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ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows, week ending 26-Feb-10
March 3, 2010--Last week saw US$69.4 Mn net inflows to STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Media with US$35.8 Mn and Oil & Gas with US$32.3 Mn while Telecommunications experienced net outflows of US$44.1 Mn.
Year-to-date, Utilities has been the most popular sector with US$190.2 Mn net new assets, followed by Media with US$184.7 Mn net inflows. Telecommunications ETFs have been the least popular with US$301.0 Mn net outflows YTD.
visit Blackrock for more information
Source: ETF Research and Implementation Strategy, Blackrock
Corporate Bonds broadly diversified-ETFlab iBoxx € Liquid Corporates Diversified-(ISIN: DE 000 ETF L37 5)
March 3, 2010.--With the ETFlab iBoxx € Liquid Corporates Diversified ETFlab Investment GmbH, the Munich specialist for exchange traded funds, provides access to a broadly diversified basket of Euro corporate bonds. “They allow investors to enjoy much higher returns than federal bonds”, Andreas Fehrenbach, the managing director of ETFlab points out.
However, especially with corporate bonds it was absolutely advisable to diversify an investment over various industries and countries. “An ETF is ideally suited for this, as the investor, with one trade, buys a whole investment portfolio”, the ETF expert explains.
The underlying index contains 75 bonds of issuers having their principal seat in Euroland, Switzerland, Great Britain, Sweden, Norway, and Denmark. Only primary bonds with a fixed coupon are qualified. In order to additionally limit risks further measures have been taken. Only two bonds are allowed per issuer, the weighting per issuer has been limited to 7.5 per cent. Higher requirements apply to issuers from the finance sector. They must have a rating of at least A-, whereas for other issuers a rating of BBB- may be sufficient to be taken into consideration. “By thus, we fulfil the need for increased safety as a result of the financial crises” ETFlab’s managing director Fehrenbach points out. In general, the issuing of the bonds within the index must not date back more than three years. A residual maturity of 1.5 to 10.5 years is observed.
The ETF tracks the index in a fully replicating manner, i.e. the original securities are contained in the fund assets, which are in compliance with the UCITS III guidelines. Currently, almost 89 per cent of the instruments contained have a rating of A or better. Among the countries, the Netherlands (29 %), France (16 %) and Great Britain (13 %) are weighted most heavily. According to the current classification by industries, it is above all banks (49 %), utilities (16 %), automobiles and telecommunication (8 % each) which are included. The average residual maturity is 4.6 years, with a return of 3.4 per cent. With its total expense ratio (TER) of 0.20 per cent the new fund counts among the most moderately priced among the corporate-bond funds worldwide. Trading in the XTF segment of Deutsche Börse will be started on March 3.
Source: ETFLab
All NYSE Euronext ETFs Traded In Paris Now Eligible To The Deferred Settlement Service (SRD)
March 3, 2010--NYSE Euronext announces that all ETFs traded on the NYSE Euronext Paris market of reference are, since 1st March 2010, eligible to the Deferred Settlement Service (SRD), this amounts to a total of 369 products versus 147 previously.
Thanks to this evolution, investors, especially private investors, now have access to a broader scope of SRD eligible ETFs. They now have access to all Paris traded ETFs with leverage in a regulated and secure environment. Beyond its performance increasing effect, using the Deferred Settlement service, when trading ETF, is an efficient portfolio diversifier.
These newly eligible ETFs will not be admitted to trading on NYSE Euronext’s centralised borrowing and lending market. This category of assets that are eligible to the SRD but not available for trading on the borrowing and lending market, is named “eligible to the SRD, long only”. However investors will be able to benefit from all the advantages offered by the SRD on all the ETFs traded on NYSE Euronext Paris market of reference according to the rules applied by their financial intermediary.
Pedro Fernandes, European Head of ETFs for NYSE Euronext, comments : « This evolution offers investors the unique opportunity to link the advantages of ETFs to that of the Deferred Settlement Service, notably the efficient access with leverage to a broad range of asset classes within a secured regulated environment”
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Source: NYSE Euronext
Europe 2020: Commission proposes new economic strategy
March 3, 2010--Commission sets out a 10-year strategy for reviving the European economy, casting a vision of ‘smart, sustainable, inclusive' growth rooted in greater coordination of national and European policy.
Coming on the heels of the longest and deepest recession in EU history, the much-anticipated Europe 2020 plan acknowledges the huge challenges ahead. The economic crisis has exposed deep flaws in an economy already under strain from globalisation, pressures on resources and an ageing population. The commission's position is that these can be overcome if Europe is willing to embrace transformation to a greener, more innovative market that fosters social wellbeing.
The strategy revolves around promoting low-carbon industries, investing in efforts to develop new products, unleashing a digital economy and modernising education and training. Five quantitative targets are proposed, including increasing the employment rate to at least 75% from the current 69% and boosting spending on research and development to 3% of gross domestic product - it is currently only 2% of GDP, significantly less than in the US and Japan.
Likewise, the plan reaffirms the EU's ‘20/20/20' climate change goals - already among the most ambitious in the world - and proposes a poverty reduction target of 25%, estimating that this would lift 20 million people out of poverty.
Turning to education, the commission recommends efforts to cut the school dropout rate to below 10% from the current 15% and to expand the share of people in their early 30s with a university degree (to 40% from 31%).
The paper proposes that governments agree on national targets that would take account of conditions in each country while helping the EU as a whole achieves its goals. The commission will monitor progress and issue warnings in cases of "inadequate response."
The EU already tracks public finances to prevent imbalances that could undermine the eurozone. The new plan would go beyond that to include other issues that could undermine EU-wide competitiveness.
The strategy identifies seven flagship initiatives the EU should take to boost growth and employment. These include programmes to improve conditions and access to finance for R&D, speed up the roll-out of high-speed internet and increase the use of renewable energy.
Government leaders are expected to debate the overall approach at the meeting later this month. The details, including national targets, would the subject of a summit later this year, possibly in June.
Europe 2020
Source: European Commission
Eurozone will survive despite Greek financial crisis
March 3, 2010--Nearly eight out of ten financial services practitioners believe the eurozone will survive despite the strain of the Greek financial crisis, a survey by the Chartered Institute for Securities & Investment (CISI) shows.
Of those who responded, 79% feel the eurozone will remain intact with only 21% of the view that the situation in Greece will trigger the collapse of the union of 16 countries.
Comments from those taking part in the CISI survey included:
“The threat of a potential domino effect within the eurozone should be sufficient for the group to come up with a workable solution, for the time being at least.”
“The euro has always been a political project rather than a financially pragmatic one. For this reason its members will not allow it to collapse, even if this comes at a great cost.”
“It will not collapse immediately because there is too much political capital invested in it. In the long term, Germany will probably not be interested in taking the steps to save it.”
Leading commentators across Europe have warned the future of the zone is at risk. They include Carl Heinz Daube, head of the German debt management agency, who warned that if any member country defaulted on its debt, the eurozone would break up.
Source: Chartered Institute for Securities & Investment (CISI)
Ireland follows UK path for pension reforms
March 3, 2010--The Irish government has unveiled plans for a pension framework which will require the auto-enrolment of all employees aged 22 or over from 2014, along with matching contributions from the employer, and State contributions equal to 33% tax relief. The State retirement age will also be increased to 68 by 2028.
Among the key proposals set out, the government said defined benefit pension schemes can expect stronger regulation and employees will be given access to defined contribution (DC) Approved Retirement Funds.
< a href="http://www.pensionsgreenpaper.ie/downloads/NationalPensionsFramework.pdf" TARGET="_top">view the National Pensions Framework paper
Source: IP&E
db x-trackers baut Produktpalette im Bereich
March 3, 2010--db x-trackers hat den db x-trackers II iBoxx EUR Liquid
Corporate 100 Total Return Index ETF an der Deutschen Börse lanciert und
erweitert damit seine bestehende Produktpalette im Bereich der Indizes auf
Unternehmenskredite
db x-trackers will mit diesem ETF seine Führungsposition im Bereich Liquidität
(Quelle: Xetra, Dezember 2009) auf den Markt für ETFs auf Unternehmensanleihen
ausweiten. Der neue ETF bildet den iBoxx EUR Liquid Corporate 100 Index® ab, der wiederum die Wertentwicklung von bis zu 100 auf Euro lautenden
Unternehmensanleihen reflektiert. Wie alle ETFs der db x-trackers Palette verfolgt auch der neue die innovative Struktur der synthetischen Replikation der Indexrendite und reduziert so die Abweichung zum zugrunde liegenden Index (Tracking Error) auf
ein Minimum. Durch die synthetische Replikation eliminiert dieser ETF viele der
Performance-, Tracking- und Liquiditätsunsicherheiten von ETFs auf
Unternehmensanleihen, die ihren Benchmarkindex durch eine Investition in die einzelnen Indextitel abbilden. Der ETF soll sich mit Hilfe der Deutschen Bank als Market Maker als einer der liquidesten ETFs im Markt der Unternehmensanleihen
etablieren. Im Rahmen des Market Makings wird darauf abgezielt die
Preisquotierungen grundsätzlich sehr zuverlässig am fairen Wert des ETFs
auszurichten.
Insgesamt bietet db x-trackers nun in Deutschland 33 börsengelistete Renten-ETFs an. Mit dem db x-trackers II EONIA Total Return Index ETF stellt db x-trackers bereits den liquidesten ETF (gemessen am Xetra Liquiditätsmaß XLM), sowie den meist gehandelten ETF auf Xetra (Quelle: Xetra, Dezember 2009).
ETF auf den iBoxx EUR Liquid Corporate 100 Index®: Der ETF hat eine Pauschalgebühr von 0,20 Prozent p.a. und bildet, über den iBoxx EUR Liquid Corporate 100 Index®, die Wertentwicklung von bis zu 100 auf Euro lautenden liquiden Unternehmensanleihen ab, unter Berücksichtigung von im Index enthaltenen Neugewichtungskosten.
Der Index umfasst ausschließlich auf Euro oder eine Altwährung lautende endfällige Festzinsanleihen, der Geschäftssitz des Emittenten spielt dabei keine Rolle. Alle Anleihen müssen an den halbjährlichen Neugewichtungstagen eine Restlaufzeit von mindestens zwei Jahren aufweisen, neu in den Index aufgenommene Anleihen müssen des Weiteren eine Restlaufzeit von mindestens drei Jahren haben. Alle Anleihen müssen ein ausstehendes Volumen von mindestens EUR 750 Mio. aufweisen und das ausstehende Volumen einer Anleihe wird zur Berechnung ihrer Gewichtung innerhalb des Index verwendet. Barmittel aus Kuponzahlungen und nicht ersetzten Anleihen werden in den Index reinvestiert. Der iBoxx EUR Liquid Corporate 100 Index® ist breiter diversifiziert und zeigte über die letzten 3 Jahre eine bessere Performance als die meisten von anderen ETF Anbietern verwendeten Indizes auf Unternehmensanleihen.1
Überblick über den neuen db x-trackers ETF
db x-trackers II ETF auf: IBOXX EUR LIQUID CORPORATE 100 INDEX®
Währung: Euro (EUR)
Pauschalgebühr (p.a.):0.20%
ISIN:LU0478205379
Source: db x-trackers
ETFlab iBoxx € Liquid Corporates Diversified-(ISIN: DE 000 ETF L37 5)
March 3, 2010--Der Münchener Spezialist für börsengehandelte Indexfonds, die ETFlab Investment GmbH, ermöglicht mit dem ETFlab iBoxx € Liquid Corporates Diversified Zugang zu einem breit diversifizierten Korb von Euro-Unternehmensanleihen. „Damit kommen Investoren in den Genuss einer deutlich höheren Rendite als bei Staatsanleihen“, hebt Andreas Fehrenbach, Geschäftsführer von ETFlab, hervor. Gerade bei Unternehmensanleihen sei es aber unbedingt ratsam, ein Engagement über Branchen und Länder hinweg zu streuen. „Dazu eignet sich ein ETF in idealer Weise, denn der Investor kauft mit einem Trade gleich ein ganzes Anleiheportfolio“, erläutert der ETF-Experte.
In dem zugrunde liegenden Index sind 75 Anleihen von Emittenten enthalten, deren Hauptsitz in Euroland, der Schweiz, Großbritannien, Schweden, Norwegen und Dänemark ist. Qualifiziert sind nur vorrangige Schuldentitel mit einem festen Kupon. Um die Risiken zusätzlich zu begrenzen, wurden weitere Vorkehrungen getroffen. Pro Emittent sind nur zwei Titel erlaubt, die Gewichtung pro Emittent ist auf 7,5 Prozent begrenzt. Für Emittenten aus dem Finanzsektor gelten erhöhte Anforderungen. Sie müssen mindestens ein Rating von A- aufweisen, während andere Emittenten auch mit einer Beurteilung von BBB- berücksichtigt werden können. „Damit entsprechen wir dem Bedürfnis nach erhöhter Sicherheit als Folge der Finanzkrise“, betont ETFlab-Geschäftsführer Fehrenbach. Generell darf die Emission der Schuldentitel im Index nicht länger als drei Jahre zurückliegen. Berücksichtigt werden Restlaufzeiten von 1,5 bis 10,5 Jahre.
Der ETF bildet den Index voll replizierend nach, d. h. die Original-Wertpapiere sind in dem nach UCITS III richtlinienkonformen Sondervermögen enthalten. Aktuell haben fast 89 Prozent der enthaltenen Papiere ein Rating von A oder besser. Von den Ländern sind am stärksten die Niederlande (29 %), Frankreich (16 %) und Großbritannien (13 %) gewichtet. Die aktuelle Branchenaufteilung berücksichtigt vor allem Banken (49 %), Versorger (16 %), Automobile sowie Telekommunikation (jeweils 8 %). Die durchschnittliche Restlaufzeit liegt bei 4,6 Jahren mit einer Rendite von 3,4 Prozent. Mit einer Gesamtkostenquote (TER) von 0,20 Prozent zählt der neue Fonds zu den preiswertesten unter den Corporate-Bond-ETFs weltweit. Der Handel wird am 3. März im XTF-Segment der Deutschen Börse aufgenommen.
Source: ETFLab
Dow Jones Index Data Monthly Report: Europe Edition
March 3, 2010--Index Data Monthly Report: Europe Edition Report from Dow Jones is now available.
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Source: Dow Jones Indexes
New Turbo Warrants on the Spanish Stock Exchange
It is Société Génèrale’s first issue of this product
March 3, 2010--The Spanish stock exchange will today list the first 10 Turbo Warrants issued by SOCIÉTÉ GÉNÉRALE all of which are linked to the IBEX 35® index. This issue completes the range of products offered by the financial firm, which comprises warrants and inline warrants.
Turbo Warrants started trading on the Spanish stock exchange in 2007. The main variable that determines the price of a Turbo is the trend followed by the asset to which it is linked and its operation and functioning are simple.
These products offer the possibility of bringing forward the expiry date with respect to that set in the terms of the issue depending on a predetermined barrier level. When the price of the underlying asset hits or exceeds the barrier level the expiry date for the Turbo Warrant is brought forward. The issue’s barrier levels range from 8,000 to 12,000 basis points of the IBEX 35®.
The number of warrants listed in the first two months of the year reached 1,402, up 30% from the same period a year earlier. Trading volumes in February on the warrants and certificates market came in at €124 million, up 25% from January. The number of trades in February was 31,254, up 28% from the previous month.
Source: Bolsa de Madrid
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