Each day, DailyAlts tracks major developments across the alternative investment world. Our content is procured from primary contacts in the industry and secondary sources across the web. Our goal is to give readers the most up-to-date news and engaging experience to open new doors and areas of knowledge. Our stories cover nine separate verticals of the alternative investment industry.
Swedish fintech company Klarna achieved a significant improvement in its financial performance during the first quarter, as it halved its net loss compared to the same period last year. The company reported a net loss of 1.3 billion Swedish krona ($120.7 million), down 50% from the previous year’s loss of 2.6 billion krona.
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CFTC Chairman: Ethereum is a Commodity
CFTC Chairman Heath Tarbert has said that Ethereum is a commodity. During a talk at the Yahoo! Finance All Markets Summit, the CFTC chair said he doesn’t think ether is a security.
LGPS Launches Climate Change Strategy
LGPS Central has announced the launch of a multi-factor equity fund. The manager of pooled assets from nine British public sector pension funds say that climate change sits at the center of the investment strategy.
Bitwise Unfazed by SEC Rejection; Intends to re-file soonest
The SEC rejected the Bitcoin ETF proposed by Bitwise Asset Management and NYSE Arca. But Bitwise welcomed the detailed feedback and additional clarity.
Though the SEC rejected the Bitwise ETF, the negative thrust of its 112-page order centered around NYSE Arca’s proposed rule change to enable the listing of the Bitwise Bitcoin ETF.
Senators strong-arm Visa, Mastercard, and Stripe on Libra: “…expect a high level of scrutiny.”
Facebook’s Libra stablecoin project received another jolt when US Senators wrote an “or…else” letter to certain Libra Association members.
Senators Brian Schatz (D-HI) and Sherrod Brown (D-OH) wrote to the CEOs of Visa, Mastercard, and Stripe, urging them to be wary of their participation in Facebook’s Libra Association.
Refinitiv: Sovereign Wealth Funds Put $24.6 Billion into Q3 M&A Deals
Sovereign wealth funds injected $24.6 billion into deals during the third quarter, according to a report at Reuters. Citing data from Refinitiv, the author counted 49 deals. That figure is up from the 46 deals in the second quarter valued at $15.5 billion.
Pepsi Issues Its First ‘Green Bonds;’ These Align With UN Sustainable Development Goals
Pepsi issued $1 billion in senior notes due 2049, at a coupon of 2.875%, payable semiannually.
This new debt offering is the first of Pepsi’s green bonds. Pepsi will use the funds raised from the issue for purposes that align with U.N. Sustainable Development Goals or SDGs.
PitchBook-NVCA Venture Monitor: VC Investing Declined in Third Quarter
PitchBook-NVCA Venture Monitor released its examination of venture capital flows for the third quarter of 2019. The report says that American VC shops invested $28.2 billion in 2,265 transactions during the quarter. This figure suggested a continued decline in deal flow among venture capitalists.
SEC Rejects Bitcoin ETF Proposal from Bitwise
The Securities and Exchange Commission (SEC) rejected Bitwise Asset Management’s efforts to launch a bitcoin exchange-traded fund (ETF). The agency said that Bitwise’s proposal failed to meet legal requirements tied to market manipulation and other concerns. However, the SEC blamed NYSE Arca instead of Bitwise for the rejection.
Stanford University Endowment Fund Reports 6.5% Gain
The fund outperformed the median results of peers The Stanford University Endowment Fund released its investment results last week. For the 12 months ending June 30, 2019, Stanford Management Company generated a 6.5% investment return, net of all internal and external costs and fees, but gross of the newly levied tax on certain endowments. Stanford…
Are Mutual Fund Managers Signaling A Selloff?
The Investment Company Institute released weekly data on mutual funds and exchange traded funds (ETFs) on Wednesday. The data suggest that fund managers are very concerned about the U.S. economy, the ongoing trade war, and other factors. Last week, mutual funds and ETFs dropped roughly $11.8 million in U.S. equities.
Nuveen Real Estate Buys 100 New Properties in 12 Markets
Nuveen Real Estate is one of the largest real estate investment firms in the world, and they keep getting bigger. As part of their continued expansion, they are moving aggressively into industrial real estate in the United States. Nuveen announced this week that they are acquiring a significant national logistics portfolio exceeding 100 properties across 12 markets.
How AI, Drones, U-Cal and Salesforce Watch Out for Sharks
Great whites are rising in number. So are their encounters with humans. It’s, therefore, a challenge to devise early warning systems for our beaches. But a solution for spotting sharks with AI (artificial intelligence) is now possible thanks to Salesforce and the University of California.
These Hot New ETFs Protect Your Downside…And…Someone’s Taking Out A Patent on Them
There’s a new category of ETFs out there known as Defined Outcome ETFs. Also known as Buffer ETFs, these funds are seeing a rush of inflows as investors try to shield themselves from market volatility. In so doing, they also look to protect themselves from losses, while keeping open the potential for gains.
Could Crypto ETFs Finally Come In From The Cold?
The SEC will give a ‘yes-or-no’ ruling on its approval of the bitcoin-based exchange-traded fund (ETF) from Bitwise Investments by October 13. “We’re closer than we’ve ever been before to getting a bitcoin ETF approved,” said Matt Hougan, MD, and global head of research, Bitwise. The SEC’s approval would be a landmark event in the evolution of cryptocurrencies.
#Fuelherfuture: Crowdfunding Platform Kiva Hits $1 Billion In Lending to Female Entrepreneurs
Crowdfunding loans platform Kiva celebrates the $1 billion mark in lending to women entrepreneurs with a tie-up with Pepsi.
Kiva, the crowdfunding loans platform, created a new initiative, #FuelHerFuture with Pepsi. From October 7 to October 13, 2019, Pepsi will provide a credit of $25 to anyone who makes a loan on the Kiva platform. The credit must be utilized to lend to a female borrower of their choice.
World Federation of Exchanges Asks FCA to Reconsider Ban on Crypto-Derivatives
The World Federation of Exchanges (WFE) is an industry group for exchanges and central counterparties (CCPs). It has asked the UK’s Financial Conduct Authority (FCA) not to impose its crypto-derivatives ban on sale to retail customers. However, it said it fully supported the regulator’s intention to protect vulnerable customers.
MUFG First in Japan to Issue Aussie Dollar-Denominated Green Bonds
MUFG’s green bonds amounting AU$500 million (US$337 million) were oversubscribed twice over. Australian institutional investors purchased most of the flotation.
MUFG issued this latest tranche of its green bonds in Australian dollars in a nod towards climate-conscious Australian investors. The AU$500 million bond offering comprised both fixed and floating rate bonds of five years maturity.
US Blacklists Chinese AI Organizations Including Leading Startups
The US government punished China for its “repression” of Muslim minorities by blacklisting Chinese AI organizations and security bureaus.
In rather sensitive timing just ahead of high-level trade discussions in Washington this week, the US took a hard line on allegedly brutal suppression of ethnic minorities in China by banning certain Chinese AI startups.
Private Equity Firm Highview Capital Acquires Gold Star Foods, Plans Merger
Highview Capital announced it has acquired Gold Star Foods, a specialized food distributor to K-12 child nutrition programs. After the deal closes, Gold Star will merge with an existing Highview portfolio company called Good Source Solutions. The portfolio firm operates in similar segments.
Coinbase CEO Lambasts US Attitude to Facebook’s Libra
Coinbase CEO Brian Armstrong assailed the US’ approach to Facebook’s Libra cryptocurrency in the light of the threat from China’s stablecoin.
“Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider its ridiculous response to Libra, Armstrong tweeted. “There are many cryptocurrencies, and Libra is just one of them. But the way the U.S. government reacted, it’s like they almost want to be left behind.”
An ETF To Take Advantage Of “One Of The Largest Infrastructure Build-Outs In History”
According to Goldman Sachs, cities will be on the frontlines of climate adaptation. Urban adaptation will have to follow.
The FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA) is an infrastructure-focused ETF. It tracks the performance of the STOXX Global Broad Infrastructure Index. Investors looking for ESG-positive investments could consider infrastructure given its relevance in urban adaptation following climate change.
Brookfield Business Partners to Sell Big Stake in North American Palladium
Brookfield Business Partners announced a plan to sell its 81% interest in North American Palladium. The real state giant is selling the Canadian mining company and only global pure-play palladium producer to Impala Platinum Holdings (Implats). The deal will see Implats buy all outstanding NAP stock from Brookfield for roughly $750 million.
Is China Coin Rushing to Beat Libra Cryptocurrency?
China Coin will try to beat Facebook’s Libra to the market. Chinese financial experts believe that Libra would have such an impact on the economy that they are pushing their government to beat the rival cryptocurrency to the market. The “crypto space race” kicked off in July when multiple outlets reported that China was considering its own coin.
Martin Taylor and Hedge Fund Crake Asset Management Start Trading
Martin Taylor shut down Nevsky Capital three years ago. But he’s proven that top-performing managers – rare as they are – can stay away for too long. Taylor has returned to the markets with Crake Asset Management. The firm started trading last week after it raised $1.6 billion.