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Natixis Investment Managers today received approval from the Securities Exchange Commission (SEC) for the use of custom baskets in actively managed semi-transparent exchange-traded funds (ETFs) that follow the New York Stock Exchange (NYSE)’s Proxy Portfolio Methodology approach. Previously, Natixis active semi-transparent ETFs were required to disclose proxy portfolios that closely track the fund’s actual intraday portfolio performance on a daily basis. This new approval from the SEC enables Natixis to create custom baskets that contain securities not included, or securities in different weights than are in the fund’s Proxy Portfolio when creating or redeeming shares. The use of custom baskets for active semi-transparent ETFs has the potential to reduce trading costs, increase efficiency, and improve secondary markets for the shares.
The Bank of Japan must be mindful of the potential demerits of its huge asset purchases, board member Toyoaki Nakamura said in a sign the central bank will seek ways to make its asset-buying programme more flexible in a policy review due in March.
The Bank of Japan must be mindful of the potential demerits of its huge asset purchases, board member Toyoaki Nakamura said in a sign the central bank will seek ways to make its asset-buying programme more flexible in a policy review due in March.
By Reuters Staff
1 Min Read
TOKYO, Feb 10 (Reuters) - Bank of Japan board member Toyoaki Nakamura on Wednesday warned of the potential demerits of the central bank’s huge asset purchases, such as the risk of distorting market functions.
“The BOJ’s exchange-traded funds (ETF) purchases . will remain a necessary tool,” Nakamura said in a speech at an online meeting with business leaders.
“This is not just about ETFs but by buying huge amounts of assets and holding onto them for a prolonged period, the BOJ could affect market functions. That is something we need to be mindful of,” he said. (Reporting by Leika Kihara Editing by Chang-Ran Kim)