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Russell Global Index to gain 31 IPOs
U.S. small cap Russell 2000® Index accounts for 11 of global total
December 16, 2011--Russell Investments will add 31 initial public offerings (IPOs) to the Russell Global Index for the fourth quarter of 2011 on December 19th, including 11 additions to the U.S. small cap Russell 2000® Index, consistent with the firm's systematic quarterly process.
Of the 15 IPOs to be added to the Russell Global ex-U.S. Index, 12 are across the Asia-Pacific region, with eight falling into Asia-Pacific emerging markets as classified by Russell Indexes. Four companies become part of the Russell Greater China Index.
In the U.S., 16 IPOs will be added to the U.S. broad market Russell 3000® Index, including one to the large-cap Russell 1000® Index and 11 into the small-cap Russell 2000® Index. Four additional companies are joining the Russell MicrocapÒ Index. Overall, this is nine less IPOs than were added in U.S. in the third quarter of 2011. And the total of 31 IPOs to be added to the global index in the fourth quarter represents a significant drop from the 90 IPOs added in the third quarter of 2011.
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Source: Russell Investments
“What the Euro Crisis Means for Taxpayers and the U.S. Economy”
Written Testimony of Deputy Assistant Secretary Mark Sobel Before the House Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs
December 16, 2011--
Introduction
Chairman McHenry, Ranking Member Quigley, thank you for this opportunity to discuss U.S. interests in European economic reform.
The European Economic Outlook is Weakening
Over the past year, economic and financial stresses in Europe have spread to some of Europe’s largest economies, and the crisis now facing Europe is deeper and more entrenched. Sovereign bond yields have risen sharply in many countries. Many European financial institutions have faced difficulties in obtaining funding from markets and are de-leveraging in order to strengthen their capital adequacy. European equities have fallen by a quarter since April.
These developments have resulted in a sharp weakening in Europe’s current growth performance and significant markdowns in growth projections for 2012. Growth in the euro area is projected by most analysts to be negative this quarter and into early 2012, with weak growth persisting in 2012. For example, the OECD, which earlier this year had projected annual average European growth in 2012 of 2.0 percent, just revised its estimate to 0.2 percent. Many private forecasters are more pessimistic.
Europe’s problems are a serious risk for the U.S. outlook In the United States, the pace of recovery has strengthened recently and most analysts expect continued moderate growth next year. But given Europe’s strong trade and financial linkages with the rest of the world, other regions could feel the impact as well. Indeed, Europe’s problems are a serious risk for the U.S. economic outlook.
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Source: US Department of the Treasury
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite And Venture Select Indices
December 16, 2011-Standard & Poor's will make the following changes in the S&P/TSX Venture Composite and Select Indices:
On December 15, 2011, the shareholders of Silver Quest Resources Ltd. (TSXVN:SQI) approved the Arrangement Agreement whereby the company will be acquired by New Gold Inc. (TSX:NGD).
Silver Quest will be removed from the S&P/TSX Venture Composite and Venture Select Indices after the close of Monday, December 19, 2011.
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
IndexIQ Announces Changes to its ETF Family
December 16, 2011--IndexIQ, a leading developer of index-based alternative investment solutions, today announced it plans to close three of its exchange-traded funds (ETFs). Combined assets in the designated funds represent approximately 1% of IndexIQ’s ETF assets. No further closures are planned.
The Board of Trustees of the IndexIQ ETF Trust approved the closures on December 14, 2011. The final day of trading on the NYSE Arca will be Friday, December 23, 2011. Shareholders who do not sell their fund shares by this date will have their shares automatically redeemed on December 30, 2011, the funds’ last day of operations.
The three closing funds are as follows:
IQ Taiwan Small Cap ETF (TWON)
IQ Hong Kong Small Cap ETF (HKK)
IQ Japan Mid Cap ETF (RSUN)
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Source: Index IQ
Exchange Traded Concepts Trust files with the SEC
December 16, 2011--Exchange Traded Concepts Trust has filed a post-effective amendment, registration statement with the the SEC for the Yorkville High Income MLP ETF.
view filing
Source: SEC.gov
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
