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European ETF AUM Hit All Time High
Latest data from the ETF Research and Implementation Strategy team at Barclays Global Investors reveals European ETF Assets
have been pushed to an all time high of US$192.1 bn at end August 2009, driven by emerging market and fixed income ETFs.
September 17, 2009-European ETF assets have hit an all time high of US$192.1 bn at the end of August 2009 which is 5.3% above
the previous all time high of US$182.5 bn set in July 2009, and 20.2% above the high of US$159.9 Bn set in July 2008, according to the
latest figures from Barclays Global Investors. The European ETF industry had 751 ETFs with 1,889 listings, assets of US$192.1 bn from 33
providers on 19 exchanges at the end of August 2009. YTD assets have risen by 34.7% which is more than the 21.6% rise in the MSCI Europe
Index in US dollar terms.
Contrasting this to the latest data from Lipper FMI, net inflows to mutual funds (excluding ETFs) were US$60.2 Bn, while net sales of ETFs
were US$15.2 Bn during the first six months of 2009.
Emerging Market equity ETFs have seen the largest increase in assets growing by US$8.8 Bn YTD to reach US$16.3 Bn at the end of August 2009.
ETFs tracking European countries was the next most popular category in terms of absolute US$ growth, rising by US$8.4 Bn to reach US$34.8 Bn, followed by Fixed Income ETFs growing by US$6.1 Bn to reach US$46.9 Bn at the end of August 2009.
Deborah Fuhr, Global Head of ETF Research & Implementation Strategy at BGI said, “The net inflows of US$15.2 Bn in the past six months
shows demand for ETFs is still growing as clients view ETFs as useful tools to help them implement many types of exposures”.
European ETF assets by type of exposure, ranked by AUM, as at end August 2009
Deutsche Börse announces price model for the pan-European trading segment
Attractive transaction fees for European equities trading/
Special incentive model for supplying liquidity/
Efficient clearing via Europe’s largest central counterparty, with
settlement in the respective domestic market
September 17, 2009--Deutsche Börse is promoting a price model for its pan-European trading
segment
“Xetra International Market” (XIM) that offers a considerable incentive to
supply liquidity. Xetra participants that place orders and achieve a
certain
percentage of the trading volume in their role as liquidity providers will
receive payment of 0.36 basis points (equivalent to 0.0036 percent) on the
volume executed. For all other orders executed, transaction fees amounting
to 0.12 basis points will be incurred.
0.06 basis points will be payable for
clearing positions.
Of all the trading venues in Europe, Xetra International Market therefore offers the lowest prices for the supply and demand of liquidity. Furthermore, XIM is the only trading platform in Europe offering purely value-based pricing for trading and clearing, i.e. there are no minimum fees.
The new trading segment uses the trusted Xetra infrastructure. Xetra International Market customers therefore benefit not only from the efficiency of one of the leading infrastructures for algorithmic trading on the cash market but also from the security, transparency and integrity that a regulated, monitored and neutral exchange platform with associated clearing provides.
Transactions executed on Xetra International Market will be efficiently offset via Eurex Clearing, Europe’s largest central counterparty. Eurex Clearing is a global leader in risk management standards and eliminates counterparty risk.
Clearstream forms the interface between Eurex Clearing and the domestic markets enabling it to use the latter’s settlement liquidity.
“The top market quality, the price model aimed at competition and the low set-up costs for Xetra participants will provide an excellent springboard for XIM in pan-European blue-chip trading. As hardly any additional costs will be incurred when operating the system, the new trading segment will enable Deutsche Börse to achieve economies of scale on Xetra and in its clearing house. Thus, we are expecting a sustainable business model for Xetra International Market”, said Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the cash market.
Xetra International Market will be launched in several stages. Trading and clearing participants, as well as vendors, have been in the simulation phase for the new segment since the beginning of September. In line with the starting phase the new segment will be up and running as of November, when the entire process chain, right up to settlement in the respective domestic market, will be available.
Until mid January 2010 each of the European markets (France,
Netherlands, Belgium, Spain, Italy and Finland) will successively be
activated.
KFH-Turkey gets Shariah banking license for Germany
September 17, 2009--Islamic lender Kuwait Finance House (KFH) has said its Turkish unit has received the necessary licence from German authorities to open a financial services branch in Mannheim, Kuna has reported.
The licence lets KFH-Turkey provide Shariah-compliant banking services in Germany. The Mannheim branch aims to provide financial services to a growing number of customers looking for Islamic products.
DB Index Research -- Weekly ETF Reports -- Europe
September 16, 2009--Highlights
ETF Volume
Exchange based Equity ETF turnover declined by 1.2% on the previous week. Daily turnover for the previous week was E1.1bn. European fixed income ETF turnover declined by 1.2% to E185.7m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, db x-trackers II EONIA TR Index ETF has the highest daily turnover of E19.71m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E63.86m.
here was one new listing in the last week. BNP Paribas listed one new fixed income ETF on the NYSE Euronext Paris.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E346m accounting for 31.15% of total ETF turnover, followed by European Regional ETFs with total turnover of E309m with 27.82% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E135m across the nine listed products and accounting for 12.2% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 14.6% of turnover trading E161m per day with liquidity split across 25 ETFs and 41 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.0% of total turnover. The Euronext NextTrack platform has 21.2% market share. The LSE’s combined Italian Exchange and London market share is now 24.4%.
Assets under Management (AUM)
Total European Equity related AUM rose by 1.7% to E96.4bn during last week. AUM for DJ Euro STOXX 50 ETFs was E19.3n accounting for 20.0% of total European AUM. Fixed Income ETF AUM remained at about the same level at E32.7bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E5.0bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.1bn.
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ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows, week ending 11-Sep-09
September 16, 2009--This is a new weekly publication covering European Sector ETF Net Flows, analysing all ETFs listed in Europe tracking the DJ STOXX 600 sectors.
Highlights:
Last week saw US$97.0 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Telecommunications with US$41.6 Mn and Health Care with US$41.4 Mn while Banks experienced net outflows of US$53.8 Mn.
Year-to-date, Utilities has been the most popular sector with US$173.9 Mn net new assets, followed by Basic Resources with US$166.3 Mn net inflows. Retail sector ETFs have been the least popular with US$68.4 Mn net outflows YTD.
We hope you find this publication of interest. If any of your colleagues would like to subscribe please have them send their name, title, company name, postal address, email and phone to ETFresearch@barclaysglobal.com
LSE swoop shows strength of the subcontinent
September 16, 2009--When the world’s biggest exchanges go hunting for tech-savvy companies to help upgrade their trading systems, the last place they tend to look is Sri Lanka, a country known more for the civil war that has ravaged it for more than two decades.
But that is where the London Stock Exchange on Wednesday made a $30m commitment, snapping up a little-known – but rapidly growing – company called MillenniumIT.
Barclays creates $12bn credit vehicle
September 16, 2009--Barclays has unveiled a plan to sell more than $12bn of risky credit assets to a company it has created to try to reduce the risk of further writedowns.
Protium Finance, a partnership of so-far undisclosed investors , will buy the securities using a $12.6bn loan extended by the bank. Protium will be managed by Stephen King, the head of mortgage trading at Barclays, and Michael Keeley, a member of the Barclay’s Capital management committee.
New db x-trackers strategy ETFs launched on Xetra
September 16, 2009--Four additional db x-trackers index funds from Deutsche Bank‘s ETF offering have been admitted to trading on Xetra®.
ETF name: db x-trackers DJ STOXX 600 Basic Resources Short Daily ETF
Asset class: Strategy ETF
ISIN: LU0412624354
Management fee: 0.5 percent
Distribution policy: non-distributing
Benchmark: Dow Jones STOXX© 600 Basic Resources Short Index
ETF name: db x-trackers DJ STOXX 600 Industrial Goods Short Daily ETF
Asset class: Strategy ETF
ISIN: LU0412624511
Management fee: 0.5 percent
Distribution policy: non-distributing
Benchmark: Dow Jones STOXX© 600 Industrial Goods Short Index
ETF name: db x-trackers DJ STOXX 600 Utilities Short Daily ETF
Asset class: Strategy ETF
ISIN: LU0412624867
Management fee: 0.5 percent
Distribution policy: non-distributing
Benchmark: Dow Jones STOXX© 600 Utilities Short Index
ETF name: db x-trackers DJ STOXX 600 Insurance Short Daily ETF
Asset class: Strategy ETF
ISIN: LU0412624602
Management fee: 0.5 percent
Distribution policy: non-distributing
Benchmark: Dow Jones STOXX© 600 Insurance Short Index
The four new db x-trackers ETFs track the reverse performance of the supersectors Basic Resources, Industrial Goods, Utilities and Insurance from the Dow Jones STOXX© 600 index family. For the first time, investors will be able to participate in falling performance of leading companies from the commodities, industrial goods, supply goods and insurance sectors based in Western Europe.
The product offering in Xetra’s XTF segment currently comprises 485 exchange-traded index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of over €9 billion, makes Deutsche Börse’s XTF segment Europe’s leading trading venue for ETFs.
The Euro Turns 10: How The Next 10 Years Will Shape The Euro Zone
September 15, 2009-The global economic crisis is expected to further pan-European interests as the region's financial markets gain strength in 2010 and the euro maintains its status as a major world currency, said leading financial experts at a panel discussion organized by STOXX Limited.
Economic crisis should lead to greater demand for pan-European solutions, as opposed to national ones, in years to come "The global financial crisis has defined the issues that will be among those at the very top of the European Union agenda for the foreseeable future. First, better EU regulation of the financial sector, including the 'parallel banking system,' will have to be fashioned. Further, better micro- and especially macro-prudential supervision will have to be designed and implemented, with a special emphasis on common EU, if not world, standards," said Dr. Giuseppe Ammendola, an international business economist and adjunct professor, New York University.
SocGen bankers quit to launch hedge fund
September 15, 2009--Thirty senior bankers from Société Générale’s alternative asset management team have left to set up their own hedge fund business with backing from an American private equity firm.
The team – including the head of SocGen’s $12.7bn global hedge funds business,
