Thomson Reuters-Monday Morning Memo: Review of the European ETF Market, January 2018
February 19, 2018--The promoters of ETFs enjoyed for January the highest monthly net inflows ever. The assets under management in the European ETF industry (€652.9 bn) increased for January, up from €632.5 bn at the end of December 2017.
The increase of €20.4 bn for January was driven by net sales (+€12.5 bn), while the performance of the underlying markets contributed €7.8 bn to the assets under management in the ETF segment.
With regard to the overall number of products, it was not surprising that equity funds (€464.3 bn) held the majority of the assets, followed by bond funds (€150.2 bn), commodity products (€19.0 bn), "other" funds (€6.6 bn), money market funds (€2.8 bn), mixed-asset funds (€0.7 bn), and alternative UCITS products (€0.4 bn).
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Source: Thomson Reuters
Euro area investment fund statistics: fourth quarter of 2017
February 19, 2018--In the fourth quarter of 2017 the outstanding amount of shares/units issued by investment funds
other than money market funds was €11,212 billion, which is €282 billion higher than in the third
quarter of 2017.
Investment funds other than money market funds increased their holdings of both equity and
debt securities issued by the rest of the world.
Holdings of equity issued by euro area residents
increased as well, albeit at a weaker pace. At the same time, holdings of debt securities issued
by euro area residents remained largely unchanged.
Equity funds registered an inflow of €58 billion in the fourth quarter of 2017, and mixed funds experienced an inflow of €45 billion.
The outstanding amount of shares/units issued by money market funds was €1,144 billion, €10 billion lower than in the third quarter of 2017.
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Source: ECB
Vanguard creates new European stewardship team
February 18, 2018--Vanguard is to establish a new European stewardship team in a push by the world's second largest asset manager to drive up corporate governance standards across Europe.
The creation of the new London team follows mounting criticism of Vanguard for failing to use its clout as one of the world's largest...
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Source: FT.com
Mifid drives ETF trading on to platforms
February 16, 2018--Best execution rules push Tradeweb ETF volumes up 32%, but smart order routers may alter trend
New European market rules have triggered a surge in trading volumes of exchange-traded funds on platforms, but ETF market-makers believe this sudden dominance will be short-lived.
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Source: Risk.net
New UBS Global Asset Management equity index ETF with focus on sustainability launched on Xetra Equity index ETF provides worldwide access to companies with high ESG rating
February 16, 2018--A new exchange traded fund issued by UBS Global Asset Management has been tradable on Xetra and Börse Frankfurt since Friday.
The new equity index ETF enables investors to participate in the performance of companies around the world that meet strict sustainability criteria.
The reference index comprises the shares of large and medium-sized companies from 23 industrialised countries with particularly high environmental, social and governance (ESG) ratings, and excludes companies whose products have negative social or environmental effects. The weighting is limited to five percent per index component.
Name: UBS ETF-MSCI World Socially Responsible UCITS ETF (USD) A-acc
Asset class: equity index ETF
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Source: Deutsche Börse Cash Market
Flow Traders releases January 2018 ETP market volumes
February 16, 2018-- Flow Traders N.V. ("Flow Traders") (Euronext: FLOW), today releases the monthly ETP (Exchange Traded Products) market data for the month January 2018. This refers to general market data only.
In January 2018, the total Global ETP Assets under Management (AuM) grew to US$ 5,052bn from US$ 4,758bn in December 2017 (+6.2% month-on-month, source: BlackRock ETP Landscape January 2018).
That translates into a total Global ETP AuM in euro terms of € 4,055bn in January 2018 versus € 3,962bn in December 2017, with an EUR/USD FX rate of 1.24575 (rate end January 2018).
The average VIX for the month of January reached 10.99 (versus 10.17 in December), with an intraday low of 8.92 (versus 8.90 as a low in December) and an intraday high of 15.42 (versus 14.58 in December) (Source: Bloomberg).
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Source: Flow Traders N.V.
Neuer Aktienindex-ETF mit Fokus auf Nachhaltigkeit von UBS Global Asset Management auf Xetra gestartet
16.Aktienindex-ETF bietet weltweiten Zugang zu Unternehmen mit hohem ESG-Rating
Seit Freitag ist ein neuer Exchange Traded Fund des Emittenten UBS Global Asset Management über Xetra und Börse Frankfurt handelbar.
Mit dem neuen Aktienindex-ETF erhalten Anleger die Möglichkeit, an der Wertentwicklung von Unternehmen weltweit zu partizipieren, die strenge Nachhaltigkeitskriterien erfüllen. Der Referenzindex umfasst Aktien großer und mittlerer Unternehmen aus 23 Industrieländern mit besonders hohem Umwelt-, Sozial- und Governance-Rating (ESG-Rating) und schließt Unternehmen aus, deren Produkte negative soziale oder ökologische Auswirkungen haben.
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Source: Deutsche Börse Cash Market
Former LGIM and Vanguard managers launch ETF platform
February 16, 2018--Market Beta is designed to help asset managers who lack the scale or expertise launch ETFs in the UK.
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Source: citywire.co.uk
IMF-Turkey: Staff Concluding Statement of the 2018 Article IV Mission
February 16, 2018--Following a slowdown in activity in 2016, growth recovered sharply last year with the help of policy stimulus and favorable external conditions. Such has been the strength of the recovery that the economy now faces signs of overheating: a positive output gap, inflation well above target, and a wider current account deficit.
This increases Turkey's potential exposure to changing global conditions and underscores the need to address vulnerabilities. To lower internal and external imbalances, staff recommends a recalibrated policy mix-further monetary tightening is warranted, as is careful management of fiscal and quasi-fiscal policies, as well as associated contingent liabilities. Macroprudential policies need to be squarely focused on maintaining financial stability and adequate buffers. Targeted structural reform implementation would underpin growth.
Recent developments, outlook and risks
1. Growth was very strong last year, with some moderation expected in 2018. In 2017, a sizeable credit impulse-driven by state loan guarantees-and fiscal policy supported the economy, at a time when domestic demand seemed anemic.
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Source: IMF
Lyxor-Good US macro news is now bad news for markets
February 16, 2018--The equity market
sell-off in early February has shown us that concerns about rising
inflation and bond yields have the potential to reverse the equity bull market of 2017.
From an economic standpoint, inflation
remains low and long-term bond yields
shouldn't rise too much at this stage of the cycle. Neither do we expect the Fed to
become more hawkish.
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Source: Lyxor
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