Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Morgan Stanley, BlackRock funds among those exposed to regional bank failures

Morgan Stanley, BlackRock funds among those exposed to regional bank failures

Mutual funds managed by Morgan Stanley (MS.N), Fidelity, and BlackRock (BLK.N) appear to be among the most exposed to the collapse of Silicon Valley Bank and Signature Bank, Morningstar data showed, as a market selloff has erased more than $100 billion of U.S. banks' value.
Few funds held positions that alone appeared large enough to badly damage them, though further selloffs in regional bank shares could increase the pressure, said Todd Rosenbluth, head of research at data analysts firm VettaFi.

He said mutual fund investors got the benefits of portfolio diversification. "But it depends what else the fund owns. Financials in general and regional banks more specifically are being hurt (by) the uncertainty and risks that they could face a similar challenge."

Regulators closed Signature Bank on Sunday, marking the third-largest bank failure in U.S. history, after Silicon Valley Bank on Friday became the country's second-largest bank to collapse. Shareholders of both lenders were wiped out, though U.S. authorities took emergency steps on Sunday to help their customers.

The $102 million Morgan Stanley Institutional Global Concentrated Portfolio Class R6 had 4.1% of its assets in Silicon Valley Bank as of the end of December, the second-highest among all U.S. mutual funds, according to Morningstar. The fund closed 3.3% lower Friday, and is up 1.2% so far this year.

The $3.9 million BlackRock Future Financial and Tech ETF , meanwhile, held 3% of its assets in Signature and 1.7% in Silicon Valley Bank as of the end of December. The fund was down 3.9% in Monday afternoon trade.

The $47 million Fidelity Disruptive Finance fund, meanwhile, held 4.2% of its portfolio in Signature and 2.3% in Silicon Valley Bank at the end of December. The fund fell 4.5% on Friday and is down nearly 4% so far this year

Morgan Stanley, Blackrock, and Fidelity did not respond to requests for comment.

Shares of regional banks plunged Monday on contagion fears, with First Republic Bank (FRC.N) dropping more than 65% and Zions Bancorp (ZION.O) falling more than 25%.

The KBW Regional Banking Index (.KRX) is down 15.1% for the year, trailing the S&P 500, which is up about 1.3%.

Prior to the fall of Silicon Valley Bank, financial shares had drawn some U.S. investors, who expected rising interest rates to lift bank margins. Investors put $500 million more into financial stocks last week, the third-largest inflow among all U.S. sectors, according to BofA Global Research.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×