Flow Traders releases December 2018 ETP Market statistics
January 15, 2019--Flow Traders N.V. ("Flow Traders") (Euronext: FLOW), today releases the monthly ETP (Exchange Traded Products) market statistics for December 2018. This refers to general market observations only.
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Source: Flow Traders
New L&G ETFs on Xetra with focus on sustainability
January 15, 2019--Since Tuesday five new Exchange Traded Funds from L&G are tradable via Xetra and Bö;rse Frankfurt.
The five new equity ETFs give investors the opportunity to participate in the performance of large and medium-sized companies from a) various industrialised countries in the Pacific region excluding Japan, b) European industrialised countries excluding Great Britain, c) Japan, d) USA or e) worldwide.
Excluded are companies active in pure coal mining, in the production of controversial weapons or which have violated at least one of the fundamental principles of the UN Global Compact over a continuous period of three years. The UN Global Compact is a catalogue of internationally accepted standards on human rights, labour, the environment and corruption.
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Source: Deutsche Börse Group
British Parliament rejects Theresa May's Brexit deal, leaving withdrawal from E.U. and prime minister's political future in doubt
January 15, 2019--With just 73 days to go until Britain is scheduled to leave the European Union, lawmakers Tuesday overwhelmingly rejected-by a vote of 432 to 202-the withdrawal deal painstakingly negotiated between Prime Minister Theresa May and her European counterparts.
The landslide vote was pure humiliation for a British leader who has spent the past two years trying to sell her vision of Brexit to a skeptical public, and her failure raised serious questions about how- and if-Britain will leave the E.U. as promised on March 29.
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Source: Washington Post
Invesco joins low-cost ETFs arms race with US funds
January 14, 2019--Invesco has stepped up its efforts in Europe's increasingly competitive low-cost ETFs market with the launch of a range of US Treasury Bond ETFs with ongoing fund charges of 0.6% to 0.10%.
The funds-which cover 1-3 years, 3-7 years, 7-10 years and a broad, full maturity spectrum-will be available to trade in US dollar or GBP terms on the London Stock Exchange.
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Source: citywireselector.com
Tabula Launches European High Yield ETF
January 14, 2019--New European Credit UCITS ETF offers liquid exposure to 75 Crossover credits
Unlike traditional cash bond funds, exposed to minimal interest rate risk
Equal weighting avoids large sector biases, focusing mainly on corporates
Can be used for strategic allocations or tactical positions
European fixed income ETF provider Tabula Investment Management Limited has launched the Tabula European iTraxx Crossover Credit UCITS ETF offering passive exposure to European sub-investment grade corporate credit with limited interest rate risk compared to traditional bond indices. The ETF is the first directly replicating UCITS ETF giving beta exposure to Credit Default Swaps (CDS), in this case high yield credits, through positions in the European iTraxx Crossover index.
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Source: Tabula Investment Management Limited
Brexit spells trouble for Europe's 660tn Euros derivatives market
January 14, 2019--Reclassification of futures contracts could push up margin requirements
As investors wait for the UK's vote on the Brexit withdrawal agreement, banks and brokers have already accepted that, from March 29, Europe will be split into two distinct capital markets.
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Source: FT.com
EU approves new rules on occupational pensions
January 14, 2019--The EU agreed new rules for work pension funds Thursday, in a bid to improve the way they are governed and to enhance clarity in the information that is provided to pension savers.
The EU Parliament, Council and the Commission agreed on a proposal for a revised Directive on occupational pension funds, known as IORP2.
The Commission says the directive will improve the way pension funds are governed, make it easier for pension funds to conduct cross-border business and provide clear information to pension scheme members and beneficiaries. These rules will make it easier for pension funds to invest in long-term assets, strengthening the role they can play in the Capital Markets Union.
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Source: eubusiness.com
Monday Morning Memo: ETFs- Another Strong Year Ahead
January 14, 2019--A view on the overall fund flows in mutual funds for the year 2018 in Europe revealed it was rather a tough year for the fund industry. A more detailed view shows there were different trends driving fund flows.
The year started with net inflows in all product categories over the course of the first quarter, followed by rather sluggish inflows in mutual funds over the summer and large outflows from these products in the fourth quarter.
Conversely, ETFs enjoyed another good year with inflows in every single month of 2018. Even as some market observers saw a slowdown in the trend towards ETFs, from my point of view even compared to 2017 lower flows in 2018 are a clear commitment of investors to ETFs since it looks like ETFs have once again become the tool of choice for investors in shaky markets.
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Source: Refinitiv
New WisdomTree-ETF on Xetra with focus on artificial intelligence
January 11, 2019--Since Friday, a new Exchange Traded Fund of the issuer WisdomTree is tradable via Xetra and Börse Frankfurt.
The WisdomTree Artificial Intelligence UCITS ETF gives investors the opportunity to participate in the performance of companies that are active in the field of artificial intelligence and are classified by the Consumer Technology Association (CTA) as Enablers, Developers or Enhancers.
The Benchmark Index uses the AI Intensity Rating, which measures the perceived level of a company's exposure to the AI industry as an Enabler, Developer, or Extender. Companies in the top 15 of the CTA intensity rating in each category are included in the index. The Benchmark Index uses a modified equal weighting methodology aimed at the following weight distribution by category: Enablers 40 percent; Developers 50 percent; and Expanders 10 percent.
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Source: Deutsche Börse Group
New iShares ETF on investment grade bonds from companies with good sustainability ratings
January 11, 2019--Since Friday, a new Exchange Traded Fund of iShares is tradable via Xetra and Börse Frankfurt.
With the iShares USD Corp Bond SRI 0-3yr UCITS Hedged (Acc) ETF, investors can participate in the performance of US dollar-denominated fixed-income bonds.
These bonds are issued by companies worldwide that have a comparatively high ESG rating in their economic sector and investment grade status. The bonds have a maximum maturity of three years and must have a minimum outstanding amount of $300 million. However, companies whose products have a negative social or environmental impact are not included.
The ETF uses a hedging strategy to minimise the exchange rate risk between the base currency of the bonds and the euro.
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Source: Deutsche Börse Group