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FundsNetwork unveils ETF range
June 14, 2012--FundsNetwork has announced a range of 50 exchange traded funds (ETFs) will launch on the platform for advisers next week.
The platform is launching an initial range of 50 physically-backed ETFs on 18 June, including index-linked trackers and commodity ETFs, from the following providers: Credit Suisse, ETFS, HSBC and iShares.
ETF trading on the platform will be carried out using J.P. Morgan's execution service. Advisers will also have access to an ETF information page.
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Source: Investment Group
ECB-Euro area securities issues statistics
June 13, 2012--The annual growth rate of the outstanding amount of debt securities issued by euro area residents decreased
from 4.8% in March 2012 to 4.4% in April. For the outstanding amount of quoted shares issued by euro area
residents, the annual growth rate was 1.4% in April 2012, compared with 1.5% in March.
New issuance of debt securities by euro area residents totalled EUR 903 billion in April 2012.
Redemptions stood at EUR 939 billion and net issues amounted to EUR 1 billion.1 The annual growth
rate of outstanding debt securities issued by euro area residents decreased from 4.8% in March 2012 to
4.4% in April
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Source: ECB
EU27 investment flows with the rest of the world
June 13, 2012--After significant falls in 2010, EU27 FDI1 (foreign direct investment) flows more than doubled in 2011. The EU27
FDI flows to the rest of the world (outflows) reached 370 billion euro in 2011, after having decreased from 316 bn in 2009 to 146 billion in 2010.
FDI into the EU27 from the rest of the world (inflows) were at 225 bn in 2011, after having declined from 234 bn in 2009 to 104 bn in 2010.
These figures2, published by Eurostat, the statistical office of the European Union, come from the first FDI results for 2011.
Half of investments from the rest of the world into the EU came from the USA in 2011 EU27 investments in all its major partners rose in 2011, except for Russia. In 2011, the main destinations of EU investments were the USA (111 bn), the Offshore financial centres3 (59 bn), Switzerland (32 bn), Brazil (28 bn), China (18 bn), Canada and India (both 12 bn). A disinvestment of 2 bn was recorded with Russia in 2011. In 2011, the main investors into the EU27 were the USA (115 bn), Switzerland (34 bn), the Offshore financial centres3 (16 bn), Canada (7 bn), Hong Kong (6 bn), Japan and Brazil (both 5 bn).
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Source: Eurostat
London Stock Exchange Group Directorate and Management Changes
June 12, 2012--London Stock Exchange Group plc ('LSEG') today announces changes to the LSEG Board and the Group's senior management team.
Chief Financial Officer
Doug Webb, Chief Financial Officer and Executive Director, will be standing down from the London Stock Exchange Group Board on 2 July and leaving the company on 31 July 2012.
Doug joined the Group in 2008 and has played a significant role in the recent strategic diversification, strong financial performance and growth of the organisation. Doug's strong risk and balance sheet management skills and financial oversight of Group acquisitions have been of immense value to the organisation.
The Group is very pleased to announce that David Warren will be joining the LSEG Board, taking over from Doug as Chief Financial Officer on 2 July. David will also be a member of the Executive Committee, responsible for all aspects of the Group's financial management, investor relations, property and facilities operations. David brings with him a wealth of executive experience, both in banking and in running exchanges. David previously spent 9 years as CFO at Nasdaq OMX, where he was responsible for all financial operations, including accounting, SEC and regulatory reporting, treasury, tax, financial planning and analysis, corporate finance and investor relations. Following this David spent two years as a Senior Adviser to the CEO of NASDAQ OMX. Prior to his time at Nasdaq OMX, David held a number of senior finance roles, including 7 years at CS First Boston.
Chris Gibson-Smith, Chairman of London Stock Exchange Group, commented:
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Source: London Stock Exchange
ECB-Financial Stability Review June 2012
June 12, 2012--The overall outlook for financial stability has remained very challenging in the euro area. Significant financial market turmoil experienced late last year gave way to some respite in the early months of 2012 following resolute Eurosystem measures, against the background of cumulative political action geared towards a comprehensive strategy to address the causes of the euro area crisis.
This relative calm, however, has proven to be fragile and renewed pressures have again emerged since April. Remaining vulnerabilities in the financial stability outlook demonstrate that there is no room for complacency in implementing needed adjustment, either on the part of governments or on that of banks. In particular, Member States should step up their initiatives to strengthen the fiscal and banking components of a robust monetary union.
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Source: ECB
DB - Equity Research-Weekly European ETF Market Monitor
June 12, 2012--The most recent issue of the European ETF Market Monitor is now available. The report includes key statistics on the European ETF market as well as global ETF market highlights.
The following link will be available for 90 days.
For more information, please click on the link for the full PDF. If you have any trouble viewing the link, copy and paste the link in a browser.
http://pull.db-gmresearch.com/p/611-7EC6/25406391/ETF_Research.pdf
Source: Christos Costandinides, European Head of ETF Research & Strategy, Deutsche Bank
European ETF Industry Overview from Lipper
June 12, 2012--Highlights of the presentation follow below:
Out of the 1,711 ETFs registered for sale in Europe, 241 funds may be on a so-called ETF "Death List", in other words under review for profitability reasons by fund promoters. These funds are older than 3 years, but have less than €100 million in assets.
The high concentration of the industry can be seen with fewer than 50 ETFs (46) accounting for nearly 50% of industry assets (49.1%).
Compared with weak growth of 3.75% in 2011, the ETF industry saw solid growth in Q1 2012, as assets under management rose by 8.71% to €250.81 billion (Q1 2012)
In Q1 2012 equity ETFs saw inflows of over €3 billion in new assets under management, followed by €1.5 billion into bond funds and €770 million into commodity funds. Money market ETFs experienced outflows of over €990 million.
310 ETFs were launched in 2011. In Q1 2012, 62 ETFs were launched - half in the equity space. 19 bond funds were launched in the first quarter, but these have gathered 63% of assets among new ETFs.
ETFs launched in Q1 2012 saw inflows of €490 million in new assets under management. Bond funds were the leading groub with inflows of €311 million followed by equity funds with inflows of €102 million and €49 million in “other” funds. Commodity funds.enjoyed inflows of €21 million, while money market ETFs experienced inflows of €5.63 million.
The most active provider for ETF launches in Q1 2012 was Lyxor, with db x-trackers and UBS following.
View presentation: http://www.youtube.com/watch?v=_ZvJDDadjCQ
request report
Source: Lipper
Decision makers meet at the EESC to debate the way out of the debt crisis
June 11, 2012--The search for answers to the EU economic crisis has continued at the European Economic and Social Committee (EESC) with a debate on the sovereign debt crisis.
In an unprecedented event, representatives of the EESC, the European Commission, the European Parliament, the European Investment Bank and the European Central Bank exchanged views with the Italian Minister for European Affairs and the President of the Eurogroup.
Staffan Nilsson, President of the EESC, opened the session with a clear statement on the sovereign debt crisis, calling for a fiscal stability union in the EU and the introduction of Eurobonds. Concrete initiatives are needed, he said, for member states to share fiscal responsibilities and so that interest rates on the public debt of countries that are making fiscal consolidation efforts can fall.
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Source: Europa
Five new UBS ETFs launched on Xetra
ETFs track indices on Canada, Japan and the UK
June 11, 2012--Five new exchange-listed equity index funds from the issuer UBS Global Asset Management have been tradable in Deutsche Boerse's XTF segment since Monday.
The UBS ETF plc- MSCI Canada TRN Index SF and the UBS ETF plc-MSCI Japan TRN Index SF enable investors to participate in the performance of medium- and large-sized companies from Canada and Japan.
The UBS ETF plc- FTSE 100 SF tracks the performance of the UK's 100 largest blue-chip companies across all sectors. The product offering in Deutsche Börse’s XTF segment currently comprises a total of 986 exchange-listed index funds, while the average monthly trading volume stands at €12 billion. Xetra® and XTF® are registered trademarks of Deutsche Börse AG.
List of the new UBS ETFs with ISIN and total expense ratio (TER)
Source: Xetra
DB - Equity Research-European ETF Market Monthly Monitor : 2012 fixed income ETF flows overshadow equity as investors deliberate on Euro zone direction
June 11, 2012--Market Direction: What kind of light is there at the end of the Euro tunnel?
Over May 2012, equity markets continued to discount increasing uncertainty, largely driven by the Euro zone crisis but also fueled by news that potentially cast doubt on the strength of the US economic recovery.
In Europe, pressure on the region’s financially weakest countries continued to gather pace, highlighting increasing questions about how to best address Euro zone governance changes that can lead to more stable fiscal management across the single currency area.
Equity markets declined across the board over the month of May, while volatility has risen significantly. EuroStoxx50 fell by 6.7% in May, wiping out all of its 2012 gains and finishing down 6.1% YTD. Germany’s DAX lost 7.4% over this month but it still managed to stay in positive territory for the year, registering a YTD increase of 6.2%. At the same time, equity market volatility continued to rise with the VSTOXX - an index measuring Euro zone equity market volatility as measured by EuroStoxx 50 index options implied volatility - rising by close to a third (29.7%) in May.
The Euro zone storm began to gather pace – once more - in early May as elections in Greece on May 6th failed to produce a stable government. The country’s inability to generate a clear commitment towards continuing to support bailout terms continued to raise investor concerns about the impact of a possible disorderly default. At the same time, at the end of May Spain, the Euro zone’s 4th biggest economy, came under increased pressure to recapitalize its banking sector as well as continue towards reforms to modernize its economy. These latest developments came on the back of a number of measures taken by Euro zone countries that have so far failed to ease concerns about the single currency zone’s ability to effectively manage its collective finances.
It has now become clear that with each set of measures taken by European leaders over the better part of the past three years, the latest of which generated the pledge for a fiscal pact supported in principle by 16 countries back in March 2012, the market follows by questioning the currency zone’s ability to manage its way out of the credit crisis. Balancing austerity and taking decisions to spur growth at a country level has become the most recent criticism. The overarching riddle that European leaders are being faced with is how to form an effective and credible Euro zone fiscal governance mechanism.
That is by no means an easy feat as many of the necessary governance changes are perceived in some member states as ceding sovereignty - both by the continent’s financially strongest as well as weakest - towards a central Euro zone fiscal authority, and could therefore prove unattainable politically. Furthermore, clarifying the role of the European Central Bank as well as the tools at its disposal, remain a challenge.
While contagion concerns from a possible disorderly Greek default remain very material ahead of a second election in Greece on June 17th, the bigger issue that seems to emerge relates to governance changes that the Euro-zone will need to take and how those can impact its ability to enforce economic discipline and manage economic growth effectively over the longer term.
While many opinions exist about the relative strengths and weaknesses of each Euro zone country, the large drop in the DAX over May is pointing to an increasing realization that fortunes of the stronger and the weaker are intertwined. It remains to be seen if the downward pressure from this convergence can lead to decisive measures that could signal turning a corner, or if political differences embedded in systems that were created in isolation over centuries will show the way back to the past.
At the moment, in the European ETF industry, investors seem to be optimistic that that a solution is still possible, given that we have yet to see any significant outflows which could imply a meltdown of long equity positions. European broad equity indexed ETF outflows totaled €1.7 billion YTD, this is equivalent to a 6.8% decline of the relevant ETF assets (€25.0 billion as of 31/12/11). Total broad European equity ETF assets are down €9.1% YTD, reaching €22.7 billion as of the end of May 2012. Similarly, DAX benchmarked ETF outflows for 2012 total €341 million YTD, amounting to 1.7% of the DAX benchmarked ETF assets at the beginning of the year (€19.6 billion). DAX benchmarked equity ETF assets are up 4.2% since the beginning of the year, reaching €20.4 billion as of May month end.
The question that remains unanswered is how long more Europe has to convince markets that there is light at the end of the tunnel and not a train coming from the opposite direction.
This month’s defining European ETF trades:
May was a month driven by fixed income buy trades, yet volatility products also saw some interest. Below we summarize the month’s strongest cash flow signals, which give a good impression of the European ETF investor’s mood over May 2012:
Buy
German, UK and US sovereigns, mostly short duration (+€668 million= €365+€213 +€90)
Investment grade and high yield corporate bonds (+ €316 million = €240 + €76 )
Volatility, especially vol strategies (YTD: Vol strategies: + €443 million)
Money markets (+ €310 billion)
Sell:
Gold (-€571 million)
European broad equity indices, especially EuroStoxx50 (- €304 million)
Emerging markets broad equity indices (-€221 million)
Please also find attached an updated version of our European ETP directory. This document includes all European domiciled exchange-traded funds (ETFs) and exchange-traded commodities (ETCs). The directory is organised by asset class and it has been sorted by benchmark exposure and by ETF issuer, in alphabetical order. A number of key information per product have been included in order to enable the reader to get an overview in their respective area of interest.
The following link will be available for 90 days. For more information, please click on the link for the full PDF. If you have any trouble viewing the link, copy and paste the link in a browser.
view European ETP directory
Source: Christos Costandinides, European Head of ETF Research & Strategy, Deutsche Bank
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