EDHEC-Risk's annual European ETF Survey highlights
March 21, 2014--ETF investors' positive outlook
EDHEC-Risk Institute has announced the results of the EDHEC European ETF Survey 2013, a comprehensive survey of 207 European ETF investors. The survey was conducted as part of the Amundi ETF & Indexing research chair at EDHEC-Risk Institute on "Core-Satellite and ETF Investment."
Among the key findings of the 2013 survey:
Satisfaction has remained at high levels across most asset classes. There have been increases in satisfaction for corporate bond, commodity, real estate and sector ETFs, but satisfaction rates for ETFs based on the most liquid ETF asset classes are far more consistent compared to those based on illiquid asset classes.
Product development within certain asset classes has driven increases in ETF usage, notably within the Real Estate (5.8 % increase), Hedge Fund (14.8% increase) and Infrastructure (14.8% increase) asset classes.
More than a quarter (28%) of respondents already use products tracking "smart beta" indices and more than an additional one-third of respondents (36%) are considering investing in such products in the near future.
Despite the past growth and increasing maturity of the ETF market, ETF investors are still looking to increase or at least to maintain their use of ETFs and have a more favourable outlook for their use of ETFs than for their use of alternative indexing products.
There is increasing interest among investors for development of ETFs based on alternative forms of indices, with 39% of investors interested in further development in ETFs based on smart beta indices.
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Source: EDHEC
Ossiam develops smart beta strategy for corporate bonds
March 20, 2014--Ossiam, a European provider of exchange-traded funds (ETFs), has developed a smart beta strategy for investing in corporate bonds.
The strategy will be the first risk-based credit strategy specifically designed to provide systematic long-only exposure to a liquid portfolio of investment-grade corporate bonds
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Source: etfstrategy.com
DeAWM targets UK retail market with platform push
March 20, 2014--Deutsche Asset and Wealth Management to list exchange traded funds (ETFs) and systematic Croci funds on platforms as part of UK retail expansion.
Deutsche Asset and Wealth Management (DeAWM) has embarked on a significant push into the UK retail market.
The firm had previously targeted mainly institutions and discretionary managers but is now targeting the retail space by looking to list its range on major platforms.
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Source: FT Adviser
Source bulking up for iShares challenge
March 20, 2014--Source, the exchange traded fund provider, has rented an additional floor of its London office as it makes an ambitious bid to challenge iShares in Europe.
The firm, in which private equity firm Warburg Pincus is completing the purchase of a majority stake, is expanding its office space as it plans several new London hires.
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Source: FT.com
HSBC scraps ETF stock lending
March 19, 2014--HSBC Global Asset Management has axed its securities lending programme for its physically replicated exchange traded funds.
The UK fund house stopped lending out stock on its 26 physical ETFs in December but did not publicly announce the move.
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Source: FT.com
HK's E Fund to list China stock fund in London
March 18, 2014--E Fund Management (Hong Kong) has listed Hong Kong's second bond exchange traded fund under China's offshore renminbi scheme while preparing to launch a China A-shares ETF in London as early as end-March.
The listing last week of the E Fund Citi Chinese Government Bond 5-10 Years Index ETF follows the February launch of the CSOP China 5-Year Treasury Bond ETF, the first bond ETF created through the renminbi qualified foreign institutional investor, or RQFII, scheme.
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Source: FT.com
Borsa Italiana-ETFstat February 2014
March 17, 2014--The Borsa Italiana-ETFstat February 2014 is now available.
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Source: Borsa Italiana
EDHEC-Risk Institute survey documents unmet institutional investor requirements for transparency of indices
March 17, 2014--Between August and November 2013, EDHEC-Risk Institute surveyed 109 institutional investors from across Europe, including Europe's largest pension and reserve funds, insurance and provident institutions and their asset management subsidiaries, to document their expectations and requirements with respect to index transparency and take stock of their perceptions of, and the extent of their support for, the main directions of the ongoing regulatory debate on indexing and financial benchmarks.
Among the key conclusions of the resulting study, "Index Transparency- A Survey of European Investors"Perceptions, Needs and Expectations":
Investors consider the provision of index transparency to be logical and indispensable. An overwhelming majority of respondents (85.2%) identify transparency as the best mitigator of conflicts of interest and only 12% view good index governance as sufficient to deal with these conflicts.
view the EDHEC Publication Index Transparency-A Survey of European Investors' Perceptions, Needs and Expectations
Source: EDHEC-Risk Institute
UCITS sales rise sharply while equity inflows fall
March 13, 2014--Net sales of UCITS rose sharply in January, but net inflows from equity funds suffered a loss.
According to figures released today, inflows from UCITS reached €71bn, a significant jump from €14bn in December.
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Source: International Adviser
Global AUM in Short & Leveraged ETPs at record $61bn as investors shun equities and buy bonds
March 13, 2014--The AUM of short & leveraged (S&L) ETPs reached a record $61.3 billion at the end of February 2014, a 3.7% rise from January and 6% rise YTD
S&L investors globally repositioned themselves bullishly in bonds and bearishly in equities. February saw record flows into long US debt ETPs, at $2.9 billion, which were countered by flows of $3.8 billion out of long equity ETPs
Europe saw short positions in German equity ETPs and bullish flows to broad European indices continued. In contrast, Italy, France and Sweden saw bearish flows, into short ETPs and out of long ETPs
S&L investors continue to be bullish on Japanese equities, with inflows of $451 million into long Japanese equity ETPs and global AUM in Japanese S&L ETPs is at a record $3.7 billion, of which 90% is in long leveraged ETPs
Natural gas has the strongest flows in ETCs for the 2nd month running, as S&L investors bought $311 million of natural gas ETCs, most of which was in short ETCs
AUM and trading volumes in BOOST ETPs also continue to reach new records as AUM has risen 83% this year. BOOST ETP experienced $23 million of inflows in February, the largest since Boost launched its first ETPs in December 2012
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Source: Boost
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