New Bank of England regulator warns of risks from U.S, rate hikes, dollar strength
March 17, 2015--The start of U.S. interest rate rises could inject volatility into global financial markets and create risks for Britain's financial stability, a new member of the Bank of England's top panel of financial regulators said on Tuesday.
Alex Brazier, who took a seat on the BoE's Financial Policy Committee on Monday, cited the normalisation of U.S. borrowing costs as one of the main global risks for markets.
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Source: Reuters
Lyxor-Monthly European ETF Market Trends-FEB 2015 in brief
March 16, 2015--European ETF market flows for February 2015 came very
close to last month's three-year record high. Net New Assets (NNA) over the month totalled EUR 10.4 billion. Total Assets under Management are up 17% vs. the end of 2014, reaching EUR 424
billion, and including a significant market impact (+6.8%*).
ETFs from all the main asset classes saw close to three-year record-high
inflows in a more risk-on environment
Equity ETF inflows were also close to January 2015’s three-year record high, standing at EUR 6.2 billion. The QE outlook in Europe drove investors to favour European equity ETFs, which collected more than EUR 5.3 billion. Conversely, US equity ETFs registered their first month of outflows in three years, totalling EUR 682 million.
Interestingly, in an environment characterised by reduced deflationary fears and a recovery of oil prices, emerging equity ETFs rallied with inflows of EUR 568 million. This follows two months of significant outflows and mainly concerned Indian ETFs and Global MSCI exposure.
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Source: Lyxor
Dax breaks 12,000 barrier
March 16, 2015--Germany's Dax index broke through and closed above the 12,000 barrier for the first time on Monday as German equities emerged as the main beneficiaries of the European Central Bank's quantitative easing programme.
The striking performance of eurozone shares, led by German blue-chips...
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Source: FT.com
Unscheduled free float adjustment in MDAX
March 16, 2015--Deutsche Börse AG has announced an unscheduled adjustment to the free float of DMG MORI SEIKI AG O.N. in MDAX.
The company's free float has changed by more than 10 percentage points due to a takeover by DMG MORI GmbH.
According to the rules in the Guide to the Equity Indices of Deutsche Börse AG, the company's free float will be adjusted from the current 75.67 percent to 56.94 percent. The change will become effective on 19 March 2015.
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Source: Deutsche Börse
Source JPX-Nikkei 400 UCITS ETF launched on Xetra
ETF provides access to the performance of Japanese stock corporations
March 16, 2015--A new equity index fund from the ETF offering issued by Source has been tradable on Xetra in Deutsche Börse's XTF segment since Monday.
Name: Source JPX-Nikkei 400 UCITS ETF (EUR hedged)
Asset class: equity ETF
ISIN: IE00BVGC6645
Total expense ratio: 0.20 percent
Distribution policy: accumulating
Benchmark: JPX-Nikkei 400 Net Total Return Euro Hedged Index
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Source: Xetra
Source launches currency-hedged share classes of its JPX-Nikkei 400 ETF
March 16, 2015--Source, a leading provider of Exchange Traded Products (ETPs), is pleased to announce the launch of USD-and EUR-hedged share classes of the Source JPX-Nikkei 400 UCITS ETF.
At the same time, Source has reduced the annual management fee on the unhedged ETF to 0.20% from 0.29%. The hedged share classes will also be available at the same 0.20% management fee.
The JPX-Nikkei 400 Index provides broad exposure across the large-cap, small-cap, growth and innovation segments of the Tokyo Stock Exchange, but unlike other benchmarks, focuses on companies with the potential to generate shareholder value.
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Source: Source
Assets invested in ETFs/ETPs listed in Europe reached a new record high of US$494 billion at the end of February 2015, According To ETFGI
March 15, 2015--Assets invested in ETFs/ETPs listed in Europe reached a new record high of US$494 billion at the end of February 2015, according to ETFGI's monthly ETF and ETP global insight report for February.
The European ETF/ETP industry had 2,109 ETFs/ETPs, with 6,420 listings, from 50 providers listed on 26 exchanges in 21 countries.
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Source: ETFGI
Norway takes action against closet-tracking
March 15, 2015--The Norwegian regulator has become the first in Europe to accuse a bank of mis-selling a "closet tracking" fund-products that charge high fees for active management but mimic an index.
The regulator has ordered DNB, Norway's largest bank by market capitalization, to lower the pricing of one of its best-selling equity funds or "bring it in line with the characteristics of active management". DNB must also inform its investors of the regulator's decision.
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Source: FT.com
Pension funds seek riskier, illiquid bets to make returns they need
March 14, 2015--British pension funds are coping with low bond yields and high share prices by seeking riskier investments, in a hunt for the returns they need to meet their obligations to pensioners.
Collectively managing at least 2.5 trillion pounds (2.50 trillion pounds), pension funds are reeling from six years of money-printing by central banks globally, which has depressed yields so much that some bonds even cost investors money to hold them.
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Source: Reuters
EU states agree position for final deal to regulate market benchmarks
March 13, 2015--European Union states agreed a common position on Friday to regulate market benchmarks, opening the door to negotiations on a final agreement with lawmakers on new rules to avoid more damaging market rigging scandals.
The draft law was proposed by the bloc's European Commission after banks were fined for trying to rig interest rate benchmarks. Since then lenders have also been fined for trying to manipulate currency benchmarks, prompting lawmakers to toughen up the draft law.
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Source: Reuters
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