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The game is not over for the services directive!
January 13, 2010--On 28 December 2009, the Services Directive entered into force after three years of transposition into the various national legal orders. This is just the first important step towards realisation of the single market for services in Europe. 2010 will be a decisive year to judge through the mutual evaluation process whether theory in laws turns into tangible benefits for services providers and consumers so much needed in the current economic downturn.
The Commission will play a key role in ensuring a robust and high-quality transposition and even enforcement. Equally important is to inform and raise awareness among citizens and particularly SMEs about those expected benefits. In this regard, the Commission has made available extensive information material.
Pension funds tap growing prospects for emerging markets
January 13, 2010--Two European pension funds are pursuing the predicted surge of interest in emerging markets equity investments and have launched searches for suitable EM managers, using IPE-Quest.
Details of QN1073 reveal a Swiss pension fund may invest CHF400m-600m (€271m-€407m) in passive long-only emerging marketing equities, benchmarked to the MSCI EM Total Return local index.
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Source: IP&E
ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows, week ending 08-Jan-10
January 13, 2010--Last week saw US$1.0 Mn net outflows from DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Basic Resources with US$131.9 Mn and Oil & Gas with US$29.3 Mn while Food & Beverage experienced net outflows of US$104.1 Mn.
Year-to-date, Basic Resources has been the most popular sector with US$131.9 Mn net new assets, followed by Oil & Gas with US$29.3 Mn net inflows. Food & Beverage ETFs have been the least popular with US$104.1 Mn net outflows YTD.
The assets invested in the ETFs are greater than the open interest in the corresponding futures contract in all 19 sectors.
Visit Blackrock for more information. Stock market most profitable investment read more
New Exchange Traded Funds (ETFs) on SIX Swiss Exchange
UBS AG will perform the market making for these funds. NYSE Euronext European ETF Activity - December 2009 * The median spread of all listed ETF s was 34.36 bps in December 2009, down from 71.03 bps in December 2008. for more info Optimized Return and Security-ETFlab offers exchange-traded bond funds for Jumbo bonds
A maximum of up to 30 so-called Jumbo bonds qualifies for the underlying index. They must have an outstanding volume of at least Euro 1.0 billion and a residual maturity between 1.5 and 10.5 years. In order to guarantee high liquidity, only papers that have been in the market for maximally four years since their issue will be considered.
Due to experiences made during the financial crises there are further security requirements. The maximum number of bonds by which an issuer is represented in the index may not exceed four, and the maximum weight of an issuer has been restricted to 15 percent. Any issuer must have a rating of at least BBB, whereby the weight of the bonds with this rating must not account for more than a total of 50 percent in the index. There are quarterly reviews as to whether the papers contained in the index meet these criteria. “This is to avoid risk concentration and to ensure that trade goes on smoothly even in difficult periods”, Andreas Fehrenbach explains.
The new exchange traded fund follows the approach of full replication, i.e. the respective papers are bought into the fund directly. In the past, the duration period was constantly between 3.5 and 4 years. Trade on the German stock exchange will start on January 12, 2010. Rendite und Sicherheit optimiert-TFlab bietet Renten-ETF auf Jumbo-Pfandbriefe
Für den zu Grunde liegenden Index qualifizieren sich bis maximal 30 so genannte Jumbo-Pfandbriefe. Sie müssen ein ausstehendes Volumen von mindestens 1,0 Mrd. Euro und eine Restlaufzeit zwischen 1,5 und 10,5 Jahren aufweisen. Um eine hohe Liquidität zu sichern, werden nur Papiere berücksichtigt, die höchstens vier Jahre seit Emission am Markt sind.
Aus den Erfahrungen der Finanzkrise gibt es weitere Sicherheitsanforderungen. Jeder Emittent darf nur mit höchsten vier Anleihen im Index vertreten sein und das maximale Gewicht eines Emittenten ist auf 15 Prozent beschränkt. Ein Emittent muss mindestens ein Rating von BBB aufweisen, wobei Anleihen mit diesem Rating insgesamt nur 50 Prozent Gewicht im Index ausmachen dürfen. Viermal jährlich wird überprüft, ob die im Index enthaltenen Papiere die Kriterien erfüllen. „So sollen Klumpenrisiken vermieden und sichergestellt werden, dass der Handel auch in schwierigen Phasen reibungslos läuft“, erläutert Andreas Fehrenbach.
Der neue Pfandbrief-ETF folgt dem Ansatz der vollen Replikation, das heißt, die entsprechenden Papiere werden direkt in den Fonds hinein gekauft. Historisch lag die Duration konstant zwischen 3,5 bis 4 Jahren. Der Handel an der Deutschen Börse wird am 12. Januar 2010 aufgenommen.
New ETFlab Bond Index ETF Launched on Xetra
The index tracks the market for German Jumbo Pfandbriefe (mortgage bonds) and comprises up to 30 liquid bonds with a minimum issue volume of 1 billion euros. A maximum of four Pfandbriefe per issuer can be included in the index. The maximum weighting per issuer is limited to 15 percent.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 550 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of 10 billion euros, makes Xetra Europe’s leading trading venue for ETFs. Treasury calls for more choice in business finance “The extraordinary events in credit markets over the past two years have shown that the continued availability of any single form of business finance cannot be taken for granted. Right across the world, firms that had relied on loans from banks to finance their operations found themselves in a very difficult situation when bank lending contracted.
“Here in the UK, our large corporations have had a great deal of success in accessing finance directly from credit markets with a surge in corporate bond issuances. Smaller firms, however, have not been able to similarly replace bank lending by directly tapping financial markets or non-bank financing.
“A more diverse funding market, where large and mid-size firms can go directly to markets or have options other than banks when they are looking for support, would clearly be an advantage to the UK economy, not just in economic slowdowns.”
The Treasury announced its plans to publish a discussion paper on non-bank lending channels in December’s Pre-Budget Report. Today’s document focuses on a range of issues relating to business finance including:
credit assessment and monitoring;
corporate transparency; transparency in the pricing of bank loans
UK investor preferences; non-bank loan markets and high yield bond markets.
The document attempts to identify barriers to the development of these alternative sources of finance. The Treasury is seeking feedback from interested parties, particularly the investor and business communities. To focus this, questions are identified throughout the document.
View the Discussion paper on developing non-bank lending channels for UK businesses If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: ETF Research and Implementation Strategy Team, Blackrock
January 12, 2010--Investors who directed their money toward the stock exchange in 2009 ended the year with an average 84.56 percent net profit, despite a shaky economy during the global financial crisis.
Data from the Turkish Statistics Institute (TurkStat) released yesterday revealed that the greatest income gained from financial instruments was obtained from the stock market, with a whopping 84.56 percent inflation-adjusted profit, with gold bullion, usually deemed one of the safest investments, trailing behind with a still abnormally high profit rate of 26.03 percent in 2009.
Source: Todays Zaman
January 12, 2010--Two new products have been listed in the Exchanged Traded Funds segment of
SIX Swiss Exchange, taking the total to 305 ETFs. The new funds are:
UBS Index Solutions - Gold (USD) ETF A
UBS Index Solutions - Gold (USD) ETF I
Source: SIX Swiss Exchange
January 12, 2010--European ETF activity highlights:
* At the end of December, NYSE Euronext had 449 ETF s with 497 listings from 15 issuers. NYSE Euronext ETF s cover more than 290 indices including an extended range of assets and strategies (Equity, Fixed Income, Commodities, Short, Leverage, etc…).
* In 2009, the number of ETF s increased by more than 29% compared to end of 2008. At the end of December, NYSE Euronext European markets had registered 107 ETF listings and 6 delistings for the year 2009.
* Daily average turnover in December 2009 remained stable at just over €263 Million, while the daily average number of trades continued the strong 2009 upward trend, increasing from 5 378 to 6 074, or 12.94%, compared to December 2008.
Source: NYSE Euronext
ETFlab iBoxx € Liquid Germany Covered Diversified-(ISIN: DE 000 ETF L35 9)
January 12, 2010--With the ETFlab iBoxx € Liquid Germany Covered Diversified, ETFlab Investment GmbH, the Munich specialist for exchange traded funds, provides access to the segment of the biggest and most liquid German covered bonds, also known as Jumbo Pfandbriefe. “The ETF allows investors to achieve more return than with a Government bond, without having to accept disadvantages as regards the security of the papers”, Andreas Fehrenbach, the managing director of ETFlab, points out. This is granted by the high requirements of the German Pfandbrief Act.
At the moment, 15 issuers with at least an AA rating are providing broad diversification of the fund. The return of the ETF is currently about 0.20% above the SWAP interest rate with an identical residual maturity. A nice result, which can be traced back, among others, to ETFlab’s consistent and lean fees policy. With an annual All-in-Fee of only 0.09 %, the ETFlab iBoxx € Liquid Germany Covered Diversified counts among the most favourable ETFs worldwide.
Source: ETFlab
ETFlab iBoxx € Liquid Germany Covered Diversified -(ISIN: DE 000 ETF L35 9)
12. Januar 2010. Der Münchener Spezialist für börsengehandelte Indexfonds, die ETFlab Investment GmbH, ermöglicht mit dem ETFlab iBoxx € Liquid Germany Covered Diversified Zugang zum Segment der größten und liquidesten deutschen Pfandbriefe, auch als Jumbo-Pfandbriefe bekannt. „Damit können Investoren mehr Rendite als bei einer Bundesanleihe erzielen“, hebt Andreas Fehrenbach, Geschäftsführer von ETFlab, hervor, „ohne Abstriche bei der Sicherheit der Papiere hinnehmen zu müssen.“ Dies ist durch die hohen Anforderungen des deutschen Pfandbriefgesetzes gewährleistet.
Momentan sorgen 15 Emittenten mit mindestens „AA“-Rating für eine breite Diversifizierung des Fonds. Die Rendite des ETF liegt derzeit um 0,20% über dem SWAP-Zinssatz mit identischer Restlaufzeit. Ein schönes Ergebnis, das unter anderem auf die konsequent schlanke Gebührenpolitik von ETFlab zurückzuführen ist. Mit einer jährlichen All-in-Fee in Höhe von nur 0,09 % zählt der ETFlab iBoxx € Liquid Germany Covered Diversified zu den günstigsten ETFs weltweit.
Source: ETFlab
January 12, 2010--Another new listed bond index fund issued by ETFlab Investment GmbH, a subsidiary of DekaBank Deutsche Girozentrale, has been tradable on Xetra since Tuesday.
ETF name: ETFlab iBoxx EUR Liquid Germany Covered Diversified
Asset class: Bond index ETF
ISIN: DE000ETFL359
Management fee: 0.09 percent
Distribution policy: distributing
Benchmark: Markit iBoxx EUR Liquid Germany Covered Diversified
Source: Deutsche Börse
January 12, 2010--Work to increase options for UK businesses in need of non-bank finance is the subject of a discussion document released by the Treasury today. The document seeks views on the barriers to more diverse financing for firms with the intention to introduce proposals for reform later in the year.
Financial Services Secretary to the Treasury, Paul Myners said:
Source: HM Treasury
