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Treasury International Capital Data For October 2011
December 15, 2011--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for October 2011. The next release, which will report on data for November 2011, is scheduled for January 18, 2012.
Foreign residents increased their holdings of long-term U.S. securities in October — net purchases were $2.6 billion. Net purchases by private foreign investors were $10.1 billion, and net sales by foreign official institutions were $7.5 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of $2.2 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were $4.8 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, the overall net foreign acquisition of long-term securities is estimated to have been negative $13.4 billion in October.
Foreigners decreased their holdings of U.S. Treasury bills by $11.5 billion. Foreign holdings of all dollar-denominated short-term U.S. securities and other custody liabilities decreased by $41.0 billion.
Banks’ own net dollar-denominated liabilities to foreign residents increased by $0.7 billion.
of $48.8 billion. Of this, net foreign private outflows were $7.0 billion, and net foreign official outflows were $41.9 billion.
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Source: US Department of the Treasury
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
December 15, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite and Select Indices:
The shares of Grayd Resource Corp. (TSXVN:GYD) will be removed from the S&P/TSX Venture Composite Index after the close of trading on Thursday, December 15, 2011.
The company has been acquired by Agnico-Eagle Mines Limited (TSX:AEM) through an Acquisition Agreement for cash and shares.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poor's
Statement Regarding MF Global
Commissioner Bart Chilton
December 14, 2011--"Press reports indicate that the CFTC knows the ultimate landing spot of all MF Global customer funds. While I will not discuss the specifics of the investigation, based upon the most up-to-date information available, I do not have confidence that we know where all the money went.
Our staff has been working exceedingly hard and they have visuals into many aspects of this investigation, including transfers of some customer funds. That said, a thorough accounting of all customer funds has not been completed and remains a work in progress. We all want a resolution to the ultimate destination of customer money, and we want it returned as soon as possible to the rightful owners. At the same time, the investigation and any potential litigation should only come about after an exhaustive and particularly thorough accounting of the whereabouts and circumstances related to the transfer of customer funds
Source: CFTC.gov
State Street files with the SEC
September 14, 2011-State Street has filed a post-effective amendment, registration statement with the SEC for the SPDR Barclays Capital Investment Grade Floating Rate ETF.
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Source: SEC.gov
State Street-US ETF Snapshot: November 2011
December 13, 2011--1,161 Exchange Traded Funds (ETFs)—with assets totaling $1,054BN—were managed by 36 ETF managers as of November 30, 2011.
Month over month, ETF assets fell $9.8BN, down 0.9%.
STATE STREET HIGHLIGHTS, NOVEMBER 2011
Asset Classes for Volatile Markets
◦In the wake of negative economic and geopolitical news across the globe, some investors may be considering asset classes designed to outperform during periods of economic uneasiness.
Yet, across Equity, Fixed Income and Commodities markets, there are a number of asset classes to take advantage of in the current environment.
For more information, including product fact sheets and related whitepapers, visit www.spdrs.com.
US ETF ASSET GROWTH YTD
The ETF industry had a modest 0.9% decline in assets in November. However, there were sizeable gains in the Commodity, Dividend/Fundamental and Fixed Income categories.
Asset Classes — Overall
Both the S&P 500® Index and MSCI EAFE® Index fell in November, losing 0.2% and 4.8%, respectively. Commodities were positive, with the S&P GSCI® Index up 1.4% and Gold rising 1.4%. U.S. Bonds were mixed, with the Barclays U.S. Treasury Index up 0.7% and the Barclays U.S. Aggregate Index down 0.1%.
FLOWS
ETF flows were negative in November, down $475MM. The Fixed Income category continued to see positive inflows attracting $5.1BN in November and $38.6BN year-to-date. The Size - Large Cap category had the most significant outflows with $7.3BN leaving the category.
Manager and Fund Detail
The top three managers in the US ETF marketplace were: BlackRock, State Street and Vanguard. Collectively, they account for approximately 83% of the US listed ETF market.
•The top three ETFs in terms of dollar volume traded for the month were the SPDR® S&P 500 [SPY], iShares Russell 2000 [IWM] and PowerShares QQQ [QQQ].
The top three ETFs in terms of assets for the month were the SPDR S&P 500 [SPY], SPDR Gold Shares [GLD] and Vanguard Emerging Markets [VWO].
Performance by Asset Class
International - Developed and Emerging Markets dropped 4.8% and 6.7%, respectively. Domestic Large Cap and Mid Cap markets dipped 0.2% and 0.3%, while Small Cap returned 0.6%. The US Corporate bond market was negative, falling 1.7%, while the US Treasury was positive, gaining 0.7%. Commodities rose 1.4%.
visit www.spdrs.com for more info
Source: SSGA
Federal Reserve issues FOMC statement
September 13, 2011--Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth. While indicators point to some improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but business fixed investment appears to be increasing less rapidly and the housing sector remains depressed. Inflation has moderated since earlier in the year, and longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to continue its program to extend the average maturity of its holdings of securities as announced in September. The Committee is maintaining its existing policies of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
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Source: FRB
Global X Funds Relaunches China Technology ETF (QQQC)
December 13, 2011--Global X Funds, the New York-based provider of exchange- traded funds (ETFs), today re-launched the Global X NASDAQ China Technology ETF (Ticker: QQQC) on the NASDAQ.
The fund was previously named the Global X China Technology ETF (Ticker: CHIB).
The Global X NASDAQ China Technology ETF tracks the NASDAQ OMX China Technology Index, which is designed to track the performance of the technology sector in China. As of December 12, 2011, the three largest components of the index were ASM Pacific Techno, Lenovo Group, and BAIDU, INC.
QQQC is made up of securities of companies which have their main business operations in the technology sector: computer services; internet; software; computer hardware; electronic office equipment; semiconductors; and telecommunications equipment. Investors in the fund may stand to benefit from the fact that China now has more than 500 million internet users, representing an internet penetration rate just under 40% - significantly lower than the U.S. penetration rate of nearly 80% and demonstrating the potential for future user growth (State Information Office of the Internet, 2011). In addition, in Q3 of 2011, China passed the U.S. as the largest market for smartphones in the world, with shipments just under 24 million units – a 58% increase from the previous quarter, according to Strategy Analytics. When it comes to online gaming, China's online game market is expected to reach more than 60 million users by 2013, up from 15.5 million in 2009, according to Reuters, 2010. Finally, spending on broadband infrastructure equipment is expected to reach $1.15 billion in 2014, up from $925 million in 2011 and $688 million in 2010 (HIS iSuppli, 2011).
“China is driving its efficient manufacturing and rapidly expanding consumer base into higher value, technology-based products and services,” said Bruno del Ama, CEO of Global X Management.
Source: Global X
CFTC to Hold Open Meeting to Consider Three Final Rules
December 13, 2011--The Commodity Futures Trading Commission (CFTC) will hold a public meeting on Tuesday, December 20, 2011, at 9:30 a.m., on the following topics:
(1) Final Rule on Real-Time Reporting of Swap Transaction Data;
(2) Final Rule on Swap Data Recordkeeping and Reporting Requirements; and
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Source: CFTC.gov
ALPS ETF Trust to liquidate 2 ETFS
December 13, 2011 — ALPS ETF Trust
announced today the scheduled liquidation of the Jefferies
TR/J CRB Global Agriculture Equity Index Fund (CRBA)
and Jefferies | TR/J CRB Global Industrial Metals Equity
Index Fund (CRBI) (collectively, the “Funds”).
The Funds will close to new investors on December 22, 2011 and will liquidate on December 28, 2011.
ALPS ETF Trust’s Board of Trustees’ decision was made after consultation with ALPS Advisors, Inc., the investment advisor to the funds. The Board considered current market conditions as well as prospects for growth in the Funds’ assets in the foreseeable future. The Board determined that it was advisable and in the best interests of the Funds and their shareholders to liquidate the Funds, which are listed for trading on NYSE Arca, Inc. (the “NYSE Arca”).
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Source: Jeffries
ALPS ETF Trust to Liquidate 2 ETFs
December 13, 2011--ALPS ETF Trust announced today the scheduled liquidation of the Jefferies | TR/J CRB Global Agriculture Equity Index Fund (CRBA) and Jefferies | TR/J CRB Global Industrial Metals Equity Index Fund (CRBI) (collectively, the "Funds"). The Funds will close to new investors on December 22, 2011 and will liquidate on December 28, 2011.
ALPS ETF Trust's Board of Trustees' decision was made after consultation with ALPS Advisors, Inc., the investment advisor to the funds.
The Board considered current market conditions as well as prospects for growth in the Funds' assets in the foreseeable future. The Board determined that it was advisable and in the best interests of the Funds and their shareholders to liquidate the Funds, which are listed for trading on NYSE Arca, Inc. (the "NYSE Arca").
Thursday, December 22, 2011, is scheduled to be the last day of trading for the shares of the Funds on NYSE Arca. Beginning immediately through December 27, 2011, the Funds will be in the process of closing down and liquidating their portfolios. This process will result in the Funds not tracking their underlying indexes and their cash holdings increasing, which may not be consistent with the Funds' investment objectives and strategies. From December 23, 2011 to December 27, 2011, shareholders may be able to sell their shares to certain broker-dealers, but there can be no assurance that there will be a market for the Funds. Any person holding shares in the Funds as of the liquidation date of December 28, 2011 will receive a cash distribution equal to the net asset value of their shares as of that date. Shareholders receiving this cash distribution will not incur transaction fees in connection with this distribution or the liquidation of their shares in the Funds. However, a portion of the distribution may represent an ordinary income dividend or a capital gain distribution.
For additional information about the liquidation shareholders of the Funds may call ALPS Distributors, Inc. at 1.877.526.9298 or go to the ALPS ETF Trust website: http://www.alpsfunds.com .
Source: ALPS
