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Net outflows from funds continued in June
July 9, 2010--Domestic funds witnessed a net outflow for a successive month, in June, thanks to sucking out of money by banks and companies. Barring gold exchange traded funds, and liquid and money market funds, all other categories saw money flowing out of the fund houses' corpus.
According to the Association of Mutual Funds in India (Amfi), redemptions in June were Rs 1,19,449 crore. Income funds contributed the largest, with a net outflow of Rs 1,34,354 crore, followed by equity schemes at Rs 1,446 crore.
Liquid and money market funds had Rs 17,029 crore and Rs 59 crore as net inflows in June, respectively.
"The banks and corporates took out the funds in the later part of the month because of the quarter-end. Advance tax, 3G and BWA auctions were the major two factors responsible for money outflow," said Jaideep Bhattacharya, chief marketing officer at UTI Mutual Fund.
MSCI Japan Index-linked ETF to be Listed (managed by Nikko Asset Management Co., Ltd.)
July 7, 2010--Today, Tokyo Stock Exchange, Inc. (TSE) approved the listing of the "Listed Index Fund Japan Equity (MSCI Japan)", an ETF managed by Nikko Asset Management Co., Ltd.
| Code | 1544 (ISIN JP3047230002) |
| Name | Listed Index Fund Japan Equity (MSCI Japan) |
| Fund Administrator | Nikko Asset Management |
| Listing Date | July 27, 2010 |
| Trading Unit | 10 units |
| Underlying Index | MSCI Japan Index |
With this listing, there will be a total of 93 ETFs listed on the Tokyo market, bringing us closer to the goal of 100 listed ETFs by the end of fiscal year 2010, as laid out in the Medium-Term Management Plan. The TSE will continue working to diversify the ETF market and improve the convenience of our market for all investors.
Chi-X Japan Receives Launch Approval-Chi-X Japan's PTS license granted; trading expected to begin July 29
July 7, 2010--TOKYO, Jul 06, 2010 (BUSINESS WIRE) -- Chi-X(R) Global Inc. today announced that its Japanese subsidiary, Chi-X Japan Limited, has been granted a PTS (proprietary trading system) License by the Japan Financial Services Agency (FSA). Trading on the Japanese equities platform is expected to begin July 29.
Chi-X Global currently operates Chi-X Canada and is soon expected to launch Chi-East, the Chi-X Global / Singapore Exchange Limited joint venture that will be the region's first exchange-backed, non-displayed trading platform(1). Chi-X Global is a subsidiary of electronic trading pioneer Instinet Incorporated, which is the largest and founding shareholder of Chi-X Europe(2). Instinet is a wholly-owned subsidiary of Nomura Holdings, Inc.
Ron Gould, CEO for Chi-X Asia-Pacific, commented: "The new Chi-X market center for Japanese equities will give us the opportunity to introduce important benefits to a wide range of participants and investors in Japan. Chi-X Global's high-speed, low-cost and intelligent trading model is widely recognized as providing additional market liquidity, significantly reduced costs and improved execution performance. We're excited by the prospect of bringing these same benefits to investors in Japan."
FTSE Xinhua Quarterly Index Review Results
Huatai Securities (A) to be added to FTSE/Xinhua China A 50 Index
No change to FTSE/Xinhua China 25 Index
July 7, 2010--, FTSE Xinhua Index (FXI) today announces the results of its quarterly index review. In the FTSE/Xinhua China A50 Index, which forms the basis of the world’s largest Chinese themed ETF, Huatai Securities (A Share, 601688) will replace Poly Real Estate Group (A Share, 600048).
Other changes were also approved for the FTSE Xinhua B 35, FTSE Xinhua 200, 400, Small Cap and Regional indices. Full details of the additions and deletions in the FTSE Xinhua Index Series can be found here. All the changes will take effect from Monday 19 July, 2010.
The FTSE Xinhua Index Series is reviewed quarterly in January, April, July and October by an independent index committee, comprising of local and international financial market experts in accordance with the index ground rules. The reviews ensure that the indices accurately reflect the markets they represent. This is essential as the indices are used to benchmark investment portfolios and as the basis of index-linked products.
The index series is widely regarded as the leading measure of the Chinese market by domestic and international investors. The FTSE/Xinhua China 25 and FTSE/Xinhua China A50 are used as the underlying indices for the largest Chinese themed ETFs globally with total assets at nearly USD 14 billion as at 1 July 2010.
More information about the FTSE Xinhua Index Series is available at www.ftsexinhua.com.
- FTSE RAFI Emerging Index Adopted by Daiwa Emerging Equity Fund
July 6, 2010--FTSE Group, the award-winning global index provider, has announced that its FTSE RAFI Emerging Index will be adopted by Daiwa Asset Management for an emerging market index fund being launched today. The Daiwa fund will be offered as a defined contribution (DC) pension investment option and will be the first to track the FTSE RAFI Emerging Index in Japan.
The FTSE RAFI® Emerging Index is part of FTSE Group’s range of investment strategy indices. Developed by FTSE and Research Affiliates (RAFI), the index selects and weights constituents using four fundamental factors - dividends, cash flow, sales and book value - rather than market capitalisation. The index is designed to provide investors with a tool to enable investment in emerging markets whilst using a fundamental weightings methodology.
Mr. Hiroyuki Nitta, General Manager of Daiwa Asset Management said, “By working with FTSE to jointly develop an innovative fundamental index fund for emerging equity markets, it’s with great pleasure that we are to be able to offer a broader investment choice to investors who participate in DC pension plans.”
Paul Hoff, Managing Director, FTSE Asia Pacific Business Development added, “Institutional investors globally have shown significant interest in non-market cap index strategies. FTSE is proud to be working closely with an industry leader, Daiwa Asset Management, to provide investors with a first-ever opportunity to access emerging markets via the fundamentally weighted FTSE RAFI Emerging Index.”
ETFs tough to White Label
July 6, 2010--Following the rising interest in Exchange Traded Funds (ETFs) in Australia, some financial planning groups are considering having their own branded ETFs - but that could be hard to do in practice due to structural issues, according to one ETF expert.
Tom Keenan, director at iShares in Australia, said many financial planning dealer groups are seeking to white label an ETF - just as they've white labelled other fund products including structured products and managed accounts.
Keenan said, however, white labelling ETFs is nearly impossible because each ETF requires its own separate listing on the ASX, which then requires additional market makers to generate liquidity.
"It's something that's never going to happen. It's needs its own code on the ASX and the market makers and liquidity is compromised because you would have very small activity on that one ETF," he said.
Barclays in talks with China fund managers on ETFs
"The next step will be working with asset managers to develop the products, and we are in discussions with some local asset managers," Waqas Samad, Head of Index, Portfolio and Risk Solutions of Barclays Capital, told reporters in Shanghai.
FSA and SEC held the sixth meeting of the “FSA-SEC High-Level Dialogue In the Dialogue, taking into account the current developments of securities markets in Japan and the U.S., the FSA and the SEC discussed various issues including regulatory reform, enhancement of cooperation on enforcement and supervision, and developments surrounding accounting standards and auditing. Through the Dialogue, the two organizations further deepened their cooperative relationship. Daiwa buys KBC capital markets unit
The Japanese group expects the combined businesses, which comprise an average 2 per cent of KBC’s net profits, to generate operating revenue of about Y15bn ($170m) a year.
Listing of the Fruit of Gold series of four brands in Tokyo
The listing of the Fruit of Gold series on the TSE enables Japanese institutional and retail investors to access the benefits of physical precious metals securely, efficiently and cost effectively.
Commenting on the launch, Atsushi Saito, CEO, TSE said:
"The Japanese investors have easier access to precious metals with the listing of Fruit of Gold series. We are pleased to have the precious metal physical ETF structured in Japan for the first time and welcome it in the market. We hope that the TSE will contribute to the further expansion of the Japanese financial market by acting as the core exchange in Asia. In this context, we feel it is significant that these ETF's are listed on the TSE."
Aram Shishmanian, CEO of the World Gold Council, added:
"The addition of another gold ETF, with the option of physical gold delivery, is a welcome development. This Japanese-led product will give fund managers and consumers the confidence to hold gold as a way of diversifying the Japanese pension market, which is primarily held in bank deposit accounts."
"Investment demand for gold has risen steadily over the last decade and continues to be the fastest growing category of global gold demand. Investors worldwide have come to recognize that portfolios which contain even a small allocation to gold are proven to be generally more robust, particularly in the context of continued economic and market uncertainty. The World Gold Council is actively working with Mitsubishi UFJ Trust and Banking Corporation and other financial institutions to ensure that gold's risk diversification properties are more widely understood."
July 5, 2010-- Barclays Capital is in talks with several Chinese fund managers to develop cross-border exchange-traded funds to be listed on the Shanghai bourse as China seeks to widen channels for its growing yuan savings.
Barclays Capital, the investment banking arm of Barclays Bank Plc
ETFs are index funds that trade just like stocks on major stock exchanges.
July 5, 2010--On June 29,2010,the Financial Services Agency (FSA) and the United States Securities and Exchange Commission (SEC) held a meeting of the “FSA-SEC High-Level Dialogues (Dialogue)” in Washington D.C., the sixth of the bilateral dialogue held on a regular basis. The Dialogue was led by the FSA Commissioner Mikuniya and the SEC Chairman Schapiro and attended by other senior staff members from both organizations.
The fifth meeting was held in Tokyo on June 15, 2009.
July 5, 2010--Daiwa Capital Markets, the investment banking unit of Daiwa Securities, is set to pay $1bn for KBC’s global convertible bond and Asian equity derivatives businesses, in an effort to globalise further.
Daiwa is paying about $200m for those and other assets and about $800m for the Belgian bank’s trading positions in those businesses, taking on about 150 staff in the process.
July 2, 2010--Today, four Exchange Traded Funds (ETF) of the Fruit of Gold series (gold, platinum, silver and palladium) have commenced trading on the Tokyo Stock Exchange (TSE).
With Mitsubishi UFJ Trust and Banking Corporation as the trustee, each security is backed by physical allocated precious metal for the benefit of Fruit of Gold shareholders. The ETFs are based upon the futures price at Tokyo Commodity Exchange and calculated into the spot physical price for gold, platinum, silver or palladium The underlying physical metals are stored by Mitsubishi Corporation acting as custodian.
This will be the first time that physical metals allocated to an ETF will be vaulted locally in Japan.
