $2.18 billion, $892 million and $797 million worth of net selling, respectively. Still, government bond finds secured $2.22 billion worth of inflows compared with net selling of $2.14 billion in the previous week.

☆ Columbia Threadneedle launches real estate ETF even in the face of a potential recession
▼ + stars: | 2023-04-26 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

Columbia Threadneedle is launching the Columbia Research Enhanced Real Estate ETF (CRED) on Wednesday, focused on real estate investment trusts. The private Blackstone Real Estate Investment Trust has repeatedly halted redemptions in recent months because investors have hit the fund's stated withdrawal limits. Columbia Threadneedle does not appear to be alone in thinking the bottom is near for real estate. Jeffrey Gundlach's DoubleLine launched a fixed income ETF focused on commercial real estate ( DCMB ) that began trading earlier this month, and iShares debuted an environmentally focused ETF in February ( ERET ). The University of California also invested $4.5 billion into BREIT, the non-listed Blackstone Real Estate Income Trust , in January.

☆ Woodford investors offered up to $292 mln over fund failure
▼ + stars: | 2023-04-20 | by ( Kirstin Ridley | ) www.reuters.com time to read: +2 min

LONDON, April 20 (Reuters) - Investors in the failed equity income fund run by fallen star stock picker Neil Woodford have been offered up to 235 million pounds ($292 million) in redress after a British regulatory investigation. The failure of the Woodford fund, which managed billions of pounds before it was suspended amid a political and public outcry in 2019, trapped 300,000 investors, triggering the FCA investigation and three London investor lawsuits. Woodford, once one of Britain's most high-profile investors, was criticised for holding a large number of hard-to-sell illiquid assets. He suspended the fund after struggling to meet redemption requests following months of underperformance. The proposed redress falls short of a scheme suggested by the FCA, under which it wanted WEIF investors to receive 298 million pounds.

☆ Why a European stock index is crushing its US peers
▼ + stars: | 2023-04-14 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

By comparison, the Dow Jones Industrial Average in the United States has climbed 2%. Those “growth” stocks gave investors a stake in firms that were on track to expand their businesses quickly and generate hefty returns. Now, investors are more drawn to “value” stocks: companies thought to be trading at a discount based on their financial performance. That’s been a “near-perfect combination” for European stocks to beat their US peers, he added. Economists at the Fed predict the United States will fall into a “mild” recession as a result of the recent banking crisis.

LONDON, April 12 (Reuters) - The zinc market was defined by smelter woes last year with global refined metal production dropping by 4.1% relative to 2021, according to the International Lead and Zinc Study Group (ILZSG). But the smelter bottleneck was severe enough to generate a global supply shortfall of more than 300,000 tonnes, according to ILZSG. A sharp rise in the annual benchmark smelter processing fee should incentivise a turnaround in metal production. Annual "benchmark" zinc smelter processing feesOUT-OF-SYNCH SUPPLY CHAINThis year's benchmark treatment charge, the fee a smelter earns for converting mined concentrates into metal, has been set at $274 per tonne, up from $230 in 2022 and $159 in 2021. Global mined and refined zinc production annual changeSMELTER RECOVERY?

☆ Capital Group expands ETF lineup, including two new international funds
▼ + stars: | 2023-04-11 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

Multi-trillion dollar asset manager Capital Group is expanding its ETF lineup after some of its first funds gained traction last year. The Los Angeles-based firm on Tuesday filed for three new active ETFs — International Equity ETF (CGIE), World Dividend Growers ETF (CGDG) and Core Balanced ETF (CGBL) — under the Capital Group banner. The new funds come a little more than a year after Capital Group — founded in the Depression and known for its American Funds — first dipped its toe into the ETF world. Our new ETF — CGIE — is more of a developed-market focused ETF," Davis said. Meanwhile, the new global dividend fund is in part a response to the success of the U.S.-focused Capital Group Dividend Value ETF (CGDV) , Davis said.

☆ U.S. money market funds see fourth weekly inflow in a row
▼ + stars: | 2023-04-10 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/Illustration/File PhotoApril 10 (Reuters) - U.S. money market funds drew inflows for a fourth straight week on worries about an economic slowdown after data pointed to slowing production and a cooling labor market. According to Refinitiv Lipper data, U.S. money market funds obtained a net $42.51 billion worth of inflows in the week to April 5. Investors poured $2.81 billion into U.S. general domestic taxable fixed income funds and also received $2.44 billion worth of government bond funds in their eighth week of net buying in a row. Reuters GraphicsMeanwhile, U.S. equity funds recorded $10.34 billion worth of outflows, compared with net selling of $20.75 billion in the previous week. Among sector funds, they exited financial and healthcare funds of $1.2 billion and $694 million, respectively, but tech obtained $566 million worth of inflows.

☆ ETFs are setting the tone for the underlying bond market. Here's why
▼ + stars: | 2023-04-05 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

Concannon said that the digitization of fixed income ETFs across the equity market accelerates the opportunity for investors to trade and hedge in the underlying corporate bond market. "We see that electronic trading is in fact accelerating as more and more people adopt fixed income ETFs," he said. "We saw a super high volatility in both the equity market and the underlying corporate bond market, and all those fixed income ETFs sustained that volatility." Because electronically traded bond ETFs are exchanged instantaneously, the funds are able to lead the underlying bonds. "And so, the underlying corporate bond market is actually following that ETF market."

☆ This portfolio manager’s frugality and eye for income protected her fund from the worst of 2022’s tumult
▼ + stars: | 2023-04-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Amid the tumult, the Fidelity Equity-Income Fund (FEQIX) outperformed the broader market with a total return of -5.07% – the result of portfolio manager Ramona Persaud's search for value and quality. The fund posted 3-year trailing returns of 18.71%, through April 4, according to Morningstar. "She thinks that a portfolio of companies that are inexpensive, high quality dividend paying stocks should outperform on a risk-adjusted basis." "When the market panics, you get this sweeping effect when everything gets sold off," Persaud said. "There's a lot of cyclical tech, things like semiconductors, that sold off really hard because of the fear around long duration.

☆ Multi-strategy hedge funds had mixed results for a mad March. Here's how Citadel, Millennium, and Point72 did.
▼ + stars: | 2023-04-04 | by ( Michelle Abrego | ) www.businessinsider.com time to read: +2 min

Multi-strategy hedge funds had a mixed March after the Silicon Valley Bank collapse put markets on edge. The Citadel Wellington fund ended the month up 1.38%, while Steve Cohen's Point72 was up 1.33%. Equities was up 2.16% in March, bringing year-to-date performance to 4.56%. Its global fixed income fund returned 0.12% in March, bringing year-to-date performance to 1.77%. Hedge fund performance figures are still trickling out, but data and reports suggest that trend-following and macro funds were caught out after the banking crisis rocked markets.

☆ ETF outlook: Why Wall Street strategists aren't chasing a growth stock trade just yet
▼ + stars: | 2023-04-01 | by ( Jesse Pound | ) www.cnbc.com time to read: +6 min

The rally in growth and tech stocks in the first quarter caught much of Wall Street off-guard, but many ETF strategists are sticking to their call and not chasing the hot sectors quite yet. The big winners in the stock market during the first quarter were found among growth stocks. QQQ YTD mountain Growth stocks rebounded in the first quarter. One area that is popular among value investors is income funds, which can help investors offset market declines by generating cash. To be sure, the iShares strategy team has an improving view of growth stocks, at least in high quality names.

☆ Bond giants Pimco and Invesco are facing losses of hundreds of millions on rotten Credit Suisse debt
▼ + stars: | 2023-03-25 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Bond giants Pimco and Invesco lost hundreds of millions of dollars, according to data from Bloomberg. They held Credit Suisse's AT1 bonds – which were marked down to zero by the Swiss regulator a week ago. FINMA, which is Switzerland's top financial regulator, marked the value of all Credit Suisse AT1s down to zero when UBS's takeover of the struggling bank was confirmed. Pimco had $807 million worth of Credit Suisse CoCos written off when the bank was rescued, according to Bloomberg – while Invesco held around $370 million worth of AT1 debt at the time of the takeover. Here's what you need to know about AT1 bonds.

☆ This fund manager has never owned a bank stock — and reveals what he looks for instead
▼ + stars: | 2023-03-24 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

Investors have fled bank stocks in droves since a crisis in the sector broke out earlier this month. Fund manager Ian Mortimer is not a fan — and said he has never owned a banking stock in any of his funds. If you think about that as your starting point, the vast majority in the banking sector do not pass those criteria," he said. "The banking sector has been an area that often pays quite high dividends — sort of attractive from that perspective. So, it's a ... theory that in distress, the banking sector will reduce or potentially cancel their dividends," Mortimer added.

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