Lyxor-Informed Investor: Money Monitor March 2019-European ETF flows slow again
April 15, 2019--Net new assets in the European ETF market decelerated in March to €5.2bn from the €13.7bn we saw in February. Equity inflows collapsed (-€1.7bn) after strong outflows from developed market equities (-€2.1bn) and lesser inflows into emerging markets equities (€0.4bn). At the same time, fixed income ETFs enjoyed massive inflows (€5.8bn) for a fourth consecutive month driven by developed corporate bonds and emerging market government bonds.
Commodity ETFs flows, which had turned ever so slightly positive last month, resumed their negative trend.It was another positive month for Smart Beta ETFs with €1.1bn of inflows, mostly on the quality factor. Lastly, ESG flows (€406m) were far lower than in February (€1.1bn) but are still positive on every one of the ESG categories.
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Source: Lyxor
Broker research spending slashed after Mifid II
April 13, 2019--Budgets 'down by an average of 30 per cent' but variations are significant
The second Markets in Financial Instruments Directive, known as Mifid II, which came into effect last year, forced asset managers to separate the cost of research from trading commissions paid to brokers, a process known as unbundling.
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Source: FT.com
Brexit: EU summit agrees delay until 31 October
April 11, 2019--EU leaders agreed late Wednesday evening at their special summit to give the United Kingdom an extension of Article 50 until the end of October 2019.
Their decision was taken in agreement with the UK.
"Such an extension should last only as long as necessary and, in any event, no longer than 31 October," said the Council Conclusions. "If the withdrawal agreement is ratified by both parties before this date, the withdrawal will take place on the first day of the following month."
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Source: eubusiness.com
"Largely positive" results for European ETF flows in Q1
April 11, 2019--Inflows into European ETFs were "largely positive" in the first quarter, despite a minor slowdown in March, according to figures from Amundi Asset Management.
Reaching &euro:25 billion, these new net flows were primarily driven by fixed income products, the report found.
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Source: funds-europe.com
Investors flee UK stock funds on Brexit worries
April 11, 2019--Investors withdrew $304.5m from funds that invest in UK shares for the week ending Wednesday, extending the total for the year past $1bn and to $24.8bn since the vote three years ago, according to EPFR Global data.
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Source: FT.com
ESMA-Q&A on Prospectus Related
April 11, 2019--ESMA has published the ESMA- Q&A on Prospectus Related Topics.
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Source: ESMA
FTSE Russell-Four factors fueling Europe's ETF fixed income surge
April 11, 2019--ETF usage among institutional investors in Europe has been on the rise, and fixed income ETFs have been a key driver behind this growth. European institutions surveyed in a recent Greenwich Associates study indicated that fixed income ETFs as a percentage of their portfolios more than doubled from 2017 to 2018.1
As fixed income ETF inflows in Europe continue to pick up steam, we've identified four primary reasons behind this trend.
Reason 1: European institutions are becoming more comfortable with the ETF structure
The rapid growth of ETFs has given rise to many ETF misconceptions. One such myth is that ETF trading contributes to market volatility. However, more European investors are discovering that quite the opposite is true. In fact, a growing number of them have found ETFs to be useful tools during times of volatility, particularly in fixed income markets.
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Source: FTSE Russell
EBA updates list of diversified indices
April 11, 2019--The European Banking Authority (EBA) updated today the list of diversified indices, which was originally published in December 2013. The list is part of the implementing technical standards (ITS) drafted to calculate the capital requirements for position risk in equities according to the standardised rules. The list was updated according to the procedure and methodology laid down in the ITS and submitted to the European Commission for endorsement.
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Source: ESMA
ETFGI reports assets invested in the European ETF and ETP industry reached a new record US$859.51 billion at the end of March 2019
April 11, 2019-- ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Europe gathered net inflows of US$6.10 billion in March, bringing year-to-date net inflows to US$31.59 billion, more than the US$27.27 Bn gathered at this point last year.
Assets invested in the European ETF/ETP industry finished the month up 1.09%, from US$850.28 billion at the end of February, to US$859.51 billion, according to ETFGI's March 2019 European ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
April 11th marks the 19th anniversary of the listing of the first ETF in Europe
Assets invested in the European ETF/ETP industry reach $859.51 Bn in March 2019, the highest on record.
Assets invested in the European ETF/ETP industry have risen 11.95% year-to-date.
54th consecutive month of net inflows into ETFs/ETPs listed in Europe.
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Source: ETFGI
Solactive registered as a Benchmark Administrator under the European Benchmarks Regulation (BMR)
April 10, 2019--Solactive is pleased to announce that it is registered as a Benchmark Administrator under the European Benchmarks Regulation (BMR). This event enables the company to provide superior indexing services throughout Europe for years to come.
Solactive successfully registered nearly 1,700 indices with the German Federal Financial Supervisory Authority (BaFin).
Published in the ESMA Benchmark Administrators Register on 9 April 2019, Solactive achieved registration well before the end of the transitional period of 1 January 2020. The registration underlines Solactive’s commitment to high standards in benchmark administration in order to foster the quality, reliability, and integrity of its benchmarks.
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Source: Solactive
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